By: Nghiinomenwa-vali Hangala
The Namibia Agronomic Board (NAB) has availed a total of N$5.5 million to be allocated for the 2025/2026 financial year potato value chain development scheme .
This scheme forms part of the recently launched NAB 5-Year Crop Value Chain Development Strategy. NAB revealed revealed the allocation of these funds in a callout to producers released last week.
The Potato Value Chain Development Scheme (PVCDS) aims to stimulate commercial potato production in Namibia in the next 5 years, through the provision of basic subsidised inputs, capacity-building, and market facilitation services.
The scheme targets 45 farmers/producers each year from all the 7 production zones, namely Zambezi, Kavango, North Central, Karst, Central, South and Orange River.
Some of the biggest challenges hindering potato production in Namibia, identified by NAB, include limited access to high-quality seeds, and the high cost of basic inputs such as seeds, fertilisers, agrochemicals, and electricity. Limited access to finance, and lack of know-how on best potato production practices have also been raised as key challenges.
The production cost for potatoes in Namibia is estimated to be around N$200,000.00 per hectare (ha).
To stimulate local production, the NAB, through the potato value chain development scheme will subsidise certified potato seeds, fertilisers, and agro-chemicals from the supplier of choice. This will be done by covering 50% of the first planting and 25% of the second, based on the total invoice amount for the subsidised items.
The NAB will also offer free training and mentorship for two planting seasons. Additionally, the Board will offer an opportunity for potato producers under the scheme to sign a pre-planting offtake agreement with local traders (wholesalers and retailers). Given the national struggle in accessing financing, under the scheme, producers will also be linked to a local financial institution for a production loan.
In meeting the national aspiration to build mechanised and modern agricultural methods, the scheme will enable producers to access equipment/machinery for planting and harvesting through hiring.
THE MARKET GAP
According to NAB statistics, potatoes are the most consumed horticultural products in Namibia, with an annual domestic demand of about 30,000 tons, valued at approximately N$246 million for formal markets.
However, local production only covers about 34% (N$84 million or 8,203 tons) of the annual domestic demand, and 66% (N$162 million or 21,488 tons) is imported mainly from South Africa. On the other hand, potatoes alone make up 28% of the total value of imported horticultural products of N$587 million per annum and contribute about 22% to the total value of locally-produced horticultural products of N$388 million per annum.
It is said that scheme interventions will stimulate local production and increase the market share promotion (MSP). It is expected that the share of local production to domestic demand will increase from the current actual MSP of 40% to at least 50% in the next 5 years, though the overall targeted MSP for the next 5 years is 56%.
These interventions are well aligned with the NAB Crop Value Chain Development Strategy for 2025/26 to 2029/30, which identified potatoes as one of the priority crops for value chain development.
NAB explained that the main goal is to increase the contribution of potato to the MSP from the current 34% to at least 67% in the next 5 years, ultimately contributing towards increasing the current overall Actual Horticulture MSP of 40% to at least 56% by 2030.
erastus@thevillager.com.na
