In response to the persistent drought in Namibia, First National Bank has launched a drought relief initiative to support the agricultural sector.
Sepo Haihambo, the bank’s commercial chief executive officer, said that the initiative aligns with the Bank of Namibia’s recent policy changes aimed at promoting economic and financial stability amid the ongoing drought.
“FNB Namibia is pleased to offer loan moratoriums, loan restructuring, and emergency funding with preferential terms to qualifying farmers and agricultural clients affected by Namibia’s drought,” said Haihambo.
The move follows the Bank of Namibia’s new determination requiring banks to implement drought relief measures.
These measures include restructuring loans, granting moratoriums, and providing emergency funding on preferential terms.
The policy will remain in effect until October 2026, subject to continuous review.
Haihambo emphasised FNB Namibia’s commitment to supporting Namibians in navigating the challenges posed by climate change.
She noted that Namibia’s arid climate has shaped FNB’s approach to developing tailored financial solutions for the agricultural sector.
“Since the first severe drought in 2019, it has strengthened its approach to assisting its agricultural clients, offering drought relief through debt restructuring and payment holidays where required. With an economy that is heavily dependent on the agricultural sector for improved food security, our role as a financial service provider is to support our agricultural clients through as many avenues as possible,” Haihambo added.
To qualify for the relief measures, applicants must provide proof of impact, such as crop yield reports or financial statements. Earlier this year, FNB Namibia, through the FirstRand Namibia Foundation, donated N$1 million to Drought Relief Namibia to help farmers combat the drought and maintain food security.
Economist Josef Sheehama, speaking to the Windhoek Observer, highlighted the financial struggles of many farmers, some of whom cannot secure funds for essential supplies like livestock supplements due to traditional credit criteria.
“Farmers urgently need assistance, and the prolonged drought, which also poses a threat to food security, may negatively impact the country’s economy,” he said.
He added that the central bank’s decision to provide drought relief is crucial for stabilizing the agricultural sector, which employs 70% of Namibia’s workforce and contributes 5.1% to the country’s gross domestic product.
“As Namibia’s largest employer and one of the key sectors that has contributed to the country’s treasury over the years, the agriculture sector is the foundation of the country’s economy. Because it generates income and ensures food security, the sector remains a vital engine,” he said.
Source - https://www.observer24.com.na
