WINDHOEK – The demand for the purchase of commercial land by previously disadvantaged Namibians surged during July to September this year, according to the lastest quarterly report by Agribank of Namibia.
A total of 44,204.7530 hectares of farmland exchanged hands, one a farm measuring 2,500.6702 hectares acquired under the Affirmative Action Loan Scheme (AALS) while the demand for commercial land accounted for 43 percent of total loans approved during the third quarter of the year. According to the report, Agribank increased the investment towards the agricultural sector by 48 percent from N$75 million in the second quarter to N$144 million during the third quarter; a decrease of 22 percent year a year. The surge in the demand for loans is attributed to the increase in livestock marketing from Namibian producers to South Africa after the restrictions were lifted.
Loans for livestock took second place with 17 percent while the backlog for the drought relief scheme lagged behind in third place with 14 percent. Taking over of agricultural debts from financial institutions was in fourth place at ten percent of total loans approved. Farm dwellings took fifth place with four percent, along with infrastructure and implements in fifth place with two percent spent on loans. A staggering 65 percent portion of the loans approved went to commercial farming while 16 percent went to small-scale farmers under the National Agriculture Credit Programme (NACP) and two percent to Post Settlement Support Fund (PSSF) for resettled farmers.
The intervention benefitted 204 Namibians, creating or maintaining 612 permanent and 1 224 temporary jobs indirectly supporting more than 2 693 families. The lifting of the restrictions of export of livestock to South Africa and the Economic Partnership Agreement (EPA) in addition to exploring other marketing export opportunities such as China, may result in increased export of beef in the preceding quarter, the bank notes. Agribank also calls on all clients whose loans were approved during the third quarter to take up their loans as soon as possible. Failure to do so will result in the loans being cancelled. All clients in arrears are also advised to approach their nearest branch and arrange settlement before legal action is taken against them.