Clash over N$86m DRC fish auction

OTIS FINCK WALVIS BAY Government insiders believe a deal to auction fishing quotas to the Democratic Republic of Congo (DRC), worth N$85.71 million, vindicates the view that auctions are more beneficial to the nation than the previous method of allocating quotas to individual companies.But the local fishing sector is disappointed in the deal, saying DRC is its main market and the transaction will disrupt prices to the industry’s disadvantage.A well-placed source in the office of the fisheries minister said it appears as if certain players in the industry are simply angry as the deal will result in a new way of doing business.“The DRC government previously purchased horse mackerel from industry players through agents that at times inflated the price,” he explained, pointing out that Lebanese agents, for example, import horse mackerel destined for the DRC after it is landed by truck from Namibia via Zambia. “At the end of the day, they pass the fish off as if it’s being produced/processed in Zambia and therefore sell it at a different price. When the fish arrives in the DRC, the price is overinflated. This scenario has become unaffordable for the DRC to maintain.”According to this source, the DRC government prefers Namibian landed horse mackerel. DRC minister jets inDRC’s national economics minister Jean-Marie Kalumba Yuma concluded a deal to purchase a governmental objective quota of horse mackerel from the Namibian government on Monday.Kalumba Yuma arrived in the country on Sunday amidst rumours that the fisheries ministry sold a 27 300-metric-ton horse mackerel quota to his country, allegedly over a two-year period, with the option to renew it for another five years.Speaking the evening before his meeting with Kalumba Yuma, Namibia’s fisheries minister Derek Klazen said such rumours were unfounded.“We must remember that the auction of fishing quotas is a government directive with the intention of strengthening developmental drives within the regions. The auction fish that remained was held as reserves,” he explained when asked to shed light on the allegation levelled against the ministry. At the time of the auction, some industry players reasoned that it was already late in the season and they therefore did not submit bids. Many had also already signed partnerships with new rights holders.Seaflower Pelagic initially bought 15 000 metric tons and then recently acquired another 5 000 metric tons of the 32 000 metric tons that remained after the initial auction process. Klazen pointed out that the DRC, with a population of over 89 million people, is Namibia’s biggest market for landed horse mackerel. “The industry is interdependent on the DRC as its biggest client.”No contract yetThe source refuted insinuations that there was a previous contract in existence between the ministry and the DRC government.He emphasised that the notion of a two-year contractual agreement with the DRC does not make any sense.“It cannot be a two-year contract as the auction applies to one season – from January to December. However, it is up to the DRC government to go into an agreement with a company to catch the fish and establish a contract as determined by them. Once the fish is sold and paid for, it belongs to and becomes the property of the DRC government.” According to the source, local operators did not participate in the auction with the expectation that the quota would eventually be allocated for free.He added that the current business model is unsustainable.The DRC government would need a company to catch the quota it purchased by means of the auction, the source said.“Local players are not interested, since prices will be affected and drop. We initially offered 87 000 metric tons and the 27 300 is a residual quota that was up for sale. Government decided to take charge to safeguard the interest of the Namibian population at large. We will generate an estimated N$85.71 million from the 27 300 tons of freezer horse mackerel through this deal.”How will they do it?According to an industry insider, the Angolan bilateral deal linked to Fishrot was fashioned on similar principles.He said the question that remains is who will be able to land the 27 300 metric tons of fish before the end of December, and if not landed, what will happen?“Are they protecting the DRC at the expense of Namibian fishing industry and economy? The auctioned quota is what a standard midwater trawler catches for a full year and the season ends in December. What is the actual plan? Are there other arrangement in terms of the future?”

Clash over N$86m DRC fish auction

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Namibian Sun 2025-12-12

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Clash over N$86m DRC fish auction

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Namibian Sun 2025-12-12

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