Schlettwein tears into agricultural public entities

Agriculture minister Calle Schlettwein says entities set up to help farmers have done the opposite, and have not contributed towards creating a sustainable agri-sector.

He made the comments at a Bank of Namibia (BoN) symposium, and said farmers have to help sustain institutions meant to help them instead.

Listing entities such Meatco, the Agro Marketing and Trade Agency (AMTA) and Agribank, among others, Schlettwein noted that the entities listed were not adequately assisting the broader farming community.

“Public industrialisation and marketing entities that were created with the correct intent to facilitate an economic transition towards value chain development and industrialisation in the agricultural sector, without exception, failed to deliver. Meatco, Agribusdev, AMTA, Agribank, Namibia Industrial Development Agency... [They] all had the mandate to support farmers and entrepreneurs, but unfortunately became a burden to them instead,” Schlettwein said at the symposium.

Saddled with debt

According to him, the public entities mentioned are not optimally managed, causing more harm than good to the farming community.

“Serious uncompetitiveness and mismanagement created financial constraints, which were rolled onto their farming clientele,” Schlettwein said.

The minister also tore into financial institutions that were not creating conducive products for the agricultural sector, saying it was not inclusive enough.

“The financial service sector remained risk averse and the most expensive service provider to entities in the agricultural sector. Further, the financial services industry product offerings to the sector are not the most tailored and not the most inclusive and broad-based due to adverse selection,” he said.

Schlettwein further highlighted the need to introduce an agricultural subsidy programme to help farmers realise their full potential.

“The absence of a sustainable targeted agricultural subsidy programme nationally, coupled with the absence of tailor-made financial service offerings, and, at times, the moral hazard problem, tends to leave the farmer saddled with debt."