Hertta-Maria Amutenja
Despite preferential trade agreements, Namibian micro, small, and medium enterprises (MSMEs) in agro-processing continue to struggle with barriers that limit their market access and growth.
The Namibia Investment Promotion and Development Board (NIPDB) has found that small businesses can’t fully benefit from these trade agreements because of problems with infrastructure, strict rules for following them, and a lack of money.
Titus Shivute, marketing and corporate communication manager of the NIPDB highlighted the opportunities available under agreements such as the Southern African Development Community (SADC) Protocol on Trade, the Economic Partnership Agreement (EPA) with the European Union, and the African Continental Free Trade Area (AfCFTA).
“A small-scale producer in Namibia can sell products duty-free in multiple countries. However, the challenge remains in meeting international standards and ensuring consistent supply,” Shivute said.
Many small-scale farmers have turned to agro-processing as a way to reduce food waste and increase profitability.
Infrastructure deficiencies further compound the problem. Inconsistent electricity supply damages temperature-sensitive equipment, inadequate cold chain facilities shorten the shelf life of perishable goods, and poor rural roads increase transportation costs.
Shivute added that there is a skills gap in food technology, safety management, and modern processing techniques, making it difficult for businesses to compete internationally.
Despite these challenges, Shivute says it is working to address skill shortages through its Talent, Innovation, and Productivity (TIP) department.
“We are implementing initiatives in collaboration with vocational institutions to provide training tailored to the needs of the agro-processing industry,” Shivute said.
However, small agro-processors face steep costs in meeting export requirements. For example, meat exporters must implement Hazard Analysis Critical Control Point (HACCP) systems, maintain unbroken cold chains, and pass rigorous facility inspections, requirements that cost hundreds of thousands of Namibian dollars. Access to capital is another major challenge, with banks demanding collateral that many small businesses lack.
Last week, farmers and processors raised concerns about limited market access, noting that strict size and aesthetic standards prevent non-standard produce from reaching consumers.
Ben Shernick, director of the Nutrition and Food Security Alliance of Namibia (NAFSAN), previously stated that creating demand for local products, whether processed or fresh, will help farmers sell their produce and reduce waste.
A small-scale farmer from Okahao, Linus Ipumbu, echoed these concerns, emphasising how these barriers stall progress for small-scale agro-processors.
“It’s frustrating because we have the potential to expand and make a real difference, but the challenges are insurmountable without proper support. From limited market access to the high costs of compliance, we’re unable to scale up our operations. The system favours larger businesses, and we are left struggling,” said Iipumbu.
Meanwhile, efforts to obtain comment from the Namibia Agronomic Board (NAB) on their role in supporting small-scale agro-processors were unsuccessful.
NAB spokesperson Lisel Mwilima said they could not respond to queries sent to the board.
