RUNDU – The Vhungu Vhungu Green Scheme in the Kavango East region requires an annual budget of N$22 million to operate at full production capacity, farm manager Floris Smith has said.

He made the remarks on Monday in response to a question from Paulus Mbangu, chairperson of the Parliamentary Standing Committee on Agriculture, Environment and Natural Resources.

The committee is conducting an oversight visit to the Kavango East Region from 18 to 20 August 2025.

“For both the summer and winter crops, the full annual production budget would be N$22 million, depending on the cost of fuel, electricity and the amount of rainfall the country receives,” Smith said.

When asked whether the farm could become self-sustainable soon, he said that prior to the establishment of Agribusdev, green schemes such as Shadikongoro operated independently and sustainably.

“I didn’t use a single cent of taxpayers’ money. We covered all expenses ourselves – from marketing and sales to salaries – and deposited the income directly into the bank,” he said.

Smith emphasised that the key difference between past and current management lies in decision-making and financial control. “Previously, I could write a cheque to pay for repairs and salaries. Now, I have to go through someone else,” he noted.

Smith said, with greater autonomy and decision-making authority, green schemes like Vhungu Vhungu could be self-sustainable. 

However, he highlighted the need for fully functional machinery and equipment.

Currently, the farm has only two operational tractors, while seven are needed to meet its full production requirements. 

Smith said they are still waiting for additional equipment to arrive. -Nampa