Farm repossessions a ‘last resort’ - Agribank

The Agricultural Bank of Namibia (Agribank) yesterday hit back at claims that it has become insensitive and profit-driven, saying farm repossessions remain rare and only happen as a last resort.This comes after Landless People’s Movement (LPM) leader Bernadus Swartbooi last week accused the bank of betraying black farmers by prioritising loan recoveries over developmental goals. He made the remarks during Thursday’s state of the nation address (Sona).“Agribank is no longer an affirmative bank. It’s a bank with the principal aim of repossessing the land of our people, maximising profits, becoming insensitive and this cannot go on,” Swartbooi charged. He warned that hundreds of black farmers could lose their farms if government fails to intervene.Swartbooi further argued that repayment structures must reflect the realities farmers face, calling for a 40-year down payment period with an interest-free window of up to nine years, given farmers&#039; exposure to droughts, volatile markets and trade barriers.Swartbooi also warned that frequent and widescale farm losses could have a devastating impact on food security and rural employment.Firm but flexible Responding to questions from Network Media Hub (NMH) yesterday, Agribank CEO Raphael Karuaihe defended the institution’s mandate, stressing that financial sustainability is essential for it to continue lending to Namibian farmers.“It is important to note that repossession of farms is Agribank’s last resort. Our repossession rate is very low compared to the number of defaulters,” Karuaihe clarified.He noted that the Agribank Act of 2003 mandates the bank to lend funds for agricultural purposes in a sustainable manner, meaning repayments must fund future loans.“We must balance firm collection efforts with flexibility in repayment plans to ensure financial soundness,” he said.Previous reports indicate that Agribank advanced N$370 million in loans during the 2023/24 financial year, marking a 26% increase compared to the previous year. However, defaults have mounted, with unconfirmed reports estimating outstanding amounts at around N$1 billion.In response, Agribank rolled out drought-relief interventions, including a penalty interest waiver estimated at N$83 million and an instalment relief programme worth N$104.6 million for farmers in good standing.“These measures are intended to provide relief while maintaining the bank’s ability to continue supporting the sector,” Karuaihe said.No looming crisisDespite reported rising arrears, Karuaihe dismissed suggestions of a financial crisis at the bank, emphasising that Agribank’s lending capacity remains intact. However, he admitted that repeated droughts and market uncertainties pose serious risks to both farmers and the institution.To strengthen resilience, Agribank is promoting investment in climate-resilient activities such as irrigation, poultry farming and agro-processing, he said.The bank also aligns repayment schedules with farming seasons and encourages farmers to make smaller monthly payments instead of lump-sum instalments to ease cash flow pressures.Karuaihe urged farmers to proactively approach the bank when facing difficulties rather than waiting until their accounts fall into arrears.“We are committed to securing a prosperous future for all our clients,” Karuaihe said.

Farm repossessions a ‘last resort’ - Agribank

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Namibian Sun 2025-04-29

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Farm repossessions a ‘last resort’ - Agribank

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Namibian Sun 2025-04-29

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