The Agricultural Bank of Namibia (Agribank) and the Development Bank of Namibia (DBN) recently signed a memorandum of understanding (MoU) relating to the co-financing of controlled-environment agriculture activities in Namibia.

The MoU also recognizes the two banks' shared interest in promoting agriculture as a means of generating economic activity and ensuring food security.

According to a statement issued by Agribank on Tuesday, "controlled environment agriculture finance" ensures the provision of land and facilities that enable consistent productivity with infrastructure that reduces the impact of drought and variable weather, which may include hydroponics, vegetable tunnels, green schemes, and aquaculture.

In terms of the MoU, the banks will also identify parallel opportunities of mutual interest, and both banks may collaborate on financing for controlled environment agriculture.

Attending the signing ceremony was Agribank’s Chief Executive Officer (CEO), Raphael Karuaihe, who emphasized the importance of this collaboration.

"Collaboration with other institutions to pool financing resources speaks directly to the bank’s strategic initiative of targeting high-impact projects to transform our economy and the agriculture sector in particular," Karuaihe said.

Also in attendance was DBN CEO Martin Inkumbi, who said DBN has identified controlled environment agriculture to focus on, as this industry inherently mitigates many of the risks usually associated with agriculture. With a limited background in agriculture, this greatly reduces the risk DBN has to mitigate and manage in the agricultural space.

The MoU is valid for two years, and there is an option for renewal at the end of the term.