The Agricultural Bank of Namibia (AgriBank) and the Namibia Agronomic Board (NAB) inked a Memorandum of Understanding (MoU) on risk assessment of loan applicants, who want to venture into agricultural production, value addition and storage of agronomic and horticultural products.
Under the same terms, the institutions will evaluate the need for new loan products across the agronomic and horticultural value chain. The MoU runs for five years with an option of renewal, and will also extend to interventions aimed at developing the agronomic and horticultural industry in Namibia.
“The two institutions will also share information relevant to the core business of each party and collaborate in hosting of capacity building activities to enhance the knowledge and skills in production for farmers, individuals, small and medium enterprises,” says the joint statement issued, following the official signing ceremony held in the Capital on Wednesday.
The objective of Agribank is to promote agriculture and related activities by lending money to persons and financial intermediaries through providing affordable and innovative financing. Similarly, the NAB objective is to promote the agronomy and horticulture industry, and to facilitate the production, processing, storage and marketing of controlled vegetable and fruit products in Namibia.
In addition, the two institutions agreed to transform small-scale farmers through scaling-up programmes in agronomy and horticulture production, value addition and connecting them to formal markets and services for expansion.
Promoting the adoption of relevant technologies and climate resilient strategies among agronomy and horticulture farmers in Namibia, also serves as another area of collaboration.
“Agribank is committed to the mandate and will continue to play its part in not only promoting horticulture and agronomy, but the agriculture industry as a whole,” reaffirmed AgriBank’s Chief Executive officer (CEO) Dr Raphael Karuaihe.
Meanwhile, his counterpart, Dr Fidelis Mwazi of NAB, said the MoU signifies the importance of NAB’s vision of becoming a world class regulator of a vibrant, diversified and sustainable crop industry; as such, we are excited to be part of this collaboration.”