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Agribank grows loan book by N$74m

Agribank increased its agricultural loan disbursements by 40% to N$74 million between April and June, compared to the corresponding quarter of the previous financial year.

According to a statement issued by Agribank spokesperson Fillemon Nangonya, the recorded increase was mainly driven by triple-digit growth in farmland loans, as well as livestock loans.

“Total loans advanced for the quarter under review stood at N$74,3 million, compared to N$46,9 million for the first quarter of the 2022/23 financial year,” said Nangonya.

In addition to the farmland and livestock loans, impressive growth was also noted under the crop sector, mainly propelled by crop production loans to irrigation farmers, specifically in the Otjozondjupa region, he said.

This supports the bank’s strategy of loan book diversification, he said.

Loan distribution by gender and age categories shows that males continue to dominate the loans advanced, accounting for 59% in the first quarter compared to 46% in the corresponding quarter in the 2022/23 financial year.

“Loans advanced to women accounted for 18%, which is a decline from 30% in the corresponding quarter in the 2022/23 financial year,” he said.

Groups and companies accounted for 23%, which includes men and women. In terms of loans advanced by age, 35% of the loans were taken up by individual farmers under the 31-40 years age category.

This demonstrates the bank’s efforts to deliver on its socio-economic mandate through targeted and special financing solutions to attract participation of women and the youth in the agriculture sector.

As the private sector credit extension picked up, Agribank observed an increase in the agricultural extension market share of 46% in the first quarter of 2023 compared to 45% in the prior year.

The increase could be attributed to the competitive loan terms offered by the bank, amid a rising interest rate environment.

“As a national development finance institution, Agribank will continue to play a catalyst role in addressing key national development issues such as food security, poverty reduction and employment creation within the agriculture space,” said Nangonya.

He added that Agribank strives to ensure inclusive development by empowering smallholder and large commercial farmers through access to tailored agricultural loans, training as well as advisory services.

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