Ngamiland farmers owe millions to NDB

BONIFACE KEAKABETSE
Correspondent | Monday January 17, 2011 00:00

 

In an interview, NDB Foot and Mouth Relief Fund Manager, Mokalane Nkwe said of the 5, 721 farmers who benefited from the Fund, only 55 have cleared off their loans with the Bank.

Government introduced the FMD Fund in 2008 to assist farmers with loans following the disease's outbreak in Ngamiland, which ultimately spread throughout the Ghanzi area.  The disease paralysed cattle farming in Ngamiland, which boasts an animal population of about 350, 000.

Due to strict disease control measures introduced by the Department of Veterinary Services to contain the disease from spreading to other parts of the country, Ngami farmers were unable to sell their livestock to the Botswana Meat Commission markets. Government stopped the Fund, initially set at P36 million, after it climbed to P105 million. Under the Fund, farmers registered up to 30 head of cattle at P1, 500 per animal with the NDB. By the time the Fund was stopped, around 70, 203 or 25% of the cattle in the district had been pledged to the NDB under the scheme.

Nkwe said at the moment, payment of the loans is voluntary, as farmers have no markets to sell their cattle.'Those who are paying are doing so on a voluntary basis,' he said. It is understood the NDB will seek repayments when the Ngamiland abattoir opens. The facility reportedly restarted test-slaughtering beasts last week and when fully functional, will kill cattle from Ngamiland for sale in Botswana only.

Due to lack of capacity at the abattoir, farmers can only sell 10 head of cattle to the facility in a year. Nkwe said NDB would only deduct P1, 500 from animals sold by the farmers to the abattoir. 'We are aware that some farmers will not be able to sell enough cattle to the abattoir to repay us once and we will have to wait,' he said.

He revealed that at the present they are working on an automated system that will enable them to deduct loan repayments directly once payments are made by BMC. Apart from the NDB, Ngamiland farmers reportedly owe other financial banks due to the FMD outbreak.

Last year, Tawana Land Board announced that it is owed millions of Pula by Hainaveld ranches farmers in lease rentals, outstanding since the FMD outbreak.