Agribank charcoal loan available

AGRIBANK has announced that its biomass value chain financing scheme, launched in September last year, is now available to members of the public.

According to a statement issued by the bank’s public relations officer, Fillemon Nangonya, this special loan scheme is aimed at meeting the strategic objective of loan book diversification, coupled with the bank’s mission to continuously offer innovative agricultural financing solutions.

The loan scheme was announced by the deputy chairperson of the board, Dagmar Honsbein, at the official opening of the new Agribank branch at Gobabis last year.

According to Honsbein, bush thickening affects 26 000 000 hectares in nine of the country’s 14 regions, and the bank believes the sustainable utilisation of this bush would make a significant quantity of groundwater available, provide for biodiversity improvement, and open up land areas for higher productivity of range-lands.

“The biomass industry has the potential to improve the stream-flow of underground water, refine range-land productively, create sustainable employment and serve as an opportunity for farmers to diversify revenue streams,” said the statement.

In addition, the industry will promote climate smart agricultural practices.

According to the bank, under the biomass value chain financing scheme, an applicant who can be a legal entity or individual, can be the owner of the farm or leasing a farm from which he/she can harvest biomass to produce charcoal.

The applicant can also be a processor who buys charcoal to process and pack for the end market (retail shops, restaurants or export/import companies for charcoal).

“Both applicants are required to have a permit from the Ministry of Environment, Tourism and Forestry, in order to harvest the biomass for charcoal,” the statement said.

The facility offers loans for working capital including food rations for employees, tractors/trailers, storage sheds, de-bushing equipment, workers’ housing, including the provision of clean water and sanitation, the bank said.

“As for charcoal processors, financing of working capital, general equipment and vehicles, maintenance workshop, an office to operate from, a charcoal processing plant, warehouse and equipment are offered,” said the statement.

Namibia currently has 230 charcoal producers and 24 charcoal processors, creating 7 560 direct jobs, and providing a livelihood for more than 50 000 people.

“Charcoal production is currently equivalent to harvesting bush from about 75 000 hectares of land per year, and statistics indicate the industry is expected to grow on average by 8% over the next five years, with an expected annual turnover of N$700 million,” Honsbein said.

Agribank has assured members of the public that the institution will continue playing a meaningful role in ensuring that both communal and commercial farmers have access to affordable financing, to take the agricultural sector to the next level.

Honsbein said it is important for the bank to introduce the loan scheme as the institution expects the industry to create 375 direct jobs from harvesting and processing in the first year, and 950 jobs in year two.

– bottomline@namibian.com.na

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