Windhoek
To improve the wealth created from the natural resource based sectors in a sustainable and commercially viable manner, the European Union (EU) support will be seeking linking rural primary producers to markets through support for sustainable productivity adapted to climate change, the development of rural-based value chains and the enhancement of the business environment for rural entrepreneurs, says Giancarlo Monteforte: Development Cooperation of the Delegation of the European Union to Namibia.
The EU recently announced the implementation of the Livestock Support Programme. Formulation of the programme is being carried out in close collaboration with the relevant directorates in the Ministry of Agriculture, Water and Forestry and in consultation with a wide range of players in the livestock value chain, including government parastatals, farmers unions and private sector operators. The Programme is expected to become operational early next year.
The programming exercise for the 11th European Development Fund (EDF) has been guided by aid effectiveness principles, the EU Agenda for Change and the National Development Plan (NDP4), which contributes to the overall Vision 2030 and sets out three over-arching goals, namely higher economic growth, job creation and increased income equality. The indicative allocation for Namibia under the 11th envelope is of 68 million Euro. The EU support will focus on two main sectors: Education and Skills and Agriculture.
The allocation to Agriculture is 20 Million EUR, approximately 29% of the NIP. The choice of Agriculture was based on Namibia’s needs, and own resources, and on the EU’s comparative advantage and experience.
Poverty in Namibia is still mainly a rural issue with 41% of the rural population classified as poor as opposed to 14% in the urban centres. The agricultural sector provides employment and/or sustenance for the majority of the population as well as supplies raw materials and inputs for the manufacturing sector, says Monteforte adding that next to a well-developed commercial agricultural sector on freehold land, the majority of Namibian farmers are based in communal areas, with half of them being considered subsistence farmers.
“Despite its economic potential, agriculture in the communal areas has been underperforming as result of constraints affecting production, including environmental and climatic constraints further exacerbated by climate change, as well as weak linkages to markets. Therefore the contribution to GDP and formal employment is limited. Agriculture contributed 4.2% to GDP in 2011 with livestock being the most important sector, contributing 76% to total agricultural output,” says Monteforte. However, he adds that although the majority of animals can be found in the communal areas, it only contributes 6% of the formal agricultural output, with the remaining 70% from commercial areas.
The number of animals sold in formal markets in the Northern Communal Areas (NCA) is limited. Constraints affecting productivity of livestock in the NCA include overstocking and overgrazing. This negatively affects the natural resource base, with soil degradation and invader bush encroachment as possible further perils to productivity.
“Communal farmers’ links to markets have been weak, considered partly as a result of the veterinary zoning of the country which erects obstacles for livestock producers outside the Foot & Mouth Disease free zone and partly as private sector actors are far less well articulated in the communal areas as compared to the commercial areas of Namibia. Many farmers consider the prices offered by formal markets as low. Other factors include the access of producers to animal health services or improved genetic material while some communities may need support in small-scale infrastructures to support commercial production and marketing (like water- or cattle collection points, feedlots).
“Currently Namibia is divided in three distinct veterinary zones whereby the southern part, mainly but not exclusively characterised by commercial producers on freehold land, is recognised as Foot & Mouth Disease (FMD) free by the World Organisation for Animal Health OIE,” says Monteforte. “Government therefore is pursuing the upgrading of the status of the protection zone to allow direct exports of chilled beef from NCA to Europe and other lucrative world markets. At the same time the Government markets and stimulate the development of value added products from NCA meat to target these markets,” says Monteforte.
For livestock producers to commercialise successfully, it is important that their products meet market demand. The elevation of the veterinary status of the FMD Protected Zone within the NCAs will bring immediate trade benefits to those farmers in the NCAs that already meet the demands of chilled meat export markets and produce higher grade quality animals. The opportunities that the EU-SADC Economic Partnership Agreement will in that case provide need to be fully explored.
“The exploration and opening up of additional markets and stimulation of local value addition will create opportunities for other livestock producers to engage in production for the market as well. Particular attention shall be paid to inclusion of women,” says Monteforte. For the strengthening of rural value chains, the engagement of the private sector is crucial as it will identify and unlock economic opportunities, stimulate local value-addition and create employment opportunities. This engagement can be further promoted by supporting private-sector investment and entrepreneurship in the communal areas.
“The need of integrating the rural economic actors into formal markets, addressing issues of poverty and unemployment, is therefore identified by the NDP4 as a priority for economic growth and fits with Namibia’s ambition to promote the green economy. The EU will support actions helping a paradigm shift from production to a market driven livestock sector in the NCAs,” Monteforte concludes.