Namibia: Agriculture Sector Limps On After Drought
The recent drought that spanned over two years has had dire consequences on the local livestock sector, with the number of small stock marketed in the country taking a dip.
According to Agribank’s monthly economic analysis, total small stock marketed declined by 23.9% to 21 000 in September 2020 compared to the same period last year.
Similarly, the number of slaughtered small stock also declined by 59% to 102 000 year-to-date (YTD).
The Agribank report states that the closure of the Mariental abattoir aggravated the issue, while the drastic increase in the price for sheep can be attributed to low supply of these animals in the market.
Successful re-stocking by farmers will require a financial and business strategy restructuring, the banknotes.
In the Swakara industry, the consumer and business environment remain challenging, especially for cross border trades.
The pelts market is highly dependent on the recovery of international market demands, which has been proven low due to the pandemic.
As a result, the volume of pelts traded declined by 78% to 12 000 in 2020, compared to a 16% decline to 54 000 in the prior year.
“The price remained relatively strong, declining only by 24% during the prior under review. The second covid-19 wave and the re-birth of lockdown measures could aggravate the performance of the Swakara market,” the report states.
On a positive note, the report states the good rain received in 2020 has restored hope in the agricultural sector. The Namibian table grape producers expect a bumper harvest in 2020, it notes.
“The country expects to export about 7.4m cartons, compared to 6m exported in the prior year,” the report states.
Agribank’s Indileni Nanghonga, who compiled the report, noted there is a need for innovative financing in the Agricultural sector, as purported by the recent agricultural conference under the theme ‘Maximising Agricultural Potential for Namibia’s Development’.
She said the conference placed emphasis on tackling the current challenges faced by the sector through the deployment of technology and modern agricultural methods in the context of smart agriculture in Namibia.
“Agribank stressed that innovative financing is directed by innovative, bankable business ideas whilst improving the infrastructure such as roads and utilities to ease the challenges of doing business,” she said.
Namibia is one of the most vulnerable countries to the effects of climate change due to the aridity to most parts of the country. Events resulting from climate changes such as droughts drive the majority of the population to poverty when they occur.
Drought spells have become a common feature in Namibia. In 2019, another drought hit Namibia and several resultant impacts made the news.
The study found that the rainfall during the 2019 drought was the lowest recorded in Windhoek since 1891 and the drought was the worst in the last 90 years in Namibia.
