Namibia directs US$1.5 million to potato production scheme

NAMIBIA – Namibia has set aside N$27.5 million (US$1.5 million) for a Potato Value Chain Development Scheme, part of a broader agronomy strategy worth N$250 million (US$13.5 million) running from 2025 to 2030.

The Namibia Agronomic Board (NAB) will provide farmers with subsidies while Agribank will give loans to support inputs. According to NAB chairperson Hubertus Hamm, the potato scheme will require about N$5.5 million (US$297,000) each year.

The funds will go into 50 percent subsidies for certified seed potatoes, 25 percent subsidies for fertilisers and agrochemicals, as well as farmer training, mechanisation support, and administration.

Hamm explained that the target is to raise potato production from the current 8,203 tons, valued at N$84 million (US$4.5 million), to 20,000 tons worth N$140 million (US$7.6 million) by 2030.

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

The scheme is designed to support small-scale farmers working on plots between half a hectare and two hectares. Farmers with larger farms will only qualify for subsidies on the first two hectares.

Each year, about 45 farmers are expected to take part, covering 89 hectares annually and a total of 445 hectares over the five-year period.

Market impact

NAB chief executive Fidelis Mwazi highlighted that potatoes are Namibia’s most consumed horticultural product, with yearly demand standing at 30,000 tons valued at N$246 million (US$13.3 million).

“Local production only accounts for 34 percent, which forces reliance on imports mainly from South Africa,” he noted.

Mwazi added that potatoes make up 28 percent of all horticultural imports worth N$587 million (US$31.8 million) and 22 percent of local horticultural output.

He said the Ministry of Agriculture already provides subsidies, but these cover only half a hectare per farmer. Producing one hectare costs about N$200,000 (US$10,800), which keeps many small-scale farmers from joining the sector.

He also pointed out that earlier trials of new potato varieties with French partners gave good results but faced delays because of quality assurance and regulatory challenges.

Shared effort

Hamm emphasised that the success of the project will depend on partnerships. “The scheme will only succeed if there is collaboration with Agribank, input suppliers, producer associations, the Ministry of Agriculture, and trade agencies,” he said.

The potato scheme comes at a time when Namibia is taking steps to reduce its heavy reliance on food imports.

By boosting local production, the government expects to cut imports from 66 percent to 33 percent by 2030, while creating more than 1,500 permanent and seasonal jobs.

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.