The Minister of Agriculture, Water and Land Reform, Calle Schlettwein, says the 2024/25 budget allocation for agriculture is insufficient, at only 2.3% of total non-interest expenditure and 0.7% of GDP.
He raised concerns over the nation’s budget allocation for the agricultural sector, highlighting the critical role the sector plays in ensuring food security and driving economic development.
Speaking at the 25th edition of the Bank of Namibia’s annual symposium, the Minister said the allocation falls far short of recognising agriculture as a high national priority.
To position the sector within domestic, regional, and global value chains, he emphasised the need for increased and targeted investments across several key areas.
“At 2.3% of total non-interest expenditure, and about 0.7% of GDP in 2024/25, budgetary allocation to agriculture falls far short of recognising agriculture as a high national priority, a matter which must urgently be aligned,” he said.
He further explained that the country also needed to invest in water resource development, distribution infrastructure and sanitation.
The Minister said with the agricultural sector vulnerable to climate change, shifting from rain-fed farming to intensive, climate-smart agriculture is essential.
He highlighted that the current 1% allocation for water-related projects is insufficient to support this transition.
“Second, investment in water resource development, distribution infrastructure and sanitation with the objective of providing secure, reliable and affordable water supply required for the transition from rain-fed agriculture to intensive and climate-smart agriculture, thus re-risking the sector from climate change and variability,” he said.
He said investment in primary infrastructure is also crucial to address supply-side challenges.
Schlettwein added that facilities like abattoirs, processing plants, and storage systems for both livestock and agronomic sectors are necessary to enhance the sector’s competitiveness and product quality.
He argued that without this foundational support, Namibia’s agriculture will struggle to scale and integrate into broader markets.
“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,” he said.
Moreover, the minister also highlighted that reliable and affordable power remains another critical issue.
He said the rising cost of energy, particularly for small-scale farmers, severely limits the sector’s ability to grow.
He also pointed out the inadequacy of tailored financial services for farmers, with the financial sector remaining risk-averse and offering limited support for agricultural enterprises.
Schlettwein called for urgent reforms in resource allocation and policy support.
Diversifying market access, improving logistical infrastructure, and introducing a robust research and development framework were identified as necessary steps for Namibia to overcome its current barriers and leverage its agricultural potential.
He said the country risks falling behind in the competitive global value chains without these interventions.
