AgriBank reviews policies

THE Agricultural Bank of Namibia (AgriBank) is reviewing its loan procedures and policies in order to update and improve them.

After having completed a drastic restructuring exercise last year, which affected over half of its workforce two years ago, ‘we are addressing the review and update of all policies and procedures in line with our strategic planning documents and our mandate’, said Leonard Ipumbu, Chief Executive Officer of AgriBank, in a statement on Monday.
AgriBank now issues production loans to farmers and supports practical training courses for farmers.
According to Ipumbu, AgriBank’s lending scope was already broadened in 2006 to include loans for fish farming (aquaculture), forestry, combating bush encroachment, guest farms, game farming and hunting and processing and storage of agricultural products. Another reform already put in pace was to reduce the interest rates on loan repayments last year.
The Bank reviewed and streamlined the loan processing cycle and the procedures of all the products and services in order to shorten the loan application period. It reviewed some of its existing products and services to ensure customers’ affordability, increased productivity and promotion of value addition.
‘In the absence of an Act of Parliament to proclaim assets in communal areas as suitable for collateral or security, access to credit by communal farmers will remain elusive,’ AgriBank said.
According to statistics by the National Planning Commission, 70 per cent of the population lives in the communal areas and depend on agriculture for a living.
‘AgriBank will consult with stakeholders to come up with means as collateral to assist communal farmers to have access to finance in order to promote broad participation and diversification of the agricultural sector for sustained economic growth. This will create jobs, reduce poverty and create wealth, which is a prerequisite for achieving Vision 2030,’ Ipumbu said.
AgriBank recently started inspections of all farms acquired under the Affirmative Action Loan Scheme (AALS) to determine the level production and status of the farms in order to advise clients on improving their farming activities.
AgriBank and the Ministry of Agriculture, Ministry of Finance and the Ministry of Lands and Resettlement are in the process of undertaking a detailed review of the AALS.
AgriBank started discussions with the Ministry of Lands to set up a fund to assist resettled farmers. Soon a Memorandum of Understanding (MoU) is to be signed between the Ministry and AgriBank to establish the revolving financing scheme to support resettlement farmers to increase their production.
AgriBank also intends to approach the Agronomic Board of Namibia in order to promote the erection of storage facilities for perishable products in strategic areas in communal areas.
‘The promotion of the development of agriculture in communal areas should be commensurate with the availability of storage and marketing facilities. This will enable communal farmers to produce, store and market at any time of the year. The shelf-life of the perishable products will be extended and this will play a major role in the development of agriculture for surplus production,’ AgriBank concluded.