By: Nghiinomenwa-vali Hangala
According to the Minister of Agriculture and Land Reforms, Inge Zaamwani-Kamwi, accessible and affordable finance alone cannot transform agriculture.
She said it will take a coordinated approach to establish sustainable agricultural growth.
Through coordination with government, financiers and producers to ensure market access, broadening extension services and improving farmers productivity.
Zaamwani-Kamwi said this in Parliament as she answered questions relating to access to agricultural financing through Agribank.
According to Member of Parliament Vetaruhe Kandorozu, agricultural finance through Agribank is expensive, restrictive, and difficult to get a loan.
Zaamwani-Kamwi acknowledges that access to affordable finance is one of the key drivers of agricultural production and rural development.
“Credit enables farmers to invest in productive assets, adopt improved technologies, expand production, and better withstand climatic and market-related shocks,” she stated.
According to Zaamwani-Kamwi, the state bank innovated various products with flexible collateral requirements.
Saying the bank’s products have been designed to enable and expand access to agricultural finance.
Especially for the youth, women, salaried individuals, and others previously denied access to finance, the Minister explained.
She also noted that since Agribank is a development finance institution, it must conduct its business sustainably by balancing its development mandate with financial prudence.
Agribank’s loan interest rates range between 4% and 9%.
The state-owned bank also offers concessional loans, which, according to Zaamwani-Kamwi, were introduced for communal farmers to access working capital.
She also noted that treasury allocation is not sufficient to finance Agribank’s annual lending.
According to the bank figures furnished to the Minister, the Agricultural Bank advances around N$250 million annually, while treasury support has averaged around N$99 million for the past 3 years.
