Agribank boosts loan disbursements

Agribank significantly boosted its loan disbursements, reaching over N$284 million during the financial year ending 31 March.This is compared to the previous year&#039;s N$194 million.This information was made available at Agribank’s recently held annual general meeting, which took place in Windhoek and was aimed to showcase its accomplishments and present strategic plans that will shape the future of the institution.According to spokesperson Rino Muranda, 564 of the bank&#039;s clients benefitted from these loans - up from 440 last year.Land purchases continued to dominate loan allocations, amounting to N$98.2 million and covering 134 122 hectares in the 2023 financial year, he said.“This is a considerable increase from N$55.1 million and 57 965 hectares in the 2022 financial year.”Livestock purchasesMeanwhile, livestock purchases also increased, growing to N$76.8 million in the 2023 financial year compared to N$52.2 million the previous year.Muranda said loans extended to women increased to N$55.4 million from N$30.1 million in 2022, while youth loans increased to over N$30.6 million in the 2023 financial year from N$20.5 million in the previous year.“The bank supported full-time communal farmers without collateral through its emerging retail financing product, providing over N$25.2 million, up from N$12.6 million in the prior fiscal year.”Additionally, the no-collateral scheme backed by salaries aided employees engaging in part-time farming, with N$13.5 million disbursed in the 2023 financial year compared to N$10.1 million during the 2022 financial year.Upward trajectoryAgribank chairperson Josephat Mwatotele commended the bank&#039;s financial performance, highlighting a surplus of N$49.5 million.“I am encouraged by the sales and collection efforts that are on an upward trajectory, despite operating in a very difficult environment," he said.He emphasised the challenges posed by weather patterns with frequent droughts as well as global events that are continuously increasing input costs and thereby squeezing farmers&#039; disposable income.The focus moving forward includes stakeholder engagement, operational efficiencies and an enhanced complaints management system to improve customer service, underpinned by best governance practices, he said.Transformation of agriculturePublic enterprises minister Ipumbu Shiimi applauded the Agribank board and management for playing an active role in the transformation of agriculture by contributing to efforts to remove barriers across value chains.He urged the bank’s leadership to use such platforms to create opportunities for farmers and encouraged them to adopt climate-resilient practices.The ministry is working on new approaches for the governance of public enterprises, which include a coordinated board development programme, lifting of key performance indicators from strategic business plans, leadership development as well as formalising performance culture, Shiimi said.Key focus areasMeanwhile, Agribank CEO Dr Raphael Karuaihe, who presented the bank’s operational highlights, noted that prudent expense management, enhanced momentum on sales growth and sales automation initiatives were key focus areas for the review period.Going forward, the bank will focus on strengthening engagements with the shareholder, forging strategic partnerships across the agricultural value chains and developing a sustainable funding model, he said.The bank will also enhance collection and arrears management and its auctions prevention strategy, while aligning product innovation, inclusion and compliance with the Public Enterprises Governance Act, Karuaihe noted.

Agribank boosts loan disbursements

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