By Bisola Adeyemo
AGRIBANK in Namibia has launched a new biomass loan scheme that will offer start-ups and existing biomass-based businesses financing.
It has assured members of the public that the institution will continue to ensure that communal and commercial farmers have access to affordable financing, improve the agricultural sector and to promote climate smart agricultural practices.
The industry gave the assurance after announcing the availability of its biomass value chain financing scheme, which was launched in September last year.
In a statement on Friday, issued by the bank’s public relations officer, Fillemon Nangonya, the special loan scheme is aimed at meeting the strategic objective of loan book diversification, coupled with the bank’s mission to continuously offer innovative agricultural financing solutions.
While announcing the loan scheme last year, deputy chairperson of the board, Dagmar Honsbein, said bush thickening affects 26 000 000 hectares in nine of the country’s 14 regions, and the bank believes the sustainable utilization of this bush would make a significant quantity of groundwater available, providing for biodiversity improvement.
“The biomass industry has the potential to improve the stream-flow of underground water, refine range-land productively, create sustainable employment and serve as an opportunity for farmers to diversify revenue streams,” the statement said.
According to the bank, under the biomass value chain financing scheme, an applicant who can be a legal entity or individual, can be the owner of the farm or leasing a farm from which he/she can harvest biomass to produce charcoal.
“Both applicants are required to have a permit from the Ministry of Environment, Tourism, and Forestry, to harvest the biomass for charcoal,
“As for charcoal processors, financing of working capital, general equipment, and vehicles, maintenance workshop, an office to operate from, a charcoal processing plant, warehouse, and equipment are offered,” said the statement.
Namibia currently has 230 charcoal producers and 24 charcoal processors, creating 7 560 direct jobs, and providing a livelihood for more than 50 000 people.
“Charcoal production is currently equivalent to harvesting bush from about 75 000 hectares of land per year, and statistics indicate the industry is expected to grow on average by 8% over the next five years, with an expected annual turnover of N$700 million,” Honsbein said.
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