Namibia grows the food, but imports the value
Namibia’s drive towards greater food self-sufficiency depends on more than producing enough crops. The country also needs to turn its harvests into marketable products, create reliable markets for farmers and reduce its reliance on imported processed foods.
For LizWis Investment CC, an agro-processing start-up founded by Elizabeth Kambonde, this presents both an opportunity and a challenge.
The company sources mahangu, tomatoes and raw milk from local farmers, particularly in northern Namibia. It currently works with more than 30 farmers, but expanding this network depends on increasing production and securing demand. “Our supplier network has developed as LizWis has grown, and we see significant potential to bring many more farmers into the value chain as our production and market demand increase,” Kambonde said.
Farmers need reliable buyers, particularly before investing money and resources in planting. Kambonde believes closer cooperation between farmers and processors could help match production with demand. “A farmer can produce a good harvest, but without a reliable market, storage, processing capacity and distribution, that production may not translate into sustainable income,” she said.
She argues that farmers and processors should plan together before planting, agreeing on the crops, quantities, quality and delivery periods required. “Processors should communicate what they need in terms of crop, quality, quantity and delivery periods, while farmers should have clearer visibility of potential markets,” Kambonde said.
Such arrangements could give farmers greater certainty while helping businesses secure consistent supplies.
Turning mahangu into opportunity
Mahangu illustrates the potential to generate more value from crops already grown locally. Beyond traditional food, it can be used to make pasta, instant porridge and baked goods, creating additional markets for farmers.
Kambonde developed mahangu pasta to demonstrate how a traditional crop could become a commercially viable product. The grain is cleaned and milled into flour before being made into pasta, dried and packaged for sale.
However, LizWis faces several barriers to expanding production, including limited equipment, working capital, storage and packaging facilities. “Having the agricultural raw material available is only one part of the process. We also need the machinery, financing and markets to turn that raw material into commercially viable products,” she said.
Local agro-processors face significant cost pressures when competing with established imported brands. Expenses such as electricity, labour, transport, packaging, maintenance and regulatory compliance can make it difficult for small businesses to match the prices of larger international manufacturers.
“One of the biggest factors is scale,” Kambonde said, explaining that larger producers can spread their operating costs across higher production volumes.
Access to finance is another obstacle. Businesses often need to pay for equipment, raw materials and packaging before generating sufficient revenue, while also covering operating costs as they wait for customers to pay.
For LizWis, limited capital affects how much produce it can buy from farmers. Kambonde believes financing institutions need to recognise the investment required at different stages of the value chain.
Even when manufacturers develop products from local crops, securing retail space remains a challenge. Supermarkets require consistent quality, suitable packaging and labelling, compliance with food-safety regulations, competitive pricing and reliable supply. “Having a good product is only the beginning. You must meet food safety and regulatory requirements, have suitable packaging and labelling, maintain quality and consistency, and then convince retailers that the product can sell and be supplied reliably,” Kambonde said.
Smaller manufacturers also need effective distribution and opportunities to compete with established brands. Their products must offer the quality, convenience and value that price-conscious consumers expect.
Closer cooperation with retailers could help local businesses understand demand and plan production and supply more effectively.
Beyond food security
A stronger domestic agro-processing industry could create additional demand for agricultural produce and support jobs in manufacturing, packaging and distribution.
LizWis currently supports five direct jobs and works with more than 30 farmers, alongside transporters, packaging suppliers and other businesses in its value chain.
Kambonde believes government could help the industry grow through infrastructure, financial and technical support, and market development. Schools, hospitals and correctional facilities could also become buyers of locally produced food, provided suppliers meet the required food-safety, quality and nutritional standards.
Predictable demand from public institutions could give businesses greater confidence to invest and establish longer-term agreements with farmers.
“Food security should not only mean producing food. It should also mean having the capacity to process, preserve and distribute that food,” Kambonde said.
Creating value
LizWis’s product range includes mahangu pasta, instant porridge, rusks, crackers, tomato sauces and dairy products, including mozzarella and other cheeses. The company is also exploring potential uses for indigenous products such as marula kernel flour. Its longer-term ambition is to expand production, buy more from Namibian farmers, create jobs and eventually supply markets beyond the country.
Kambonde argues that Namibia must look beyond growing crops and focus on the economic opportunities available when local produce is turned into finished goods.
“Ultimately, Namibia should not only be asking: ‘What can we grow?’ We should also be asking: ‘What can we make from what we grow, and how can we take that value beyond Namibia?’” she said.
For local farmers and manufacturers, the answer could help determine how much of the value generated by Namibia’s agricultural sector stays in the country.
