Bank Windhoek commits N$2 million to fighting FMD
Namibian banks might have to consider debt restructuring for farmers facing severe financial pressure following the recent foot-and-mouth disease (FMB) outbreak and nationwide livestock movement restrictions.
At the same time, the government is appealing for more funding to contain the disease.
The Bankers Association of Namibia says lenders are monitoring the effect of the outbreak on farmers and their loan portfolios, with repayment rescheduling and debt restructuring among measures that could be considered.
But relief won’t be automatic. Banks will assess applications individually according to their lending policies, credit criteria and regulatory requirements, the association says.
“The banking sector understands the pressures that affected farmers may be facing as a result of the FMD outbreak and livestock movement restrictions,” says Bankers Association of Namibia (BAN) chief executive Dantagos Jimmy.
She asks farmers facing financial pressure to approach their banks in time.
The financial strain follows Namibia’s confirmation of FMD in the previously disease-free zone in the ||Kharas region.
Ten of 11 samples taken from cattle on a commercial farm in the Karasburg State Veterinary District have tested positive, prompting the government to suspend the movement of cloven-hoofed animals and their products nationwide.
For cattle farmers, the restrictions can delay or prevent livestock sales, leaving producers with ongoing costs but reduced access to revenue.
The government has established an FMD Support Fund and is seeking contributions from businesses, the public and development partners to finance intensified surveillance, livestock traceability, veterinary examinations and laboratory testing.
Acting minister of agriculture, fisheries, water and land reform Charles Mubita says additional funding is needed to strengthen the government’s response to the outbreak.
“The ministry, with the support of the industry, has established the FMD Support Fund, which is aimed at mobilising funds in the fight against FMD,” he says.
Meanwhile, Bank Windhoek has reaffirmed a N$2-million commitment to the fund, first pledged in February to strengthen Namibia’s preparedness and protect the agricultural sector, livelihoods and food security.
“With the confirmation of an outbreak, that commitment takes on even greater significance,” Bank Windhoek managing director James Chapman says.
The bank says it would continue engaging with the government, industry bodies and customers as the national response develops.
The BAN says it is too early to quantify the outbreak’s effect on agricultural loan books.
Banks will continue assessing the financial impact as the disruption to livestock marketing channels unfolds.
