Namibia’s charcoal industry has created 14,500 jobs across the country, primarily in rural areas, a report has found.
As a growing sector, the charcoal industry continues to provide vital employment opportunities, with government efforts focused on expanding its reach and addressing industry challenges to sustain and increase job creation.
The incorporation of Namibia’s charcoal industry into the national growth agenda has proven crucial for the country’s industrialisation and trade strategy.
“The sector significantly enhances export potential and generates foreign exchange while creating employment as approximately 14,500 people benefit from direct and indirect jobs within the charcoal value chain, establishing the product as a key contributor to household incomes, especially in rural communities,” the Charcoal Price Discovery Platform Final Report said.
.According to the report, over 30 million hectares of Namibian rangeland suffer from bush encroachment, primarily driven by unsustainable rangeland practices, increased atmospheric carbon dioxide, and reduced precipitation linked to climate change.
“Selective bush harvesting for charcoal production offers a dual benefit by restoring valuable grazing land and providing farmers an income source,” it noted.
This comes as the Namibian charcoal sector has existed for more than 30 years, with production concentrated in commercial farms in the central and northern regions and small-scale operations in regions like Otjozondjupa, Omaheke, and Erongo.
For communal farmers, charcoal production not only combats bush encroachment but also provides income at the household level.
The report noted that nationally, the sector’s contribution to foreign exchange, job creation and GDP is notable.
“Namibia produces about 200,000 tonnes of charcoal annually, with a national aim to exceed this threshold. Charcoal exports contributed approximately US$78.1 million in 2022, with production increases expected to boost both export and fiscal revenues,” said the report.
Namibia’s charcoal industry, however, faces challenges such as seasonal demand fluctuations and inadequate harvesting, production, and logistics infrastructure.
“Small-scale indigenous producers, particularly in resettlement and communal areas, struggle with limited capital and financing options. Moreover, insufficient processing facilities force Namibian producers to export ungraded charcoal, often packaged in foreign economies, and leaves local exporters unable to set competitive prices,” it reads.
Moreover, International buyers increasingly control price negotiations on behalf of Namibian suppliers.
Thus, the report proposes the development of a price discovery platform by the Ministry of Industrialisation and Trade (MIT), intended to enhance pricing transparency, allowing producers to make informed decisions and fostering industry sustainability.
In addition, MIT urges Namibia to seize emerging opportunities by adopting sustainable and innovative production practices, which are expected to increase export volumes and market value.
Authored by Ngeje Kefilwe Nganate, the Charcoal Price Discovery Platform Final Report was submitted to the National Authorising Officer at the National Planning Commission of the Republic of Namibia, which serves as the Contracting Authority.
The Ministry of Industrialisation and Trade, under the direction of the former Deputy Executive Director Michael Humavindu, acted as the implementing authority.
