AA scheme back on track

GOVERNMENT has lifted the ban on new applications for the Agribank’s Affirmative Action (AA) loan scheme.

The Ministry of Agriculture, Water and Rural Development announced on Friday that it had ironed out the financial hitches that led to the scheme being put on hold in December. Government has pledged to continue subsidising the interest on AA loans to an annual ceiling of N$50 000 until the 2007-2008 financial year.The AA loan scheme aims to help successful communal farmers move into the commercial farming sector.”The Government of the Republic of Namibia is committed to the scheme and would like to call upon the farming community, especially the previously disadvantaged farmers, to acquire farm land through the scheme for equitable land distribution for sustainable economic development,” said a joint statement from the Agriculture Permanent Secretary, Kahijoro Kahuure, and Agribank Acting CEO Shihaleni Ndjaba.The scheme was temporarily halted because of the millions Government owed in respect of interest and to give it time to put in place better management controls.At the time, the Ministry of Agriculture said the backlog was a result of poor financial control of the scheme.Last month, Cabinet approved the transfer of N$7 million from the Lands Ministry to plug the immediate arrears and ensure the moratorium did not remain in place for much longer.Subsequently it has been agreed that the Ministry will repay the remainder of it’s debts to Agribank over three financial years starting in 2005.The payments will amount to more than N$15,610 million a year.Further, Government has committed itself to allocating N$65 610 million annually for the continuation of the scheme from 2005-06 through to the 2007-08 financial year.To date, 755 clients have benefited from the scheme contributing some 38 per cent of the total of Agribank’s loans.During the 2003-04 financial year, 44 per cent of it’s loans valued at N$137,6 million were granted under the AA scheme.Government has pledged to continue subsidising the interest on AA loans to an annual ceiling of N$50 000 until the 2007-2008 financial year.The AA loan scheme aims to help successful communal farmers move into the commercial farming sector.”The Government of the Republic of Namibia is committed to the scheme and would like to call upon the farming community, especially the previously disadvantaged farmers, to acquire farm land through the scheme for equitable land distribution for sustainable economic development,” said a joint statement from the Agriculture Permanent Secretary, Kahijoro Kahuure, and Agribank Acting CEO Shihaleni Ndjaba.The scheme was temporarily halted because of the millions Government owed in respect of interest and to give it time to put in place better management controls.At the time, the Ministry of Agriculture said the backlog was a result of poor financial control of the scheme.Last month, Cabinet approved the transfer of N$7 million from the Lands Ministry to plug the immediate arrears and ensure the moratorium did not remain in place for much longer.Subsequently it has been agreed that the Ministry will repay the remainder of it’s debts to Agribank over three financial years starting in 2005.The payments will amount to more than N$15,610 million a year.Further, Government has committed itself to allocating N$65 610 million annually for the continuation of the scheme from 2005-06 through to the 2007-08 financial year.To date, 755 clients have benefited from the scheme contributing some 38 per cent of the total of Agribank’s loans.During the 2003-04 financial year, 44 per cent of it’s loans valued at N$137,6 million were granted under the AA scheme.