Charcoal now 17% of agri exports
Namibia now ranks sixth out of 15 countries earning the highest dollar value from charcoal exports.
Elvira Hattingh
WINDHOEK
Of Namibia's total agriculture exports, charcoal increased significantly from 10.3% in 2018 to 16.8% last year.
Moreover, Namibia now ranks sixth out of 15 countries who earned the highest dollar value from charcoal exports last year.
Namibia Biomass Industry Group (N-BiG) CEO, Progress Kashandula, said the Namibian economy can benefit from the utilisation of biomass.
“The production of charcoal and bush-based feed is an additional economic activity that can be practiced on farms.
“Locally produced bush-based feed has the potential to earn foreign currency, especially given that local imports of animal feed increased to N$1.2 billion in 2019,” Kashandula said in a statement.
He added that these value chains also benefit other economic sectors, such as manufacturing, transport and trading, while at the same time helping to create other sources of income and job opportunities.
Transport
Kashandula said charcoal production has already improved the effectiveness of transport services.
“Various trucks transport charcoal to the Walvis Bay port every day, and the transportation of charcoal means fewer trucks drive back empty when they've delivered a load inland,” he said.
N-BiG said charcoal exports via the Walvis Bay port increased during the 2018/19 financial year and stood at 152 768 tons, compared to 2013/14.
“Charcoal exports through the port increased from 4% of the total export volume to 8.7% in the 2018/19 financial year. It also made up 2.8% of the total load volume, up from 0.9%.
“Charcoal exports eased the negative impact of the suppressed demand for commodities in the region,” Kashandula added.
Manufacturing
Kashandula said the biomass industry also offers opportunities to the manufacturing sector, with Namibian companies now creating a whole new range of machinery for the processing of bush-based feed.
“The demand for locally manufactured machinery for this purpose increased drastically in 2019. Namibian manufacturers also offer after-sales and maintenance services. Additionally, they produce supplements that can be mixed with the bush-based feed, “ Kashandula explained.
He provided statistics that showed that Namibia imported maize bran and other feed supplements to the value of N$833 million last year.
“This shows an increase of 117% when compared to 2018's imports, which stood at N$385 million.
“Moreover, lucerne and other fodder to the value of N$152 million were imported in 2019,” he said.
Kashandula said this is almost as much as what was imported over the last 10 years (N$154.4 million from 2009 to 2018, with highs of N$40 million and N$29 million in 2013 and 2015 respectively).
“The imports of, amongst others, lucerne and bran were 1% of the total imports in 2019, compared to 0.38% in 2018.
“The import of feed supplements like molasses and urea brought in an additional N$24.9 million in 2018.”
Agriculture
“Deforestation reduces the carrying capacity of pastures and simultaneously hinders the value of both farmland and what can be created with it,” Kashandula explained.
He said it is estimated that up to 30 million hectares of agricultural land is affected by deforestation, which amounts to a loss of about N$700 million a year - as calculated in 2004.
“If this amount is adjusted for inflation, it would have stood at about N$1.6 billion by last year.”
Business opportunities
Kashandula said bush utilisation offers additional business opportunities, such as producing biochar as charcoal as well as creating feedlots that can utilise bush-based feed.
“Furthermore, there is a need to help local producers with input costs for, for example, machinery, supplements and packaging, while exploring how bush-based feed can be approved as a commercial product.
“The expansion of bush utilisation requires ample training on how to do bush thinning sustainably, as well as how to use machinery and mix bush-based feed correctly,” Kashandula said.
However, he said he believes that a lack of official data creates difficulties in doing robust analysis of the economic benefits of bush utilisation.
“It should be considered to include it in economic and social surveys, such as national labour surveys.
“This means the development of the industry can be monitored and there can be timely policies to intervene where necessary,” he said.
WINDHOEK
Of Namibia's total agriculture exports, charcoal increased significantly from 10.3% in 2018 to 16.8% last year.
Moreover, Namibia now ranks sixth out of 15 countries who earned the highest dollar value from charcoal exports last year.
Namibia Biomass Industry Group (N-BiG) CEO, Progress Kashandula, said the Namibian economy can benefit from the utilisation of biomass.
“The production of charcoal and bush-based feed is an additional economic activity that can be practiced on farms.
“Locally produced bush-based feed has the potential to earn foreign currency, especially given that local imports of animal feed increased to N$1.2 billion in 2019,” Kashandula said in a statement.
He added that these value chains also benefit other economic sectors, such as manufacturing, transport and trading, while at the same time helping to create other sources of income and job opportunities.
Transport
Kashandula said charcoal production has already improved the effectiveness of transport services.
“Various trucks transport charcoal to the Walvis Bay port every day, and the transportation of charcoal means fewer trucks drive back empty when they've delivered a load inland,” he said.
N-BiG said charcoal exports via the Walvis Bay port increased during the 2018/19 financial year and stood at 152 768 tons, compared to 2013/14.
“Charcoal exports through the port increased from 4% of the total export volume to 8.7% in the 2018/19 financial year. It also made up 2.8% of the total load volume, up from 0.9%.
“Charcoal exports eased the negative impact of the suppressed demand for commodities in the region,” Kashandula added.
Manufacturing
Kashandula said the biomass industry also offers opportunities to the manufacturing sector, with Namibian companies now creating a whole new range of machinery for the processing of bush-based feed.
“The demand for locally manufactured machinery for this purpose increased drastically in 2019. Namibian manufacturers also offer after-sales and maintenance services. Additionally, they produce supplements that can be mixed with the bush-based feed, “ Kashandula explained.
He provided statistics that showed that Namibia imported maize bran and other feed supplements to the value of N$833 million last year.
“This shows an increase of 117% when compared to 2018's imports, which stood at N$385 million.
“Moreover, lucerne and other fodder to the value of N$152 million were imported in 2019,” he said.
Kashandula said this is almost as much as what was imported over the last 10 years (N$154.4 million from 2009 to 2018, with highs of N$40 million and N$29 million in 2013 and 2015 respectively).
“The imports of, amongst others, lucerne and bran were 1% of the total imports in 2019, compared to 0.38% in 2018.
“The import of feed supplements like molasses and urea brought in an additional N$24.9 million in 2018.”
Agriculture
“Deforestation reduces the carrying capacity of pastures and simultaneously hinders the value of both farmland and what can be created with it,” Kashandula explained.
He said it is estimated that up to 30 million hectares of agricultural land is affected by deforestation, which amounts to a loss of about N$700 million a year - as calculated in 2004.
“If this amount is adjusted for inflation, it would have stood at about N$1.6 billion by last year.”
Business opportunities
Kashandula said bush utilisation offers additional business opportunities, such as producing biochar as charcoal as well as creating feedlots that can utilise bush-based feed.
“Furthermore, there is a need to help local producers with input costs for, for example, machinery, supplements and packaging, while exploring how bush-based feed can be approved as a commercial product.
“The expansion of bush utilisation requires ample training on how to do bush thinning sustainably, as well as how to use machinery and mix bush-based feed correctly,” Kashandula said.
However, he said he believes that a lack of official data creates difficulties in doing robust analysis of the economic benefits of bush utilisation.
“It should be considered to include it in economic and social surveys, such as national labour surveys.
“This means the development of the industry can be monitored and there can be timely policies to intervene where necessary,” he said.
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