Agribank extended funding worth over N$15 million to communal farmers without collateral
In the financial year ended 31 March 2020, Agribank extended funding worth over N$15 million to communal farmers without collateral, while over 8000 farmers countrywide benefited from training and mentorship interventions.
The bank disbursed N$246 million of loans in the financial year under review. Of this amount, more than N$21 million was paid exclusively to female clients, while N$52 million went to the youth (below 40 years of age).
Agribank’s loan book grew by 11% to over N$3 million in 2020 from N$2.8 million in 2019, interest income went up by 12.7% to N$243 million, while the operating expenses went up by only 4.2% from N$136.7 million in 2019 to N$142.5 million in 2020.
Moreover, the bank collected over N$323 million in arrears. This was revealed at the virtual Annual General Meeting attended by the Ministers of Finance and Public Enterprises, Agribank Board and management as well as senior officials of the two ministries.
Agribank’s CEO, Sakaria Nghikembua said the bank’s focus is to diversify the loan book for climate resilience and inclusivity by bringing onboard the youth, women and communal producers.
“The bank will continue to preserve the business through securing sustainable sources of affordable loan book funding. We will ensure new business growth, maintain positive collections trajectory and prudently manage expenses while managing provisions for bad debt,” he said.
Nghikembua further said they are sourcing grant funding to expand the reach and depth of training and mentorship services, while sustaining high performance environment.