Agribank deal to boost aquaculture sector in Namibia

17 March 2010, New Era
URL: http://www.newera.com.na/article.php?articleid=9994&sid=af48986f2110131325c99494dce22557

Windhoek:  The Ministry of Fisheries and Marine Resources (MFMR) and the Agricultural Bank of Namibia (Agribank) have signed a guidelines document for financing aquaculture projects in the country.

The guidelines document is a precursor for a financing agreement that will exist between the two institutions. Under the agreement, Agribank will provide financing for aquaculture projects that have proved to be self-sustainable, can provide jobs and at the same time contribute towards food security.

But those seeking finance from the bank will first have to meet the stringent criteria as stipulated in the guidelines document.

Fisheries Minister Dr Abraham Iyambo commended Agribank for the assistance. He said since the concept of aquaculture was conceived in 1999, the ministry faced obstacles in sourcing funds to stimulate the growth of the sector – despite its enormous potential to become a contributor to the national economy.

Past attempts to engage the private sector and private financial institutions to finance aquaculture related projects in the country proved futile, much to the disappointment of Iyambo.

So frustrated was he that at one point Iyambo lobbied Cabinet to establish an Aquaculture Bank, for which permission was granted, but his ministry had to shelve the idea after assurance from Treasury that government-owned banks would help in this regard.

“We rescinded that decision after being convinced that the Development Bank of Namibia and Agribank would have a component which would fund the aqua and marine culture industry.”

The agreement is testimony of that assurance, said the Minister.

Chief Executive Officer of Agribank Ambassador Leonard Iipumbu assured Iyambo that Agribank is up to the challenge, despite minimal resources at its disposal. Iipumbu too admitted that financing of aquaculture is a serious challenge as the sector requires a huge financial boost – which often is beyond the financial capabilities of the bank.

According to Iipumbu, Agribank received applications from the public seeking financing in aquaculture to the tune of N$350 million, which could not be processed due to the fact that the guidelines were not in place. Now that the guidelines are in place, the bank will finance aquaculture projects to the tune of N$8 million during this financial year.

Agribank has already granted finance to two aquaculture projects, namely, Nam-Aqua Oyster Farming – a Walvis Bay-based company, to the tune of N$2,2 million, as well as Rainbow Fresh Water Farm from Omusati Region. However, officials could not provide the figure for Rainbow Fresh Water Farm.

“It’s a good amount of money,” quipped Atushe Hitula, Director of Aquaculture in the Ministry of Fisheries.