Agribank loans N$10 million to women, youth
Agribank advanced loans worth N$173 million into the agriculture sector for the year ending February 2022. Out of that amount, N$10.8 million was disbursed to qualifying clients, specifically under the women and youth loan scheme of Agribank.
The women and youth scheme was introduced to cater for women above the age of 18 years, as well as youth (men and women) between 18 and 35 years, and agricultural professionals/graduates above 18 years of age.
A statement by Agribank on Friday stated that 50% of the total amount disbursed went to land purchasing by beginners, while the other share financed the purchasing of large and small stock, poultry and construction of dwellings and other permanent farm buildings.
Agribank introduced the women and youth scheme to increase the participation of women and youth in farming activities, since the scheme comes with distinct features serving as incentives.
These include interest rates fixed at seven per cent across all loan products under the scheme, one year grace period, and financing of unsecured loans to individuals or entities who do not have collateral, provided that there is an offtake agreement in place to be provided by a client.
“Going forward, Agribank endeavours to embed the women and youth scheme and collaborate with key stakeholders to promote off-take agreements in the value chain financing. This will enhance market access and availability to farmers and realize greater participation and adoption by small-scale farmers in the sector and increase food security as well as wealth creation among the youth,” the statement reads.
The bank said agricultural finance is the bedrock of food self-sufficiency, wealth creation and improvement in overall economic growth. Therefore, Agribank said, to promote sustainable agriculture, the inclusion of women and youth is vital.
“Agribank will continue to focus on addressing inclusivity, promote product diversification, smart climate resilient production systems, technological innovation and embedding financial sustainability,” it said.