WINDHOEK: The Agricultural Bank of Namibia (Agribank) and Germany's Kreditanstalt fr Wiederaufbau (KfW) Development Bank on Thursday entered into a historic agreement, signing a first concessional loan of over N.dollars 400 million. Agribank and KfW in a joint statement said the collaboration aims to empower farmers operating in both communal and commercial areas, as well as other agricultural or food-processing micro, small and medium enterprises in Namibia. 'Agribank will on-lend the funds for the target group of small-scale farmers as well as the MSMEs in primary agriculture and agro-processing. With access to need-based financial products, the target group is empowered to use funds to expand and develop their agriculture or food processing activities, thereby generating additional income and increasing food production and income in Namibia,' the statement read. The project promotes the establishment of productive and resource-conserving agriculture for sustainability reasons. After signing the loan ag reement, Agribank and the National Planning Commission and KfW Development Bank also signed a grant agreement of just over N.dollars 20 million in Agribank's favour, the joint statement said. During the signing ceremony, Head of Development Cooperation at the German Embassy, Ulrike Metzger said it is known that there is a lack of access to credit financing in rural areas, especially for young farmers, women and farmers on communal land. She noted that this prevents necessary investments to increase productivity and secure income for rural families. 'Commercial banks can only grant loans with land titles as collateral, which cannot be presented on communal land,' Metzger added. Simultaneously, Agribank CEO Raphael Karuaihe said the day marks a momentous occasion - the signing ceremony of a crucial loan agreement that symbolises a significant chapter in the bank's commitment to sustainable and long term funding for its lending activities. 'Our vision is to contribute not only to the financial wellbeing of our clients but also to the broader goal of environmentally conscious and sustainable practices in the agricultural sector,' Karuaihe noted. Source: Namibia Press Agency (NAMPA)
Related Posts
EMPRETEC PROGRAMME BUILDING NAMIBIA’S ENTREPRENEURSHIP CAPACITY
WINDHOEK: Namibia is rapidly becoming the leading light of the Empretec Programme, a capacity building initiative specially designed to encourage entrepreneurs to start and grow their businesses.
The Empretec Namibia Programme was first launched in 2…
Pan African Heritage World launches first global digital museum
The Pan African Heritage World Museum, being constructed in Ghana, is launching the first digital museum in the world on…
HM the King, Commander of the Faithful, Chairs First Religious Lecture of Ramadan 1445 AH
His Majesty King Mohammed VI, Commander of the Faithful, may God assist Him, accompanied by HRH Crown Prince Moulay El Hassan, HRH Prince Moulay Rachid and HH Prince Moulay Ismail, chaired on Friday at the Royal Palace in Rabat the first religious le…