Agronomic board, Agribank boost local potato production …1 500 jobs to be created

Agronomic board, Agribank boost local potato production …1 500 jobs to be created

Lahja Nashuuta

The Namibia Agronomic Board (NAB) has unveiled a N$250 million Crop Value Chain Development Strategy for 2025-2030, with potato production singled out as a strategic priority. Of this, N$27.5 million will be invested in the Potato Value Chain Development Scheme over the next five years.

The NAB will provide a 50% subsidy, while Agribank will provide loans for input
financing.

The announcement was made on Friday by NAB chairperson Hubertus Hamm during the launch of the NAB Annual Report 2023/2024, the Integrated Strategic Business Plan (ISBP) 2025/26–2029/30, and the Potato Development Scheme.

According to Hamm, the scheme will cost about N$5.5 million annually, covering subsidies of 50% for certified seed potatoes and 25% for fertilisers and agrochemicals. It will also fund farmers’ training, mechanisation support and administrative costs.

Hamm said through this programme, NAB intends to increase potato production from the current 8 203 tonnes (valued at N$84 million) to 20 000 tonnes (N$140 million) annually by 2030 – an increase of 144%.

Imports are expected to drop from 66% to 33%, while more than 1 500 permanent and seasonal jobs will be created.

“The goal is to increase the contribution of locally produced potatoes to Market Share Promotion (MSP) from the current 34% to at least 67% within five years,” Hamm said.

He further said the Potato Value Chain Development Scheme aims to address these barriers by providing subsidised inputs, technical support, secure markets and financing opportunities.

“Through this scheme, we want to stimulate local production and build a sustainable potato industry in Namibia,” Hamm said.

He further pointed out that the investment intends to boost the overall horticulture MSP from 40% to 56% by 2030 as per Vision 2030,  sixth National Development Plan (NDP6), the Swapo Party Manifesto, the Strategy for the Transformation of the Agri-Food Sector (STAS), as well as the draft final strategic framework of the Ministry of Agriculture, Water, Fisheries and Land Reform.

NAB chief executive officer Fidelis Mwazi said the scheme targets small-scale potato farmers planting between 0.5 and two hectares. Farmers with plots above two hectares will only receive subsidies for the first two hectares.

At least 45 farmers per year are expected to benefit, with the aim of cultivating 89 hectares annually, totalling 445 hectares over five years. Each farmer will benefit from subsidies for two consecutive seasons before new entrants are considered.

Through the scheme, farmers will be provided with subsidies for high-quality certified potato seeds, fertilisers and agrochemicals.

As well as strengthen capacity through training, mentorship and mechanisation and facilitate access to affordable finance and secure markets for Namibian potato producers.

Why potatoes?

Mwazi explained that while potatoes are the number one horticultural product consumed in Namibia, with annual demand standing at about 30 000 tonnes, valued at roughly N$246 million, local production only accounts for 34%, which forces the country to rely heavily on imports, mainly from South Africa.

He further emphasised the economic weight of the crop: “Potatoes alone make up 28% of all horticultural imports worth N$587 million each year, while contributing 22% to the value of local horticultural output. “That is why we cannot ignore the importance of strengthening this value chain,” he argued.

Mwazi noted that although government subsidies exist, they are limited in scope. “The ministry of agriculture provides a 50% subsidy on seed and 60% on fertilisers, but this is restricted to just half a hectare per farmer,” he said.

He also highlighted research efforts that have yet to bear fruit. “In 2021 and 2022, together with a French partner, we trialled six potato varieties and identified four that outperformed those commonly planted in Namibia. However, commercialisation was delayed because of missing quality assurance systems and breeders’ rights regulations. Import costs from Europe are also prohibitive for most of our farmers,” Mwazi explained.

He added that despite these interventions, potato farming continues to struggle. “High input costs, limited access to certified seed, and expensive electricity remain stumbling blocks. Add to that the lack of financing and specialised technical know-how, and it becomes clear why production is stagnant. Right now, producing a single hectare of potatoes costs about N$200 000, which is a serious barrier for small-scale farmers,” he stressed.

To overcome these challenges, Hamm said the scheme will rely on a broad network of stakeholders.

“We cannot succeed alone,” Hamm stated. This is why NAB is partnering Agribank, the Namibia Agricultural Input Suppliers Association (NAISA), the National Association of Horticulture Producers (NAHOP), the Potato and Onion Producers Association (POPA), the Ministry of Agriculture, the Namibian Association of Traders in Fresh Produce (NATFP), and the Agro-Marketing and Trade Agency (AMTA), he said.

lnashuuta@nepc.com.na