Agribank increases loans disbursement
During the first quarter of the 2023/24 (April–June 2023) financial year, Agribank experienced a 40% increase in agricultural loan disbursements compared to the corresponding quarter of the previous year.This growth was primarily driven by triple-digit increases in both farmland loans and livestock loans.
The total loans advanced during this quarter amounted to N$74.3 million, a notable rise from N$46.9 million in the first quarter of the 2022/23 financial year. The impressive performance was not limited to farmland and livestock loans but also extended to the crop sector, particularly in the Otjozondjupa region, where crop production loans to irrigation farmers significantly contributed to the growth.
This positive trend aligns with Agribank's strategy of diversifying its loan book. However, it was observed that the majority of loans were still granted to male lenders, accounting for 59% in the first quarter of 2023/24, compared to 46% in the corresponding quarter of the previous financial year. Loans advanced to female borrowers, on the other hand, declined to 18% in 1Q2023/24 from 30% in the same period of 2022/23. Groups and companies accounted for 23% of the loans, encompassing both males and females.
Regarding loans advanced by age, 35% were taken up by individual farmers aged between 31 and 40 years. This demonstrates Agribank's commitment to fulfilling its socio-economic mandate by providing targeted and special financing solutions to encourage the active participation of women and youth in the agriculture sector.
As the private sector credit extension rose, Agribank's agricultural extension market share also increased to 46% in the first quarter of 2023, up from 45% in the previous year. This growth could be attributed to the competitive loan terms offered by Agribank, particularly amid a rising interest rate environment.
As a national development finance institution, Agribank remains dedicated to playing a crucial role in addressing key national development issues such as food security, poverty reduction, and employment creation within the agriculture sector.