• About Agribusiness

    How does it work

    The Agricultural Sector has been identified by both the Botswana Government and the Bank as an industry of strategic importance and emerging farmers form the biggest pool of farmers in Botswana. Therefore, Absa is committed to supporting eligible emerging commercial farmers with required finance based on a business case that illustrates sustainability and affordability. We provide finance for farmers in both the primary and secondary sectors. Anybody who is already farming or who wants to venture into farming can apply.

  • Sectors

    Primary agricultural sector 

    These are businesses that derive more that 50% of their income from their farming activities and who are involved in the primary production of livestock, poultry production, grain, and horticulture.

    Secondary agricultural sector 

    These are entities whose key business objective is to provide either inputs or production finance to primary agricultural producers. These businesses may include animal feed producers, input suppliers such as seed and fertilizer as well as traders, manufacturers and processors that act as the off taker of crops or animals.

  • How to apply

    Requirements to apply
    1. You must be a citizen or have a residential permit to apply
    2. You must operate in Botswana as a Botswana-registered company to apply
    3. If you are a new business, you must submit a business plan with cash flow projections
    4. If you are an existing farmer, you must submit historic financial statements of your business 
    Are you interested in applying?

    Contact your Relationship Manager to get started. Our dedicated, specialized team deals with the Agricultural sector only, giving you expert advise and personalised assistance. If you do not have a Relationship manager yet, you can contact:

    1. Thomas Harvey Head Agribusiness Botswana: 75 665 197
    2. Valerie Molaodi Relationship Manager: 71 489 272
    3. Emmanuel Sedumedi Relationship Manager: 72 890 918


    Alternatively, fill out the form below so that we can contact you to get started. 

Explore our Agribusiness offerings

  • Term Loan

    The Term Loan finances the acquisition of agricultural assets including livestock or construction of farm improvements such as fences, kraals and packhouses as well as for the consolidation of debt (carry over debt). The repayment term is negotiable and varies from 12 to 60 months, apart from breeding stock, which will be over a maximum of 84 months. The term will however be aligned to the purpose of the loan or the life span of the asset. This facility will assist farmers to fast track their herd building to get economies of scale or improve operational efficiency of their business. This loan can be secured by a Deed of Hypothecation over unencumbered loose assets.

  • Production Loan

    This product can be used to cover your direct input cost relating to your farming operations such as animal feed, fodder, licks, dipping fluid and ear tags, seeds, fertilizer, fuel, and chemicals required in the production process. This facility is granted for the duration of the full production cycle and must be repaid from the proceeds of the commodity for which the loan was granted. This facility can ensure optimal farming practices to achieve optimal yields that will improve profitability of your operations. This loan can be secured by unencumbered loose assets (tractors, combined harvesters, breeding stock or an off-take agreement with a reputable off taker) where sessions are taken or a bond over fixed property.

  • Mortgage Loan

    With this loan you can finance the acquisition of agricultural properties (farms), the improvement, replacement, or the refinancing of agricultural properties, normally with a 10-year term or a maximum of 15 years in exceptional cases. Variable repayment structures can be considered depending on the projected cash flow streams. The loan amount is based on the Force Sale Value or purchase price (whichever is the lowest). This product can help farmers to obtain their own farm or to expand on their current operations while it also allows farmers to improve their farms by subdivision in paddocks to allow best grazing practices that will promote sustainable land use and enhance quality of their herd. It can also be used to develop irrigation farms and to establish long term crops such as citrus or table grapes. Economies of scale in any business is important and this product can assist farmers to obtain scale in their business.

  • Commercial Asset Finance

    This product can be used to finance vehicles, tractors and farming equipment including but not limited to irrigation equipment such as centre pivots and packhouse equipment such as cold rooms and packing machines. Both new and used assets can be financed. Repayment will vary between 12 and 72 months and the frequency of instalments will be aligned with your income frequency.

  • Overdraft Facility

    This facility is associated with production loans and usually granted as one facility to address both direct input cost needs as well as other expenses like living expenses and instalments.  In some instances, an overdraft can be granted as bridging finance for an entity experiencing delayed payments from an off taker. The advantage of bridging finance is that it will support cash flow in the farming business while waiting for payment from sold produce. Overdrafts must be renewed yearly after assessing the latest financial statements of the business. Normally this loan is secured by a bond over fixed property.

  • Purchase Order Finance

    This loan is suitable to pay suppliers upfront and is a short-term facility. There is no limit to the number of loan that you can access, and no tangible security is required because the facility will be secured by the purchase order itself and a Deed of Cession over the payment proceeds. The term of this facility varies normally between 30 and 120 days.

  • Invoice Discounting

    The Bank will discount certain invoices up to 70% of the face value of the invoice. We then enter into a three-party agreement with the issuer of the invoice, the farmer, and the Bank where a cession in favor of the Bank is noted and signed by all parties. This is an ideal product to support cash flow in your business to continue with normal production operations while waiting for the invoice issuer to pay. This product term is determined by the timelines given by the invoice issuer as when they will pay and can vary between 30 to 120 days. No further security is required for this product.

  • Lorako Agriculture Insurance

    When running a successful farming business, farmers should consider all potential risks that might pose a threat to the long-term sustainability of their operations and to protect their cash flow to ensure they can meet their obligations. The Bank has a tailored insurance product that can cover vehicles, machinery, equipment, crops and livestock.

Let us contact you

Need more help?

Call us on:
+2673159524 (Contact centre)
0800 600 783 (BTC Toll Free)

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