The Bank of Namibia (BoN) has announced drought relief measures to assist farmers and agriculture business owners in the face of the crippling drought.
BoN spokesperson Kazembire Zemburuka in a statement yesterday says the initiative, called the ‘Determination on Policy Changes in Response to Economic and Financial Stability Challenges as a Result of the State of Emergency over the Persistent Drought in Namibia’, came into effect from 23 October.
President Nangolo Mbumba declared a state of emergency on 22 May, following the worst drought the country has experienced in 100 years. The state of emergency enables the government to mobilise resources to assist farmers and other stakeholders in the sector to mitigate the impact of the drought.
Zemburuka said these measures will remain in force until October 2026, and are subject to continuous review by the bank.
“In terms of this determination, banking institutions are required to implement relief measures, including the restructuring of loans, granting of loan moratoriums and emergency funding under preferential terms.
“This will ease the financial burden on affected clients while helping to stabilise the agricultural sector amid the persistent drought,” Zemburuka said.
According to Zemburuka, the determination provides relief to agricultural clients who can demonstrate that they have been severely affected by the drought that has been persistent in Namibia for the past few years.
He added that the determination is a reflection of the central bank’s ongoing commitment to support the agricultural sector during these challenging times, by ensuring that local farmers and agricultural businesses have the financial flexibility they need to navigate the drought crisis.
– email: matthew@namibian.com.na
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