The Previously Disadvantaged Namibian Farmers’ Union (PDNFU) has called on Agribank of Namibia to halt all farm repossessions and auctions.
Union president Jane Kuhanga yesterday warned that continued legal action against struggling farmers risks undermining land reform efforts.
She said the union’s main concern is Agribank’s continued use of commercial loan terms for farmers who were meant to benefit from affirmative action loan schemes (AALS).
“The AALS is the original scheme approved by the government to advance loans to previously disadvantaged black Namibians.
But the bank started referring to these farmers as ‘commercial clients’. What they mean by that, even we struggle to understand,” she said.
Kuhanga said Agribank has effectively replaced the AALS with an internal model that no longer reflects the realities of land reform.
She said the original criteria for qualifying under affirmative action have become outdated, particularly for younger, working-class farmers who bought farms after the early 2000s.
“People went to the bank believing they were accessing loans under the affirmative action scheme.
Only later did they realise they were being charged commercial interest, just like at any other bank,” she said.
According to Kuhanga, this shift has resulted in mounting debt driven by high interest rates and penalty charges.
She said continued delays threaten the credibility of land reform and leave farmers exposed to repossessions, while policy reforms remain on paper.
The union’s call comes amid growing concern from previously disadvantaged farmers who say they are trapped in unsustainable debt arrangements due to the bank’s continued application of commercial loan terms.
It says at least five farms have already been auctioned off, while several other cases are pending before the courts.
Farmers say these actions undermine the government’s AALS, which was approved by the Cabinet in March last year to support previously disadvantaged Namibians in acquiring and sustaining farmland.
Kuhanga said Agribank has created an “artificial division” among previously disadvantaged farmers, categorising them as either “AALS” or “commercial” clients.
In a letter to Agribank last year, she wrote that this practice “is discriminatory and directly contradicts Article 23 of the Namibian Constitution”.
She said ongoing repossessions, sales in execution, high interest rates, interest-on-interest, short repayment terms, and legal costs drive farmers into “distressing leasing arrangements”, making farming unsustainable and unaffordable.
‘LEGAL MANDATE VIOLATED’
“The PDNFU remains committed to constructive and transparent engagement.
However, we cannot endorse or remain silent in the face of actions that violate Agribank’s legal mandate, Cabinet policy, and the national interest in fair and inclusive land reform,” Kuhanga wrote.
The union also wants the bank to work with farmers’ unions to create a debt management framework that protects both livelihoods and the bank’s sustainability.
Farmers claim Agribank has decided to treat every farmer buying land through the bank as a commercial client – even when they qualified for the AALS.
The union also called on Agribank to reverse interest-on-interest charges and migrate all qualifying loans under the revised AALS.
The parliament adopted a motion in March 2025 calling for drought-relief measures, including support for affected farmers, but farmers say it is unclear how the directive has been implemented.
“This is why Agribank now has a high level of non-performing loans – because these farmers never benefited as intended under the AALS,” one farmer says, who has asked to remain anonymous for fear of victimisation.
Some farmers argue that continued legal action leaves them exposed and risks reversing land reform gains.
Agribank marketing executive Alisa Jakob yesterday said the bank cannot implement the revised scheme alone.
“The implementation of the AALS will still be guided by the government.
The implementation committee is led by the Ministry of Agriculture, Fisheries, Water and Land Reform and chaired by the Ministry of Finance.
“Implementation readiness has to be completed first, and it cannot be done by the bank alone,” she said.
The agriculture ministry could not be reached for comment by the time of going to print.
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