Staff Writer
Popular Democratic Movement (PDM) Member of Parliament Inna Hengari has raised concerns over the implementation and accountability of the Northern Communal Areas (NCA) Price Equalisation Fund, calling for clear timelines, oversight mechanisms and structural safeguards to ensure the policy delivers tangible benefits to farmers.
Hengari submitted formal questions to the minister of agriculture, fisheries, water and land reform, Inge Zaamwani, on Wednesday and is expected to receive a response in the National Assembly next Thursday.
While acknowledging the government’s commitment to operationalising the Equalisation Fund as a positive step, Hengari warned that persistent structural challenges in the livestock sector continue to undermine farmer incomes and market access.
“A commitment to operationalise the Equalisation Fund for farmers in the Northern Communal Areas is a positive development; however, significant concerns remain regarding implementation, accountability, and the government’s ability to deliver on this undertaking,” Hengari stated.
She pointed to long-standing inequalities affecting farmers in northern regions, including lower cattle prices compared to commercial farming areas, limited access to formal markets and the continued economic impact of the Veterinary Cordon Fence, commonly known as the Red Line.
Hengari cautioned that without a clear implementation framework, the fund risks becoming another delayed policy intervention that fails to address structural inequality in the livestock sector.
“It is essential that the minister provides clear details on timelines, funding, oversight mechanisms and expected outcomes to ensure that this commitment results in tangible benefits for farmers rather than another delayed policy intervention,” she said.
Among her key concerns is the operational timeline of the fund. She requested clarity on when it will become fully functional and when farmers can expect to benefit from equalised cattle pricing.
“On what exact date will the Equalisation Fund become operational, and when can Northern Communal Area farmers expect to receive equalised cattle prices?” she asked.
Hengari also questioned the long-term sustainability of the fund, particularly regarding governance stability and coordination within the agricultural sector.
“What measures are being taken to guarantee the long-term sustainability of the fund and prevent future interruptions caused by institutional disputes?” she asked.
Another major concern relates to benefit distribution, particularly the role of the Meat Corporation of Namibia (Meatco).
Hengari warned against the possibility of subsidies being absorbed into operational costs instead of reaching farmers directly.
“How will the ministry ensure that Meatco passes the full benefit of the fund directly to farmers rather than absorbing it into operational costs?” she questioned.
She further called for detailed information on Namibia’s slaughter infrastructure, focusing on the Katima Mulilo and Oshakati abattoirs.
Hengari requested updated data on their operational status, annual slaughter capacity, utilisation rates, and export accreditation.
She also questioned whether the facilities are equipped to handle increased cattle volumes expected under the Equalisation Fund and associated feedlot programmes.
“Can the Minister confirm the current operational status, annual slaughter capacity, utilisation rates, and export accreditation status of the Katima Mulilo and Oshakati abattoirs, and advise whether they possess sufficient capacity to process the additional cattle volumes anticipated under the Equalisation Fund and feedlot programme?” she asked.
“If not, what interventions are planned and within what timeframe?”
The Equalisation Fund has been widely positioned as a key policy tool to reduce price disparities between northern communal farmers and commercial producers, while strengthening Namibia’s livestock marketing system.
The N$100 million initiative is designed to address long-standing inequalities faced by farmers north of the Red Line, where cattle prices have historically been lower due to disease-control restrictions and logistical constraints.
In 2024, Cabinet approved the subsidy mechanism to ensure that NCA farmers receive fair and equitable market prices when selling through formal channels, thereby improving rural incomes and strengthening livestock-based livelihoods.
According to government statements, Zaamwani has confirmed that the fund is currently being operationalised following earlier delays linked to institutional and implementation challenges.
The Equalisation Fund forms part of a broader N$400 million government and European Union-supported livestock development programme aimed at improving infrastructure, market access, and efficiency across the sector.
Within this framework, complementary interventions are being rolled out to support implementation, including logistical support to Meatco, feedlot development, and commodity-based trade arrangements intended to expand access to regional and international markets while maintaining disease control standards
