Agribank, DBN ink agreement to cooperate and co-finance controlled environment agriculture activities
The Agricultural Bank of Namibia (Agribank) and the Development Bank of Namibia (DBN) earlier this month signed a memorandum of understanding (MoU) to cooperate and co-finance controlled environment local agriculture activities.
The signing took place on 01 December in Windhoek.
Controlled environment agriculture finance envisages the provision of land and facilities that enable consistent productivity with infrastructure that reduces the impact of drought and variable weather. This may include hydroponics, vegetable tunnels, and green schemes. It also encompasses aquaculture.
The MoU recognises the joint interests of the two banks in promoting agriculture as a route to economic activity and food security.
In terms of the MoU, the banks will also identify parallel opportunities of mutual interest. For instance, if DBN receives a request for direct financing for agriculture it will refer the request to Agribank. Agribank may similarly refer requests for financing for agri-processing facilities to DBN. Both banks may collaborate on finance for controlled environment agriculture.
Agribank’s Chief Executive, Dr. Raphael Karuaihe in a statement said collaboration with other institutions to pool financing resources speaks directly to the Bank’s strategic initiative of targeting high-impact projects to transform our economy and the agriculture sector, in particular.
DBN CEO Martin Inkumbi stated that DBN has identified controlled environment agriculture to focus on, as this industry inherently mitigates many of the risks usually associated with agriculture, and with limited background in agriculture, it greatly reduces the risk DBN has to mitigate and manage in the agricultural space.
The Memorandum of Understanding is valid for two years from the date of signature, with the option for renewal at the end of the term.