Agribusdev guns for 4 000 jobs
According to the Agribusdev business plan, the parastatal needs N$111 million to develop some of the country's 11 green schemes.
THE Agricultural Business Development Agency (Agribusdev) has unveiled a daring business plan with which it hopes to generate N$1.8 billion in turnover and create 4 000 temporary jobs.
However, the plan will only work if it receives more than N$111 million to develop the state-owned green scheme projects to optimal capacity.
In a presentation to agriculture minister Alpheus !Naruseb, Agibusdev managing director Petrus Uugwanga said the business plan spans over the period 2017 to 2022.
Agribusdev was one of the state-owned enterprises (SOEs) that !Naruseb visited last week to familiarise himself with the parastatals that fall under the ministry.
The company was started in November 2011 to oversee the development and management of the agriculture ministry's green scheme irrigation projects.
According to the business plan, the company will need N$111 million to develop some of the 11 green schemes in Namibia.
Agribusdev runs the Etunda, Hardap, Kalimbeza, Mashare, Musese, Ndonga Linena, Orange River, Shadikongoro, Shitemo, Sikondo and Uvhungu-Vhungu green scheme irrigation farms.
Uugwanga said assuming that the necessary developments are completed all eight operational centres, with the exception of its head office, it will post profit and the company will generate a turnover of N$1.8 billion from 2017 to 2022.
For the year ending 31 March 2017, the company recorded a total turnover of N$158.5 million compared to the N$91.4 million posted for the year ended 31 March 2016.
“The 36% level of sustainability will be achieved by the head office and 100% by farms. Head office will still require budget support at the end of the five years.”
Uugwanga said a total of 464 permanent jobs will be maintained, while about 98 additional jobs will created. Also over 4 000 temporary jobs will created.
He said a total harvest of 16 091 tonnes of maize is expected at the green schemes. This is valued at N$72 million, said Uugwanga.
He said the first option is for government to buy the grains for its national strategic food reserve, managed by the Agro-Marketing and Trading Agency (AMTA).
“The threat of fall armyworms remain, but it is not about the knowledge, it is about the cost of spraying.”
Uugwanga also said Agribusdev is engaging in public-private partnerships (PPPs) to run some of their green scheme projects.
The Katima/Liselo farm in the Zambezi Region, which measures 1 600 hectares, will use this arrangement for de-bushing and fencing.
In the //Karas Region, Neckartal, which measures 5 000 hectares, will use a PPP for bulk services.
Other green scheme projects, which are being looked at for possible PPS arrangements, include the 4 000-hectare Tandjieskoppe irrigation project situated at Noordoewer in the //Karas Region.
Another project is the green scheme that is located at Zone village in the Kavango West Region. It measures 2 000 hectares. A dairy farm on the outskirts of Rundu - Uvhungu-Vhungu - that measures 263 hectares, will also be exploring the PPP approach.
Furthermore, Uugwanga said, the Etunda irrigation farm that measures 360 hectares, located at Ruacana, is at its seventh to eighth phase of planting.
The Mashare farm is in the second phase of land preparation and planting, while Musese, measuring 110 hectares for semi-subsistence farming, is busy with planting.
He also noted the company paid N$190 400 to traditional authorities in 2016/17, where it run green schemes. This has increased over the years from N$185 425 in 2015/16 and N$ 142 550 the previous year.
Uugwanga said challenges to its business operations include the high cost of production at farm level, such as electricity and fertilisers. Also lower investment into processing is another challenge, while the invasion of fall armyworms and the exorbitant costs of spraying has also been problematic at green schemes.
According to Uugwanga the PPP modality is ambiguous, especially for projects that have already started and have budget constraints. Particularly, grain procurement and procuring other essential services also pose challenges for the operations of the company.
ELLANIE SMIT
However, the plan will only work if it receives more than N$111 million to develop the state-owned green scheme projects to optimal capacity.
In a presentation to agriculture minister Alpheus !Naruseb, Agibusdev managing director Petrus Uugwanga said the business plan spans over the period 2017 to 2022.
Agribusdev was one of the state-owned enterprises (SOEs) that !Naruseb visited last week to familiarise himself with the parastatals that fall under the ministry.
The company was started in November 2011 to oversee the development and management of the agriculture ministry's green scheme irrigation projects.
According to the business plan, the company will need N$111 million to develop some of the 11 green schemes in Namibia.
Agribusdev runs the Etunda, Hardap, Kalimbeza, Mashare, Musese, Ndonga Linena, Orange River, Shadikongoro, Shitemo, Sikondo and Uvhungu-Vhungu green scheme irrigation farms.
Uugwanga said assuming that the necessary developments are completed all eight operational centres, with the exception of its head office, it will post profit and the company will generate a turnover of N$1.8 billion from 2017 to 2022.
For the year ending 31 March 2017, the company recorded a total turnover of N$158.5 million compared to the N$91.4 million posted for the year ended 31 March 2016.
“The 36% level of sustainability will be achieved by the head office and 100% by farms. Head office will still require budget support at the end of the five years.”
Uugwanga said a total of 464 permanent jobs will be maintained, while about 98 additional jobs will created. Also over 4 000 temporary jobs will created.
He said a total harvest of 16 091 tonnes of maize is expected at the green schemes. This is valued at N$72 million, said Uugwanga.
He said the first option is for government to buy the grains for its national strategic food reserve, managed by the Agro-Marketing and Trading Agency (AMTA).
“The threat of fall armyworms remain, but it is not about the knowledge, it is about the cost of spraying.”
Uugwanga also said Agribusdev is engaging in public-private partnerships (PPPs) to run some of their green scheme projects.
The Katima/Liselo farm in the Zambezi Region, which measures 1 600 hectares, will use this arrangement for de-bushing and fencing.
In the //Karas Region, Neckartal, which measures 5 000 hectares, will use a PPP for bulk services.
Other green scheme projects, which are being looked at for possible PPS arrangements, include the 4 000-hectare Tandjieskoppe irrigation project situated at Noordoewer in the //Karas Region.
Another project is the green scheme that is located at Zone village in the Kavango West Region. It measures 2 000 hectares. A dairy farm on the outskirts of Rundu - Uvhungu-Vhungu - that measures 263 hectares, will also be exploring the PPP approach.
Furthermore, Uugwanga said, the Etunda irrigation farm that measures 360 hectares, located at Ruacana, is at its seventh to eighth phase of planting.
The Mashare farm is in the second phase of land preparation and planting, while Musese, measuring 110 hectares for semi-subsistence farming, is busy with planting.
He also noted the company paid N$190 400 to traditional authorities in 2016/17, where it run green schemes. This has increased over the years from N$185 425 in 2015/16 and N$ 142 550 the previous year.
Uugwanga said challenges to its business operations include the high cost of production at farm level, such as electricity and fertilisers. Also lower investment into processing is another challenge, while the invasion of fall armyworms and the exorbitant costs of spraying has also been problematic at green schemes.
According to Uugwanga the PPP modality is ambiguous, especially for projects that have already started and have budget constraints. Particularly, grain procurement and procuring other essential services also pose challenges for the operations of the company.
ELLANIE SMIT
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