Financial tools and agri-tech positioned to strengthen Namibian agriculture
Financing innovation in water-efficient farming
Climate change and scarce water resources are accelerating demand for alternative farming models and tailored financing solutions.
Agricultural production in Namibia is highly dependent on climatic conditions and vulnerable to environmental stress. As pressures increase, the need for more water-efficient and resilient farming methods is driving interest in aquaponics, hydroponics, and specialised financial support.One organisation working in this space is AquaNam, a sustainable agriculture initiative established by Impact Tank in 2022. It focuses on aquaponics and hydroponics (A&H) to support food security, skills development, and employment creation, particularly in smaller towns. AquaNam operates a farm in Mariental that serves as both a production unit and a training centre for new entrants into the A&H farming sector.
The financial side of sustainable agriculture was the focus of a recent event held at the Impact Tank offices in Windhoek. Chrischen Olivier, Agricultural Specialist at Bank Windhoek, delivered the keynote speech, outlining the role of targeted finance in supporting innovation in the sector.
Climate pressure driving innovation
Olivier described agriculture as the most climate-sensitive part of the Namibian economy and said this reality makes innovation essential for long-term resilience.
“Agri-tech is one such innovation that should be implemented in Namibia, particularly to assist farmers in reducing water consumption in our country where water is the scarcest commodity,” he said.
He cited a statement from the US Agency for International Development (USAID), published in CropLife International, which warned that without access to modern farming tools and climate data, farmers remain exposed to environmental risks they do not fully understand. Olivier said that with the right financial instruments, Namibia could successfully transition towards more climate-resilient and technology-enabled farming systems.
Sustainability loan targets small-scale projects
Bank Windhoek’s contribution to this shift is its Sustainability Loan, introduced to fund environmentally and socially beneficial projects. According to Olivier, the loan is accessible to individuals and SMEs and was shaped by feedback from clients seeking alternatives to conventional financing options. The bank formalised this facility after issuing the first sustainability bond by a commercial bank in Southern Africa.
“These small-scale, high-impact projects are essential building blocks of a greener, more inclusive economy,” Olivier said.
AquaNam offers technical and advisory support
AquaNam’s model complements this approach. Its integrated systems reduce water use and do not rely on arable land, making them well suited to Namibia’s arid conditions. The company offers a full suite of services for clients interested in A&H farming: site assessments, system design and construction, staff training, operational support, and maintenance.
Clients range from individual farmers to businesses such as hotels, retailers, and restaurants. By installing A&H systems directly on-site, these clients can stabilise their supply chains, reduce input costs, and decrease reliance on imports.
Revenue potential and loan viability
AquaNam also provides financial advisory services to help clients structure viable projects. The organisation presents hydroponic farming as an asset class that can fit into institutional loan portfolios. A typical setup, according to AquaNam, requires N$384 000 and yields 6 000 kilograms of produce annually. The expected average revenue is N$171 294 per year, with a net income of N$65 300.
A financing structure based on 70% debt at a 10% interest rate over 10 years would result in monthly repayments of N$3 635 and a total repayment of N$436 200. AquaNam argues that the reliability of output, paired with low input costs and ongoing technical support, makes A&H systems a low-risk proposition for lenders.
Support for loan recovery and portfolio growth
Beyond supporting new entrants, AquaNam also works with farmers already facing repayment challenges. By improving productivity and reducing operational inefficiencies, the company aims to support the recovery of underperforming loans.
It also proposes a collaborative model for financial institutions. AquaNam positions itself as an extension of lenders’ outreach efforts by helping them identify viable clients, structure financing, and monitor farm performance over time.
In closing, Olivier expressed support for such partnerships. “With the right financial tools and vision, the sector can transform agriculture into a resilient, tech-enabled engine of sustainable growth,” he said.