annual report 2017 - my...4 5 your all season bank agribank annual report 2017 your all season bank...

ANNUALREPORT2017

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YOUR ALLSEASON BANKAgribank specialises in financing the entire agricultural value chain including land acquisition, production inputs, harvesting, transporting, processing and marketing of the products at competitive interest rates.

2Your all Season BankAGRIBANK ANNUAL REPORT 2017

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CONTENTs

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1. ABOUT AGRIBANK1.1 Mandate1.2 Strategic Thrust

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2. CHAIRPERSON’S REPORT2.1 Overview 2.2 Transition2.3 Strategy2.4 Acknowledgements

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3. BOARD OF DIRECTORS

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4. CHIEF EXECUTIVE OFFICER’S REVIEW 4.1 Introduction4.2 GivingeffecttotheStrategicPlan 4.2.1 KeyActions 4.2.2 Financial Highlights4.3 Benchmarking4.4 AuditQualification4.5 SalesandLending4.6 HumanResources 4.6.1 OrganisationalDevelopment4.7 Farmers’SupportProject(FSP)4.8 MarketingandCommunication4.9 ICTandBusinessInnovation4.10 ResearchandProductDevelopment4.11 RiskManagement4.12 InternalAudit4.13 LegalServices4.14 Outlook4.15 Conclusion

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5. EXECUTIVE MANAGEMENT

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6. CORPORATE GOVERNANCE REPORT6.1 DeterminingStrategicDirection6.2 GovernanceFramework 6.2.1 InternalGovernanceFunctions 6.2.2 InternalControlEnvironment6.3 BoardofDirectors 6.3.1 BoardCommittees 6.3.2 BoardandCommittee Attendance 6.3.3 Board Training and Development 6.3.4 CompanySecretary6.4 CommunicationwiththeShareholder6.5 Compliance 6.5.1 Code of Ethics 6.5.2 ConflictofInterest

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7. ANNUAL FINANCIAL STATEMENTS7.1 Introduction7.2 Management’sResponsibilityforthe FinancialStatements7.3 Auditor’sResponsibility7.4. Acknowledgement7.5 Key Audit Findings 7.5.1 ProvisionforBadDebts 7.5.2 Credit Control 7.5.3 SuspensionofInterestCharges onNon-PerformingLoans7.6 BasisforQualifiedAuditOpinion7.7 QualifiedAuditOpinion

3Your all Season Bank

AGRIBANK ANNUAL REPORT 2017

4 5Your all Season BankAGRIBANK ANNUAL REPORT 2017

Your all Season BankAGRIBANK ANNUAL REPORT 2017

GLOSSARYOF TERMS

AALS AffirmativeActionLoanScheme

AASD AgriAdvisoryServicesDivision

CEO ChiefExecutiveOfficer

CIC CreditandInvestmentCommittee(oftheBoard)

DFRC DevelopmentFinanceResourceCentre

EHP EnhancementPackages(asubsetofSAP)

ERM EnterpriseRiskManagement

ERP EnterpriseResourcePlanning

EXCO ExecutiveCommittee

FRACC Finance,Risk,AuditandComplianceCommittee(oftheBoard)

FSP Farmers’SupportProject

FURS FarmUnitResettlementScheme

FY Fiscal Year/Financial Year

GIZ DeutscheGesellschaftfürInternationaleZusammenarbeit

HRC HumanResourcesCommittee

ICT InformationCommunicationTechnology

MLR MinistryofLandReform

NCA NorthernCommunalAreas

RAG Red,AmberandGreen(ProgressIndicators)

SADC SouthernAfricanDevelopmentCommunity

SAP Systems,Applications,Products(inDataProcessing)

SVCF South of the Veterinary Cordon Fence

VCF Veterinary Cordon Fence

Behind Plan

Slightly Behind Plan

On-Track

RAG Progress Indicators



TABLE & GRAPHINDEX

List of Tables:Table 1: KeyFinancialRatiosTable 2: DevelopmentFinancingInstitutionsBenchmarkingTable 3: HistoryofAuditOpinionsTable 4: EmploymentBreakdownTable 5: HumanResourcesRatiosTable 6: FSPMentorshipActivitiesTable 7: FSPTrainingRelatedActivitiesTable 8: FSPPre-SettlementTrainingTable 9: RegionalSpreadofSponsorshipsTable 10: BoardAttendanceTable 11: Board FeesTable 12: BoardFeesperDirector

List of Graphs:Graph 1: GenderEmploymentBreakdown:MaleandFemale Graph1a:GenderEmploymentBreakdown:Male Graph1b:GenderEmploymentBreakdown:FemaleGraph 2: TrainingActivitiesGraph 3: BreakdownofSponsoredActivitiesGraph 4: GovernanceFramework

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ABOUTAGRIBANK

1. ABOUT AGRIBANK

1.1 Mandate

Agribank is a state-owned financial institution whosemandate is to advancemoney to persons orfinancial intermediaries for the promotion of agriculture and related activities. The Bank derives itsmandatefromtheprovisionsoftheAgriculturalBankofNamibiaAct,No.5of2003.

1.2 Strategic Thrust

Vision

TobethecatalystintransformingtheagriculturalsectorwhereeveryNamibianenjoysaqualitylife.

Mission

To promote socio-economic development through affordable and innovative agricultural financingsolutions.

Values

Ourcorevalues,whichserveasprincipleswhichguideourbusiness,are:

Customer Service - Strivingforexcellenceinthewayweserveourcustomers.

Accountability - Accountingforandtakingresponsibilityfortheactionswetakein pursuitofourmandate.

Professionalism - Strivingtoapplyskills,competenceandcharacter,expectedof highlytrainedprofessionals,intheconductofourbusinessandthe executionofourmandate.

Fairness - Strivingtowardsequitableandfairtreatmentofallstakeholders.

Integrity - Honestyandtruthfulnessintheconductofourbusiness.

Transparency - Opennessinallourdealingsandtopublicscrutiny.



CHAIRPERSON’S REPORT

2.1 Overview

The Namibian economy is currently faced bynumerous challenges which have resulted ina considerable slow-down of the economy.Accordingtothelatestestimates,theeconomygrewmarginallyby1.1% in2016,comparedto6% in 2015. From the Bank’s perspective, thedrought experienced in the 2015/16 season isoneofthemaincontributorstotheslowgrowthof thedomesticeconomy.Despite theadverseoperating conditions, the Bank continuedto fulfill its mandate by providing affordablefinancingtobothexistingandnewclients.

Whilstgrowthforecasts for2017and2018arepositive, severaldown-side risks remain.Theseinclude the impact of fiscal consolidation onthebroadereconomy,volatileclimaticpatterns,as well as pest and animal disease outbreaks.Theseriskswill impacttheoverallperformanceoftheagriculturalsectoraswellasthefinancialperformance of the Bank. The outlook iscompoundedbythereductioninGovernment’sfundingsubsidies to theBankover thecurrentthree-year budget planning cycle. As a result,theBankiscompelledtoimplementalternativefundingstrategiesinordertocontinuefulfillingitsmandate.However, it isnot all doom-and-

gloom.On the positive front, the above-normal rainfall received inmost partsofthecountry,andimprovedrangelandconditions during the recently endedrainyseason,mayresultintherecovery

of the agricultural sector, with positivespin-offs for the Bank and the sector in

general.



2.2 Transition

TheformerChiefExecutiveOfficer,AmbassadorLeonardIipumbu,retiredattheendofJuly2016.He was succeeded byMr Sakaria Nghikembuaon 1 August 2016. This seamless and timeoustransitionisindeednomeanfeat,achievedonlyby a few state-owned enterprises in Namibia.TheBoardworkeddiligentlytoensureefficiencyin the transition.During the reviewperiod,wehave recorded a number of achievements,includingimplementinglong-outstandingBoarddecisions,finalisingandapprovingournewfive-yearStrategicPlan,finalisingourannualauditforFY2015/16,holdingourAnnualGeneralMeetingfor FY 2015/16 timeously, and implementing aBank-wide Performance Management System.We have charted a new path towards thesustainability of the Bank and the effectiveexecutionofourmandate.

2.3 Strategy

Our new five-year Strategic Plan is aligned totheHarambeeProsperityPlan.Theplanconsistsof five focus areas, namely: the Customer,FinancialSustainability,Employees,Governanceand Socio-Economic Transformation. Serviceexcellence, innovation and excellence in theexecutionofdeliverablesconstitutethebuildingblocksofourstrategy.

KeyinitiativesundertheCustomerFocusincludeunderstandingmarketinsightsthroughon-goingresearch activities, offering relevant productsto our customers, and ensuring the Bank’saccessibilitythroughanincreasedfootprintanddigital platforms. Other innovative initiativesinclude the development of products forcommunalfarmersinordertobroadenfinancialinclusion, and to ensure food self-sufficiencyat a household level. Core initiatives beingimplemented to ensure the Bank’s financialsustainabilityincludeloanbookgrowth,interestincome growth, cost containment, effectivearrears management, as well as growing thenon-interest income stream. The long-termobjective is to ensure that the Bank is able tomeetitsfinancialobligations.

Notwithstanding the negative impacts of climatic conditions, Agribank continued to provide affordable financing to the farming community and has managed to overcome these challenges.

The Strategic Plan further provides for theattractionandrecruitmentofemployeeswiththerequired competencies, attitude and potential,whileconcertedeffortswillcontinuallybemadeto improve the leadership and managerialcapacity of our people through appropriatetraining and development interventions. Someof the initiatives under this focus area includetheintroductionofanemployeerecognitionandreward scheme, embedding the PerformanceManagementSystem,aswellastheintroductionof a performance incentive schemewithin theconfines of Public Enterprises remunerationguidelines.

Given the nature of the Bank’s operations,significant emphasis has been placed on riskmanagementandcompliance infurtheranceoftheGovernanceFocus.Tothisend,complianceand risk management specialists have beenrecruited during the reporting period. Specificinitiatives included company-wide roll-out ofrisk and compliance awareness sessions, theimplementation of a compliance testing plan,training of the Board and SeniorManagementon governance-related matters, and the roll-outofariskmanagementframeworkwithintheBank.Goingforward,prioritywillbeonensuringthat business continuity management policiesandplans are put in place, and that audit andforensicauditingcapacitiesareenhancedinthebusiness.

AsfortheSocio-EconomicTransformationFocus,we have continued to provide training andmentorshiptofarmersthroughtheAgriAdvisoryServicesDivision.TheBoardhasalsoapproveda robustanddynamic stakeholderengagement



strategy,whoseimplementationisinfullswing.In order to reach out to communal farmerswhodonothavecollateral toofferagainst theBank’sloans,wehaveintroducedano-collateralloan product and have seen encouraging take-upsince its launch inApril2017.Tostreamlinethelendingprocess,theDelegationofAuthoritypolicy has been revised. As a result of suchrevision, some lending decisions are nowbeingmadeatbranchand lendingdepartmentlevels; whilst the approval amounts for theManagement Credit Committee and the BoardCredit and Investment Committee, have alsobeen increased. Furthermore, a decision wastaken to increase the frequency of the BoardCredit and Investment Committee meetingsto monthly intervals, to enable faster loanapprovals. Plans are at an advanced stage toimplementawholesalereviewofallkeybusinessprocesses – specifically the loan cycle process– to ensure service excellence in our lendingpractices.

2.4 Acknowledgements

IwishtoexpressmygratitudetotheGovernmentoftheRepublicofNamibia,astheshareholderofAgribank, for thesupport renderedthroughoutthe year.

I would also like to extendmy appreciation tomyfellowDirectorsfortheirprofessionalinputsand guidance in shaping the governance andoversight functions of the Bank. Together, wehaveimplementedstrategicdecisionstoensurethecompetitivenessoftheBankwhilstfulfillingitsmandate.

I am equally appreciative of the fresh impetusinjected into the Bank by the Chief ExecutiveOfficer, Sakaria Nghikembua, who, despitejoiningtheBankinthemiddleofthisreportingperiod,hasmadetremendousstridesinfinalisingandimplementingthenewStrategicPlan,andinrepositioningtheBankforthefuture.



Lastbutcertainlynotleast,Iwishtothankthemanagement and staff of the Bank for theirsupport to the Board, as well as their selflesscontributionstoensurethattheBankcontinuestoplayameaningfulroleinthesocio-economictransformationofourcountry.

I look forward to an exciting and meaningfulfutureforAgribank.

_____________________TerttuNTUuyuniCHAIRPERSON



BOARD OF DIRECTORS

ChairpersonTerttuUuyuni

Vice ChairpersonMichaelIyambo



Board MemberOivaMahina

Board MemberDagmarHonsbein

Board MemberDrMichaelHumavindu



BOARD OFDIRECTORS3.1 BoardTenure,Directors’ExperienceandQualifications

ChairpersonTerttuUuyuni(1July2015–30June2018) Mrs Terttu Uuyuni is the Chairperson of theBoard. She has over 13 years experience incommercialbankingandbanksupervision.

A firm believer in personal growth anddevelopment through consultative leadership,Mrs Uuyuni is one of the longest servingmembers of the Board. She has, in the past,served on the Risk and Audit Committee oftheBoard.ShealsoservedasViceChairpersonof theBoard fromJuly2010toFebruary2012,before her appointment as Chairperson of theBoard. She currently serves on the Finance,Risk, Audit and Compliance Committee. Herre-appointment as Chairperson has seen theretention of institutional knowledge and thecontinuationofBoardstrategies.

Mrs Uuyuni holds a Bachelor of Commercedegree from theUniversity ofNamibia, a CAIB(AssociateDiplomainCredit)fromtheInstituteof Bankers in South Africa, and is currently pursuing MBA studies with the University ofNicosia.



Vice ChairpersonMichaelIyambo(1July2015–30June2018)

MrMichael Iyambo is the Vice Chairperson oftheBoard.Heisaknowledgeableandsuccessfulcommercialfarmer,withafocusonhorticulture.

Mr Iyambo’s successful farming businessresultedinhistriumphastheMasterAgronomistoftheYearin2015andhisappointmentastheChairmanoftheNationalHorticulturalTaskTeamandViceChairmanoftheKarstAreaHorticulturalAssociation.MrIyambowasrecentlyappointedas Chairperson of the Namibia AgronomicBoard.Hisknowledgeoftheindustryandsoundbusinessacumenprovideforoptimumadviceoncredit analyses.

Board MemberOivaMahina(1July2015–30June2018)

Mr OivaMahina is a farmer and businessmanbased in KavangoWest. His business interestsare primarily in financial services, farmingand the hospitality industry. He currentlyholds the positions of Vice President of theNamibia National Farmers’ Union (NNFU) andof the KavangoWest Regional Farmers’ Union(KWRFU).HepreviouslyservedontheBoardoftheMeatCorporationofNamibia(Meatco).Healso served as theChairpersonof the KavangoFarmers’ Union and of the Kavango LocalBusinessAssociation.

Mr Mahina brings with him a wealth ofexperienceandknowledgeaboutthechallengesofcommunalandemergingfarmersnorthoftheveterinary cordon fence, which speaks directlyto the servicedelivery aspirationsof theBank.He chairs the Human Resources Committee ofthe Board.

Mr Mahina holds a Basic Education Teachers’DiplomafromtheRunduCollegeofEducation.



Board MemberDrMichaelHumavindu(1July2015–30June2018)

Dr Michael Humavindu boasts a strong academicand professional repertoire in economic research,industrialisation, SME development, economic advice,andmodelling and policy analysis. DrHumavindu spenteightyears indevelopmentfinanceat theDevelopmentBank of Namibia, where heworked on project finance,deal structuring, credit assessments, and the designof policies such as the Microfinance and DevelopmentImpactFramework.

PresentlyaDeputyPermanentSecretary in theMinistryof Industrialisation, Trade and SME Development, DrHumavindu is optimally positioned to lead discussionsandtesttheBank’spoliciesagainstthefiscalspace,policytrendsandthecountry’seconomicagenda.HechairstheCreditandInvestmentCommitteeoftheBoard.

Dr Humavindu holds a PhD in Economics from theUniversityofUmeä,anMSc inFinanceand InvestmentsfromtheUniversityofDurham,UnitedKingdom,anMAinEconomics fromtheUniversityofStellenbosch,andapostgraduatediploma inEnvironmentalEconomics fromtheUniversityofLondon,UnitedKingdom.

Board MemberDagmarHonsbein(1July2015–30June2018)

Mrs Dagmar Honsbein has fundamental and practicalinsights in value chainmanagement aswell as financialsystemsandresourcesmobilisationfordevelopment.Herexperienceincludestheprovisionofprofessionalservicestoproductivesectors likeagro-processing.Herextensiveknowledge in the productive sectors and innovationmanagement are invaluable as the Bank gears itself toserve its clients and respond to their needs in an ever-changingagriculturalenvironment.ShechairstheFinance,Risk,AuditandComplianceCommitteeoftheBoard.

Mrs Honsbein holds anMBA in InternationalMarketingfrom Reutlingen in Germany, a postgraduate degree inChemical Engineering and Applied Sciences from AstonUniversity,Birmingham,UnitedKingdom,aswellasaBScinWoodEngineeringfromtheUniversityofStellenbosch,South Africa.



CHIEF EXECUTIVE OFFICER’S REVIEW



4.1 Introduction

I commenced as the Chief ExecutiveOfficer ofthe Bank in August 2016 and amprivileged toreportontheBank’soperationsforthefinancialyearended31March2017.Duringthisperiod,we have seen many positive developmentstowards the repositioning of the Bank for thefutureamidstafairshareofdirectandindirectchallengesthatconfrontedus.Notwithstanding,Iamproudthatwecontinuedtodeliveronourmandate.

4.2 Giving effect to the Strategic Plan

4.2.1 Key Actions

Key actions implemented to give effect to theStrategic Plan during the reporting periodincludedthefollowing:

• ImplementationofaBank-widePerformanceManagementSystem.Thefirstperformanceappraisals for FY 2016/17 and contractingforFY2017/18weredonesimultaneouslyinMay2017,afterfinancialyear-end.

• Development of the no-collateral loanproduct for salaried communal farmerswhich was subsequently launched in April2017.

• Repositioning of the Farmers’ SupportProject (FSP) and its integration into theBank effective 1 April 2017. Training andmentoring interventions are currentlyunderwaythroughoutcountry.

• Delivery of credible financial performancedespite a difficult operating environmentexacerbated by successive droughts in thepastfewyears.

• Strengthening of the governance function

I commenced as the Chief Executive Officer of the Bank mid-way through the year in 2016 and am privileged to report on the Bank’s operations for the financial year ended 31 March 2017.

through the appointment of qualifiedpersonnel.

• Implementationof relevant actionplans toenhance the control environment, ensurecompliance and embed risk managementwithinthebusiness;and

• Implementationofa robustand interactivestakeholder engagement strategy,complementedbyenhancedbrandvisibilityinitiatives.

4.2.2 Financial Highlights

Keyfinancialperformancehighlightsduringthereviewperiodareasfollows:

• The loanbook grewby7.4%, fromN$2.43billionin2016toN$2.61billionin2017.

• Interestincomeaccordinglyincreasedby6%from N$157.4 million in 2016 to N$167.5millionin2017.

• The Bank adopted BID-2, which isrecommended for banks operating undertheBankingInstitutionsActof1998,forthepurposeofcomputingtheprovisionforbaddebts.Thismethodresultedinadecreaseinbaddebtprovisionsfortheyear.

• Interestincomeoninvestmentsincreasedby17.6%fromN$16millionin2016toN$18.9million in 2017, resulting from higherinvestmentbalancesandbetteryieldsduringthefinancialyear.

• Other operating income reduced by 12.5%from N$14.4 million in 2016 to N$12.6million in2017due tohigher income fromloanapplicationfeesandadministrationfeesrecordedin2016,comparedto2017.

• Generaladministrativeexpensesroseby11%from N$109.1 million in 2016 to N$121.4million in 2017, driven by an increase instaff costs of 12.8%,provision for actuarialvaluation on post-retirement medicalbenefit obligations (N$4.4 million), newsubscriptionfeesfortheuseofarangelandmonitoringtool(N$1million),andincreaseddepreciationdue to theacquisitionofnewassetsfortheBank(N$4.2million).

• Surplus for the year increased from N$7.5million in 2016 toN$138.3million in 2017asaresultofallthechangesoutlinedabove.

• During the review period, the BankdisbursedN$304millioninnewloanstoitsclients.Ofthisamount,farmlandpurchasesconstitutedthebiggestcomponentatN$103



KeyRatio 2016 2017 RAG

LoanAdvances(afterprovisions)asapercentageoftotalassets(%)

80.06% 86.60%

Return on Assets 0.29% 5.1%

Cost-to-Income 63.4% 66.9%

Liquidity 6.87% 8.94%

Arrearsasapercentageoftotaladvances(%) 19.1% 21%

NetInterestMargin(%) 5.69% 5.63%

Table 1: Key Financial Ratios

million,livestockloansatN$44million;andproductiveinfrastructureimprovementsatN$29million.ResettledfarmersbenefittedN$7millioninfundingfortheyear.TheBankhasproposedchangestotheMinistryofLandReforminordertomakethePost-SettlementSupportFundmoremeaningfulforresettledfarmers.Theengagementwillcontinueinthenewfinancialyear.

Basedonourfinancialperformance,comparativekeyfinancialratiosareasfollows:

4.3 Benchmarking

AsamemberoftheAssociationofAfricanDevelopmentBanksandFinanceInstitutions,weconfidentlyrateourselvesinthreecoreareas,namely:governanceguidelines,financialprudentialstandardsandoperationalguidelines.ThisratingsystemisdesignedtoassisttheBanktoachievethehighestlevelsinrespectofgovernance,financialmanagementandoperationalefficiencies.Toensureaccuracy,ourself-ratingisreviewedbyourexternalauditors.

Table 2: Development Financing Institutions Benchmarking

KeyMetric(%Weight) 2015/16Score 2016/17Score Directionofchange

GovernanceStandards(40%) 32.5% 38.5%

FinancialPrudentialStandards(40%) 26.0% 28.4%

OperationalStandards(20%) 5.9% 10.4%

TotalScore(weighted) 64.5% 77.2%

4.4 Audit Qualification

TheAnnualFinancialStatementspresentedinthisAnnualReporthavebeenqualifiedbytheexternalauditor. The basis of such qualification is inadequate data integrity related to collateral securitiesunderlyingloanadvances.SuchdataisusedtodeterminetheadequacyofbaddebtprovisionswhenapplyingBID-2guidelines.In2009,theBankmigratedfromBankMasterasitscorebankingsystemtoSAP.Atthetime,SAPdidnothavethesupportingloancollateralsecuritiesmodule.Asaresult,collateralsecuritiesinformationwascapturedinExcelformat.In2010,theBankembarkedonaprojecttodeveloptherequisitecollateralsecuritiesmoduleonSAPandeventuallytomigratethecaptureddatafromExceltoSAP.Afternumerousimplementationdelays,theBanktookadecisioninAugust2012tomigratetoSAPwithwhatever informationwascapturedat thetime.A reviewof samplesof thecaptureddatahasrevealedinaccuraciesinthecollateralsecuritiesdatathathasbeencapturedonSAP.ThecapturingofcollateralsecuritiesdataonSAPhasalsonotbeencompleted.Whilsttheexternalauditordidnot



findanyproblemswith theactual loansdata,he felt uncomfortable to signoffonprovisionsbasedoninaccurateandincompletecollateralsecuritiesdata.Thisisthebasisofthequalification.TheBankhas taken immediate steps tocomprehensively identifyand rectifyalldatagaps related tocollateralsecurities.Basedontheoutcomeofthisanalysis,appropriateconsequencemanagementactionswillbetaken.

Table3:HistoryofAuditOpinions

Year NameofExternalAuditor AuditOpinion

2013 Mac & Associates Unqualified




2017 Mac & Associates Qualified

4.5 Sales and Lending

TheBankplaysanimportantroleincatalysingtheagriculturalsectorthroughitscontributiontolandreform initiatives and by supporting agricultural production. This is achieved through programmessuchastheAffirmativeActionLoanScheme(AALS)andbyextendingcommercial loanstopreviouslydisadvantagedNamibianstoacquirefarmland,livestockandrelatedtools-of-trade.Duringthereviewperiod,theBankimplementedanewvaluationspolicywhichisalignedtotheInternationalValuationStandards.

Towidenaccesstocommunalfarmers,theBankcompletedgroundworkfortheintroductionofano-collateralloanproductforcommunalfarmers.ThisproductwassubsequentlylaunchedinApril2017.TheBankalsoimplementedthenecessarysystemschangesandprocessestofacilitateeffectivetake-overofdebtfromcommercialbanks.Theenhanceddebttake-overproductwaslaunchedinthenewfinancialyear.Otherapprovedinnovations includedtheagro-processingandfinancial intermediaries’financingproducts,bothofwhichwerescheduledforlaunchinthenewfinancialyear.

Inadditiontotheroll-outofthesenewproducts,theBankplanstoimplementre-engineeredbusinessprocesses in the new financial year. The ultimate objective is to improve customer service throughstreamlinedprocesses.Akeytargetistoreducetheloancycleprocess.

4.6 Human Resources

Duringtheperiodunderreview,atotalofsevenemployeescommencedemploymentwiththeBank.Simultaneously,oneemployeeretired,onepassedon,whilstsixresignedfromtheBankinpursuitofnewopportunities in themarket. Thesemovements arewithin benchmark thresholds, indicative ofanorganisation that is simultaneously stable anddynamic in its renewal. TheBankwas issuedwithacompliancecertificatebytheEmploymentEquityCommission,anacknowledgmentof itseffortstoensureitdynamicallyrespondstotherequirementsoftheAffirmativeActionEmploymentAct(Act29of1998).



JobCategory Male Female Total

Executive 4 0 4

Management 19 12 31

Non-Management

39 50 89

Total 62 62 124

Table4:EmploymentBreakdown|2016/17 Graph1:GenderEmploymentBreakdown: MaleandFemale

Graph 1a: Gender Employment Breakdown: Male

Graph 1b: Gender Employment Breakdown: Female

Executive6%

Management31%

Non-Management63%

Executive0%

Management19%

Non-Management81%

Indicator FYEMarch2017

TotalNumberofEmployees 124

AverageAge 40years

StaffTurnoverRate 7%

AverageTenureService 8 years

Terminations 8

WorkforceDistribution(male-female) 50-50

StaffCost/TotalCostRatio 60%

AbsenteeismRate 3%

Table5:HumanResourcesRatios



Graph2:TrainingActivities

60

50

40

30

20

10

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Num

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ValuationPolicy

SAP

Trai

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AreaM

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CapacityBuilding

SAPAu

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RiskM

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SAP

End-

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HTPoliciesW

orkshop

InductionTraining

ODPolicyAw

areness

ValuationforLand

AnnualCustomer

Team

Building(Oshakati)

Mas

terin

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aini

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eeds

AnnualAgribusiness

InvestmentA

ppraisals

OfficeAdm

inistratio

n

Leadership

HygieneandOffice

CollectiveBargaining

Hum

anResources

Intr

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Trad

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TypeofTrainingConducted

4.6.1 Organisational Development

Toincreaseorganisationaleffectivenessandimproveemployeewellness,theBankimplementedrelevantinterventionsandstrategies,whichincluded:

a) PerformanceManagement

ThePerformanceManagementSystemwas implemented inOctober2016, followingfinalisationandapprovalofthefive-yearStrategicPlanattheendofSeptember2016.Thesystemwasimplementedinacascadedmanner,withtheBoardfirstapprovingtheCEO’sperformancecontractwhosedeliverableswere subsequently filtered through to Executives’ performance contracts and then lower down theorganisationalhierarchy.

b) LearningandDevelopment Varioustraininginterventionswereimplementedduringtheyear.Outofatotalstaffcomplement of 124, each employee has attended at least one intervention,whichreflectsa100%coverage.TheBankmadeaninvestmentofN$1.5millioninemployeetraininganddevelopmentinterventionsduringthereviewperiod.



4.7 Farmers’ Support Project (FSP)

ThestrategicinitiativetointegratetheFarmers’SupportProject(FSP)teamintotheBank’soperationscommencedduringthereportingperiod.FSP is responsible for transferringskills to farmers throughtrainingandmentoringservices,withtheobjectiveofincreasingfarmproductivity.

TrainingandmentoringwereidentifiedastransformationalinitiativesintheBank’sStrategicPlan.Thiscreatedtheimperativetoestablishastand-alonedivisionwithintheBank,effective1April2017. InTable6,mentorshipisclassifiedintodirectmentees(beingthefarmerswhoweredirectlymentoredunder the programme) and indirect beneficiaries. These are classified as additional farmers. Theybenefited from group mentoring activities, and included farmworkers, foremen and neighbouringfarmers.

Table6:FSPMentorshipActivities|April2016-March2017

Table7:FSPTrainingActivities|April2016-March2017

Training-related activities conducted under FSP included farmers’ information days, short trainingcourses,excursions,evening sessionsand stakeholdermeetings.Detailsof training interventionsarereflectedinTable7.

OperationalArea Mentees (Individualfarmers

mentored)

Additionalfarmersreached(Farmergroupsmentored)

Numberoffarms/communalareas/sites

mentored

Male Female Total Male Female Total

NorthernCommunalAreas 185 109 294 1174 1188 2362 Villages=173,Small-ScaleCommercialFarms

= 9

South of Veterinary Cordon Fence

553 153 706 1280 357 1637 CommunalVillages=96,FarmUnitResettlement

Scheme=119,AffirmativeActionLoan

Scheme=74

Total farmers mentored 738 262 1000 2454 1545 3999 4999% out of total farmers mentored 20% 80% 100%

OperationalArea Numberoftraining-relatedevents(Eveninglectures,Shorttrainingcourses,Excursions,Farmers’

InformationDays,Stakeholdermeetings)

Numberoffarmerstrained

Male Female Total

NorthernCommunalAreas 9 143 103 246

South of Veterinary Cordon Fence 35 642 500 1142

TOTAL 44 785 603 1388% out of TOTAL 56.6% 43.4% 100%



Table8:FSPPre-SettlementTraining|April2016-March2017

NumberofPre-SettlementTrainingEvents

Region / Venue TotalNumberofResettlementFarmersTrained

Male Female Total

07-12August2016 Otjozondjupa(FarmSumas)

7 6 13

03-07October2016 Omaheke(BenHurRDC) 7 4 11

06-11November2016 Erongo(OmaruruRestCamp)

6 10 16

20-23February2017 Otjozondjupa(OmatjeneResearchStation)

13 10 23

27-30March2017 Otjozondjupa(JohnPandeniResearchStation)

8 5 13

02-08July2017 Kunene(TokoLodge) 8 5 13

59 44 103

% out of total 57.3% 42.7% 100%

FSPalsoprovidedpre-settlement training tonewly resettledbeneficiariesunder theauspicesof theMinistryofLandReform.DetailsoftrainingconductedunderthereviewperiodareoutlinedinTable8.

a) FSP Impact Assessment

Without being exhaustive, training and mentorship support provided to farmers through FSP hastransformedtheoperationsofmanyofthesefarmers,leadingtonationalrecognitionintheformofthefollowingawards:

• ResettlementFarmeroftheYearAwardforKhomas(2014&2016);aswellas2ndand3rdrunners-upforKhomas(2016)

• ResettlementFarmeroftheYearAwardforErongo(2016)• ResettlementFarmeroftheYear2ndrunner-upandSmall-StockWinnerforKunene(2016)• MasterHorticultureEmergingFarmeroftheYearfor2015&2017;and2ndrunner-upfor2017• BestMahanguProducerfor2013• BestConservationFarmerfor2014

Furthermore,onementeegraduatedtobecomeamentorwhilstothersarerecognisedbytheirpeergroupsasinformalmentors.Notwithstandingtheseaccolades,moreworkneedstobedonetoelevatebeneficiariestosuccessfulcommercialfarmers.

ForFY2017/18,thenewdivisionwillhavethefollowingfocus:

• Farmers’ information days, excursions, stakeholder meetings, and topic-specific short trainingcourseswillbeofferedtoclientsandnon-clientstoenhancetheirknowledgeandskillsbase.

• Eveninglectureswillbeofferedtoclientsandnon-clientsoftheBankindifferenttownsandvillagesasaplatformforpart-timefarmerstoupscaletheircompetencies.Inadditiontothisinitiative,theBankhasalsoplannedpracticaldemonstrationsorexposureeventsatvariousagriculturalcolleges,researchstationsandfarmsforthebenefitoffarmers.

• Identifiedclientswillbeofferedanopportunitytoreceivefreementorshipservices.Theseclientsshouldhoweverbewillingtosignanagreementtodemonstratetheircommitmenttothelearningandmentorshipprocess.



• The Bank will enter into agreements withvarious agricultural service providers forjoint cooperation in service delivery, asappropriate.

• The Agri Advisory Services Division willcontinue to train resettled farmers toenhance their chances of success in their newfarmingventures.

4.8 Marketing and Communication

During the review period, the Bank undertooka multi-pronged brand visibility campaign,whichinvolvedplacementofproductawarenessadvertisements in newspapers and magazines,aswellasflightingtheseonradioandtelevisionnetworks. The Bank’s corporate website andits social media pages were also used for thispurpose. The Bank intensified its stakeholderengagement through the implementation of arobustandinteractivestrategy.Tothisend,theBankhadstakeholderengagementsessionswithvarious farmers’ unions whilst media releaseswere issued to clarify and amplify the Bank’sStrategicPlananditsArrearsCollectionStrategy.

TheBankspentoverN$1.1milliononCorporateSocial Investments (CSI) during the 2016/17financial year. Worthy causes that benefitedfrom the Bank’s CSI include the Kudu rabiesimmunisation project, agricultural shows,farmers’ information days, annual generalmeetings of farmers’ unions and education-relatedprojects.

Table9:RegionalSpreadofSponsorships

Region AmountN$

Erongo 20,000.00

Hardap 15,000.00

//Kharas 20,000.00

Kavango 42,000.00

Khomas 47,799.34

Kunene 63,696.30

National 578,810.00

Ohangwena 26,300.00

Omaheke 65,500.00

Oshana 133,770.00

Oshikoto 20,000.00

Otjozondjupa 83,500.00

Zambezi 5,740.00

Total 1,122,115.64

OtherWelfareAgricultural projectsFundraising events EducationFarmer information days and awardsDrought conferenceConsortium of communal farmersAgricultural festivals

!2

Graph3:BreakdownofSponsoredActivities, FY2016/17

Fundraiser Results by Salesperson

PARTICIPANT UNITS SOLDOther 19

Welfare 1

Agricultural projects 12

Fund raising events 7

Education 4

Farmer informations days and awards

20

Drought conference 4

Consortium of communal farmers 6

Agricultural festivals 26

Column Chart

0

5

10

15

20

Other WelfareAgricultural projectsFund raising events Education

4

7

12

1

19

Pie Chart

26%

6%4%

20% 4%7%

12%

1%

19%

Column, bar, and pie charts compare values in a single category, such as the number of products sold by each salesperson. Pie charts show each category’s value as a percentage of the whole.

!1



TheBankwillcontinuetoimproveitsbrandvisibilityinthecomingyear,inadditiontoembeddingitsrobuststakeholderengagementstrategy.Towardsthisend,concertedeffortswillbemadetoensurethatsufficientawarenessiscreatedwithregardstotheBank’soperations,activitiesandproducts.

4.9 ICT and Business Innovation

A managed printing solution was implemented, which enabled the Bank to control the printingenvironment in order to save costs. The Bank also renegotiated the SAP support andmaintenanceagreement to take account of current needs. The SAP system was re-configured to accommodatenew products such as debt take-over (from commercial banks) and no-collateral loans. In addition,InformationandCommunicationTechnology (ICT)policieswereupdated tokeepabreastof industrydevelopmentswhilst responding to theBank’s ever-changingoperational requirements. Planning foraBank-widebusinessprocessre-engineering(BPR)initiativewasconcludedduringthereviewperiod,withimplementationplannedinthenewfinancialyear.

DuringFY2017/18,theBankwillenhanceitsManagementInformationSystemsforeffectivebusinessintelligence.OtherplannedinitiativesincludetheimplementationoftheBPRandSystemsIntegrationproject.Operationally,ICTcapabilitieswillbeenhancedtoeffectivelymonitorinternetusage,printing,networkusageanduptime,andgeneralsystemsuptime.

4.10 Research and Product Development

The Research and Product Development Division (R&D) completed a number of initiatives outlinedin the Strategic Plan for the 2016/17 financial yearwhich included the cost-benefit analysis for theintegrationofFSPintotheBank’soperations,thedevelopmentoftheClimateResilientStrategyandacomprehensivereviewoftheBank’s loanproductsportfolioandpricingstrategies.TheoutputsofallthreeinitiativeshavebeenapprovedbytheBoardforimplementation.AsfocusforFY2017/18,theR&DDivisioniscommittedtofullimplementationoftheClimateResilientStrategy,establishingthefeasibilityof expanding theBank’s branch footprint, investigatingnewmarket opportunities in agriculture andagro-relatedactivities,andenhancingbusinessintelligenceandcustomerinsightstoensureinformeddecision-making,therebyimprovingservicedeliveryandpropellinginnovationintheBank.

4.11 Risk Management

TheBankhasmadesignificantprogressintermsoftheriskmanagementfunction.KeyhighlightsincludetheappointmentofaRiskOfficer,theroll-outofriskawarenesssessionsthroughouttheBank,embeddingriskmanagementat strategicand functional levelsand the identificationof theTop10 risks,aswellas associatedmitigationmeasures, at enterprise level. TheBankalsodevelopedBusinessContinuityManagementandEnterpriseRiskManagementpolicies.

TheTop10enterprise-levelrisksare:

• Business Continuity Risk-theriskoffailuretocontinuethecoreoperations/functionsoftheBankduetoplanned/unplannedevents.

• Reputational Risk-theriskofexposuretoevents/peoplethatcouldhaveanegativeimpactontheBank’sreputation.

• Information Technology Risk-theriskthattheInformationCommunicationTechnology(ICT)infrastructure/platformsarenotalignedtosupportthebusinessstrategy.

• Funding Risk-theriskthattheBankwillnothaveadequatefundstoadvanceloansand/ortocoveroperationalcosts.

• Sustainability Risk-theriskofexposuretoincreasingoperationalcosts.



• Recovery Risk-theriskthattheBankwillnoteffectivelymanageandcollectloansinarrearsanddueinstallmentsontime.

• Concentration Risk – the risk resultingfrom over-lending to individuals,intermediaries and sectors in theindustry,potentiallycausinglossestotheBank.

• Corporate Governance Risk - the risk thattheBankwillfailtocomprehensivelyembed Bank-wide risk managementpractices within its strategy, people,processes and systems; to ensure fullcompliance with laws, regulations anditsownpoliciesatallmaterialtimes;andtohavearobustandadequatesystemofinternal controls.

• Revenue Generation Risk - the risk of failure to grow interest income due tolowgrowth inthe loanbookasaresultof declining sales; as well as failure togenerate sufficient non-interest incomerevenuestreamstosupportgrowth.

• Human Resources Risk - the risk that theBankwill fail to attract, retain and/or develop employees with adequatecompetencies, the right attitudes andpotentialfordevelopmentandgrowth.

As intimated, robust mitigation strategieshave been identified to ensure these risks areproperly managed. The effectiveness of thesemitigation measures is monitored at multipleorganisational levels, namely the ExecutiveCommittee, the Board Committee responsiblefor risk management oversight and the Boarditself.

In thenewyear, theBankwill setandmonitorrisk tolerance thresholds.RiskassessmentswillbeconductedatdepartmentallevelandBusinessContinuity Planswill be implemented. In ordertooptimiseefficiency,theBankwillacquiretheERM/Governance, Risk and Compliance (GRC)software.

4.12 Internal Audit

The Internal Audit Division achieved an auditcompletionrateof91%onvarioussignificantrisk-basedandfollow-upauditsaspertheapprovedAnnualAuditPlan for theperiodunder review.TheDivisionalsooversawtheachievementofa90%successfulcompletionrateforauditissuesidentifiedinaco-sourcedauditassignmentwithan external audit service provider. The auditareascoveredwere:

• HumanResourcesManagement• ICTSystems(SAPandBPM)• LoanManagementProcess,and• ArrearsManagement

The division developed a three-year StrategicAudit Plan for theperiod2017 to 2020,whichwasapprovedbytheBoardforimplementation.

4.13 Legal Services

Key achievements for the Division during thereportingperiodinclude:

• ApprovalandimplementationoftheArrearsCollections Strategy, in conjunction withotherroleplayerswithintheBank.

• Implementation of the FIA project before

30Your all Season BankAGRIBANK ANNUAL REPORT 2017



handovertothenewComplianceDivision.• Finalisationof80%ofallHumanResources

related litigations,with the referencepointbeingthenumberofissuesatthebeginningofthefinancialyear.

• Developing the Legal Collections Policyand ensuring its approval by Board.Implementationofthepolicywillhappeninthenewfinancialyear.

Goingforward,theDivisionwillfocusoneffectivelegalarrearscollection,thereconstitutionoftheBank’slegalpanelanditseffectivemanagementtodeliveron theBank’s legalneeds;aswellascontinued reduction in open litigation cases inwhichtheBankisinvolved.

4.14 Outlook

Duringthe2016/17financialyear,theBankfaceda difficult operating environment, exacerbatedbysuccessivedroughtsinrecentyearsandfiscalconsolidation by Government. As a result, theeconomyisestimatedtohavegrownbyamere1.1%in2016.Notwithstandingthesechallenges,theBankdemonstratedcommendableresilienceandachievedcrediblefinancialandoperationalresults. The operating environment is set toremain challenging with economic growthforecast to increaseby2.1% in2017and3.8%in 2018 (Bank of Namibia, Economic Outlook,July2017).Politicalandeconomicuncertaintiesin our major trading partners remain risks togrowth. On the positive side, the normal-to-above-normalrainfallreceivedinmostpartsofthe country during the 2016/17 rainy season,recovery in commodity prices and plannedexpansionintheminingsector,areexpectedtosomewhatsupportgrowth.

Overall,we foreseeanotherchallengingtwotothree years ahead. Climatic conditions remainvolatile and unpredictable,Government’s fiscalconsolidation efforts are likely to continue andeconomicgrowthwillremainsubdued.TheBankwillhavetobecomemoreoperationallyefficientandresilient.Weareoptimisticthat,withalltheorganisationalchangesunderway,theBankwillemergestronger.

4.15 Conclusion

Wehave laid solid foundations for theBank inthepastyear.However,weneedtodomoreforour customers, to ensure the Bank’s financialsustainability,tobecomeanemployerofchoice,to have best-of-breed governance practicesand to contribute to the social and economicdevelopmentofourcountry.

I am grateful to the Board for their guidance,to management for their support and toall employees for helping us deliver on ourmandate. We should remain steadfast in ourresolvetorepositiontheBanktoeffectivelyfulfillitsmandateandplayitspartintheeconomy.

______________________SakariaNghikembuaCHIEF EXECUTIVE OFFICER

31Your all Season Bank

AGRIBANK ANNUAL REPORT 2017



EXECUTIVE MANAGEMENT

Sakaria NghikembuaChiefExecutiveOfficer

Regan MwaziGeneralManager:CorporateServices



Shali ShindumeGeneralManager:

Lending

Stephanie de KlerkManager:LegalServices

Benjamin CoetzeeManager:InternalAudit

Evast KalumbuCorporateGovernanceOfficer

(CompanySecretary)

Ignatius TheodoreChiefFinancialOfficer

Kenneth KasataRiskOfficer



CORPORATE GOVERNANCE REPORT 6.1 Determining Strategic Direction

The Bank acknowledges that virtuous corporate governance is fundamental in the execution of itsmandate. The Board and its sub-committees are responsible for strategically directing the Bank byensuringtimelydecision-makingandthatactionsandresolutionsoftheBoardanditsCommitteesarebasedonrobustvalue-baseddiscussions.TheBoardapprovestheBank’sstrategyandexercisesoversightovertheimplementationofthatstrategy.

Graph4:GovernanceFramework

MINISTRY OF FINANCE

MinistryofPublicEnterprises

Ministry of Agriculture,Water and Forestry

&MinistryofLandReform

BOARD

CompanySecretary

Finance,Risk,AuditandComplianceCommittee(FRACC)

CreditandInvestmentCommittee(CIC) HumanResourcesCommittee(HRC)

6.2 Governance Framework and Board Structures



6.2.1 Internal Governance Functions

Toensurerobustriskmanagement,complianceandbestpracticeinternalcontrols,theBankhassetupthefollowingfully-fledgedfunctions:

• Internal Audit• RiskManagement,and• Compliance

6.2.2 Internal Control Environment

Responsibility for the systems of operationaland internal financial controls rests with theBoard and has been delegated to the Finance,Risk, Audit and Compliance Committee(FRACC). The Bank’s governance principles onethical behaviour, legislative compliance andsound accounting practices lay the foundationfor its internal control processes. ExecutiveManagement is accountable for determiningthe adequacy, extent and operation of controlsystems.

This system contributes to control over theBank’sactivities,theefficiencyof itsoperationsandefficientuseofitsresources,whilstenablingittoadequatelymitigatesignificantoperational,financial or compliance risks. Therefore, theinternal control system plays a key role in theconductandmonitoringoftheBank’sactivities.However, the Bank is aware that the internalcontrol system cannot provide an absoluteguarantee that its objectives will be met andthat all the potential risks it may face will becontrolled.

The Bank continued to target operationalefficiencies during the 2016/17 financial year.Itssuccesswasmeasuredthroughinternalauditchecksofallkeyoperationalareas.Thereviewofexistingpolicies,operationsmanuals,processesand procedures, where necessary, was carriedout.Examplesincludethedelegationofauthorityandcash-handlingpolicies.

Overall,thestateofthecontrolenvironmentinresponse to themanagementofhighriskswasfoundtobesound.

6.3 Board of Directors

The Board of Directors is accountable forimplementing an effective governanceframeworkwithin theBank. In this regard, theBoardimplementsmechanismstosafeguardtheinterests of the Bank and its stakeholders. The Bank actively seeks to comply with applicablelawsandregulationsaswellas itsownpoliciesandprocedures.

TheBoardconsistsoffivenon-executivedirectorswhoareappointedbytheshareholderbasedontheir skills, experience and expertise in fieldscritical to the Bank’s performance. The role,functionsandpowersof theBoardarederivedfrom the Bank’s Establishment Act, applicablelaws, regulations, the Board Charter, corporategovernancebestpractices,aswellasapprovedpolicies.

TheBoard’smainresponsibilitiesare,interalia:

• Setting the Bank’s strategy and overalldirection in line with the shareholder’smandate;

• Bringing independent, informed andeffective judgment to bear onmaterialdecisionsaffectingtheBank;

• Approval of annual business plans andbudgets – inclusiveof bothoperationalandcapitalbudgets;

• Ensuring that an effective governanceframeworkisinplaceintheBank;and

• Therecruitment,andterminationoftheservicesoftheChiefExecutiveOfficer.

TheBoardmeetsquarterlyoratanyadhoctimesascircumstancesrequire.Directorshaveaccessto any such information from the Bank or anysenioremployeeoftheBankastheymayneedtoexercise their independent judgmenton theaffairsof theBank;andmay seek independentadviceindividuallyorcollectivelyonanymatterconcerning the Bank should they need to do so infulfilmentoftheirfiduciarymandate.



6.3.1 Board Committees

Toexecuteitsmandate,theBoardhassetupCommittees.Insodoing,theBoardrecognisesandacceptstheprinciple thatwhilstcertainpowerscanbedelegated toCommittees,ultimateaccountability fordelegatedmattersremainswiththeBoard.AuthoritydelegatedbytheBoardaccordinglyalwaysentailsarequirementofreportingbacktothefullBoardandtheobligationoftheBoardtomonitorandevaluatetheperformanceoftheCommittees.

OutlinedhereafterarethethreeCommittees,theiroversightrolesaswellastheirmembers:

a) TheFinance,Risk,AuditandComplianceCommittee(FRACC)

ThisCommitteeconsistsof threenon-executivedirectors.TheCommittee is chairedbyMrsDagmarHonsbein.OthermembersoftheCommitteeareMrsTerttuUuyuniandDrMichaelHumavindu.TheCommitteeexercisesoversightinrespectof:

• TheBank’ssystemsofinternalcontrolsintheareasoffinanceandaccounting;• Procurementpoliciesandadherencetothese;• TheBank’sauditing,accountingandfinancialreportingprocesses;• Internalandexternalauditorobligations;• Bank-wide risk management – which includes consideration and investigation of strategic,

financialandoperationalrisksasidentifiedbymanagement,internalandexternalauditors;and,• ComplianceoftheBanktoapplicablelaws,regulationsandpolicies;• Legalmatters.

b) TheHumanResourcesCommittee(HRC)

ThisCommitteeconsistsofthreenon-executivedirectors.TheCommitteeischairedbyMrOivaMahina,withothermembersbeingMrMichaelIyamboandMrsDagmarHonsbein.Itsprimaryfunctionsare:

• EstablishmentandreviewofanappropriateremunerationframeworkforManagementinlinewithperiodicmarketdevelopmentsandthedirectivesoftheMinistryofPublicEnterprises;

• Reviewoforganisationalandstaffmatters;and,• Reviewandapprovalofannualsalaryincreases.

c) TheCreditandInvestmentCommittee(CIC)

ThisCommitteeiscomprisedofthreenon-executivedirectors.TheCommitteeischairedbyDrMichaelHumavindu,with othermembers beingMrMichael Iyambo andMrOivaMahina. The Committee’sprimaryfunctionsare:

• Oversightovercreditpolicy;• OversightoverthedevelopmentimpactoftheBank;• ReviewandapprovalofloanswithamonetaryvaluerangingbetweenN$2.5millionandN$15

million;• Reviewandrecommendation,totheBoardforapproval,ofloanswithamonetaryvalueinexcess

ofN$15million;• OversightoverinvestmentdecisionsoftheBank;• OversightovertheassetsandliabilitymanagementfunctionoftheBank.



6.3.2 Board and Committee Attendance

ThefollowingtablereflectstheattendanceofBoardandCommitteemeetingsduringthereviewperiod.

Name of Director

Board Meetings Attended

Finance, Risk, Audit and

Compliance Committee

Meetings Attended

Credit and Investments Committee

Meetings Attended

Human Resources Committee

Meetings Attended

TerttuUuyuni

Chairperson 4/4 Member 4/5 - - - -

Michael Iyambo

DeputyChairperson

4/4 - - Member 9/9 Member 3/3

Michael Humavindu

Member 3/4 Member 2/5 Chairperson 9/9 - -

OivaMahina Member 4/4 - - Member 9/9 Chairperson 3/3

DagmarHonsbein

Member 4/4 Chairperson 5/5 - - Member 2/3

Table10:BoardAttendance

6.3.3 Board Training and Development

The Board and Executive Committee members attended a two-day Corporate Governance trainingworkshop under the Director Skills Development Programme, facilitated by the Southern AfricanDevelopment Community Development Finance Resource Centre (SADC-DFRC) inMarch 2017. ThetrainingwasheldattheBank’sheadofficeinWindhoek.

2017 2016 Variance %Variance

Retainer fees 459,070.92 406,714.26 -52,356.66 12.87%

SittingAllowance 290,175.69 251,137.11 -47,038.58 19.35%

Total 749,246.61 657,851.37 -99,395.24 15.30%

Board Member Retainer Fees Sitting FeesTerttuUuyuni 100,669.92 63, 312.32

OivaMahina 123,873.00 78,104.49

MichaelIyambo 110,665.00 66,685.74

DagmarHonsbein 123,873.00 82,073.14

*DrMichaelHumavindu N/A N/A

Total 459,070.92 290,175.69

Table11:Board Fees

Table12:BoardFeesperDirectorfortheperiod:April2016-March2017

*Dr Humavindu is a civil servant and does not qualify for Board fees



6.3.4 Company Secretary

TheroleoftheCompanySecretaryistoensurethe Board remains cognisant of its duties. Inaddition to guiding the Board on dischargingits responsibilities, the Company Secretarykeeps the Board abreast of relevant changesin legislation and governance best practices.The Company Secretary also oversees theinduction of new directors, as well as the on-going education of directors. To enable theBoard to function effectively, all directors havefullandtimelyaccesstoinformationthatmayberelevanttotheproperdischargeoftheirduties.This includes information such as corporateannouncements, stakeholder communicationand other developmentswhichmay affect the

Bankanditsoperations.AlldirectorshaveaccesstotheservicesoftheCompanySecretary.

6.4 Communication with the Shareholder

The Bank ensures continuous and constructivecommunication with the shareholder primarilythroughthefollowingfora:

• The Bank’s Annual Report. This shouldbe prepared and submitted timeouslytotheshareholderinlinewithstatutoryreportingrequirements;

• Regular briefings with the shareholderonmattersaffectingtheBank;and,



• Theannualgeneralmeetingatwhichtheshareholderisinformedabout:

o ThestrategyoftheBank; o TheperformanceoftheBank,and; o Anysignificantmatters.

6.5 Compliance

6.5.1 Code of Ethics

The Bank operates on the basis of a soundcultureofentrenchedvalues thatare reflectedin theapprovedCodeofEthics.Toensure thatthese ethics are adhered to, all employees aremadeawareof theCodeofEthicsduring theirinduction.

6.5.2 Conflict of Interest

In order for the Bank to guard against conflictof interest, theCompanySecretarymaintainsaregister ofDirectors’ and employees’ interests.In addition, the Directors and ExecutiveManagementarerequiredtodeclareallinterestsat themeetingstheyattend,which is recordedinwriting,asrequiredbylegislation.Atnotimeduringthereportingperiodwereanycontractsof significance relative to the Bank’s businessenteredintowitheitheraDirectoroftheBank,oranymemberof theExecutiveCommitteeoranyentitiesinwhichanyDirectororExecutiveofthe Bank has an interest.


Your all Season BankAGRIBANK ANNUAL REPORT 201740 41



ANNUAL FINANCIAL STATEMENTS

REPORT OF THE AUDITOR-GENERAL ON THE ACCOUNTS OF THE AGRICULTURAL BANK OF NAMIBIA FOR THE FINANCIALYEARENDED31MARCH2017


Your all Season BankAGRIBANK ANNUAL REPORT 201740 41



REPORT OF THE AUDITOR-GENERALON THE ACCOUNTS OF THE AGRICULTURAL BANK OF NAMIBIAFORTHEFINANCIALYEARENDED31MARCH2017

7.1 Introduction7.2 Management’sResponsibilityfortheFinancialStatements7.3 Auditor’sResponsibility7.4. Acknowledgement7.5 Key Audit Findings 7.5.1 ProvisionforBadDebts 7.5.2 Credit Control 7.5.3 SuspensionofInterestChargesonNon-PerformingLoans7.6 BasisforQualifiedAuditOpinion7.7 QualifiedAuditOpinion

CONTENTs

REPORT OF THE AUDITOR-GENERALON THE ACCOUNTS OF THE AGRICULTURAL BANK OF NAMIBIAFOR THE FINANCIAL YEAR ENDED 31 MARCH 2017



7.1 Introduction

Theaccountsof theAgriculturalBankofNamibia forthe financial year ended 31 March 2017 are beingreportedoninaccordancewiththeprovisionssetoutintheAgriculturalBankofNamibiaAct,2003(Act5of2003).

The firm MAC & Associates of Windhoek has beenappointedbytheAuditor-General intermsofSection26(2) of the State Finance Act, 1991, to audit theaccounts of the Agricultural Bank of Namibia on hisbehalfandunderhissupervision.

Figures in the report are rounded to the nearestNamibiadollaranddeficitsareindicatedin(brackets).

IcertifythatIhaveauditedtheaccompanyingfinancialstatementsoftheAgriculturalBankofNamibiaforthefinancial year ended 31March 2017. These financialstatements comprise the following statementssubmittedfortheyearthenended:

• ValueAddedStatement• StatementofFinancialPosition• StatementofComprehensiveIncome• StatementofChangesinEquity• StatementofCashFlows• NotestotheAnnualFinancialStatements

TheaccountsweresubmittedontimebytheAccountingOfficertotheAuditor-Generalon1June2017,interms

of Section 26 (1) of the State–Owned EnterprisesGovernanceAct,2006.

The financial statements, notes to the financialstatements and general information provided by theAccountingOfficerareattachedandareonpages45to 81.

7.2 Management’s Responsibility for the Financial Statements

Management is responsible for the preparation andfair presentation of these financial statements inaccordancewithSection12&13oftheStateFinanceAct, Act 31 of 1991 and relevant legislation, and forsuch internal controls as Management determinesare necessary to enable the preparation of financialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.




7.3 Auditor’s Responsibility

My responsibility is to express an opinion on thesefinancial statements basedon the audit. I conductedthe audit in accordancewith International Standardson Auditing. These standards require that I complywith ethical requirements and plan and perform theaudit to obtain reasonable assurance aboutwhetherthe financial statements are free from materialmisstatement.

PowersandDuties

Section25(1)(c)oftheStateFinanceAct,1991,providesthattheAuditor-Generalshouldsatisfyhimselfthat:

a. All reasonable precautions have been takentoensurethatallmoniesduetotheStatearecollected, and that the laws relating to thecollectionofsuchmonieshavebeencompliedwith;

b. All reasonable precautions have been takento safeguard the receipt, custody and issueofandaccounting for, theState’sassets, suchas stores, equipment, securities andmovablegoods;and,

c. Theexpenditurehastakenplaceunderproperauthority and is supported by adequatevouchersorotherproof.

In addition, Section26(1) (b)(iv) of the State FinanceAct,1991,empowerstheAuditor-Generaltoinvestigateandreportontheeconomy,efficiencyandeffectivenessof the use of the State’s resources.

Anauditinvolvesperformingprocedurestoobtainauditevidence about the amounts and disclosures in thefinancialstatements.Theproceduresselecteddependon the auditor’s judgment, including the assessmentof the risks ofmaterialmisstatementof thefinancialstatements,whetherdueto fraudorerror. Inmakingthoseriskassessments,theauditorconsiders internalcontrols relevant to the entity’s preparation and fairpresentation of the financial statements in order todesign audit procedures that are appropriate in thecircumstances,butnot for thepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.

Anauditalso includesevaluatingtheappropriatenessofaccountingpoliciesused,andthereasonablenessofaccounting estimatesmade byManagement, as wellasevaluatingtheoverallpresentationof thefinancialstatements.

I believe that the audit evidence I have obtained issufficient and appropriate to provide a basis for theauditopinion.




7.4 Acknowledgment

Theassistanceandco-operationgivenby the staffoftheBankduringtheauditisappreciated.

7.5 Key Audit Findings

7.5.1 Provision for Bad Debts

Duringthefinancialyearunderreview,theBankadoptedtheDeterminationonAssetClassification,SuspensionofInterestandProvisioning(BID-2)forthepurposeofcomputing the provision for bad debts.With 78% ofthe loansbeinggraded in the sub-standard,doubtfulandlosscategories,theapplicationofcollateralvaluesin calculating the provision is critical. However, theaccuracy and completeness of the collateral valuesrecorded on SAP is doubtful. This is attributable toinadequate controls (monitoring, supervision andreview)over thecapturingof thecollateralvaluesonSAP’scollateralmoduleasevidencedbythefollowing:

• At 31 March 2017, 1 100 loan accounts with atotal book value ofN$483 713 000 did not havetheircollateralvaluescapturedonthesystem.Thiswas partially corrected off SAP system for auditpurposesbutcollateralvaluesforloanswithabookvalueofN$36826000remainedunrecorded.

• Basedonasampleof70loanaccountstested(outof8400accounts),theerrorratewas20%whichistoohighforplacingrelianceontheSAP’scollateraldatagiventheotherweaknessesnoted.

• No collateral values were allocated to thering-fenced accounts that were created onimplementationofthedroughtreliefscheme.

• Therewasnoevidence(documentation)providedto demonstrate quality control checks oncollateralthatwasexportedintotheSAPoninitialimplementationofthemodule.

• There is no clear plan of action for capturingthe collateral - detailing timing of the project,supervision andmonitoring processes, aswell asquality control checks. Though the process hasbeenon-goingsince2013,thecollateralvaluesofsomeloanaccountsgrantedpriorto2013arestillnotcaptured.

Recommendations

• ThecapturingofsecuritiesontheSAP’scollateralmodule should be speeded up. To facilitate this,a clearplanofactionshouldbeput inplaceandimplementedaccordingly.

• The Bank should also consider fully adoptingBID-2as thiswill enable it tobenchmark its loanperformance against similar institution/s inNamibia.

• Theinternalauditdepartmentshouldincludetheauditofsecuritiesinitsauditplan.

ManagementComments

• Acomprehensiveanalysisofthegapsincollateralsecurities data will be performed; and an actionplanwillbedevelopedandimplementedduringFY2017/18tosustainablyaddressthisweakness.

• Therestoftherecommendationsarenotedandwillbeaccordeddueconsiderationforimplementation.




7.5.2 Credit Control

• Thecreditqualityhasbeenworseningonanannualbasis as evidenced by the fact that the loans inarrears increasedby18%fromN$465918000 in2016toN$549528000in2017whichisareflectionoftheBank’screditpolicy.Duringthesameperiod,theloanbookgrewby7%whichisattributabletogrowth in arrears and new loans disbursed. ThedecisionbytheBanktoengagedebtcollectorstoassistwiththecollectionofarrearswitheffectfromFebruary2017 ishighlycommendable.Theeffectof these effortswill however be felt in the 2018financialyear.

• For most new loans, there is no alignment ofthe loan repayment cycle to the project’s cashflow cycle, despite the principal source of therepayment being the funded project. The Bankallowsamaximumgraceperiodof12monthsforallloansexceptforaffirmativeaction-relatedones.Thefirst installment is due12months fromdateof bond registration irrespectiveof thenatureoftheprojectbeingfunded.Forbeginners(especiallynew farmers) and other projects of a long-termnature whose repayments are planned to comefrom the project’s operating cash flows, the 12monthsistooshortsincetherevenueinflowsmaystartafter12months.

• As a result, clients fall into arrears on the firstinstallment and some may never catch up withtheirscheduledinstallments.

• Asat31March2017,theBank’sloanswereunder-secured by a total amount of N$318 207 000accountingfor12%oftheloanbook.ThisexposestheBanktotheriskoflossesintheeventofdebtorsdefaultingonpayments.

Recommendations

• TheBankshouldreviewtheloanrepaymentgraceperiods and align these to the project’s realisticcashflows.

• Registrationofadditionalbondsandsecuritiesforloansthatareunder-securedisrecommended.

• TheBankshouldconsiderregisteringbondsabovetheapprovedloanamounts.

ManagementComments

• Loan grace periods will be reviewed during FY2017/18andrepaymentswillbealignedtoprojectcash-flows.

• Forallcollaterisedloans,theBankwillensurethatfullcollateraltocovereachloanismaintained.

• However, financial inclusion requires the Bankto advance non-collaterised loans to certaincategories of clients. This aspectwill be factoredintoprovisionsonadvancesmade.

REPORT OF THE AUDITOR-GENERALON THE ACCOUNTS OF THE AGRICULTURAL BANK OF NAMIBIAFORTHEFINANCIALYEARENDED31MARCH2017



7.5.3 Suspension of Interest Charges on Non-Performing Loans

Thereisnopromptidentificationandcommunicationofnon-performingloansresultingincontinuedinterestaccrualsonthesameaccounts.

Recommendation

Interestchargesshouldbepromptlysuspendedoncethenon-performingloanshavebeenidentifiedandthereshouldbeclearproceduresforpromptidentificationandcommunicationofsuchloans.

ManagementComments

• TherecommendationisfullyacceptedandcorrectivestepswillbeimplementedduringFY2017/18.

7.6 Basis For Qualified Audit Opinion

Duringthefinancialyearunderreview,theBankadoptedBID-2forthepurposeofcomputingtheprovisionforbaddebts.With78%oftheBank’sloansbeinggradedinthesub-standard,doubtfulandlosscategories,theapplicationofcollateralvaluesincalculatingtheprovisioniscritical.However,therewasnoadequatesystemofinternalcontroloverthecapturingofcollateralvaluesonSAP’scollateralmoduleonwhichwecouldrely.Consequently,wewerenotabletosatisfyourselveswiththecompletenessandaccuracyoftherecordedcollateralvaluesaswellasthereportedprovisionforbaddebtsandsurplusfortheyear.

7.7 QualifiedAuditOpinion

ThefinancialstatementsoftheAgriculturalBankofNamibiaforthefinancialyearended31March2017havebeenauditedinaccordancewiththeprovisionsofSection25(1)(b)oftheStateFinanceAct,1991,readwiththeprovisionsofSection20(2)oftheAgriculturalBankofNamibiaAct,2003(Act5of2003).

Inmyopinion,exceptforthepossibleeffectsofthematterdescribedintheBasisforQualifiedOpinionparagraph,thefinancialstatementsfairlypresent,inallmaterialrespects,thefinancialpositionoftheAgriculturalBankofNamibiaasat31March2017andtheresultsof itsoperationsandcashflowsfortheyearthenended,inconformitywithInternationalFinancialReportingStandardsandinthemannerrequiredbytheStateFinanceAct,1991(Act31of1991)andtheAgriculturalBankAct,2003(Act5of2003).

WINDHOEK, August 2017 JUNIAS ETUNA KANDJEKE AUDITOR-GENERAL



AGRICULTURAL BANK OF NAMIBIAANNUAL FINANCIAL STATEMENTS FORTHEYEARENDED31MARCH2017

Contents:

ApprovalofAnnualFinancialStatementsStatutoryInformation ValueAddedStatementStatementofFinancialPositionStatementofComprehensiveIncomeStatementofChangesinEquityStatementofCashFlowsandRelatedNotesNotestotheAnnualFinancialStatements

Approval

TheAnnualFinancialStatements,setoutonpages48to83,havebeencompiledfromthebooksoftheBankandtothebestofourknowledgeandbelief,arecorrect.

______________________________ ______________________________SakariaNghikembua IgnatiusTheodoreChiefExecutiveOfficer ChiefFinancialOfficer

TheAnnualFinancialStatements,setoutonpages9to45,havebeenapprovedbytheBoardoftheAgriculturalBankofNamibiaandaresignedonitsbehalfby:

______________________________ ______________________________TerttuUuyuni DagmarHonsbeinChairpersonoftheBoard ChairpersonoftheBoardFinance,Risk,Audit& ComplianceCommittee

47484950515253

55-83



AGRICULTURAL BANK OF NAMIBIAANNUAL FINANCIAL STATEMENTS FORTHEYEARENDED31MARCH2017

Statutory Information

DIRECTORS:

ThecompositionoftheBoardofDirectorsisasfollows:

CHAIRPERSON OF THE BOARD: TerttuUuyuni Re-appointed1July2015 NON-EXECUTIVE DIRECTORS OivaMahina Re-appointed1July2015DagmarHonsbein Appointed1July2015MichaelIyambo Appointed1July2015DrMichaelHumavindu Appointed1July2015 REGISTERED OFFICE

AgriculturalBankofNamibia10PostStreetMallPrivateBag13208WINDHOEK



AGRICULTURAL BANK OF NAMIBIAVALUE ADDED STATEMENTFORTHEYEARENDED31MARCH2017

Valueadded:

ValueaddedisthewealthcreatedbytheAgriculturalBankofNamibiathroughtheprovisionofloanstoclients.

Interestandnon-interestincome 199057 187 917

Decreaseinprovisionforbaddebts 76 248 -

Interestpaidandotherexpenditure (60323) (113816)

214 982 74 101

Distribution of wealth created by the bankProportion Proportion

Employeecompensation

-Salaries,wagesandotherbenefits 27% 58018 51030 69%

Government

-Taxation 7% 14 893 13099 18%

Retentionforexpansionofgrowth 66% 142071 9 972 13%-Retainedincome 138304 7 497

-Depreciationandamortisation 3 767 2 475

100% 214 982 74 101 100%

2017 2016

N$‘000 N$‘000



AGRICULTURAL BANK OF NAMIBIASTATEMENT OF FINANCIAL POSITIONASAT31MARCH2017

Notes 2017 2016 2015

ASSETS N$‘000 N$‘000 N$‘000

Non-current assetsLong-termportionofadvances 4 1 573 399 1 437 771 1 266 925

Property,plantandequipment 6 114 843 93103 93 344

Investmentproperties 7 45280 45 895 45 895

Intangibleassets 8 359 77 -

1 733 881 1 576 846 1 406 164

Current assets

Inventory 10 861 486 398

Cashandcashequivalents 3 197 561 374 153 378 997

Short-termportionofadvances 4 208158 165 163 218110

Loanrepaymentinarrears 4 548 528 465 918 438 811

Otherreceivables 5 1 597 1 664 1 258

956705 1007384 1037574

Total assets 2 690 586 2 584 230 2 443 738

CAPITAL, RESERVES AND LIABILITIESCapital and reservesCapital 18 1408031 1408031 1 256 831

Reserves 17 786 537 648 232 640735

Funds and grants 16 85 154 85 154 86 393

2 279 722 2 141 417 1 983 959Non-currentliabilities

Deferredincome 14 59026 69 241 79 676

Loan Guarantee Fund 11 110433 98 482 92 295

Long-termportionofborrowings 12 104983 107833 110442

Post-retirementemployeebenefits 15.2 29440 26 238 23720

303 882 301 794 306 133Currentliabilities

Creditorsandprovisions 13 8055 18 521 13 651

Currentportionoflong-termborrowings 12 2850 2609 2 388

SpecialPurposeFunds 9 96077 119 889 137607

106982 141019 153 646

Totalliabilities 410 864 442 813 459 779Totalcapital,reservesandliabilities 2 690 586 2 584 230 2 443 738



AGRICULTURAL BANK OF NAMIBIASTATEMENT OF COMPREHENSIVE INCOME FORTHEYEARENDED31MARCH2017

Notes 2017 2016

INCOME N$‘000 N$‘000

Interestincomeonadvances 19.1 167 512 157 385

Interestexpense 19.2 (17442) (15719)

Net interest income before provision for impairment on advances 150 070 141 666

Baddebtsandmovementinprovisionforlossesonadvances 4 76 249 (56463)

Impairmentlossoncashandcashequivalent 3 (12701) -

Net income from lending activities 213 618 85 203

Interestincomeonbanksandfixeddeposits 19.1 18 879 16050

Otheroperatingincome 19.3 12 667 14 483

Total income 245 164 115 736

Generaladministrativeexpenses 19.4 (121434) (109111)

Surplus for the year 123 730 6 625

Other comprehensive incomeSurplusonrevaluationoflandandbuildings 12 724 -

Actuarial gain 1 851 872

Surplus for the year 138 305 7 497



AGRICULTURAL BANK OF NAMIBIASTATEMENTOFCHANGESINEQUITYFORTHEYEARENDED31MARCH2017

Capital Reserves Funds and Grants

TOTAL

N$‘000 N$‘000 N$‘000 N$‘000

Balance as at 1 April 2015 1 256 831 640 735 86 393 1 983 959

Surplusfortheyear - 6 625 - 6 625

Governmentcontribution 151200 - - 151200

Write-offofloansundertheTractorLoanScheme - - (1239) (1239)

Othercomprehensiveincome - 872 - 872

Balance as at 31 March 2016 1 408 031 648 232 85 154 2 141 417

Surplusfortheyear - 123730 - 123730

Revaluationoflandandbuildings - 12 724 - 12 724

Othercomprehensiveincome - 1 851 - 1 851

Balance as at 31 March 2017 1 408 031 786 537 85 154 2 279 722



AGRICULTURAL BANK OF NAMIBIASTATEMENT OF CASH FLOWSFORTHEYEARENDED31MARCH2017

Notes 2017 2016

N$‘000 N$‘000

Cash flows from operating activities 1 (139 861) (128 140)Cashreceivedfromcustomers 2 199058 187 918

Cashpaidtofinanciers 3 (17442) (15719)

Cashpaidtoemployeesandsuppliers (49845) (159797)

Cashmovementinoperatingliabilities/assets 4 (10399) 4 464

Cashmovementinadvances 5 (261233) (145006)

Cash flows from investing activities (12 046) (2 311)Proceedsondisposalofproperty,plantandequipment 955 -

Acquisitionofpropertyandequipment (12434) (2225)

Acquisitionofintangibleassets (567) (86)

Cash flows from financing activities (24 685) 125 607Movementinfundsandcapital-Governmentgrantsreceived - 149 961

MovementinSpecialPurposeFunds (23812) (17718)

MovementinLoanGuaranteeFund 11 951 6 187

Decreaseindeferredincome (10215) (10435)

Movementinlong-termborrowings (2609) (2388)

Net increase in cash and cash equivalents (176 592) (4 844)Cashandcashequivalentsatthebeginningoftheyear 374 153 378 997

Cash and cash equivalents at the end of the year 197 561 374 153



AGRICULTURAL BANK OF NAMIBIASTATEMENT OF CASH FLOWS FORTHEYEARENDED31MARCH2017(continued)NOTES TO THE STATEMENT OF CASH FLOWS

2017 2016

N$‘000 N$‘000

1. Reconciliation of surplus for the year to cash flow from operating activitiesSurplusfortheyear 138305 7 497

Adjustedfornon-cashitems:

Revaluationsurplusonlandandbuildings (12724) -

Depreciationonproperty,plantandequipment 3 484 2 466

Amortisationofintangibleassets 285 9

Profitondisposalofproperty,plantandequipment (955) -

Revaluationlossoninvestmentproperties 615 -

Post-retirementbenefits 3202 2 518

Movementincreditors (10466) 4870

Movementininventories (375) (88)

Movementintradereceivables 67 (406)

Movementinadvances (261233) (145006)

Other (66) -

Cashflowsfromoperatingactivities (139 861) (128 140)

2. Cash received from customers

Interestreceivedonadvances 167 512 157 385

Interestreceivedonbanksandfixeddeposits 18 879 16050

Otherincomereceived 12 667 14 483

199 058 187 9183. Cash paid to financiers/loan providers

Interestpaid 17 442 15 719

4. Cash movement in operating liabilities/assetsOtherreceivables 67 (406)

Creditorsandprovision (10466) 4870

(10 399) 4 4645. Cash movement in advances

Movementinadvances (179533) (174489)

Movementinprovisionforcreditlosses (81700) 29 483

(261 233) (145 006)



AGRICULTURAL BANK OF NAMIBIANOTES TO THE ANNUAL FINANCIAL STATEMENTS FORTHEYEARENDED31MARCH2017

1. ACCOUNTING POLICIES

The principal accounting policies adopted in thepreparationof thesefinancial statements are set outbelow.

1.1 Basis of Presentation

TheAnnualFinancialStatementshavebeenpreparedin accordance with International Financial ReportingStandards. The Annual Financial Statements areprepared on the historical cost basis except for themeasurementofcertainfinancialassetsandliabilitiesatfairvalueaswellasrevaluationoflandandbuildings.TheyarepresentedinNamibiadollar.

The principal accounting policies adopted in thepreparationof thesefinancial statements are set outbelow and are consistent with the previous period,unlessstatedotherwise.

1.2 Significant Judgments

In preparing the financial statements, Managementis required to make estimates and assumptions thataffect the amounts represented in the financialstatements and related disclosures. Use of availableinformation and the application of judgments areinherent in the formationofestimates.Actual resultsin the futurecoulddiffer fromtheseestimateswhichmaybematerialtothefinancialstatements.Significantjudgmentsinclude:

- Advances, loans and receivables

TheBankassessesitsadvances,loansandreceivablesforimpairmentateachstatementoffinancialpositiondate. In determining whether an impairment lossshouldberecordedinthestatementofcomprehensiveincome,theBankmakesjudgmentsastowhetherthereisobservabledataindicatingameasurabledecreaseintheestimatedfuturecashflowsfromafinancialasset.

- Fair value estimation

Thefairvalueoffinancialinstrumentstradedinactivemarkets is based on quoted market prices at thestatementoffinancialpositiondate.

The fair value of financial instruments that are nottraded in an active market is determined by usingvaluation techniques. The Bank uses a variety ofmethods and makes assumptions that are basedon market conditions existing at each statement offinancialpositiondate.

The carrying value less impairment provision forfinancial assets and liabilities with maturities of lessthan one year, are assumed to approximate theirfair values. The fair value of financial liabilities fordisclosure purposes is estimated by discounting thefuture contractual cash flows at the current marketinterest rate that is available to the Bank for similarfinancialinstruments.

- Impairment testing

TheBankreviewsandteststhecarryingvalueofassetswhen events or changes in circumstances suggestthat the carryingamountmaynotbe recoverable. Inaddition, intangible assets are tested on an annualbasisforimpairment.

- Provisions

Provisionswere raised andManagement determinedestimates based on the information available.Additionaldisclosureoftheseestimatesofprovisionsisincludedinnote12–CreditorsandProvisions.

The provisions for post-retirement medical andseverancebenefitsarebasedonactuarialvaluationbyindependent actuaries. In determining the provision,assumptions are made regarding discount rates,mortalityratesandhealthcareinflationrates.



AGRICULTURAL BANK OF NAMIBIANOTES TO THE ANNUAL FINANCIAL STATEMENTS FORTHEYEARENDED31MARCH2017(continued)

1.3 Property, Plant and Equipment

Property, plant and equipment are initially recordedat cost. Owner-occupied properties are carried atrevaluation, determined by valuations by externalindependentprofessional valuators, lessprovision forimpairment.

Farms acquired are stated at the amount of debtoutstanding at the date of repossession. Provision ismadeagainstamountsconsideredtobeirrecoverable.Allotherproperty,plantandequipmentareaccountedfor at cost.

Increasesinthecarryingamountarisingonrevaluationare credited to revaluation and other reserves.Decreasesthatoffsetprevious increasesonthesameassetarechargedagainsttherevaluationreserve,andall other decreases are charged to the statement ofcomprehensiveincome.

Where the carrying amount of an asset is greaterthan its estimated recoverable amount, it is writtendownimmediatelyinthestatementofcomprehensiveincometoitsrecoverableamount.

Allproperty,plantandequipment,otherthanlandandowner-occupied properties, are depreciated on thestraight-linebasisovertheirexpectedeconomic lives.Theratesusedtodepreciateassetsareasfollows:

Motorvehicles - 5yearsFurnitureandfittings - 5yearsComputerandofficeequipment- 4yearsLeasehold assets - 5 years

Depreciationisnotprovidedforonlandasitisdeemedtohaveanindefinitelife.

Theresidualvalueandtheusefullifeofeachassetarereviewedateachfinancialperiodend.

Eachpartofanitemofproperty,plantandequipmentwithacostthatissignificantinrelationtothetotalcostoftheitemshallbedepreciatedseparately.

Gains and losses on disposal of property, plant andequipmentaredeterminedbyreferencetotheircarryingamount and are taken into account in determiningoperational profit. On disposal of revalued assets,amounts inrevaluationandotherreservesrelatingtothat asset are transferred to retained earnings.

1.4 Leased Assets

Property,plantandequipmentacquiredunderfinanceleases are capitalised at the lower of fair value andpresentvalueoftheminimumleasepayments.

Capitalisedleasedassetsaredepreciatedonastraight-linebasisovertheloweroftheleasetermortheusefullife of the leased asset.

Financecostsareaccruedandexpensedannually,basedontheeffectiverateofinterestappliedconsistentlytotheremainingbalanceoftheliabilityandareincludedin the related liability. This liability is reduced as andwhenpaymentsaremadeintermsoftheagreements.

Operating leases, mainly for the rental of premisesandcertainofficeequipment,arenotcapitalisedandrentalsareexpensedona straight-linebasisover theleaseterm.

1.5 Doubtful Advances and Provision for Impairment

Advances are stated net of specific and generalprovisions. Specific provisions are made againstidentified doubtful advances based on regularevaluations that take cognisance of, inter alia, pastexperience, economic climateand the client’soverallrisk profile. General provisions are maintained tocoverpotentiallosseswhich,althoughnotspecificallyidentified,maybepresentinanyportfolioofadvances.

When a loan is deemed uncollectible, it is writtenoff against the specific provision if a provision hasbeenmade, otherwise the amount is charged to thestatement of comprehensive income. Subsequentrecoveriesarelikewiseadjustedtotheprovision.




1.6 Properties in Possession

Unsoldpropertiesinpossessionarestatedatthelowerof thenetoutstandingamountatdateof acquisitionandnetrealisablevalue.

1.7 Intangible Assets

Computer software development cost

Generally,costsassociatedwithdevelopingcomputersoftware are recognised as expenses when incurred.However, costs that are clearly associated with anidentifiable system, which will be controlled by theentityandhaveaprobablebenefitexceedingthecostbeyondoneyear,arerecognisedasanasset.Computersoftwaredevelopmentcostsrecognisedasassetsare,fromthedatetheassetisavailableforuse,amortisedinthestatementofcomprehensiveincomeonastraight-linebasisat ratesappropriate to theexpectedusefullivesoftheasset.

Such assets are carried in the statement of financialpositionatcostlessanyaccumulatedamortisationandimpairmentlosses.

1.8 Provisions

ProvisionsarerecognisedwhentheBankhasapresentlegal or constructive obligation as a result of pasteventsanditisprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligation,anda reliableestimateof theamountcanbemade.

Employeeentitlementstoannualleaveandlong-serviceleavearerecognisedwhentheyaccruetoemployees.Aprovisionismadefortheestimatedliabilityforannualleave and long-service leave as a result of servicesrenderedbyemployeesuptothestatementoffinancialpositiondate.

1.9 Employee Benefits

1.9.1 Short-term employee benefits

The cost of short-term employee benefits, (thosepayablewithin12monthsaftertheserviceisrendered,such as paid vacation leave and sick leave, bonuses,and non-monetary benefits such as medical care),are recognised in the period in which the service isrendered and are not discounted.

1.9.2 Defined contribution plans

TheBankprovidesdefinedcontributionpension fundplansforemployees.Paymentstothepensionfundarechargedasanexpenseasincurred.

1.9.3 Defined benefit plans

The Bank provides post-retirement medical benefitsbywayof100%contributionofmedicalaid.Benefitsareavailable toallemployees.Payments to thepost-retirement medical benefit plan are recognised asan expense when employees have rendered serviceentitlingthemtothecontributions.

TheBank’snetobligationinrespectofpost-retirementmedical benefits obligation is determined using theprojectedunit creditmethodwithactuarial valuationbeingcarriedoutattheendofeachannualreportingperiod. Remeasurements, comprising actuarial gainsand losses, the effect of changes in asset ceiling (ifapplicable) and return on plan assets (excludinginterest),are reflected immediatelyon thestatementof changes in financial position with a charge orcredit recognised in other comprehensive incomein the period in which they occur. Remeasurementrecognisedinothercomprehensiveincomeisreflectedimmediately in retained earnings and will not bereclassified to profit and loss. Past service costs arerecognised in the profit or loss in the period of planamendment.Netinterestiscalculatedbyapplyingthediscountrateatthebeginningoftheperiodtothenetdefinedbenefitliabilityorasset.Definedbenefitcostsrecognisedareasfollows:




• Service cost (including current service cost,past service cost, as well as gains and losses oncurtailmentsandsettlements);

• Netinterestexpenseorincome;and• Remeasurements.

The post-retirement medical benefit obligationrecognised in the statement of financial positionrepresents the deficit on the Bank’s defined benefitplans. Any surplus resulting from the calculation islimitedtothepresentvalueoftheeconomicbenefitsavailable in the form of refunds from the plan orreductioninfuturecontributiontotheplan.

A liability for termination benefits is recognised atthe earlier of when the Bank no longer offers theterminationbenefitandwhentheBankrecognisestherestructuring costs.

1.10 Financial Instruments

TheBankclassifiesitsfinancialassetsintothefollowingcategories:financialassetsatfairvaluethroughprofitandloss,loansandreceivables,available-for-saleassetsand held-to-maturity investments. Financial liabilitiesareclassifiedasfinancialliabilitiesatfairvaluethroughprofitandlossandfinancialliabilitiesatamortisedcost.Classification depends on the purpose for which thefinancialinstrumentswereobtainedandtakesplaceatinitialrecognition.

Initial recognition and measurement FinancialinstrumentsarerecognisedinitiallywhentheBankbecomesapartytothecontractualprovisionsoftheinstruments.

The Bank classifies financial instruments, or theircomponent parts, on initial recognition as a financialasset, a financial liability or an equity instrument inaccordance with the substance of the contractualarrangement.

Financial instruments are measured initially at fairvalue, except for equity investments for which a fair

valueisnotdeterminable,whicharemeasuredatcostandareclassifiedasavailable-for-salefinancialassets.

Subsequent measurement Financial instruments at fair value, through profit orloss, are subsequently measured at fair value, withgainsandlossesarisingfromchangesinfairvaluebeingincludedinprofitorlossfortheperiod.

Loans and receivables are subsequentlymeasured atamortised cost, using the effective interest method,lessaccumulatedimpairmentlosses.

Held-to-maturity investments are subsequentlymeasuredatamortisedcost,usingtheeffectiveinterestmethod,lessaccumulatedimpairmentlosses.

Available-for-sale, financial assets are subsequentlymeasuredatfairvalue.Thisexcludesequityinvestmentsforwhich a fair value is not determinable,which aremeasuredatcostlessaccumulatedimpairmentlosses.Gainsandlossesarisingfromchangesinfairvaluearerecogniseddirectlyinequityuntiltheassetisdisposedofordeterminedtobeimpaired. Financialliabilitiesatamortisedcostaresubsequentlymeasuredatamortisedcost,usingtheeffectiveinterestmethod.

Impairment of financial assets AteachstatementoffinancialpositiondatetheBankassesses all financial assets, other than those at fairvalue through profit or loss, to determine whetherthere is objective evidence that a financial asset orgroupoffinancialassetshasbeenimpaired. Impairmentlossesarerecognisedinprofitorloss.

Impairment losses are reversed when an increase inthefinancialasset’srecoverableamountcanberelatedobjectivelytoaneventoccurringaftertheimpairmentwas recognised, subject to the restriction that thecarryingamountofthefinancialassetatthedatethat




theimpairmentisreversed,shallnotexceedwhatthecarryingamountwouldhavebeenhadtheimpairmentnotbeenrecognised. Reversalsofimpairmentlossesarerecognisedinprofitor loss except for equity investments classified asavailableforsale.

Financial assets at fair value through profit or loss Thiscategoryhas twosub-categories:financialassetsheld for trading, and those designated at fair valuethroughprofitandlossatinception.AfinancialassetisclassifiedinthiscategoryifacquiredprincipallyforthepurposeofsellingintheshorttermorifsodesignatedbyManagement.

Loans and receivables

Loans and receivables are non-derivative financialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.Loanadvancesandloanstoemployeesareclassifiedasloansandreceivables. Loanadvancesaremeasuredatinitialrecognitionatfairvalue,andaresubsequentlymeasuredatamortisedcostusing the effective interest ratemethod.Appropriateallowances for estimated irrecoverable amounts arerecognised in profit or loss when there is objectiveevidencethattheassetisimpaired.Significantfinancialdifficulties of the debtor, probability that the debtorwill enter bankruptcy or financial reorganisation, anddefault or delinquency in payments are consideredindicators that the trade receivable is impaired. Theallowance recognised is measured as the differencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedattheeffective interest ratecomputedat initial recognition.AppropriateadjustmentsaremadeforsecuritiesheldbytheBankinrespectofidentifiedimpaireddebtors. Thecarryingamountof theasset is reduced throughtheuseofanallowanceaccount,andtheamountoftheloss is recognised in thestatementofcomprehensiveincome within operating expenses. When a trade

receivableand/oradvanceisuncollectible,itiswrittenoffagainsttheallowanceaccountfortradereceivables.Subsequent recoveriesof amountspreviouslywrittenoff are credited against operating expenses in thestatementofcomprehensiveincome.

Trade and other payables Tradepayablesareinitiallymeasuredatfairvalue,andare subsequently measured at amortised cost, usingtheeffectiveinterestratemethod.

Cash and cash equivalents Cash and cashequivalents compriseof cash-on-handanddemanddeposits,andothershort-termhighlyliquidinvestments that are readily convertible to a knownamountofcashandaresubjecttoaninsignificantriskofchangesinvalue.Theseareinitiallyrecordedatfairvalueandsubsequentlyatamortisedcost.

Bank overdrafts and borrowings Bankoverdraftsandborrowingsareinitiallymeasuredat fair value, and are subsequently measured atamortised cost, using the effective interest ratemethod.Anydifferencebetweentheproceeds(netoftransaction costs) and the settlement or redemptionof borrowings is recognised over the term of theborrowings inaccordancewith theBank’saccountingpolicyforborrowingcosts.

1.11 Revenue Recognition

Interest incomeisrecognisedattheeffectiveratesofinterest inherent in finance contracts and is broughtinto incomeinproportiontothebalanceoutstandingonatimeproportionalmethod.

Interest suspended is credited directly against theprovisionforcreditlosses.

Revenuearisingfromtheprovisionofservicestoclientsisrecognisedonanaccrualbasisintheperiodinwhichtheservicesarerendered.




1.12 Interest Expenses Recognition

Interest expenses are recognised in the statementofcomprehensive income on an accrual basis. Interestdue/accrued on doubtful accounts is recognised asincome but is provided for under the provision forcredit losses.

1.13 Reserve Fund

The net surplus, after certain special provisions havebeenmade,iscreditedtotheReserveFundandappliedtomakegoodanylossordeficitwhichmayoccurinanytransactionofthebank.

Financial assets and liabilities are offset and the netamountreportedinthestatementoffinancialpositionwhenthereisalegallyenforceablerighttosetofftherecognisedamounts,andthereisanintentiontosettleonanetbasis,orrealisetheassetandsettletheliabilitysimultaneously.

1.14 Contingencies and Commitments

TransactionsareclassifiedascontingencieswheretheBank’sobligationsdependonuncertainfutureevents.

Itemsare classifiedas commitmentswhere theBankcommitsitselftofuturetransactionsoriftheitemswillresultintheacquisitionofassets.

1.15 Government Grants

Government grants are recognised when there isreasonableassurancethat:

• Thebankwillcomplywithconditionsattachingtothem;and

• Thegrantswillbereceived.

Governmentgrantsarerecognisedasincomeovertheperiodsnecessarytomatchthemwiththerelatedcoststhattheyareintendedtocompensate.

Governmentgrantsrelatedtoincomearepresentedasacreditintheprofitorloss.

Where a loan is received from the Government atbelow-market interest or at no interest rate, thedifferencebetweenthefairvalueoftheloanandtheamountreceivedisrecognisedasaGovernmentgrant.

1.16 Investment Properties

Investment properties are properties held to earnrentals and/or for capital appreciation (includingproperty under construction for such purposes).Investment properties are measured initially at cost,including transaction costs. Subsequent to initialrecognition,investmentpropertiesaremeasuredatfairvalue.Gainsandlossesarisingfromchangesinthefairvalueofinvestmentpropertiesareincludedinprofitorlossintheperiodinwhichtheyarise.

Aninvestmentpropertyisderecognisedupondisposalor when the investment property is permanentlywithdrawnfromuseandnofutureeconomicbenefitsareexpectedfromthedisposal.Anygainorlossarisingon derecognition of the property (calculated as thedifferencebetweenthenetdisposalproceedsandthecarrying amountof the asset) is included inprofitorlossintheperiodinwhichthepropertyisderecognised.

1.17 Inventory

Inventories are measured at the lower of cost andnet realisable value on the first-in-first-out basis.Netrealisable value is the estimated selling price in theordinarycourseofbusiness,lesstheestimatedcostsofcompletionandtheestimatedcostsnecessarytomakethe sale.

Thecostofinventoriescomprisesofallcostsofpurchaseandothercostsincurredinbringingtheinventoriestotheirpresentlocationandcondition.




As at 01/04/2015 As previously

reported

Reclassification Correction of a prior period

error

As at 01/04/2015 restated

N$’000 N$’000 N$’000 N$’000

Loan Guarantee Fund 80234 4210 7 851 92 295

Otherpayables 10655 (4210) - 6 445

90 889 - 7 851 98 740Impactonequity

Retainedincome 648 586 - (7 851) 640 735

Impact on liabilities and equity as at 31 March 2016

As at 31/03/2016 As previously

reported

Reclassification Correction of a prior period

error

As at 31/03/2016 restated

Impact on liabilities N$’000 N$’000 N$’000 N$’000Loan Guarantee Fund 85 234 5 551 7 697 98 482

Otherpayables 13 188 (5551) - 7 63798 422 - 7 697 106 119

Impactonequity

Retainedincome 655 929 - (7 697) 648 232

2. Correction of a Prior Period Error

Inprioryears,theBankhadnotbeenaccountingfortheLoanGuaranteeFundintermsoftheexistingagreementoriginallysignedin1996,whichonlybecameavailabletoManagementduringtheyearunderreview.ThecorrectionhasbeenappliedretrospectivelyinaccordancewithIAS8.Theeffectoftherestatementofthepriorperiodfinancialstatementsisreflectedbelow.

Notes 2017 2016

N$‘000 N$‘000

Impactontotalcomprehensiveincomefortheyear

Increase/(decrease)insurplusfortheyear 153 (2432)

Impact on liabilities and equity as at 1 April 2015




2017 2016

N$‘000 N$‘000

3. CASH AND CASH EQUIVALENTSCash on hand 32 32

Bankbalances 12 582 88 576

Noticedeposits 197 648 285 545

210 262 374 153Provisionforimpairment (12701) -

197 561 374 153

IncludedinthecashandcashequivalentsisN$25402000investedwithSMEBankwhichwasputonprovisionalliquidationon11July2017.Theestimatedirrecoverableportionwasprovidedfor.

4. ADVANCESTotaladvances 2 614 208 2 434 675

Provision for credit losses on advancesOpeningbalance 365 823 336340

Currentprovision:

-Interestsuspended 459 1690

-Provisionfordoubtfuldebts (76249) 56 463

- Amountswrittenoff (5910) (28670)

TOTAL PROVISION 284 123 365 823

Totaladvancesafterprovision 2330085 2068852

LESS:-SHORT-TERMPORTIONOFADVANCES (208158) (165163)

- ARREARS (548528) (465918)

LONG-TERM PORTION OF ADVANCES 1 573 399 1 437 771

5. OTHER RECEIVABLES

Accountsreceivableandprepayments 1 597 1 664

1 597 1 664




6. PROPERTY, PLANT & EQUIPMENT

FurnitureLand and and Other Motor

31 March 2017 Leasehold Buildings Fittings Computers Equipment Vehicles TotalN$'000 N$'000 N$'000 N$'000 N$'000 N$'000 N$'000

Carrying value: Beginning of the year

- 87 751 2 357 2 474 490 31 93103

Cost/valuation 383 87 751 7 169 5890 1603 4 156 106952

Accumulateddepreciation

(383) - (4812) (3416) (1113) (4125) (13849)

Movement during the year:

-

Additions - 1 631 4 126 481 105 6091 12 434

Revaluation - 12690 - - - - 12690

Depreciation - - (1580) (883) (313) (708) (3484)

Disposals -

- Cost - - - (718) - (4156) (4874)

-Accumulateddepreciation

- - 45 819 (46) 4 156 4 974

End of the year - 102 072 4 948 2 173 236 5 414 114 843Cost/valuation 383 102072 11 295 5 653 1708 6091 127202


(383) - (6347) (3480) (1472) (677) 12 359




6. PROPERTY, PLANT & EQUIPMENT (continued)

FurnitureLand and and Other Motor

31 March 2017 Leasehold Buildings Fittings Computers Equipment Vehicles TotalN$'000 N$'000 N$'000 N$'000 N$'000 N$'000 N$'000

Carrying value: Beginning of the year

1 87 751 3 580 1 337 607 68 93 344

Cost/valuation 383 87 751 7061 3 953 1 423 4 156 104727


(382) - (3481) (2616) (816) (4088) (11383)

Movement during the year:

(1) - (1 223) 1 137 (117) (37) (241)

Additions - - 108 1 937 180 - 2 225

Depreciation (1) - (1331) (800) (297) (37) (2466)

End of the year - 87 751 2 357 2 474 490 31 93 103

Cost/valuation 383 87 751 7 169 5890 1603 4 156 106952


(383) - (4812) (3416) (1113) (4125) (13849)




2017 2016

N$‘000 N$‘000

6.1 PROPERTY PLANT AND EQUIPMENT

Freehold land and buildings comprise of the following properties, which wereindependentlyvaluedduring2013byindependentvaluators.Thesurplusandlossonrevaluationhasbeencreditedanddebitedrespectivelytorevaluationreserves.

Erf 5479, Windhoek 88 565 78860Additions-Erf5479,Windhoek - 424

Erf995,Otjiwarongo 4650 3160

Erf870and871,Mariental 170 170

Erf 1235, Rundu 5580 3 323

Erf1591,Oshakati 1 814 1 814

Unit4,Romemoer,Otjiwarongo 1 293 -

102 072 87 751

Erf5479Windhoek,isregisteredinthenameofLandbouBankofSouthWestAfrica(predecessorofAgriculturalBankofNamibia).

7. INVESTMENT PROPERTIES

Description

Portion38ofFarmOkatjiruteNo155(*) 34 265 34880

ExtensionofFarmOkatjirute155 4900 4900

ErfPortion18,Witvlei 780 780






45 280 45 895

Theinvestmentpropertiesconsistoffarmlandwithimprovementsmeasuring11,9335hectares,situatedintheOmahekeRegion.Thefairvaluewasdeterminedbyanindependentswornappraiseron28November2016.

Thefairvaluesoftherestoftheinvestmentpropertiesweredeterminedbyanindependentswornappraiseron10August2016




2017 2016

N$‘000 N$‘000

7. INVESTMENT PROPERTIES (Continued)Reconciliation

Openingbalance 45 895 45 895

Revaluationloss (615) -

45 280 45 895

8. INTANGIBLE ASSETS

Softwaredevelopmentcosts

Opening carrying amount 77 -Cost 28 113 28027

Accumulatedamortisation (28036) (28027)

Amortisation (285) (9)

Additions 567 86

Closingcarryingamount 359 77Cost 28680 28 113

Accumulatedamortisation (28321) (28036)

9. SPECIAL PURPOSE FUNDS

MinistryofLandsandResettlement(Post-resettlement) 71480 69055

Staffsavingsscheme 371 304

GovernmentMinistries,AgriculturalBoardsandUnions 21 457 18 747

DroughtReliefSchemeFund 2 769 31 783

96 077 119 889

The Bank acts as an agent for the management of these funds on behalf of the above third parties.

10. INVENTORYConsumables 861 486




2017 2016

N$‘000 N$‘000

11. LOAN GUARANTEE FUND

Governmentschemefordroughtrelief 20731 20731

Post-settlementsupporttoresettledfarmers 89702 77 751

110 433 98 482

TheLoanGuaranteeFundattractsinterestattherateequivalenttotheaveragerateofinflationforeachrespectiveyear(7%and3.93%for2017and2016financialyearsrespectively).

12. LONG-TERM BORROWINGS

Loan - Government of the Republic of Namibia

TheGovernmentoftheRepublicofNamibiasettledtheBank’soutstandinglineofcreditbalanceswiththeAfricanDevelopmentBank.ThetotalamountsettledwasN$218139076.Theloanattractsinterestat2%perannumandrepayableover21yearsasfollows:21equalannualinstallmentsofN$12823255.

Thebalancedisclosedrepresentsthefairvalueoftheloanasat31March2017. 107833 110442

Less:Currentportionshownundercurrentliabilities (2850) (2609)

104 983 107 833

13. CREDITORS AND PROVISIONS

Leavepayprovision 3 298 2 466

Grantsandbursaries 110 110

Creditors 4 647 15 945

8 055 18 521




2017 2016

N$‘000 N$‘000

14. DEFERRED INCOME

Deferredincome 59 026 69 241

Reconciliation of deferred income


Amortisedtothestatementofcomprehensiveincome (10215) (10435)

59 026 69 241

ThedeferredincomearosefromtheGovernmentloan(referredtoinnote11)attractinginterestat2%perannum,whichisbelowmarketrates.Interest-freeloansandloansatbelowmarketinterestratesarerecognisedasaformofgovernmentassistance.Thebenefitisthedifferencebetweentheinitialcarryingamountoftheloan,discountedatsimilarloanrates,andtheactualproceedsreceivedfromthegovernment.Theinterestrateusedis9.25%perannum.

15. EMPLOYEE BENEFITS

15.1 Pension scheme

ThemajorityoftheemployeesaremembersoftheAgriculturalBankofNamibiaPensionFund,adefinedcontributionplan,whichhasbeenregisteredinNamibiainaccordancewiththerequirementsofthePensionFundsAct.TheFundisgovernedbythePensionFundsActof1956.

TheAgriculturalBankofNamibiacurrentlycontributes16%ofbasicsalarytotheFundwhilstthememberscontribute7%.

Bankcontribution 5 195 4 457

Employeecontribution 2 273 1 949

7 468 6 406




15.2 Post-retirement employee benefits

TheBankmadeprovisionfortheirpost-retirementmedicalbenefitobligationaswellastheirseverancebenefitobligation,payableintermsoftheNamibianLabourAct.Thebalancesofthesetwoprovisionsmadefortheyearareasfollows:

2017 2016

N$‘000 N$‘000

Presentvalueofmedicalbenefitobligation 29004 25810

Presentvalueofseverancebenefitobligation 436 428

29 440 26 23815.2.1 Medical benefit obligation

TheBankcontributestothemedicalaidschemeforretiredemployees.Theliabilityinrespectoffuturecontributionstotheschemeinrespectofmembersisvaluedannually.

Thelatestactuarialvaluationforthepost-retirementmedicalbenefitwascarriedoutinApril2017.Thevaluationmethodusedwastheprojectedunitcreditmethod.Theestimatedliabilityasat31March2017wasN$29004000(2016:N$25810000).

2017 2016

N$’000 N$’000

Presentvalueofunfundedobligation 29 004 25 810

Reconciliationshowingthemovementofthepresentvalueofunfundedobligation:

Balanceatthebeginningoftheyear 25810 23 334

Currentservicecosts 1 998 1 763

Interestexpense 2 965 1 556

Re-measurementsgains

Actuarial gain (1211) (464)

Benefitspaid (558) (379)

29 004 25 810

Theprincipalassumptionsusedwere:

Discount rate 10.72% 11.16%

Healthcarecostinflation 9.5% 10.18%

Averageretirementage(inyears) 60 60




2017 2016

N$‘000 N$‘000

15.2.1 Medical benefit obligation (continued)

Amountsrecognisedinthestatementofcomprehensiveincomeareasfollows:

Currentservicecost 2 965 1 556

Interest cost 1 998 1 763

Componentsofthedefinedbenefitcostsrecognisedin

profitorloss 4 963 3 319

Remeasurementofthedefinedbenefitobligation

Actuarial gain (1769) (843)

Componentsofdefinedbenefit(income)/costsrecognised

inothercomprehensiveincome (1769) (843)

Total 3 194 2 476

15.2.2 Severance benefit obligation

Thelatestactuarialvaluationfortheseverancebenefitobligationwas:

Presentvalueofunfundedobligation 436 428

Reconciliationshowingthemovementofliabilityreflectedonthestatementoffinancialposition:

Balanceatthebeginningoftheyear 428 386

Currentservicecosts 48 42

Interestexpense 42 29

Remeasurements

Actuarial(loss)/gain (82) (29)

436 428




2017 2016

N$‘000 N$‘000

16. FUNDS AND GRANTSEuropeanFundAccount 11 528 11 528

Government 36102 36102

Agribank-NACPcontribution 34 561 34 561

GovernmentTractorScheme(*) 2 963 2 963

85 154 85 154

(*)-TractorsandimplementsweretransferredtotheBankfromGovernmentforsaleandon-lendingtocommunalfarmersduringtheyears2000and2002.TheBankadministeredtheschemeonbehalfofGovernmentandanyproceedsoutoftheschemewillberepayabletoGovernment.

17. RESERVES

Reserve 786 537 648 232

Reconciliation of reserves

Balanceatthebeginningoftheyear 648 232 640735

Surplusfortheyear 123730 6 625

Revaluationoflandandbuildings 12 724 -

Actuarial gain 1 851 872

Balance at the end of the year 786 537 648 232

18. CAPITAL FUND

Governmentcontributions 1 408 031 1 408 031

Reconciliation of Capital Fund


Contributionduringtheyear - 151200

1 408 031 1 408 031




2017 2016

N$‘000 N$‘000

19.1 INCOME AND EXPENDITUREInterest incomeAdvancesgranted 167 512 157 385

Bankandmoneymarketinvestments 18 879 16050

186 391 173 435

19.2 Interest expenses

Governmentloan 10215 10435

Fundaccountsandborrowings 7 227 5 284

17 442 15 719

19.3 Other operating income

Rentreceived 337 279

Governmentgrantreleased 10215 10435

Otherincome 2 115 3 769

12 667 14 483




2017 2016

N$‘000 N$‘000

19.4 General administrative expenses

Auditor’s remunerationAuditor’sremuneration 184 311

Depreciation and amortisation 3 769 2 475Property,plantandequipment 3 484 2 466

Intangibleassets 285 9

Directors’ fees 749 658

Insurance 202 364

Marketing 5048 5 895

Maintenanceofpropertyandequipment 738 583

Professional fees 7 431 6505

Rentpaid 1 392 1 142

Staff cost 72 911 64 614Salaries 29 147 28106

Fringebenefits 42607 35 365

Training 1 157 1 143

Other expenses 29 010 26 564Bank charges 354 326

Legal fees 842 834

Security cost 768 674

Printing&stationery 655 586

Computerexpenses 6 983 4920

VATapportionmentexpenses 4 138 2 937

Municipalcosts 1051 2 988

Travel 2 496 2 547

Vehicle costs 660 617

Telephone 1 336 1203

Generalexpenses 3 728 3 472

Farmers’SupportProjectexpenses 5 999 5460

121 434 109 111




2017 2016

N$‘000 N$‘000

20. COMMITMENTS

Authorised capital expenditure

Authorised 11 385 55 729

This committed capital expenditure relates to theacquisitionofproperty,plantandequipmentandwillbefundedbybothborrowingsandownfunds.

21. CONTINGENCIES 21.1 Retrenched employees vs Agribank Three former employees who were retrenched aresuing the Bank challenging their retrenchment. TheBanksettledthematterwithoneofthethreeemployeesandsuccessfullydefendedtheactioninrespectoftheremainingtwoemployeeswhoappealedthemattertotheLabourCourt.ThepotentialliabilitytotheBankisyettobedetermined. 21.2 Agribank vs a third party During the prior financial year, the Supreme Courtruled in favour of a third party to exercise its optionto purchase an abattoir at a price of N$15 millionand settlement of arrear rentals of N$3million. Thepartiessignedasaleagreementon5June2015whichlapsedon26June2015butthethirdpartyremainedinpossessionoftheproperty.Followingthecancellationof the sale agreement on 7 July 2015, there is novalid agreement in terms of which the third party isinpossessionoftheproperty,thereforetheBankwillinstitute eviction proceedings in the High Court. TheBoardmeton27July2017andresolvedthattheassetwillbedisposed incompliancewith theprovisionsofthePublicProcurementActNo15of2015.Thefurtherintentionofthethirdpartyisnotknown.

21.3 Agribank vs a third party involved in ostrich products ThematterinvolvedanamountofN$30milliongrantedtothethirdparty.Legalactionwasinstitutedtorecoverthefunds.TheBankhasnowreceivedcorrespondenceregarding criminal investigation in thematter by theAnti-Corruption Commission. Due to the passageof time and the criminal investigation herein, theevaluationoftheoutcomeofthematterischallenging. 21.4 Third party vs Agribank

TheBankisapartytoanarbitrationcaseinwhichthethirdparty isclaimingcompensationforunfair labourpractice. The matter is in the hands of the LabourCommissioner who is yet to make a ruling and thepotentialliabilitytothebankisN$2million.

22. FINANCIAL RISK MANAGEMENT TheBank’sactivitiesexposeittoavarietyoffinancialrisks:marketrisk,creditriskandliquidityrisk. The Bank’s overall risk management programmefocuses on the unpredictability of financial marketsand seeks to minimise potential adverse effects onthe Bank’s financial performance. Risk managementis carried out under policies approved by the Board.The Board provideswritten principles for overall riskmanagement, as well as written policies coveringspecific areas, such as credit risk, and investment ofexcessliquidity.




22.1 Liquidity risk

Liquidity risk is the risk thatanentitywillencounterdifficulty inmeetingobligationsassociatedwith itsfinancialliabilities.

Prudentliquidityriskmanagementimpliesmaintainingsufficientcashandmarketablesecurities,theavailabilityoffundingthroughanadequateamountofcommittedcredit facilitiesandtheability tocloseoutmarketpositions.Due to thedynamicnatureof theunderlyingbusinesses, theBankmaintainsflexibility in fundingbymaintainingavailabilityundercommittedcreditlines.

TheBankmanagesliquidityriskthroughanongoingreviewoffuturecommitmentsandcreditfacilities.

Cashflowforecastsarepreparedandadequatelyutilised,andinaddition,borrowingfacilitiesaremonitored.

The tablebelowanalyses theBank’s financial liabilities into relevantmaturity groupingsbasedon the remainingperiodatthestatementoffinancialpositiontothecontractualmaturitydate.Theamountsdisclosedinthetablearethecontractualundiscountedcashflows.Balancesduewithin12monthsequaltheircarryingbalancesastheimpactofdiscountingisnotsignificant.

FinancialLiabilities

OtherliabilitiesTradepayables

Less than 1 year Between1and5years More than 5 years

N$’00098 9278055

N$’000157014

-

N$’00087 842

-

FinancialLiabilities

OtherliabilitiesTradepayables

Less than 1 year Between1and5years More than 5 years

N$’000128046 18 521

N$’000128 614

-

N$’00090692

-

2017

2016

22.2 Cash flow and fair value interest rate risk

Cashflowinterestrateriskistheriskthatfuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinmarket interest rate risks.Fair value interest rate risk is the risk that thevalueof thefinancial instrumentwillfluctuatebecauseofchangesinmarketinterestrates.

As theBank’s significant interest-bearingassetsarefixed rateadvances, its incomeandoperatingcashflowsaresubstantiallyindependentofchangesinmarketinterestrates.

TheBank’sinterestrateriskarisesmainlyfromitslong-termborrowings.BorrowingsissuedatvariableratesexposetheBanktocashflowinterestraterisk.Thisriskismanagedbymaintaininganappropriatemixbetweenfixedandfloatinginterestrates.




22. FINANCIAL RISK MANAGEMENT (continued)

Financial instruments by classification

Assets as per statement of financial position

Financial Assets Interest rate Loans and receivables

Fairvaluethroughprofit

& loss

TOTAL

AdvancesBankbalancesOther current assets

FixedFloating

Non-interest- bearing

N$’0002614208197 529

1 597

N$’000---

N$’0002614208197 529

1 597



& loss

TOTAL


FixedFloating


N$’0002 434 675374 121

1 664

N$’000---

N$’0002 434 675374 121

1 664

FinancialLiabilities Interest rate Otherfinancialliabilitiesat

amortisedcost


& loss

TOTAL

Loan Guarantee Fund

Long-termborrowings

Specialpurposefunds

Post-retirementbenefits

Trade creditors

Floating

Fixed

Fixedandfloating

Floating

Non-interest-bearing

N$’000

110433

107833

96077

29440

8055

N$’000

-

-

-

-

-

N$’000

110433

107833

96077

29440

8055

2017

2016

2017

Liabilities as per statement of financial position





Liabilities as per statement of financial position (continued)

100basispointsincrease 100basispointsdecrease

Floatingratefinancialassets

Increase/(decrease) in profits

N$’000197 529

N$’0001 975

197 529 1 975

100basispointsincrease 100basispointsdecrease

Floatingratefinancialassets

Increase/(decrease) in profits

N$’000374 121

N$’0003 741

374 121 3 741



& loss

TOTAL


FixedFloating


N$’0002 434 675374 121

1 664

N$’000---

N$’0002 434 675374 121

1 664


amortisedcost


& loss

TOTAL

Loan Guarantee Fund

Long-termborrowings

Specialpurposefunds


Trade creditors

Floating

Fixed

Fixedandfloating

Floating


N$’000

110433

107833

96077

29440

8055

N$’000

-

-

-

-

-

N$’000

110433

107833

96077

29440

8055


amortisedcost


& loss

TOTAL

Loan Guarantee Fund

Long-termborrowings

Specialpurposefunds


Trade creditors

Floating

Fixed

Fixedandfloating

Floating


N$’000

98 482

110442

119 889

26 238

18 521

N$’000

-

-

-

-

-

N$’000

198 482

110442

119 889

26 238

18 521

2016

As at 31 March 2017

As at 31 March 2016

ThetablesabovesummarisetheBank’sexposuretointerestraterisks.

Cash-flowsensitivityanalysisforinterest-bearinginstruments:

A change of 100 basis points in interest rates at the reporting datewould have increased/decreased profits bytheamountsshownbelow.Thisanalysisassumesthatallothervariables remainconstant.Theanalysishasbeenperformedonthesamebasisfor2016.





22.3 Credit risk

Creditriskistheriskthatthecounterpartieswillnotrepayobligationsontimeandinfullasexpectedorcontracted,resultinginafinanciallosstotheBank.

Policy and responsibility

Thekeycomponentsofthecurrentgeneralcreditpolicyarethefollowing:

• TheprimaryroleoftheBankistoprovidefinancetotheagriculturalsector;• Initsmandate,theBankseekstosatisfytheneedsofitscustomerbasewhilemaintainingasoundcreditportfolio;• TheBankinsistsuponathoroughassessmentoftheclient’sfinancialpositionduringtheloandecisionprocess,

soastoleadtobetterqualitycreditdecisionswhichresultintimeousloanrepaymentsandreducelossesdueto,forexample,insolvency;

• Forthevastmajorityoftheproducts,creditsaregrantedonthebasisofinsightintothecustomer’scircumstancesandofspecificassessmentsthatprovideacontextforsuchcredits;

• Thefacilitiesshouldmatchthecustomer’screditworthiness,capitalpositionorassets,andthecustomershouldbeabletosubstantiatehisorherrepaymentability;and

• TheBankmayassumerisksonlywithinthelimitsofapplicablelegislationandotherrules,includingtherulesongoodpracticeforfinancialenterprises.

Approval process

WhentheBankprocessesacreditapplicationfromacustomer,thefollowingminimuminformationisneeded:

• Comprehensiveidentityoftheborrower;• Evidenceoftheborrower’slegalabilitytoborrow;• Abilitytorepay,includingthetimingandsourceofrepayment,andevidenceofverificationthereof;• Descriptionofthetermsofcreditobligation;• Assessmentofmajorrisksandkeylitigants;• Creditchecks;• Overviewofthefacilityandcollateral;and• Documentaryevidenceofreviewandapprovalprocess

Risk classification

TheBankmonitorstherepaymentrecordofitscustomersonanongoingbasistoensurethatanydeteriorationinrepaymentrecordisdetectedasearlyaspossible.Accountswillbecategorisedas“normal”or“arrears”.Thepurposeoftheclassificationistoprovideamechanismfortheefficientandeffectivereportingandevaluationofproblemloans,andtoallowthemtobemanagedinsuchawaythattheBank’sriskisminimised.





Credit exposure

TheBank’smaximumcreditexposureat31Marchisasfollows:

Creditexposureiscalculatedonthebasisofselecteditemsonandoffthestatementoffinancialposition(guaranteesandloancommitmentsexcluded).

Assetclasseswithcreditriskexposure:

2017 2016

N$‘000 N$‘000

Advances 2614208 2 434 675

Bankbalances 197 529 374 121

Otherreceivables 1 597 1 664

2 813 334 2 810 460

Assetclasseswithnocreditriskexposure:

Property,plantandequipment 114 842 93103

Intangibleassets 359 77

Cash on hand 32 32

Investmentproperties 45280 45 895

Inventory 861 486

161 374 139 593

Collateral

ThemaintypesofcollateraltheBanknormallyobtainsincludethefollowing:

• Bonds over farmland, developed/undevelopedmunicipalplots;

• Suretybonds;• Cessionoffixeddeposits;• Cessionofsurrenderingvalueofpolicies;• Listedinvestmentsandunittrustinvestments;• Suretyships.

Other Financial Assets

The other financial assets include cash at bank andotherreceivables.Theseassetsareratedasgood.

Bank balances

Theamountsareinvestedwithreputableandregulatedfinancialinstitutions.





Other receivables

Pasttrendsindicatethatpaymenthasbeenreceivedtimeouslyandthatthefairvaluespostyear-endfairlyreflecttheamountsreceived.

Concentration of credit risk

TheconcentrationriskwithintheBankconsistsmainlyof:

• Exposureperagriculturalsector• Exposureperindividualaccountholder

Atthereportingdatecreditriskexposurewasnotconcentratedtoasmallnumberofindividualaccounts,butwasspreadacrossentireloanbookaccountholders.

Loan advances past due not impaired 2017 2016

N$‘000 N$‘000

Less than one year 967099 566 452

Betweenoneandtwoyears 170577 576 746

Betweentwoandthreeyears 255 866 144 136

More than three years 426 443 163 781

1 819 985 1 451 115

Theabovetablerepresentsthegrossloanbalance(netoftheprovision)inrespectofpastdueloansandnotonlythepastdueportionofsuchloans.

Loan advances neither past due nor impaired 489 943 597 920

IncludedintheloanbookoftheBankarethefollowingamountsinrespectof loancustomerswhosecredittermswerere-negotiated.TheBoardgrantedrelieftoothersbasedonadverseindustryconditionsprevailingoveraspecifiedperiodoftime.

Specialarrangements 221 591 163 052



23. STANDARDS AND INTERPRETATIONS NOT YET EFFECTIVE AtthedateofauthorisationofthefinancialstatementsoftheAgriculturalBankofNamibiafortheyearended31March2017,thefollowingapplicableneworrevisedfinancialreportingstandards,amendmentsandinterpretationsof thosestandardswere in issue,butnotyeteffective.Onreviewof theseamendmentsand interpretations, theimpact (if any)hasnotyetbeenestimated,or isnotexpected tohaveamaterial impacton theBank’sfinancialstatements.

StandardorInterpretation Title and Details EffectiveDate

IFRS 9, Financial Instruments

A finalised version of IFRS 9 has been issuedwhich replaces IAS 39 Financial Instruments:Recognition and Measurement. The completedstandardcomprisesguidanceonClassificationandMeasurement,ImpairmentHedgeAccountingandDerecognition:

• IFRS 9 introduces a new approach to theclassificationoffinancialassets,whichisdrivenby the business model in which the asset isheld and its cash flow characteristics. A newbusiness model was introduced which doesallowcertainfinancialassetstobecategorisedas “fair value through other comprehensiveincome” in certain circumstances. Therequirementsforfinancialliabilitiesaremostlycarried forward unchanged from IAS 39.However,somechangesweremadetothefairvalueoptionforfinancial liabilitiestoaddresstheissueofowncreditrisk.

• Thenewmodelintroducesasingleimpairmentmodelbeingappliedtoallfinancialinstruments,aswellasan“expectedcreditloss”modelforthemeasurementoffinancialassets.

• IFRS 9 contains a new model for hedgeaccounting that aligns the accountingtreatmentwiththeriskmanagementactivitiesofanentity,inaddition,enhanceddisclosureswill provide better information about riskmanagement and the effect of hedgeaccountingonthefinancialstatements.

IFRS 9 carries forward the derecognitionrequirementsoffinancialassetsandliabilitiesfromIAS 39.

1January2018

*IFRS 9 (2014) supersedes anyprevious versions of IFRS 9, butearlierversionsof IFRS9 remainavailable for application if therelevant date of application isbefore1February2015*





STANDARDS AND INTERPRETATIONS NOT YET EFFECTIVE (continued)

Standardorinterpretation Title and details EffectiveDate

IFRS 16 Leases Newstandardthatintroducesasinglelesseeaccountingmodel and requires a lessee to recognise assets andliabilities for all leases with a term of more than 12months, unless the underlying asset is of low value.A lessee is required to recognise a right-of-use assetrepresentingitsrighttousetheunderlyingleasedassetand a lease liability representing its obligation tomakelease payments. A lessee measures right-of-use assetssimilarlytoothernon-financialassets(suchasproperty,plantandequipment)andleaseliabilitiessimilarlytootherfinancialliabilities.Asaconsequence,alesseerecognisesdepreciation of the right-of-use asset and interest ontheleaseliability,andalsoclassifiescashrepaymentsoftheleaseliabilityintoaprincipalportionandaninterestportion, and presents them in the statement of cashflowsapplyingIAS7StatementofCashFlows.• IFRS16containsexpandeddisclosure requirements

for lessees. Lesseeswill need to apply judgment indeciding upon the information to disclose tomeettheobjectiveofprovidingabasisforusersoffinancialstatements toassess theeffect that leaseshaveonthe financial position, financial performance andcashflowsofthelessee.

• IFRS 16 substantially carries forward the lessor‘saccounting requirements in IAS 17. Accordingly, alessor continues to classify its leases as operatingleasesorfinanceleases,andtoaccountforthosetwotypesofleasesdifferently.

• IFRS 16 also requires enhanced disclosures to beprovided by lessors that will improve informationdisclosedaboutalessor’sriskexposure,particularlytoresidualvaluerisk.

• IFRS 16 supersedes the following Standards andInterpretations:

a. IAS17Leases;b. IFRIC 4 Determining whether an Arrangement

containsaLease;c. SIC-15OperatingLeases-Incentives;andd. SIC-27 Evaluating the Substanceof Transactions

InvolvingtheLegalFormofaLease.

1January2019



AGRICULTURAL BANK OF NAMIBIANOTES TO THE ANNUAL FINANCIAL STATEMENTS FORTHEYEARENDED31MARCH2017

23. STANDARDS AND INTERPRETATIONS NOT YET EFFECTIVE

Standardorinterpretation Title and details EffectiveDate

IFRS15RevenuefromContractsfromCustomers

New standard that requires entities to recogniserevenue to depict the transfer of promised goodsor services to customers inanamount that reflectstheconsideration towhich theentityexpects tobeentitled in exchange for those goods or services.This core principle is achieved through a five-stepmethodology that is required to be applied to allcontractswithcustomers.Thenewstandardwillalsoresultinenhanceddisclosuresaboutrevenue,provideguidance for transactions that were not previouslyaddressed comprehensively and improve guidanceformultiple-elementarrangements.

1January2018

IAS7StatementofCashFlows

Disclosure Initiative: Amendments requiring entitiesto disclose information about changes in theirfinancing liabilities. The additional disclosures willhelpinvestorstoevaluatechangesinliabilitiesarisingfromfinancingactivities,includingchangesfromcashflowsandnon-cashchanges(suchasforeignexchangegainsorlosses).

1January2017

IAS40InvestmentProperty

TransfersofInvestmentProperty:Clarificationoftherequirements on transfers to, or from, investmentproperty.

1January2018



NOTES

BRANCH DETAILS

Windhoek Head OfficeTel: +264 61 207 4111

Email: [email protected]

Katima MuliloTel: +264 66 252 060

E-mail: [email protected]

MarientalTel: +264 63 242 818


MidlandTel: +264 61 207 4202


OtjiwarongoTel: +264 67 304 596


OshakatiTel: +264 65 221 358


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Agricultural Bank of Namibia @AgribankNamibia

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