Agribank has invited farmers in the country to apply for production loans to boost their agribusiness in the face of a looming drought in the country.
Namibia’s farming season has been hit by poor and erratic rainfall patterns which resulted in crop failures in many areas, leaving farmers desperate.
According to a statement issued by Agribank spokesperson Fillemon Nangonya, there is no limit to the loan amount as this will be determined by the affordability and risk appetite of the bank.
“Farmers will receive a grace period depending on the cash flow of the production activities of the agribusiness,” he said.
Nangonya said the production loan facility can be used for multiple purposes including the acquisition of seeds, fertilisers, herbicides and pesticides.
“It can also be used to pay for weeding in the fields, buying fuel and oils for equipment and machinery, transportation costs, wages, lease of grazing, livestock feed, licks, veterinary services, horticulture and micro irrigation projects,” he said.
The facility also caters for day-to-day farm expenses such as maintenance of boreholes, farm vehicles and food rations for farm workers.
According to Nangonya, the loan is payable over one year, and it can be revolved for up to five years.
“The facility is available to both full-time and part-time farmers at applicable interest rates of 8% for communal farmers and 9,5% for commercial farmers.
“We provide local solutions to every farmer’s needs with tailor-made facilities at competitive interest rates,” said the bank.
Nangonya advised all Agribank clients who are facing financial challenges and are unable to service their loan obligations on time to approach the bank and make other payment arrangements before it is too late.
– email: matthew@namibian.com.na
