Namibia’s agricultural sector, a critical contributor to employment yet a relatively small part of GDP, faces urgent challenges in resilience, inclusivity and productivity, according to Vetumbuavi Mungunda, founder and CEO of Ombu Capital.


Speaking at the 2025 Agri Outlook Conference, Mungunda stressed the need for data-driven planning and analytics to address long-standing structural issues in both the sector and the wider economy.


“Without data, you are just another person with an opinion,” Mungunda said, highlighting the importance of evidence-based decision-making. His presentation centred on two key themes: building resilience in agriculture and promoting inclusivity in society, particularly through integrating historically marginalised groups into productive economic activity.





Inequality a major challenge


Namibia’s stark inequality remains a serious concern. The country is ranked as the second most unequal in the world, after South Africa. Although poverty levels have declined over recent decades, this progress has largely been driven by government programmes, pensions and grants rather than growth in productive employment.


Unemployment remains high, averaging around 35%, with youth unemployment close to 45%. Data from the Namibia Statistics Agency shows that most unemployed Namibians have junior secondary or secondary-level education. Mungunda noted that this underscores the need for job creation strategies that target low-skilled, labour-intensive industries such as agriculture and tourism.


Despite being a major employer, agriculture has struggled to contribute meaningfully to economic growth. Since 2000, the sector’s contribution to GDP growth has been largely stagnant or negative. Meanwhile, Namibia has experienced substantial rural-to-urban migration, with 55% of the population now living in urban areas, up from 28% at independence in 1990. The lack of opportunity in rural areas continues to drive this movement, placing increasing pressure on urban infrastructure, housing and services.





Agriculture’s potential


International comparisons highlight the sector’s untapped potential. In Namibia, agriculture accounts for about 4% of GDP but employs roughly 33% of the workforce. In contrast, countries like Israel achieve far higher yields in citrus and tomatoes, demonstrating what can be achieved through technology, investment and skills.


Performance across Namibia’s agricultural subsectors shows both vulnerabilities and promising trends. Traditional industries such as sheep and dairy farming continue to be affected by erratic rainfall and climate variability. However, emerging subsectors including table grapes, poultry, fresh produce and charcoal, have shown strong growth.


For instance, charcoal production has grown by around 30% annually since 2016, while grapes and fresh produce have expanded by 11% and 55% per year, respectively. These industries benefit from irrigation or reduced dependence on rainfall, illustrating how resilience can be built through infrastructure and technology.





Source locally, reduce imports


Import substitution presents another opportunity for domestic growth. Namibia imports over N$1.5 billion worth of fertilisers, N$1.2 billion in animal feed and significant quantities of seeds annually. Developing local production capacity could reduce these costs and stimulate rural economies, though continued government support and incentives will be essential.


Investment disparities also remain a challenge. While southern regions like the Awas Valley have benefited from private investment and irrigation infrastructure, northern communal areas with similar agricultural potential remain underdeveloped. Uncertainty over land tenure and limited public financing have constrained investment, perpetuating regional inequality.


Experts emphasise that understanding the full value chain, from production to processing and markets, is essential for long-term growth. Improving output quality and quantity must precede value addition. Mungunda stressed the need for stronger coordination among the ministries responsible for agriculture, forestry and trade to ensure that increased production aligns with processing capacity and export opportunities.





Funding, water and infrastructure gaps


Funding and infrastructure constraints also weigh heavily on the sector. Namibia allocates only 2–3% of GDP to agriculture, far below the 10% target set under the African Union’s Malabo Declaration. Water and energy costs remain among the highest in the region, limiting the scalability of irrigated agriculture and other capital-intensive operations. Unlike electricity or road networks, Namibia lacks a comprehensive master plan or dedicated funding framework for national water distribution—an omission that continues to hinder agricultural development.


Mungunda concluded that Namibia has the potential to transform its agricultural sector, provided the right combination of technology, skills, investment and policy coordination is applied. By building resilience, supporting high-growth subsectors, fostering inclusivity and strategically managing essential resources such as water and energy, Namibia could unlock sustainable growth, reduce unemployment and promote broader economic development.





QR WEB: https://q.my.na/5LTI





QR IMAGE: https://q.my.na/uploads/images/5LTI.png





QR caption: Scan to view presentations