Bank Windhoek’s Agri Series Focuses on Drought Impact on Namibia

Bank Windhoek’s Executive Officer for Marketing and Corporate Communication Services, Jacquiline Pack, emphasized that the agriculture sector has always been a cornerstone of Namibia’s economy and society, contributing around 6% to the Gross Domestic Product (GDP) and creating significant employment opportunities. She made this statement on Tuesday, 5 November 2024, while announcing that the fifth Agricultural Series will take place on Wednesday, 13 November 2024, in Windhoek, live on the Bank’s social media platforms.

The fifth Bank Windhoek Agriculture Series will feature Namibia’s Prime Minister, Saara Kuugongelwa Amadhila, as the keynote speaker, under the theme “Cultivating Change: Strategies for a Resilient Agricultural Future.” Key agriculture experts will highlight new growth areas and demonstrate a working formula for enhancing the productivity, competitiveness, expansion, and diversification of Namibia’s agricultural export basket.

In May 2024, the Namibian government declared a State of Emergency in response to the ongoing national drought across all regions, as outlined in the government gazette. According to the Integrated Food Security Phase Classification, Namibia’s worsening food security is mainly driven by climatic and price shocks, economic decline, and unemployment.

To alleviate the hardships caused by the drought, the government, through the Office of the Prime Minister, released the Drought Relief Programme (2024/25), aimed at supporting drought-stricken communities. Despite nearly a decade of persistent drought, farmers continue to face the same challenges annually.

Pack emphasized the importance of discussing new farming methods to mitigate and adapt to the effects of climate change. “Identifying comparative advantages, resilient crops, and innovative farming practices that can be sustained in the face of prolonged drought is essential. Moreover, there are significant opportunities to reduce the food import bill while addressing both household and national food security goals,” she said. “Additionally, water supply remains a critical input for farming. Without water, farming cannot take place, which is why it is crucial to explore new methods for utilizing limited water resources, water harvesting, and adapting to crops that require less water.”

Supporting the Affected Farmers

On Wednesday, 23 October 2024, the Bank of Namibia (BoN) issued a policy change determination in response to the economic and financial instability caused by the persistent drought. The determination requires banking institutions to implement relief measures, including the restructuring of loans, granting loan moratoriums, and offering emergency funding under preferential terms.

This policy change is designed to provide relief to agricultural customers who demonstrate that the drought has severely impacted their businesses. “Bank Windhoek has actively been assisting customers on a case-by-case basis during this challenging period, in line with our credit policy,” said Leon Koch, Executive Officer: Business Banking. “Bank Windhoek will assess each customer’s position and provide the necessary support.”

Since 2018, Bank Windhoek has been hosting and broadcasting various Agriculture talk series on social media platforms to inform interested parties about relevant agricultural trends and topics. These series also serve as a platform for experts in the sector to share their knowledge and contribute to the sector’s continued growth and resilience.