Namibian agriculture will receive a whopping N$561 million for infrastructure initiatives in the 2025/2026 financial year. This forms part of the government’s strategy to enhance national food security, thereby reducing dependency on food imports.

President Netumbo Nandi-Ndaitwah announced the allocation during her first State of the Nation Address (SONA) last week.

“By placing emphasis on food security, climate-resilient and competitive agriculture, the Eighth Administration aims to reduce agriculture imports by 80%,” she said.

“During the 2025/26 financial year, the government will inject a capital amount of N$561 million into agri-infrastructure.”

Nandi-Ndaitwah reiterated that agriculture has been identified as the top priority in the government’s implementation plan and is among the eight critical economic enablers her administration aims to deliver on.

Cattle-breeding programme

In addition to infrastructure development, the president announced plans to roll out a Cattle Breed Improvement and Herd Restocking Scheme, specifically targeting emerging, resettled and communal farmers.

“The breed improvement is targeting emerging, resettled and communal farmers. Since last year, we have started several subsidisation programmes for our farmers. I am not saying it is enough, but we have started,” she said.
Cattle breed improvement programmes aim to enhance livestock productivity and quality through methods such as crossbreeding and artificial insemination, thereby improving the overall performance of local herds.

The announcement comes at a time when Namibia’s beef industry is facing serious challenges. According to the Livestock and Livestock Products Board, cattle sales dropped by 49,1% in January this year compared to January 2024.

Last year, the Ministry of Agriculture, Water and Land Reform allocated N$62 million to subsidise farmers in drought-affected regions across the country. Agriculture remains a key sector in Namibia, accounting for approximately 23% of total direct employment.

“Another thing that we have looked at is that agricultural inputs in our country are very expensive, and that is not talking to our agenda of food security,” she added.

Green Schemes

She also revealed that the country’s Green Schemes would be brought into full operation. The country currently has eleven Green Schemes under government management.

One of these Green Schemes is the Hylron plant, a joint project of the European Union (EU) and Namibia, a strategic partnership on green hydrogen and sustainable raw materials value chains.

The HyIron Oshivela Green Hydrogen Plant near Arandis in the Erongo Region of the country, was inaugurated on 11 April. The plant forms part of the implementation of the 2022 Memorandum of Understanding between the EU and Namibia, and will be the first zero-emissions iron production facility in Africa.

This is the first ever production of green hydrogen and zero-emissions iron production facility in Africa and will use green hydrogen in processing iron ore into direct reduced iron (DRI). It forms part of the EU’s Global Gateway Investment Initiative for Africa and is powered by advanced clean energy technology using the largest electrolyser in Southern Africa.

“Producing green hydrogen in Africa has huge potential, so it is great to see a real, practical project that will turn it into a million tonnes of zero-emission iron every year,” commented Jozef Sikela, Commissioner for International Partnerships.

The project will create thousands of new jobs locally. “That is exactly what the Global Gateway stands for: sustainability, real opportunities, and progress that benefits everyone involved.”

When up and running, HyIron will produce one million tonnes of green iron annually, cut 1,8 million tonnes of CO₂ emissions, and create over 6 000 construction jobs and 900 permanent roles. During the initial pilot phase
alone, over 60 Namibian small and medium-sized enterprises were employed, creating over 400 jobs.

The project illustrates how Namibia’s capacity to generate clean and affordable energy is attracting investments, enabling local value creation and positioning the country at the forefront of the Africa green transition. The European Union’s Global Gateway investment strategy plays a major role in supporting Namibia’s capacity to generate clean and affordable energy and attract investments. At present it is financially supported by Germany,
and the Netherlands are expected to join soon.

The second phase will be further supported with a blended-finance contribution of €12 million from the EU and the Netherlands. This phase foresees to scale production of direct reduced iron ore to 200 000 tonnes per year, and an off-take agreement has already been signed with a leading German steel manufacturer.

Source references

Government allocates N$561 million to agri-infrastructure. The Brief ISSUE 880 APRIL 25 2025 https://epaper.thebrief24.com/2025/April+2025/The+Brief_25+April+2025.pdf

Global Gateway: Namibia becomes a global pioneer for Africa’s green transition Delegation of the European
Union to Namibia 17.04.2025. https://www.eeas.europa.eu/delegations/namibia/global-gateway-namibia-becomes-global-pioneer-africa%E2%80%99s-greentransition_en?s=112