Maize farmers spurred to expand storage

With bumper maize harvests projected for Namibia’s ‘Golden Triangle’ region of Otavi, Tsumeb and Grootfontein, millers active in the area are expected to soon benefit from N$12 million worth of assistance from the government and the private sector. The Minister of Agriculture, Water and Forestry. John Mutorwa. on Monday approved N$6 million from the Namibia Agronomic Board’s (NAB) Reserve Fund for subsidising bank interests for millers in the region planning to increase their silo capacity. The pledge matches private-sector investment, bringing to N$12 million the amount of assistance to the sector. “This is a win-win situation for both the private and public sector because the subsidy encourages the private sector to thrive," said Christof Brock, CEO of the Namibian Agronomic Board. Thanks to the subsidy initiative, grain millers owning and managing a silo would be required to repay the capital amount and only 25% of their loan’s interest amount. The NAB would take responsibility to pay the remaining 75% over ten years. The subsidy scheme is offered to the millers subject to a number of preconditions, including being a registered miller with the NAB; being able to prove they can raise the funds required to buy maize to fill the silo, or alternatively provide proof that the purchase can be financed with silo certificates or letters of credit; and provide proof that financing for the construction of their silo had been granted by a financial institution registered with NAMFISA or the Bank of Namibia. In addition, even where the registered miller is not in the Maize Triangle, the storage facility must be constructed in the region. Finally, the miller must be able to provide a list of producers who intend to supply the facility with maize during bumper crop years. WINDHOEK DENVER ISAACS