‘Agriculture a national priority for inclusive growth’

Minister of agriculture, water and land reform Calle Schlettwein says there is a need to recognise agriculture as a national priority and to allocate resources accordingly.

Schlettwein says the agricultural sector has the ability to induce inclusion and social progression through boosting national food security and food self-sufficiency by utilising increased agricultural modernisation, productivity and production.

He says the sector holds the highest potential in terms of job creation, given high employment intensity, poverty reduction through the generation of per capita income for individuals and households, and erosion of income inequalities through land reform and wealth-based empowerment opportunities.

The minister made the remarks at the official opening of the Keetmanshoop Agricultural, Industrial and Tourism Expo on Tuesday.

The event is being held under the theme ‘Tourism and green investment for inclusive economic development,’ to showcase a diversified agricultural sector including tourism, trade, and agro processing.

“At 2.3 % of total non-interest expenditure, and about 0.7% of gross domestic product (GDP) in 2024/25, budgetary allocation to agriculture falls short of recognising agriculture as a high national priority, a matter which must urgently be aligned,” said Schlettwei

Direct employment in the agricultural sector is estimated at approximately 20%, the single most important sector in terms of the job content with less skills demand, hence the high potential for inclusion and erosion of poverty through growth in the sector.

Adding the food sector, agriculture’s contribution edges towards 50%.

He said the sector is showing some resilience, defying the adverse impact of Covid-19 on the economy, holding growth steady and enabling the country to build back better.

However, Schlettwein said bouts of volatility in growth rates, coupled with the trade-related impacts of global geopolitical tensions of our times, have now warranted a policy shift from over-reliance on rain-fed agriculture, to intensive agriculture, thus de-risking the sector from climate change and variability.

The minister said other primary policy enablers required to successfully utilise the sector are investment in water resource development, distribution infrastructure and sanitation.

This would enable the transition from rain-fed agriculture to intensive and climate-smart agriculture.

Investments in primary, logistical and supportive infrastructure are other requirements, said Schlettwein, to address supply-side challenges and product quality considerations.

These range from abattoirs, processing plants and feedlots in the livestock sector, to grain and cold storage infrastructure for fresh food and marketing hubs in the agronomic sector and IT infrastructure.

“We need secure, affordable and reliable power provision. Power and water availability and affordability are key input factors for the fortunes in the sector.

Our experience is that the cost of energy often rockets out of the affordability range for farmers, particularly for the small-scale farmers.

This binding constraint limits increasing returns to scale and productive diversification in the sector,” he said.

Schlettwein commended the //Kharas region as one of the cornerstones of Namibia’s agricultural sector, making significant contributions to national GDP, particularly through its livestock production, horticulture – specifically table grape production – and diamond mining.

“Both our mining and agricultural heritage have greatly been formulated by activities here in the south. It is imperative to note that with the recent oil and gas discoveries, as well as green hydrogen developments, the //Kharas region presents significant potential and opportunities to bolster national economic growth and serve as catalysts for economic diversification and expansion,” said the minister.