Agribank mulls smart partnerships

THE Agribank of Namibia plans to court commercial banks in the country to co-finance capital intensive projects in agriculture and related industries, the bank’s Chief Executive Officer, Leonard Iipumbu, said Thursday.

Speaking at a meeting with emerging commercial farmers, Iipumbu said: “Agribank will provide funding based on the fair agricultural value of farmland, which takes into account the production capacity per hectare, including infrastructure. The system was adopted after a Cabinet decision on March 13 this year.”Iipumbu said it was unfortunate that some farms were sold expensive at market value before the reviewed valuation method.He was optimistic that the new land-valuation method would make land affordable to many and that the farmers would be able to service their loans as the bank strives to provide affordable and sustainable financial products and services.He also said there were many loan defaults and in cases the bank had repossessed farms, a situation that was jeopardising the land-reform programme.The bank was considering refinancing by issuing a second loan, but Iipumbu stressed that these funds should be put into production.The bank is looking to invest over N$1 billion over the next five years in line with product development strategy and national goals, he said.Meanwhile, Cabinet resolved to privatise ploughing services rendered to communal farmers by allowing entrepreneurs to acquire tractors and implements to render these services.Since the inception of the tractor scheme in 2000, 419 private entrepreneurs successfully completed a training programme and have taken over tractors previously owned by Government.The entrepreneurs are required to pay for the tractors through Agribank.NampaThe system was adopted after a Cabinet decision on March 13 this year.”Iipumbu said it was unfortunate that some farms were sold expensive at market value before the reviewed valuation method.He was optimistic that the new land-valuation method would make land affordable to many and that the farmers would be able to service their loans as the bank strives to provide affordable and sustainable financial products and services.He also said there were many loan defaults and in cases the bank had repossessed farms, a situation that was jeopardising the land-reform programme.The bank was considering refinancing by issuing a second loan, but Iipumbu stressed that these funds should be put into production.The bank is looking to invest over N$1 billion over the next five years in line with product development strategy and national goals, he said.Meanwhile, Cabinet resolved to privatise ploughing services rendered to communal farmers by allowing entrepreneurs to acquire tractors and implements to render these services.Since the inception of the tractor scheme in 2000, 419 private entrepreneurs successfully completed a training programme and have taken over tractors previously owned by Government.The entrepreneurs are required to pay for the tractors through Agribank.Nampa