Namibia's premier agricultural lender, Agribank, significantly boosted its loan disbursements, reaching over N$284 million this year, compared to the previous year's N$194 million.
According to a statement issued by spokesperson Rino Muranda, 564 clients benefited from these loans, up from 440 last year.
This was said at the bank's annual general meeting held in Windhoek on 27 September.
The event was also attended by minister of finance and public enterprises Iipumbu Shiimi.
Muranda said land purchases dominated the loan allocations, amounting to N$98,2 million and covering 134 122 hectares in the 2023 financial year, a considerable increase from N$55,1 million and 57 965 hectares in the 2022 financial year.
He said livestock purchases also saw a rise, reaching N$76,8 million in 2023, compared to N$52,2 million the previous year.
"Loans extended to women increased to N$55,4 million from N$30,1 million in 2022, while youth loans rose to over N$30,6 million in 2023 from N$20,5 million in the prior year.
"The bank supported full-time communal farmers without collateral through its emerging retail financing product, providing over N$25,2 million - up from N$12,6 million in the prior fiscal year.
"Additionally, the no-collateral scheme backed by salaries aided employees engaging in part-time farming, with N$13,5 million disbursed in the 2023 financial year, compared to N$10,1 million during the 2022 financial year."
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Agribank's board chairperson, Josephat Mwatotele, acknowledged the bank's commendable financial performance, highlighting a surplus of N$49,5 million.
"I am encouraged by the sales and collection efforts that are on an upward trajectory, despite operating in a very difficult environment," he said, emphasising the challenges posed by weather patterns with frequent droughts, as well as global events.
The focus moving forward includes stakeholder engagement, operational efficiencies and an enhanced complaints management system to improve customer service, underpinned by best governance practices.
Shiimi applauded the board and management for "playing an active role in the transformation of agriculture, by contributing to efforts to remove barriers across the agriculture value chain."
He urged the bank to use such platforms to create opportunities for farmers and encourage them to adopt climate-resilient practices.
The minister said the ministry is working on new approaches for the governance of public enterprises, which include the coordinated board development programme for state-owned enterprises.
Also under consideration is the lifting of key performance indicators from strategic business plans, leadership development within state-owned enterprises, as well as formalising performance culture as some of the key requirements for reporting at annual general meetings and public enterprise governance going forward.
- email: matthew@namibian.com.na
