Namibia’s land bank, Agribank, has slashed interest rates from 11 to 4 % to enable farmers access cheap funds and stimulate the agricultural sector. Agribank CEO Leonard Lipumbu said that rates on short term loans had been adjusted from 14 to 12 % while medium term loans had been reduced from 13 to 12.7 %. Commercial banks charge 15.25 % for both borrowers. The loans whose interests have been slashed cover production costs and purchase of inputs such as fertilisers, seeds, pesticides and fuel. Long term loans also cover purchase of agricultural land and infrastructural development at farms. “This will make farming more profitable for those who do not work from a positive cash flow position, it encourages farming,” said Christoph Brock, CEO of Namibian Agronomic Board.
