Africa-Press – Namibia. AGRIBANK issued loans worth N$173 million to stakeholders in the agriculture sector during the financial year ended February 2022, with N$10 million going to women and the youth.
This was said by the bank’s public relations officer Fillemon Nangonya in a statement issued yesterday. “Out of the total amount advanced as loans, N$10,8 million was issued to qualifying clients under the women and youth loan scheme of the bank,” he said.
The women and youth scheme was introduced to cater to women above the age of 18 years, as well as youths (men and women) between 18 and 35 years, and agricultural professionals or graduates above 18 years.
“At least 50% of the total amount disbursed went to land purchasing by beginners, while the balance financed the purchasing of large and small stock, poultry and to construct dwellings and other permanent farm buildings,” Nangonya added.
Agribank introduced the scheme to increase the participation of women and the youth in farming activities, since it comes with distinct features serving as incentives.
“These include interest rates fixed at 7% across all loan products under the scheme, a one-year grace period, and financing of unsecured loans to individuals or entities who do not have collateral, provided there is an offtake agreement in place to be provided by a client,” Nangonya added.
According to the statement, Agribank endeavours to embed the women and youth scheme and collaborate with key stakeholders to promote off-take agreements in the value chain financing.
This will enhance market access and availability to farmers and realise greater participation and adoption by small-scale farmers in the sector and increase food security as well as wealth creation among the youth. Nangonya said agricultural finance is the bedrock of food self-sufficiency, wealth creation and improvement in overall economic growth.
“To promote sustainable agriculture, the inclusion of women and the youth is vital, therefore, Agribank will continue to focus on addressing inclusivity, promote product diversification, smart climate resilient production systems, technological innovation and embedding financial sustainability,” he added.
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