November 01, 2024
Agriculture

Mutumba on DBN’s role in agriculture sector funding

June 07, 2022
Mutumba on DBN’s role in agriculture sector funding

Although the Development Bank of Namibia (DBN) does not provide finance for direct agricultural investment as this is the mandate of Agribank, it can provide finance for agricultural enterprises. 

This was said by DBN's Head of Marketing and Corporate Communication, Jerome Mutumba, when he clarified the bank’s role and participation in agricultural finance. 

Agribank and DBN are both state-owned financial institutions and they are avoiding a duplication of services. 

Mutumba stressed that Agribank’s direct agriculture mandate entails providing finance for land and agricultural inputs while DBN will consider finance for agri-enterprise. This consists of adding secondary value to agricultural operations, as well as resource transformation of agricultural produce. 

Mutumba says the bank’s agri-enterprise finance programme has three distinct fields.

 “The first category is the agri-industry that manufactures products to support agriculture, such as fertilizers and feeds. This category might also include professional services to agriculture, such as veterinary services, welding and fabricating, and mechanical repairs,” he says adding that it also includes the bank’s skills-based finance for young professionals and artisans. 

Then there is agri-processing which consists of transforming and marketing the products of stock farming and horticulture, with finance for items such as mills, feedlots, abattoirs, dairies, processing facilities and transport and logistics assets. 

“The third category is the bank’s climate change adaptation facility. Infrastructure financed under this facility might include solar power, water storage and water distribution for larger agricultural enterprises,” he said. 

According to Mutumba, the bank sees agri-enterprise as a growth area and has financed the establishment of abattoirs, feed lots, dairy production and milling plants. 

He said the bank’s rationale for participating in agri-enterprise finance is that since independence, Namibia has prioritised food security through manufacturing, as well as support to community level processing such as milling. 

Mutumba added that support for agri-enterprise is more important now than ever before given the supply chain crisis as well as current pressure on grain and cooking oil. 

“Given Namibia’s challenge to substitute grain and cooking oil production, it has become all the more important to find means to stimulate the production of local foodstuffs that can be used as nutritional substitutes for imported agricultural commodities,” he said.

 Considering that approximately 45% of Namibian horticultural produce reportedly goes to waste due to a shortage of processing and packaging, Mutumba adds that finance for value addition through manufacturing, and transport and logistics can also enhance food security in the country. 

Mutumba said the bank urges small farmers to establish companies in which they would be shareholders, to spread collateral and owner’s contribution requirements, as well as to ensure that consistent and sufficient supply of produce is available. 

He noted that with Agribank’s finance for direct agriculture, the Namibia Agronomic Board’s Market Share Promotion mechanism to drive local horticultural supply chains, and DBN’s finance for food manufacturing, the country has a strong basis for enhancing its own food security. 

“There is a sound institutional environment that supports agriculture. If you are in the agri-processing field, or any form of value addition to agricultural produce, and have a viable business plan, approach DBN and see how we can support your growth,” Mutumba said.

Rate this item
(0 votes)
Last modified on Wednesday, 08 June 2022 23:02
Tags
« Understanding health remedies used in poultry production Namibia beef exports double »

Related items

back to top
Ad Sidebar Small Size
Ad Sidebar big size

Joomla! Debug Console

Session

Profile Information

Memory Usage

Database Queries