Agribank, N-BiG take hands
Agribank and the Namibia Biomass Industry Group (N-BiG) recently signed a Memorandum of Understanding (MoU) where the parties agreed to cooperate in various areas and guide the successful implementation of activities/projects emanating from the identified areas of cooperation.The scope of the MoU includes that both parties are to cooperate in the development and amendment of financing products aimed at scaling-up projects in bush control and biomass utilization, as well as the sharing of data required to develop loan products that are responsive to market needs. Similary, N-BiG – as an NGO – is to provide expertise through the Advisory Service component, especially on risk assessment of bush control and biomass utilisation loans, in line with the bank’s policies and regulations.
Other areas of cooperation include technical support in development, outreach and integration of bush control and biomass utilisation industry/farmers’ tools such as the biomass quantification and feed formulation tools.
Furthermore, the two institutions will be hosting training for existing and prospective farmers, individuals, and SMEs interested in bush control and biomass utilisation activities, including current Agribank loan holders.
Monitoring and evaluation of bush control and biomass utilisation activities is also another identified area of cooperation.
At the signing, Agribank’s chief executive Dr Raphael Karuaihe, said that “signing an MoU with N-BiG, as an industry association in the Namibian biomass sector, comes at an opportune time since Agribank is in the process of rolling out its biomass value chain financing scheme that was operationalized earlier this year to meet our loan book diversification objective. As a bank, we are delighted to be in this partnership since it talks directly to our strategic objectives.”
On behalf of N-BiG, chief executive Progress Kashandula described the MoU as “a major milestone in the development efforts of the bush biomass sector in Namibia through a public-private cooperation approach. The biomass sector holds the potential to contribute to socio-economic development and an inclusive bio-economy for Namibia.”
N-BiG is a non-profit industry association representing a wide range of members active within the Namibia bush biomass sector with the vision of shaping the future of bioenergy and bio-based products. The biomass industry as a whole has the potential to improve the streamflow of underground water, refine rangeland productivity, create sustainable employment, and serve as an opportunity for farmers to diversify revenue streams.
The Memorandum of Understanding is valid for five years from August 2022 to July 2027, with the option for renewal at the end of the term.