Agribank collects N.dollars 86 million in arrears

06 Oct 2017 17:50pm
WINDHOEK, 06 OCT (NAMPA) – The Agricultural Bank of Namibia (Agribank) has collected N.dollars 86 million since February through its intensified arrears collection strategy and legal internal mechanism.
This translates to close to a sixth of the total amount of N.dollars 500 million owed to Agribank.
Chief Executive Officer (CEO) Sakaria Nghikembua told a media conference on Friday that N.dollars 56 million was collected through its intensified strategy while N.dollars 30 million was collected over the same period via legal collections internally.
Nghikembua promised that the company would collect another N.dollars 70 to N.dollars 100 million possibly in the next two to three months.
“We are going to use this money to advance new loans,” he stressed.
The CEO said since the no-collateral loan product was launched in April this year, N.dollars 12.4 million was approved of which N.dollars 10.7 million was disbursed by the end of September 2017.
The no collateral loan product is for people who earn a salary.
“The bulk is going toward livestock, but people are spending on other things such as fencing,” Nghikembua said.
He explained that there is an interest in poultry farming in communal areas, and also a great interest in acquiring equipment such as tractors, while other people were applying for funding for boreholes, especially farmers from the eastern part of the north.
Nghikembua further informed the media that the bank’s Oshakati branch received the most applications in terms of the no-collateral loans, followed by Zambezi and the Windhoek branch, respectively.
This is followed by the southern branch, Otjiwarongo and Kavango branches.
In total an amount of N.dollars 304 million was disbursed in new loans during the financial year 2016/17, he said.
According to the CEO, the bank has 32 mentors in place to provide mentorship and training services in all 14 regions of Namibia to communal, small scale commercial and resettled farmers as well as affirmative loan scheme farmers.
For the financial year 2016/17, a total 4 999 beneficiaries benefited from the mentorship programme and 1 388 from training, while 103 resettled farmers were also trained country-wide.