Centralisation threatens survival of green schemes, MPs warn

Excessive centralised procurement is suffocating productivity, cash flow and sustainability at green schemes, a parliamentary committee has found.

In its oversight report released late last year, the standing committee on natural resources said that procurement, machinery repairs, payments and key operational approvals are all handled at the ministry’s head office.

The resulting delays undermine "productivity, profitability and food security goals".

The committee warned that without decisive reform, continued centralisation could, in the long term, “kill the green scheme entirely”, despite its strategic importance to national food security.

The effects of the problems plaguing green schemes are most visible at the Kalimbeza Rice Project, a flagship initiative, the committee found.

Although the farm covers 229 hectares, with 150 hectares suitable for rice production, operations have repeatedly stalled due to broken machinery, vandalised infrastructure, inadequate water distribution and a lack of operational funds.

Project manager Patrick Kompeli informed the committee that production had been “brought to a standstill for quite some time”.

In October 2024, 38 hectares of rice were planted, yielding 180 tonnes of raw rice.

However, the harvest remains unprocessed because the milling machine has been out of service since then.

Although funds were allocated for a replacement, procurement has yet to be completed.

The committee noted that the current storage facility is “neither pest-proof nor climate-controlled”, exposing the rice to rodents, lizards, dust and spoilage, allowing retailers to easily reject the produce.

It stressed that the green scheme is being “severely hindered by lengthy procurement procedures” and a system that applies “a generic approach from Windhoek”, instead of allowing independent, farm-level management.

‘Disastrous’ decisions

Members also raised concern over the dissolution of AgriBusDev, which was described as having “taken a disastrous route”.

As an example, the committee cited the project’s N$18 million budget, of which N$8 million was allocated to a consultant, a decision the report said “does not make any economic sense”.

Similar constraints were reported at the Shadikongoro Green Scheme, with its outdated machinery, a lack of a combine harvester and limited tractor availability.

Although the scheme grows maize, wheat and sunflowers and supports surrounding communities, a wheat milling plant installed in 2015/16 has never been used.

The committee noted that most equipment is old and unreliable, causing delays in land preparation and harvesting.

Broken trust

At Uvhungu-Vhungu, centralised financial controls have created serious cash-flow problems.

Farm management said the Namibian Revenue Agency owes the project N$2.5 million in VAT refunds, outstanding for four years.

Small-scale farmers also reported that payments for produce have been delayed for up to eight months, placing households under severe financial strain and undermining trust in the programme.

In contrast, the committee identified the Ndonga Linena Green Scheme as an example of how productivity improves when management systems function effectively.

The scheme’s use of precision farming technologies, automated irrigation and real-time soil monitoring has improved efficiency and yields, leading the committee to commend its innovative approach and express interest in replicating the model.

However, even at Ndonga Linena, small-scale farmers raised concerns about high electricity costs, expensive inputs, poor consultation with the ministry and limited opportunities to graduate to medium-scale farming.

Turn it around now

Across all schemes, the committee found that vandalism, limited storage, idle equipment, high utility costs and procurement delays continue to undermine performance.

It also said the incomplete integration following the dissolution of AgriBusDev has led to job insecurity, low staff morale and reduced authority for farm managers.

It added that community benefits, including jobs, water access and technical support, remain uneven and insufficient to tackle high unemployment.

Among its recommendations is an urgent turnaround strategy to address the myriad of problems choking success.