For the financial year ending February 2022, Agribank advanced loans worth N$173 million into the agriculture sector. Out of the total amount advanced, N$10.8 million was disbursed to qualifying clients, specifically under the women and youth loan scheme of Agribank.
This was revealed by the bank’s spokesperson Fillemon Nangonya yesterday in a statement.
“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,” he explained.
Nangonya added 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.
“The incentives include interest rates fixed at 7% 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,” stated Nangonya.
He further stressed 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. He noted this will enhance market access and availability to farmers and realise greater participation and adoption by small-scale farmers in the sector and increase food security as well as wealth creation among the youth.
“Agricultural finance is the bedrock of food self-sufficiency, wealth creation and improvement in overall economic growth. To promote sustainable agriculture, the inclusion of women and youth is vital, therefore, Agribank will continue to focus on addressing inclusivity, promote product diversification, smart climate resilient production systems, technological innovation and embedding financial sustainability,” pointed out the spokesperson.