Niël Terblanché
Despite its critical role in the economy and the potential for significant growth, Namibia’s agricultural sector remains underfunded, receiving less than five percent of the national budget.
Immanuel Kadhila, the Managing Director of Eos Capital, has called for increased investment in agriculture to unlock its full potential and reduce the country’s dependency on imported food products.
Speaking at a recent event, Kadhila highlighted the sector’s importance, noting that it employs 25 percent of Namibia’s workforce and has been growing at an impressive rate of ten percent annually since 2010.
He said that with adequate support, the agricultural sector could lead to greater economic benefits, including job creation and enhanced food security.
“The consistent growth of the agricultural sector underscores its potential. However, the current budget allocation does not reflect this, and we must invest more in this vital industry,” Kadhila said.
The urgency of improving Namibia’s domestic agricultural capabilities is underscored by the country’s heavy reliance on food imports.
In 2023, Namibia imported agricultural products worth N$22 billion representing over 80 percent of the country’s agricultural consumption.
Kadhila pointed out that this dependency highlights the need to enhance local food production to achieve food security and improve the quality of life for Namibians.
“This reality indicates the importance of enhancing local food production. We must invest in our agriculture to reduce our reliance on imports and ensure food security for our population,” Kadhila said.
Data from the Namibia Statistics Agency (NSA) supports Kadhila’s concerns.
The NSA’s report on food imports for the first quarter of 2024 reveals that Namibia’s imports of cereal grains were valued at N$587.3 million, an increase from N$518.3 million in the corresponding quarter of 2023.
The majority of these grains were sourced from South Africa, Latvia, and India, with maize being the highest grain imported at a value of N$405.1 million.
Despite the increase in imports, there has been positive growth in Namibia’s local agronomy production.
The NSA reported a 36.5 percent increase in agronomy production in the first quarter of 2024, with white maize recording a significant growth of 70.3 percent.
This improvement, however, is overshadowed by the substantial import figures, emphasizing the need for further development of the local agricultural sector.
In terms of horticulture, Namibia’s export of horticultural products in the first quarter of 2024 was valued at N$276.1 million, a notable increase from N$181.9 million in the same period of 2023.
Grapes and dates were the top exported products, with the United Kingdom, the Netherlands, South Africa, and Germany being the main export destinations.
Meanwhile, Namibia’s import bill for horticultural products stood at N$305.1 million, with potatoes being the highest imported product.
The livestock sector also saw an increase in activity, with the total number of animals auctioned in the first quarter of 2024 rising to 109,783, up from 76,163 in the same period in 2023.
However, prices across all types of livestock experienced declines, with cattle prices falling by 17 percent per kilogram.
The fishing industry, a major contributor to Namibia’s economy, reported a total quota species catch of 97 077 metric tons in the first quarter of 2024, a decrease from 116 471 metric tons in the corresponding quarter of 2023.
Despite this decline, export earnings for fish and crustaceans saw a slight increase, valued at N$4.1 billion. Spain, Zambia, and the Democratic Republic of Congo were the main export destinations for these products.
With Namibia’s reliance on imported food, the need to develop and strengthen the domestic agricultural sector is more pressing than ever.
Kadhila said that by enhancing local production capabilities not only promises to boost the economy but also ensures that Namibia can achieve greater self-sufficiency and food security.
“We must invest in our agricultural sector to unlock its potential, reduce our dependency on imports, and create a more sustainable and prosperous future for all Namibians,” he said.
