The National Development Bank (NDB) expresses confidence in the Temo Letlotlo scheme’s implementation, believing it will achieve greater success than its predecessor, ISPAAD.
Temo Letlotlo is a new government programme aimed at supporting arable agriculture in Botswana.
Its objectives include promoting household food security; supporting commercial production of grain; improving inclusivity in agricultural production; as well as to improve the social base capital in the country.
As such, NDB has been roped in to oversee the implementation of the programme.
The bank will oversee micro-scale payments, this is payments to suppliers of beneficiaries. In addition, the bank will also administer the seasonal loan component of the programme by providing actual loans to the farmers, as well as the fencing and tractor scheme.
NDB will further administer the interest subsidy scheme where those who are not directly under the programme will have a fund where the amount of interest they pay will be subsidised. With the previous programme, ISPAAD having experienced funding challenges, NDB believes its involvement in Temo Letlotlo will ensure that the current programme is self-sustaining.
“The previous programme faced issues of financing, and part of what NDB looks to do is to ensure that going forward certain components of Temo Letlotlo are self-sustaining,” said Bosa Gaofiwe, Resource Mobilisation Manager at NDB, who also leads the implementation of the programme.
“We will do our best by applying financial prudence that we know and apply in our business.”
Gaofiwe said this will ensure that there is a reduction of the fiscal burden on the government.
By partnering with NBD, Gaofiwe believes the government will achieve an improved fiscal position. Meanwhile, Gafiwe said to this end, NDB has paid a total of P57.4 million to micro-scale suppliers, though there were some delays.
“Part of the delays were caused by the fact that as a financial institution, there were certain KYC requirements which we could not walk away from,” he said.
“This process is now seamless and we will now reach a point where we will be able to make a two working days turnaround time for payments.”
Regarding the seasonal loan component, Gaofiwe disclosed that NDB has approved a total of P16.2 million and currently finalising a pipeline of about P6.9 million.
According to Gaofiwe, these are farmers spread across the country and exclude most of the commercial farmers in commercial farming hubs. NBD, Gaofiwe said, it has adjudicated and is in the process of disbursing P10.1 million towards the tractor scheme where the government covers 50 percent towards the purchase of tractors and associated implements.
On the interest subsidy scheme, Gaofiwe told the media that in this component, which mostly covers commercial farmers, NDB has been able to support P121 million in funding to commercial farmers across the country.
These farmers are mostly in Pandamatenga, Mosisedi, and other commercial hubs. With the programme in its first year of implementation, Gaofiwe said there have been lessons learned, the key one being the need to do more in educating farmers about the bank’s processes.
“There will be a more aggressive approach in the coming months leading to the next ploughing season to ensure that disseminate information about our processes,” Gaofiwe said.
“Key to also note is that NDB is not out to repossess Batswana assets.”
Gaofiwe said this is the first time in history where arable farmers can take up loans as opposed to 100 percent grants. He explained that the way the programme is designed is such that up to 100 hectares, loans will be collateral-free.
“It is only beyond that amount that they will be required to put up security,” he said.
“Even then, we are a bank that is committed to walking the path with a customer, meaning that we will do all in our power to ensure the farmer succeeds.”
