Africa-Press – Namibia. AGRIBANK is rolling out a biomass value chain financing scheme, which was operationalised earlier this year, to meet the bank’s loan book diversification objective.
This was said by Agribank’s chief executive officer Raphael Karuaihe when the financial institution signed a memorandum of understanding (MOU) with the Namibia Biomass Industry Group (N-BiG) in Windhoek yesterday.
“The signing of the MOU with N-BiG, as an industry association in the Namibian biomass sector, comes at an opportune time,” he said.
“As a bank, we are delighted to be in this partnership since it talks directly to our strategic objectives,” he said in a statement issued by the bank’s public relations officer Fillemon Nangonya.
N-BiG chief executive officer Progress Kashandula described the cooperation agreement as “a major milestone in the development efforts of the bush biomass sector in Namibia, through a public-private cooperation approach”.
“Furthermore, the biomass sector holds potential to contribute to socio-economic development and an inclusive bio-economy for Namibia,” he said.
Agribank is a state-owned enterprise that promotes agriculture and related activities by lending funds to individuals and financial intermediaries through the provision of affordable, innovative and inclusive financing solutions. N-BiG is a non-profit industry association representing a wide range of members active within the Namibia bush biomass sector with the vision of shaping the future of bio-energy and bio-based products in Namibia.
The scope of the cooperation agreement includes cooperation in the development and amendment of financing products aimed at scaling-up projects in bush control and biomass utilisation, and the sharing of data required to develop loan products that are responsive to market needs. N-BiG will provide expertise through the advisory service component, especially on risk assessment of bush control and biomass utilisation loans. Other areas of cooperation include technical support in development, outreach and integration of bush control and biomass utilisation industry/farmers’ tools such as the biomass quantification and feed formulation tools.
The two institutions will also host training for existing and prospective farmers, individuals, and small and medium enterprises interested in bush control and biomass utilisation activities, including current Agribank loan holders.
Monitoring and evaluation of bush control and biomass utilisation activities is also another area of cooperation. The biomass industry has the potential to improve the streamflow of underground water, refine rangeland productivity, create sustainable employment, and give farmers an opportunity to diversify revenue streams.
In addition, the industry will promote climate-smart agricultural practices. The agreement is valid for five years, from August 2022 to July 2027, with an option for renewal.
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