Namibia - First Line of Credit to Agribank


Project Summary

Approval Date 13 Dec 1999
Signature Date 09 May 2000
Planned Completion Date 31 Dec 2002
Last Disbursement Planned Date 09 Jul 2001
Sovereign / Non-Sovereign Sovereign
Sector Finance
DAC Sector Code 24030
Commitment U.A 3,892,161.19
Status Completion

Project General Description

This project is a first Line of Credit to Agricultural Bank of Namibia (Agribank) and amounting South African Rand (ZAR) 60 million. The project intends to provide support to Namibia’s efforts to correct the historical injustices arising from agricultural land ownership and to supplement these efforts with the provision of the necessary means to the new land owners to economically exploit their holdings. It is designed within the policy framework of the country’s agricultural development strategy, which has as its main objectives; i) reducing imbalances in commercial farm land ownership; ii) increasing crop and livestock production at national and household levels in a sustainable manner; and iii) raising the volume and gross value of agricultural exports. The principal components of the projects (LOC I) comprises of the following: (i) Sub projects for Implementation under the Lines of Credit; (ii) Disbursement of Proceeds of Lines of Credit; (iii) Project Implementation and management capacity of Agribank; (iv) Operational and financial performance of Agribank; (v) Affirmative Action Loans Scheme; (vi) Support for agrarian reform; and (vii) training of emerging farmers in farming skills and management by a capacity building consulting firm-Agrifutura. This operation will be executed in one year.

Project Objectives

The principal development objective of LOC 1 is to achieve continued and sustainable agricultural GDP growth across the greatest possible socio-economic base and contribute to poverty alleviation by creating new employment opportunities. Project-specific objectives comprises of the following: (i) providing funding to Agribank to on-lend at market rates to emerging (communal) farmers and commercial farmers country-wide for investment in livestock production and irrigated and rainfed agriculture; (ii) improving medium and large scale agricultural enterprises engaged in livestock production and rain-fed and irrigated agriculture; (iii) providing financing for the acquisition of raw materials for industry; (iv) creating new employment opportunities; (v) enhancing food security through increased food availability and improving access to food; and (vi) implementing agrarian reforms aimed at achieving an equitable distribution of agricultural land.

Beneficiaries

A total of 700 sub-projects were to be financed under this first line of credit. An average loan amount of N $ 25,000 is being considered for emerging commercial farmers. A total of 700 households are expected to benefit from lending operations financed from the resources of this line of credit. In addition, 4,200 people, mostly small farmers, are expected to benefit from agricultural loans financed through the line of credit.

Participating Organization

Funding
African Development Bank
Implementing
AGRICULTURAL BANK OF NAMIBIA

Information

IATI identifier 46002-P-NA-HAA-001
Last Update 31 Oct 2019

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Contact Details

Name BALAYAH Mohamed Yusuf
Email m.balayah@afdb.org

Geographic Location

Country Namibia