(Bloomberg) -- Namibia’s central bank unveiled a policy to provide financial relief to the country’s drought-hit farming industry.
The plan, which took effect Oct. 23, mandates lenders to offer loan restructuring, debt moratoriums, and emergency funding with preferential terms, the Bank of Namibia said in a emailed statement on Monday. The measures will help ease the financial burden on clients while helping to stabilize the agricultural industry, it said.
Farmers and agricultural businesses that can demonstrate significant drought-related losses will be eligible for relief. The policy will remain in effect until October 2026, with periodic reviews by the central bank.
Namibia, which is mostly desert and semi-desert, is experiencing its worst drought in a century. Agriculture, which sustains about 70% of the population and supports much of the rural economy, has been severely impacted.
An estimated 1.4 million people, nearly half of the population, are expected to face high levels of food insecurity between July and September, according to the United Nations. In May, President Nangolo Mbumba declared a state of emergency affecting all 14 regions of the country.
Namibia’s biggest banks include units of South Africa’s First National Bank Holdings Ltd., Standard Bank Group Ltd. and Nedbank Gruop Ltd.
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