The implementation of Agribank’s Arrears Relief Programme officially began yesterday and will provide much-needed assistance to hundreds of farmers who have fallen behind on their loan repayments. 

The programme was launched in September last year. 

It aims to relieve struggling farmers of their loan repayments while strengthening the bank’s loan recovery efforts through an incentivised, supportive approach.

The application window runs from 2 February to 31 August 2026.

 Interested clients are advised to visit their nearest Agribank office to apply.

The relief will be offered to all Agribank clients with accounts in pre-legal or legal status, allowing participating clients to benefit from a 100% write-off of penalty interest, subject to conditions. 

Pre-legal clients are required to pay at least 20% of their arrear balance (loan instalment and interest portion, excluding penalty interest), while legal clients must pay at least 25% of their arrear balance under the same terms. 

Additional benefits include, where applicable, delisting from the credit bureau, voluntary advisory services tailored to client needs, and, where suitable, opportunities for project publicity and marketing support.

“Once the required portion of the arrears is paid, the remaining arrear balance will be ring-fenced, and no further interest will be charged on that amount.
The ring-fenced balance may be repaid for a period of up to 60 months, through equal monthly, quarterly or bi-annual instalments. 

“Clients will sign an addendum to the loan agreement to formalise the arrangement, and, where legal action has already been instituted, the repayment arrangement will be signed as an Order of Court. 

“Clients must, however, continue to service all new and ongoing instalments as they fall due,” the bank’s spokesperson Fillemon Nangonya stated. 

Failure to honour the agreed repayment arrangement will result in the reinstatement of penalty interest and continuation of recovery processes.  Defaulting on any other loan obligations may also lead to the revocation of relief benefits. 

Relief under this programme is granted once per client unless otherwise revised.

“Beyond the Arrears Relief Programme, Agribank continues to cushion farmers against challenges such as drought through climate-responsive financing products, provision of advisory services to improve productivity and collaboration with the government and other stakeholders on relief measures as and when required.
These efforts aim to sustain farmers during difficult periods while ensuring the sustainability of the bank’s loan book,” he said.

Collaboration

Late last year, Agribank entered into a strategic agreement with the Agro-Marketing and Trade Agency (AMTA), under which the two institutions will collaborate to strengthen and expand collaboration in the agricultural sector, particularly by supporting small-scale farmers without market access and through capacity-building initiatives.

The two parties committed to promoting the financing of value-added projects, with a particular emphasis on commodity-specific value chain development. 

The relationship between Agribank and AMTA is strategic and well positioned to serve the long-term needs of the country’s farmers in remote areas without access to mainstream markets. 

AMTA was created and mandated to consolidate various government initiatives of enhancing food production and crop diversification, horticultural production and marketing, including fresh produce business hubs, mahangu development, rice production, strategic food reserves infrastructure (silos) and overall value addition. 

Meanwhile, Agribank plays a pivotal role in promoting agricultural growth and development through affordable, innovative financing for farmers at all stages of production in both communal and commercial areas.

Through institutions such as Agribank and AMTA, the country has seen relative development in the value chains of livestock, fish and crop subsectors, where production, processing, marketing, financing and distribution activities occur at all associated economic spheres. 

Agriculture is the backbone of Namibia’s economy, supporting the livelihoods of 70% of the population and making it one of the country’s largest employers.

-ohembapu@nepc.com.na