Change subsistence to commercial farming

There is a need to strengthen local market policy by converting and modernising subsistence agriculture into commercial agricultural activities, Bank of Namibia (BoN) governor Johannes !Gawaxab has said.Speaking at the two-day agricultural conference in Windhoek Thursday under the theme ‘Agriculture fit for the future, robust, resilient and responsive’, !Gawaxab said it is only rational and appropriate that Namibia places greater emphasis on the development of the agricultural sector in order to industrialise and become a prosperous nation.!Gawaxab said improving agricultural production, especially in the rural areas, can improve incomes and create a foundation for agro-processing, noting that increased agricultural output and productivity contribute substantially to overall economic development for a country.He said according to the latest Namibia Financial Inclusion Survey, 95% of farming households indicated that they farm mainly for subsistence purposes and only five per cent farm for commercial purposes, noting that 78% never considered turning their farming activities into business.Challenges!Gawaxab said among the current challenges that should be changed, there is a need to address land tenure and land rights policies for possible use of land as collateral to unlock access to funding from commercial banks.Furthermore, banks and insurance companies jointly must be innovative and introduce products that fit the farming practices and climatic conditions in Namibia, and public-private partnerships in agro-processing and green scheme projects should be promoted.“Namibia must unlock and unleash the agricultural sector’s hidden potential by addressing the existing challenges. Ready to help“As central bank with an expanded mandate of promoting economic development in Namibia, we are more than ready to play our part, however to fully realise the potential of innovative financing models in agriculture, all stakeholders are expected to get their hands dirty and address the challenges,” said !Gawaxab.Out of the total capital inflows of more than N$ 30 billion that entered the Namibian economy in 2019, a mere N$1.9 billion was channelled towards agriculture - a trend since 1990, and added that significant share of investments in the country was directed to mining, financial services and wholesale and retail trade.“Data from the end of June 2020 shows that total credit to the agricultural sector from banks was approximately N$7.8 billion, representing 7% of the total loan book. This provides further evidence that the agricultural sector remains one of the least funded sectors of the economy,” said the governor. - Nampa

Change subsistence to commercial farming

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Republikein 2026-06-24

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Change subsistence to commercial farming

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Republikein 2026-06-24

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