Call for a Halt on Farm Repossessions
The Previously Disadvantaged Namibian Farmers’ Union (PDNFU) has urged Agribank of Namibia to suspend all farm repossessions and auctions. The appeal comes amid growing concern that the bank’s debt collection practices could entrench financial instability among smallholding and marginalized farmers, particularly those affected by Namibia’s land reform program.
Background: Debt Traps and the Land Reform Context
Namibia’s land reform process, aimed at redressing historical inequities, has left many new or aspiring farmers grappling with financing, regulatory hurdles, and market volatility. PDNFU asserts that some farmers, already operating on razor-thin margins, face mounting debt due to high interest rates, unexpected costs, and limited access to affordable credit. When loans become unsustainable, repossessions and auctions are often the next step—measures which critics say can destroy livelihoods and widen the ownership gap rather than close it.
“Our farmers are not fleeing responsibility; they are asking for a fair pathway to service their loans,” said Jane Kuhanga, president of the union. “Continued legal action against struggling farmers risks undermining the very goals of land reform by pushing people off the land they are trying to work.”
Economic and Social Implications
Repossession and forced sales can hasten a cycle of poverty for farming households. In many cases, the land and assets are put on the auction block at prices that do not reflect their true value or the potential to rehabilitate the farm with targeted support. PDNFU argues that without supportive interventions—such as restructuring loans, providing financial literacy, and guaranteeing access to inputs—the property might change hands temporarily, only to slide back into the hands of larger commercial players or financial institutions with less stake in community development.
Observers warn that a wave of repossessions could destabilize rural communities, increase unemployment, and push vulnerable families toward urban centers. The call for a moratorium on auctions aligns with broader debates about how to balance debt recovery with sustainable livelihoods in sectors critical to food security and rural resilience.
What Farmers Are Asking For
PDNFU’s request centers on several concrete actions: suspend all ongoing and upcoming farm auctions, launch a review of existing loan agreements, and establish a negotiation framework that prioritizes loan restructuring and selective write-offs where warranted. Additionally, the union advocates for transparent criteria to determine which farms might qualify for debt relief, coupled with targeted training and mentorship programs to help farmers improve productivity and cash flow.
Beyond immediate relief, PDNFU argues for long-term reforms in the banking sector’s approach to rural financing. Proposals include risk-sharing mechanisms, government-backed guarantees, and the development of a dedicated agricultural credit facility that understands the peculiarities of land reform-era farming while encouraging sustainable practices and diversification.
Government and Bank Responses Expected
The call for a halt to foreclosure activities is likely to prompt responses from both Agribank and government officials. Supporters of the farm sector point to the need for a coordinated policy response that protects vulnerable families while maintaining the bank’s financial health. Critics, however, caution against extending credit risk without accountability, warning that leniency could encourage moral hazard if not paired with robust oversight and reform measures.
Analysts emphasize the importance of balancing credit discipline with social equity. A constructive path forward would involve multi-stakeholder dialogue among farmers, financial institutions, policymakers, and civil society to craft adaptable guidelines that reflect Namibia’s unique land reform trajectory and its impact on rural livelihoods.
Looking Ahead
As the debate unfolds, the PDNFU’s call to pause farm repossessions underscores a broader question: can land reform be paired with a sustainable financial framework that supports smallholders rather than marginalizes them? The coming weeks could bring critical negotiations, policy shifts, and possible reforms designed to prevent a rollback in household incomes while preserving the integrity of agricultural credit markets. For farmers, the emphasis remains clear: a fair, transparent process that cushions risk and fosters long-term viability is essential to securing a resilient rural economy.
