The country’s green scheme irrigation projects are being held back by rigid budgeting systems and heavy reliance on imported agricultural inputs, the Ministry of Agriculture, Fisheries, Water, and Land Reform (MAFWLR) has said.
The ministry’s clarification follows recent reports questioning procurement expenditures, which it dismissed as false and misleading. Officials said the main challenge lies in a clash between the unpredictable nature of farming and the strict rules of government finance.
According to the Ministry, the public procurement framework and the way budgets are allocated are “not well-suited to the dynamic and seasonal nature of agriculture.” Funds often become available too late, making it difficult to secure seeds, fertilisers, and other essentials on time.
“The untimely availability of funds poses challenges for the Ministry in procuring goods and services for the Green Scheme Projects in a timely and efficient manner,” the statement said. Delays often force the government to use emergency procurement, which risks missing planting windows and cutting crop yields.
The problem is compounded by the country’s dependency on imported inputs such as seeds, fertilisers, and chemicals. Global price shocks and supply disruptions, worsened by the war in Ukraine, have made production costly.
The impact was clear in recent figures: while overall maize and wheat output grew by 45%, wheat harvests fell by 37%. The ministry said high import costs made wheat planting at the Mashare Green Scheme financially impossible, forcing a cancelled season.
To ease these constraints, the ministry adopted 36-month supply contracts under the Public Procurement Act.
This approach ensures a steady supply of inputs and avoids repeated delays. Officials said ad hoc budgets often arrive after planting seasons begin, making open bidding impossible.
The ministry took direct control of the green schemes in late 2022 after years of mismanagement by AgriBusDev.
Soon after, the country faced drought and global grain shortages, prompting the cabinet to order full production across all schemes.
In 2024, a state of emergency was declared to secure food supply.
Despite setbacks, the ministry reported progress. Over 1 870 hectares are now under cultivation, and maize production has increased by 82%.
Officials said all procurement followed regulations and that higher spending reflected the scale-up needed to prevent food shortages.
They also pointed to strict compliance with the N$25 million procurement threshold. Contracts for inputs were capped at this limit. For example, emergency contracts awarded to Growmax Fertiliser in 2022 were valued at N$18 million and N$38 million, the latter issued under urgent but lawful circumstances.
Later, new 36-month contracts were awarded through open bidding to ensure fair competition and better pricing.
These multi-year contracts, permitted under section 38A of the Procurement Act, allow the Ministry to buy inputs in lots and respond quickly to emergencies such as pest outbreaks or sudden soil problems.
Officials said this flexibility enabled them to respond to a bacterial leaf stripe outbreak at one of the schemes without resorting to excessive emergency procurement.
The ministry stressed that such agreements are essential to ensure resilience in food production. Without them, Namibia risks losing planting seasons and undermining food security.
