With an ambitious bid to reset, modernize and strengthen the overall output of the country’s agricultural sector, the government will invest more than $561 million in agricultural infrastructure, including various green schemes and agricultural processing segments.
A planned $561 million investment will be made during the fiscal year 2025/26.
This was announced by President Netumbi Nandi-Ndaitwah in his recent national speech in Parliament.
She shared her desire to see a 80% reduction in national imports of agricultural products. “In 2024, Namibia experienced a catastrophic drought in agriculture, which accounts for at least 23% of direct employment. “If we continue doing things the same way, but expect different outcomes, we cannot realize the ambitious efforts included in our manifesto. Here again, we cannot eradicate poverty. The plans we have clearly outline the seven priority areas.
The president is targeting the country’s green scheme and the revival and boost of the agricultural processing sector.
Additionally, she plans to strengthen the country’s meat sector and its overall throughput by introducing a plan to improve cattle breeding (bugs) and herd restocking of cattle herds.
In a global context, more than 1.2 million cattle in Namibia account for less than a quarter of the world group, which reached over 1 billion in 2022.
Beef production worldwide was estimated at 59 million tons in 2022 compared to Meatco meat, which was processed at 8,588 tons in 2022/23.
With Namibia’s nominal share of global beef production, it is essential that the country concentrates on the niche and premium markets selected for its quality products.
Value Chain
Over the past five years, agriculture’s contribution to Namibia’s gross domestic product (excluding the fisheries sector) has been less than 5%, but it is one of Namibia’s most important sectors.
This is because most of Namibian population relies directly or indirectly on the agricultural sector for its livelihood.
Livestock agriculture contributes to approximately two-thirds of Namibia’s annual agricultural production.
Crop agriculture and forestry account for the remaining third.
The sector already supplies high-quality beef, sheep and goat products to the international market. In March 2020, Namibia became the first and only African country to export beef to the United States.
Investment opportunities exist in value chain activities, particularly meat processing and related industries such as canned food, tannery and leather products.
Veterinary services provision, animal vaccines, and medical production may provide equally viable investment opportunities.
“The aim is to improve the beef industry. The breed improvement scheme targets emerging, resettlement and co-farmers. As founder President Sam Nujoma taught us, it aims to reduce agricultural imports by 80% by focusing on food security, climate resistance and competitive agriculture.
The president acknowledged that repeated droughts have severed lives for most local farmers as many were forced to stop animals. Many others had no choice but to shut down farm work completely due to drought.
Possibilities of the agricultural sector
Currently, there are only three agricultural crops surrounded by the official gazette as controlled: white corn, pearl mibi and wheat.
These crops are considered to be Namibian staple foods.
Namibian agriculture industry faces many challenges including drought, high input costs, pests and disease, but the number one challenge is recurring drought.
At the same time, Namibia remains a net importer of three agricultural crops.
Farmers have a safe market through grain marketing mechanisms. This will enforce import restrictions or close border periods at a time of sufficient local production.
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Production of mainly white corn and pearl billets, agricultural crops takes place in both commercial and communal areas under irrigation.
They are raining and are for sale in mirrors.
However, Pearl Millet is produced primarily in communal regions under rainy production. Wheat production takes place under government projects located in irrigation and communal areas of commercial areas. Currently, there is no export of agricultural products due to limited production.
Water shortages are always a constraint that exists in most parts of the country.
This climate means that the potential for arable agriculture is generally limited.
Therefore, the potential for agriculture is limited primarily to livestock agriculture and high value crops such as dates and grapes that focus on export markets.
However, climate-smart agriculture is attracting more attention as a necessary field for development to allow Namibia to cut more from the agricultural sector.
