Rino Muranda

WINDHOEK - Deputy Minister of Finance Natangwe Ithete has applauded Agribank for introducing no collateral loan products for both communal and commercial farmers. Ithete was speaking at the local economic revival conference for the maize triangle towns of Tsumeb, Otavi and Grootfontein last week.

The deputy minister highlighted the competitive interest rates offered by the bank and urged local farmers to support the bank by taking out loans and honouring the repayment of such loans. “The bank is not a profit-making institution and the little interest that they charge is meant to recoup their operational cost and to ensure that there is money to lend to other clients to have a bigger developmental impact,” he said. 

Ithete also defended the practice of advancing collateralised loans as it encourages loan holders to work hard and produce to repay their loans. “Collateral encourages you to work hard to ensure that you do not lose your property for non-payment,” Ithete stated.

The deputy minister also defended the turn-around times of the bank, noting that whilst he understand that the loan turn-around times take a bit longer when compared to commercial banks, it is necessary to do proper due diligence to avoid over-indebtedness that may lead to the borrower not able to service their loans. “It is only fair that proper due diligence is carried out to make sure that our people obtain loans they can afford and repay to ensure the bank is sustainable. I, therefore, urge all Namibians and especially the youth to support Agribank in its mandate to promote the growth of agriculture,” he stated.