The Agricultural Bank of Namibia and the Namibian Agronomic Board signed a memorandum of understanding to collaborate in interventions aimed at developing the agronomic and horticultural industry in Namibia.
The roles of the two institutions are inter-linked since both aim at growing the agriculture industry in the country. The objective of Agribank is to promote agriculture and related activities by lending money to persons and financial intermediaries through providing affordable and innovative financing. Similarly, the NAB was established to promote the agronomic and horticultural industry, and to facilitate the production, processing, storage and marketing of controlled products in Namibia.
In a joint statement released this week, the two intend to collaborate on specific activities aligned to their respective mandates. Amongst others, the two institutions agree to transform small-scale farmers through scaling-up programmes in agronomy and horticulture production, value-addition and connecting them to formal markets and services for expansion. Promoting the adoption of relevant technologies and climate-resilient strategies amongst agronomy and horticulture farmers in Namibia also serves as another area of collaboration.
Additionally, the scope of the MoU covers the risk assessment of loan applicants who want to venture into production, value-addition and storage of agronomic and horticultural products, while also evaluating the need for new loan products across the agronomic and horticultural value chain.
The two institutions will furthermore share information relevant to the core business of each party, and collaborate in hosting capacity-building activities to enhance the knowledge and skills in production for farmers, individuals, as well as small and medium-sized enterprises.
At the signing ceremony, Agribank’s CEO Raphael Karuaihe said “Agribank is committed to the mandate, and will continue to play its part in not only promoting horticulture and agronomy, but the agriculture industry as a whole.”
On his part, NAB CEO Fidelis Mwazi underlined the importance of the agreement, highlighting that “the MoU demonstrates the NAB’s vision of becoming a world- class regulator of a vibrant, diversified and sustainable crop industry. As such, we are excited to be part of this collaboration.”
The MoU is valid for five years from the date of signature, with the option for renewal at the end of the term.