The African Development Bank (AfDB) has approved US$70mn loan to finance Namibia’s agricultural mechanisation and seed improvement project (NAMSIP)
The NAMSIP aims to enhance agricultural productivity in order to reduce annual importation of staple cereal crops and grains, facilitate job creation and enhance household incomes to improve the lives of rural people.
The two important components of the project comprise Value Chain Improvement, with agricultural mechanisation and certified seed systems as sub-component and institutional support through capacity Building, and project management.
The project is aligned to the AfDB's High-5 priorities of Feed Africa, and aims to improve the quality of life for the people of Africa.
The Project is also in line with Namibia’s fifth national development plan, Harambee prosperity plan and growth at home strategy for industrialisation, which identify agriculture as a priority area with enormous potential to contribute to economic progression, social transformation and environmental sustainability.
The project will be implemented by Namibia’s Ministry of Agriculture, Water and Forestry for a period of five years, in all 14 administrative regions of Namibia. It is expected to directly benefit 294,500 crop farmers and 10,000 livestock farmers.
In addition, the project is set to fully support 111 smallholder farmer cooperatives, and indirectly benefit about 800,000 people along the cereal crops and livestock value chains.
The AfDB Loan will finance 70.5 per cent of the total project cost while the government and beneficiaries will contribute the remaining 25.5 per cent and four per cent, respectively.