Government has only raised N$189 million from a hake auction in which a potential N$462 million was targeted, the Ministry of Finance has revealed.
The wet and frozen hake was auctioned off for Government’s quotas for its governmental objectives on 16 April. “Of these funds N$183.9 million have already been deposited into the State Revenue Fund at the Bank of Namibia, and the balance of N$6 million will be settled next week,” a joint statement by Finance Minister, Iipumbu Shiimi, and newly appointed Fisheries Minister, Derek Klazen, reads.
This is the Government’s second auction of its fishing quotas after an auction that planned to raise N$627.9 million last year, only managed to secure N$8.4 million worth of bids. The Government has since made it a requirement for bidders to prove financial stability in the rounds of fishing quota auctions.
According to Government, a total of 46,858 MT was applied for in the second auction, although only 15,020 MT were valid. “Had this quota been disposed of at the reserve prices, the Government would have raised only N$102.3 million, compared to the actual outcome of N$189.9 million.”
“Although the first auction did not yield the desired outcome, the results that we are announcing today (Monday), is a clear demonstration of Government’s seriousness and commitment to support the country’s socio-economic priorities, promote transparency and ensure that Namibia fully benefits from her natural resources,” the statement says.
The auction comes as Government recently launched another auction of 87,500 MT of frozen and wet horse mackerel respectively. The third auction aims to raise N$183 million to fund Government’s activities.