Transcript Slide 1

UNCCD COP11
INCLUSIVE FINANCING OF THE VALUE CHAIN FOR
WEALTH CREATION
by
Regan Mwazi
Manager Marketing Communication
23 September 2013
7/18/2015
1
Mandate
The Agricultural Bank of Namibia Act
N0. 5 of 2003 (as amended in 2004)
mandates the bank to advance money
to persons or financial intermediaries
to promote agriculture and activities
related to agriculture.
2
MISSION
To promote agriculture and its related
activities through affordable and
sustainable financial solutions towards
socio-economic
development
in
Namibia.
VISION
To become the financial institution of
choice in the development of
agriculture and its related activities.
3
Loan Product Types
Short Term Loans: Repayable between 1 – 5 years
- Productions Loans (livestock, horticulture and cereal crop) 1 – 5 years.
Interest rates ranges 4% - 8.50%
Medium Term Loans: 5 – 10 years (9.25% )
- Infrastructure and Implement Loans
- Improvement Loans
- Vehicle and Tractor Loans
- Alternative Energy – Solar System
- Livestock Loans
- Poultry Loans
Long Term Loans: 10 – 25 years (9.25%)
- Purchase of Farmland
- Bush encroachment or deforestation of dry land for farming operations
- Corporate Loans: grapes, dairy, piggery
- Consolidation of Loans
-- Infrastructure Loans
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Loan Product Types cont…
Government Special Schemes
- Affirmative Action Loan Scheme (AALS)
- North South Incentive Scheme (NSIS)
- National Agricultural Credit Program (NACP)
- Draught Animal Power Acceleration Program (DAPAP)
- Post Settlement Support Fund
- Labourers Housing
- Green Scheme
5
Land Reform Program
Land Utilization
Type
Total (ha)
Total surface area
82.4 million
Commercial farming area
44%
Communal lands
41%
Nature reserves
15%
Land Ownership
Type
Total ha’s
National Resettlement (FURS)
2,100,000
Affirmative Action Loan Scheme (AALS)
4,200,000
Privately Funded (PF)
2,300,000
Total
7,600,000
Government target 15 million ha by 2020
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Agribank Loan Book
Total Loan Book: N$1.9 billion
Etunda,
Ndonga &
ORIP schemes
1%
NACP
13%
PSSF
1%
AALS clients
41%
Commercial clients
44%
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Affordable Interest Rates
Resettlement Farmers
-
4.0%
Small-Scale Farmers
-
4.0%
Aquaculture
-
5.0%
Commercial Farmers
-
8.5 – 9.0%
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Farmers Support Project (FSP)
Training of farmers to gain skills has
become a vital component of the Land
Reform Program.
Agribank
and
the
Gessellschaft
fur
Zusammenarbeit (GTZ) signed the financing
agreement for the implementation of the Farmers
Support Project (FSP) in Namibia.
Trained 2000 farmers and appointed 30 mentors
who provided mentoring services to all farmers.
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Key Challenges
Lack of collateral/security for small-scale
farmers in rural/communal areas to
access credit from Agribank is a critical
factor.
Lack of information flow to encourage
subsistence farming to commercialise
and take farming as a business,
especially in communal/rural areas.
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Investment Opportunities
AQUACULTURE – Opportunities available for the
development of the aquaculture sector (Tillapia,
Oyster, Abalone, etc.). Namibia has one of the richest
marine resources in the world.
AGRI-TOURISM – Opportunities available for the
promotion and expansion of game farming and hunting
(trophy hunting), community-based tourism for smallscale farmers in communal areas to access credit from
Agribank is a critical factor.
FOOD PROCESSING – promotion of value addition to
the raw agricultural materials through food processing
such as canned food, animal feed, tomato puree, etc.
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Investment Opportunities continues…
FRUIT AND VEGETABLE FARMING – Promotion
of fruit and vegetable farming to produce
locally for export (grapes, dates, oranges,
mangos, pineapples, etc.).
SPICE PRODUCTION – promote the production
of various types of spices for the local market
and export.
CHARCOAL PRODUCTION – Promotion of
charcoal production from bush encroachment
in order to increase productivity per hectare.
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Investment Opportunities continues…
COTTON WOOL AND SILK PRODUCTION –
Promotion of cotton production for the
manufacturing of wool threads for the local
market and for export.
TIMBER MANUFACTURING – Promote the
establishment of timber factories for furniture
manufacturing for the local market.
LEATHER FACTORIES – Promotion of leather
factory establishment for tanneries and hides
processing for making leather clothes, shoes,
etc.
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Investment Opportunities continues…
FERTILIZER PRODUCTION – Promotion of the local
manufacturing of agro-inputs such as fertilizers and
distribution thereof in order to cut costs of imports.
PHARMACEUTICAL PLANTS – Promote the
production of pharmaceutical plants on a large scale
to support the manufacture of medicines for the
health sector. Plants such as hoodia, sea weed and
devil’s claw are sought after internationally and
offer great opportunity to diversify the sector and
create jobs.
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Conclusion
Agribank is exploring inclusive innovative
financing through measures such as assetfinancing, contract financing and clustering
of small scale farmers to facilitate
economies of scales.
The bank invites potential investors to
invest with Agribank today for a
prosperous Namibia tomorrow.
15
Thank you!!!
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