MINISTRY OF INDUSTRIALISATION,

TRADE AND SME DEVELOPMENT

Growth Strategy
for Namibia’s
Seafood Industry
and Associated
Value Chains

food
Se a
Published by: Ministry of Industrialisation, Trade and SME Development (MITSMED)

Supported by: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), on behalf of the German
Federal Ministry for Economic Cooperation and Development (BMZ)

Based on: final report “Marine Resources Processing Sector Growth Strategy”
by Impact-Namibia Economic Consulting

Design & Layout by: Juxtapose Design

Photography by: Shawn van Eeden, Creative Lab

2
FOREWORD
ing forward and backward linkages within the Namibian
economy as envisaged in the Harambee Prosperity Plan.

Seafood is a strategic industry that has, in agreement

with the fourth National Development Plan, been select- The Industry Growth
ed for a more specific focus on its economic develop- Programme is an
ment. Key stakeholders from the business community important element
and public administration who have a vested interest in of the war against
the Namibian industry’s prosperity for the benefit of all poverty and a
have engaged in extensive consultations and substantial- further step on
ly contributed to this programme. They are now eager
Namibia’s path
to implement interventions along the value chain effec-
tively. Many of the suggestions and concerns raised by towards becoming a
entrepreneurs and civil servants in extensive discussions highly competitive,
have been distilled into this document. This interactive industrialised nation
process has once more demonstrated that Namibians to- with sustainable
gether can shape an enabling environment in which the economic growth as
The Industry Growth Programme is part of the ongoing manufacturing sector can thrive and the wellbeing of the depicted in Vision
efforts to reinforce Namibia’s economic growth, to re- Namibian people be advanced. 2030.
duce income inequality and to increase employment for
its citizens. This Industry Growth Strategy forms part of I am sure that the Industry Growth Strategies have the
the support to selected manufacturing industries envis- potential to remove challenges and accelerate economic
aged by the Growth at Home strategy, which promotes development in the prioritised areas. The interventions
Namibia’s competitive advantages and opportunities. planned for 2016 onwards will allow the targeted indus-
This is envisaged through the Special Industrialisation tries to prosper according to their inherent abilities. This
Programme whose aim is to provide targeted support for strategy is a living document. As such, additional com-
value chain analyses and feasibility studies. ments or remarks from stakeholders are welcome and
can be addressed to the Ministry of Industrialisation,
It is through the implementation of this and other strate- Trade and SME Development.
gies that the Ministry of Industrialisation, Trade and SME
Development, in close cooperation with other line min- I am confident that, in the vein of the Harambee Prosper-
istries, will support local value addition, upgrading and ity Plan, all stakeholders involved will pull in the same di-
economic diversification. The efforts will help to struc- rection in the upcoming implementation phase – as they
turally transform Namibia’s economy favouring the most have done in strategy building – for the advantage of a
productive and efficient economic activities, and local thriving Namibian economy that creates jobs, incomes
industries will be provided with improved market access and sustainable growth.
at home and abroad.

The Industry Growth Programme is an important ele-

ment of the war against poverty and a further step on
Namibia’s path towards becoming a highly competitive,
industrialised nation with sustainable economic growth Hon. Immanuel Ngatjizeko
as depicted in Vision 2030. As such, this strategy’s imple- Minister of Industrialisation, Trade and SME
mentation through 2020 is geared towards strengthen- Development

3
TABLE OF CONTENTS

ACRONYMS AND ABBREVIATIONS 5

1. NAMIBIA’S SEAFOOD INDUSTRY AND ITS VALUE CHAIN 6

1.1 Industry Definition 7

1.2 Global and Regional Industry Performance 8
1.3 Industry Background and Evolution in Namibia 12
1.4 Classification of Namibian Producers and Businesses 13
1.5 Classification of Namibian Products 16
1.6 Local Industry Performance 17
1.7 Global and Regional Demand for Products of the Industry 20

2. IDENTIFIED OPPORTUNITIES FOR AND CONSTRAINTS TO INDUSTRY GROWTH 22

2.1 Primary Production and Input Supply 24

2.2 Transformation and Technology 26
2.3 Product Distribution and Trade 27
2.4 Service Delivery 29
2.5 Business Environment 30

3. INDUSTRY GROWTH STRATEGY 31

3.1 Vision of Industry Stakeholders 32

3.2 Industry Growth Indicators and Targets 32
3.3 Strategic Objectives, Indicators and Proposed Interventions 33

4
ACRONYMS AND ABBREVIATIONS
BMZ German Federal Ministry of Economic Cooperation and Development
CIQ China Inspection and Quarantine Declaration
EU European Union
GDP Gross Domestic Product
GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit
H&G Headed and gutted
H&G&T Headed and gutted and tailed
HS Harmonized Commodity Description and Coding System
IQF Individually Quick Frozen
ISIC International Standard Industrial Classification
ITC International Trade Centre
IUMP Industrial Upgrading and Modernisation Programme
MFMR Ministry of Fisheries and Marine Resources
MITSMED Ministry of Industrialisation, Trade and SME Development
MSC Marine Stewardship Council
N/A Not Available
NAD Namibia Dollar
NAMFI Namibian Maritime and Fisheries Institute
NAMPORT Namibian Ports Authority
NDP4 Fourth National Development Plan
NFCPT Namibia Fish Consumption Promotion Trust
NSA Namibia Statistic Agency
NSI Namibian Standards Institution
OECD Organisation for Economic Co-operation and Development
PPD Public Private Dialogue
R&D Research and Development
RSW Refrigerated Seawater
SMEs Small, and Medium Enterprises
TAC Total Allowable Catch
USD United States Dollar

5
1. NAMIBIA’S SEAFOOD INDUSTRY
AND ITS VALUE CHAIN
1. NAMIBIA’S SEAFOOD INDUSTRY AND ITS VALUE CHAIN

1.1 Industry Definition tinct main ingredients other than seasoning, be ready made
(i.e. prepared, seasoned and cooked) and be processed for
The International Standard Industrial Classification of All preservation (frozen or canned). Finally, the manufacture of
Economic Activities (ISIC) makes the following distinction fish soups, extracts and juices of fish, crustaceans and mol-
between primary production and manufacturing activities luscs, fall under Class 1079: Manufacture of other food prod-
related to fish and other marine resources: ucts n.e.c. Whereas Class 1030 only contains activities related
to processing marine resources, the other three classes also
On the level of primary production, fishing and aquaculture comprise production activities based on non-marine inputs.
make up a proper division (03) within Section A (Agricul-
ture, Forestry and Fishing). While this division includes both This means that from a production point of view, basic and
capture fishery and aquaculture, thus covering any use of re- advanced processing activities related to marine resources NAMIBIA’S
sources from marine, brackish and freshwater environments typically fall under Class 1030, whereas advanced seafood SEAFOOD
“with the goal of capturing or gathering fish, crustaceans, manufacturing operations may fall under one of these other INDUSTRY AND
molluscs and other marine organisms and products (e.g. classes within Division 10: Manufacture of food products.
ITS VALUE CHAIN
aquatic plants, pearls, sponges, etc.)”, it excludes both land-
based and sea-based processing activities related to this What makes the line between primary production and pro-
broad range of resources. Within Division 03, a further dis- cessing/manufacturing activities blurry in the ISIC nomencla-
tinction is made at the group level between fishing (031) and ture is the fact that basic processing activities carried out on
aquaculture (032) and at the class level between marine- and vessels engaged both in fishing AND processing/preserving
freshwater-based activities. fish are considered part of Division 03, i.e. part of primary
production, but when the same processing activities are car-
On the other hand, economic activities related to “Process- ried out on sea on factory vessels engaged exclusively in pro-
ing and preserving of fish, crustaceans and molluscs”, re- cessing and preserving fish (i.e. not in capturing), they are
gardless of whether the raw materials stem from fishing or classified according to international standards under Manu-
aquaculture activities, make up Class 1030, which is part of facturing Class 1030.
Division 10 (Manufacture of food products) within the man-
ufacturing section (Section C) of ISIC, Rev. 4. This class in- Even when by international standards it is quite straightfor-
cludes any kind of processing activities for the preparation ward to delimit the boundaries of the industry, in Namibia,
and preservation of fish, crustaceans and molluscs such as the lines between primary production and processing and
freezing, deep freezing, drying, smoking, salting, immersing manufacturing activities tend to be more blurred in official
in brine, canning, etc., as well as the manufacturing of sea- statistics. All processing activities at sea have historically
food products such as cooked fish, fish fillets and fishmeal been classified as the primary production activity, fishing, in
(either for human consumption or animal feed). There are the National Accounts, whereas onshore processing has his-
three important exceptions: Production activities related to torically been classified as fish processing, under manufac-
oils and fats from marine resources are grouped under 1040: turing. After a rebasing of the National Accounts in 2013, fish
Manufacture of vegetable and animal oils and fats. Manufac- processing on shore no longer features as a manufacturing
turing prepared frozen and canned fish dishes falls under line in the accounts, being the only direct measure of fishing
Class 1075: Manufacture of prepared meals and dishes; to be and off-shore fish processing remaining under the primary
considered a dish, these foods must contain at least two dis- sector. Onshore fish processing and seafood manufacturing
have been bundled into “other food manufacturing”, mak-

7
 ing it increasingly difficult to measure the industry’s perfor- and with HS codes 0303–0305 and 1603–1605 in terms of its
mance independently. most relevant intermediate and final products.

Slightly differently from the production perspective, from a At the same time, the industry is an integral part of a broad
trade point of view, the basic criterion used in internation- range of industrial product value chains, with value addition
al statistics is the degree of processing. Whereas seafood taking place not only during processing and manufacturing
products that have undergone no or only basic (onshore or but also in the primary production activities correspond-
offshore) processing are categorised within the Harmonised ing to the ISIC, Rev. 4 classes 0311 (Marine fishing) and 0321
The most important
System (HS) under the two-digit code 03, at the four-digit (Marine aquaculture). Further value addition takes place at
change in trade
level a further distinction is made between live fish (0301), the subsequent value-chain segments: wholesale activities
patterns in recent
fresh whole fish (0302), frozen whole fish (0303), fish fil- regarding the industry’s products are classified under Class
years has been
lets and pieces that are either fresh, chilled or frozen (0304), 4630 (Wholesale of food, beverages and tobacco), and final
the rising share of
cured and smoked fish and fishmeal fit for human consump- distribution and retail activities within the value chains are
developing countries
tion (0305), crustaceans (0306), molluscs (0307) and other carried out by businesses that usually belong to classes 4711
in the fishery trade
aquatic invertebrates (0308). Hence, when combining the (Retail sale in non-specialised stores) and 4721 (Retail sale of
and the corresponding
production perspective (ISIC, Rev. 4) with the product and food in specialised stores), as well as businesses in Division
decline in the share of
trade perspective (HS), at least everything categorised un- 56 (Food and beverage service activities, including restau-
developed economies.
der HS codes 0303, 0304 and 0305 can be considered pro- rants and catering services).
cessed marine-resource products.

The majority of more elaborated seafood products are cat- 1.2 Global and Regional Industry
egorised within the HS system under the two-digit code 16. Performance
However, as this code also includes meat-based food prepa-
rations, analyses of the industry’s export performance must Global fish and seafood production has grown steadily over
be carried out on the four-digit level, which is sufficiently the last 50 years. Global fish production alone in 2012 stood
specific. For manufactured seafood products, the relevant at 158 million tonnes, of which 86% was used for direct hu-
HS codes are 1604 (prepared/preserved fish) and 1605 (pre- man consumption. The remaining 14% was destined mainly
pared/preserved crustaceans and molluscs). Like in the clas- for the manufacture of fishmeal and fish oil.
sification of productive activities, extracts and juices (e.g.
fish soup) fall under a different code (1603), as do fats, oils Approximately 90% of world fish trade consists of processed
and their fractions from fish and marine mammals (1504). fish products, while the remaining 10% is in unprocessed fish
(i.e. live, fresh, chilled, whole; HS codes 0301 and 0302). Next
To analyse trade flows of products stemming from marine-re- to the accelerating rate of growth, perhaps the most impor-
source-industry processing and manufacturing activities, a tant change in trade patterns in recent years has been the ris-
combination of HS codes 0303–0305 for basic products and ing share of developing countries in the fishery trade and the
HS codes 1603–1605 for more advanced products will give corresponding decline in the share of developed economies.
good results in most cases. Currently, most processing and manufacturing activities
are still performed in Europe, but owing to price pressures,
By adhering to international standard classifications, the ma- these activities are increasingly being outsourced to ma-
rine-resource-processing industry can be defined as a man- rine-resource processors in developing countries. A number
ufacturing industry largely identified with food-manufactur- of emerging countries (Brazil, Mexico, Russia) have gained
ing Class 1030 (ISIC, Rev. 4) in terms of production activities importance to the world’s exporters. Developing economies,
whose exports represented just 34% of world trade in 1982,

8
had seen their shares rise to 54% of the total fishery export as it stands. This may also indicate that a shift towards more
value by 2012. In terms of overall value, the net fishery ex- processed products, such as prepared or preserved fish (HS
ports of developing countries have shown a continuing rising code 1604), may yield better long-term growth opportunities
trend in recent decades, growing from USD 11.5 billion in 1992 for the marine-resources-processing industry. Owing to the
to USD 35.1 billion in 2012. In the same year, their exports pressures of time and consumers’ lack of familiarity with pre-
encompassed more than 60% of the quantity (live weight) of paring fish, there is also an increasing demand for ready-to-
total fishery exports. For many developing nations, the fish eat and easy-to-cook white fish products such as microwav-
trade is a significant source of foreign currency earnings, in able products or fish fingers. Substantial growth is expected
The last decade has
addition to having an important role in income generation, in sales of crustaceans and molluscs as well, due to the rapid
seen aquaculture
employment, food security and nutrition. expansion of aquaculture over the last 20 years.
production exceed a
6% annual growth rate,
Future growth in processed categories of fishery products Global capture production has not grown substantially for
making it the fastest-
will be substantially higher than growth in unprocessed and the last two decades, and yet growth in global demand for
growing food industry
basically processed fishery products. However, it is impor- fish and other marine products has not slowed. This gap be-
in the world.
tant to note that whole frozen fish (HS code 0303) is not tween supply and demand through wild capture has been
expected to grow. Frozen fish (excluding fillets and other fish supplemented through aquaculture production (see Figure 1).
meat) currently accounts for 59% of Namibia’s export of fish The last decade has seen aquaculture production exceed a
and fishery products by value, which suggests that there is 6% annual growth rate, making it the fastest-growing food
little growth opportunity left in this portion of the industry industry in the world.

World Capture Fisheries and Aquaculture Production

1950-2012
160

140 Aquaculture production

Capture production
120
Million tonnes

100

80

60

40

20

0
50 55 60 65 70 75 80 85 90 95 00 05 12

Years

Figure 1: World capture fisheries and aquaculture production

Source: FAO, 2014
9
 Regionally, aquaculture in sub-Saharan Africa is wholly overall export value of fresh unprocessed fish (HS code
underdeveloped, lagging behind the global trend. As de- 0302) is considerably lower than the value of fish that has
mand for fish grows within this region, it too will have to undergone basic processing (HS codes 0303–0305) or
offset the demand through aquaculture production. This advanced processing and manufacturing (HS codes 1604
increased demand for fish and fishery products is unde- and 1605). In the specific case of Namibia, the lion’s share
niable, as average global fish consumption per capita has of overall sector export earnings stems from basic indus-
risen from 9.9 kg in the 1960s to 19.2 kg in 2012. trial products (frozen whole fish and fish fillets and piec-
es), where Namibia currently ranks 18th on the list of top
These trends in international trade of marine products exporters worldwide. The country’s world market shares
are reflected in Table 1, which gives an overview of the and export ranking are considerably lower for the export
growth patterns of world exports for the different prod- of fresh whole fish (0.2%; rank 45) and for advanced sea-
uct categories within the marine-resource-processing and food-manufacturing products (prepared/preserved fish
seafood-manufacturing industry, including trade of pri- products: 0.3%; rank 40; prepared/preserved crustaceans
NAMIBIA’S mary products with no or low degrees of processing. The and molluscs products: rank 73).
SEAFOOD
Table 1: Export growth for different marine-resource products (World, Namibia, 2011 and 2014, in USD thousands)
INDUSTRY AND
ITS VALUE CHAIN Exported
Exporter Ranking
Exported Value Exported Value in and World Market
HS Product Code and Denomination Value in 2014
in 2011 (World) 2014 (Namibia) Share, Namibia
(World)
(2014)
0302: Fish, fresh whole 14,763,903 18,257,229 44,322 Rank 45
0.2%
0303: Fish, frozen whole 21,718,318 23,607,658 413,196 Rank 18
1.8%
0304: Fish fillets and pieces, fresh, chilled 20,606,006 22,349,147 167,662 Rank 18
or frozen 0.8%
0305: Fish, cured or smoked and fishmeal 5,756,245 6,054,301 4,249 Rank 48
fit for human consumption 0.1%
1604: Prepared/preserved fish 14,400,098 16,630,639 43,375 Rank 40
0.3%
1605: Prepared/preserved crustaceans and 10,703,664 11,376,675 2,090 Rank 73
molluscs 0%
Source: ITC calculations based on UN Comtrade statistics

Roughly 73% of total fishery imports, by value, were in de- still makes the EU the largest market for fish and fishery
veloped countries (see Table 2). Imports by the European products in the world. Japan and the United States are
Union represented 36% of total world imports, but if in- the largest single importers of fish and fishery products,
traregional trade among EU member states is excluded, together accounting for 27% of the total world import of
its share of world imports declines to 23%. However, this fish and fishery products (see Table 2).

10
Table 2: Top 10 exporters and importers of fish and fishery products (2002–2012)

2002
____________ 2012
____________ APR
____________
(US$ millions) (US$ millions) (Percentage)
Exporters
China 4 485 18 228 15.1
Norway 3 569 8 912 9.6
Thailand 3 698 8 079 8.1
Vietnam 2 037 6 278 11.9
United States of America 3 260 5 753 5.8
Chile 1 867 4 386 8.9
Canada 3 044 4 213 3.3 NAMIBIA’S
Denmark 2 872 4 139 3.7 SEAFOOD
Spain 1 889 3 927 7.6 INDUSTRY AND
Netherlands 1 803 3 874 7.9 ITS VALUE CHAIN
Top Ten Subtotal 28 525 67 788 9.0
Rest Of World Total 29 776 61 319 7.5
World Total 58 301 129 107 8.3

Importers
Japan 13 646 17 991 2.8
United States of America 10 634 17 561 5.1
China 2 198 7 441 13.0
Spain 3 853 6 428 5.3
France 3 207 6 064 6.6
Italy 2 906 5 562 6.7
Germany 2 429 5 305 8.2
United Kingdom 2 328 4 244 6.2
Republic of Korea 1 874 3 739 7.2
China, Hong Kong SAR 1 766 3 664 7.6
Top Ten Subtotal 44 830 77 998 5.7
Rest Of World Total 17 323 51 390 11.5
World Total 62 153 129 388 7.6
Source: FAO, 2014

NB: APR refers to the average annual percentages growth rate for 2002-2012

11
 1.3 Industry Background and Namibians. Primary production is largely regulated by
the Marine Resources Act (Act No. 27, 2000), which is a
Evolution in Namibia rights-based and scientific approach to fishery manage-
ment. This approach has significantly reduced by-catch
The Namibian marine-resource-processing and sea- and illegal fishing in Namibia’s waters. Namibia’s Marine
food-manufacturing industry is based on the Namibian Resources Act has contributed to an ecologically and
marine fishing industry. As Namibia is located in the cen- economically sustainable fishing industry, created jobs
tral region of the Benguela Current system, with a coast- and fostered food security in Namibia.
As Namibia is located line stretching about 1,500 km from the Orange River in
in the central region the south of Namibia up to the Kunene River in the north, While fishery production management has historically
of the Benguela it has one of the most productive fishing grounds in the taken centre stage, marine-resource-processing/sea-
Current system, with world. Given the country’s location, the Benguela Current food manufacturing has generally been overlooked as a
a coastline stretching system, one of four eastern boundary upwelling systems standalone industry. Until now, little emphasis has been
about 1,500 km from in the world, directly influences productivity. South-east- placed on the processing industry, despite some men-
the Orange River in erly winds drive coastal upwelling, forming the system. tion of value addition in the Fisheries White Paper. This
the south of Namibia The cold, nutrient-rich waters that upwell from around is primarily due to the fact that the marine-resource-pro-
up to the Kunene 200–300 meter depth fuel high rates of phytoplankton cessing and seafood-manufacturing industry has largely
River in the north, it growth and sustain the productive Benguela ecosys- been viewed in conjunction with the fishery sector, with
has one of the most tem. As a result, Namibian waters are characterised by no clear line officially drawn between the two. Nonethe-
productive fishing a considerable level of biological productivity. Thanks to less, value addition has been a concern to Namibian poli-
grounds in the world. these preconditions, Namibia ranks third largest in Af- cymakers since independence, and the government’s first
rican capture-fishery nations, after Morocco and South white paper set out objectives for value capture. In order
Africa, according to the Ministry of Fisheries and Marine to grow export earnings and to create employment, pro-
Resources (MFMR). With annual marine landings valued moting value addition featured as a key objective in the
at approximately NAD 7.6 billion, Namibia places 34th paper, with an extensive focus on onshore processing.
worldwide. The bulk of Namibian fisheries are marine.
In the past five years, marine landings have been about However, a number of challenges have subsequently en-
550,000 metric tonnes, which accounts for 99.8% of total sued, starting with the very concept of “value addition”,
landings. Inland fisheries in the northern perennial rivers given that buyers are often prepared to pay higher prices
and floodplains only yield about 8,000 metric tonnes an- for fresh marine products than they are for processed
nually. Approximately 2,250 metric tonnes are currently products. Therefore, many players in the industry have
produced through aquaculture, particularly mariculture, argued that by processing certain species, value is ac-
which is still in its infancy stage. tually destroyed rather than added. Therefore it should
be pondered whether the trend to more marine-resource
Established in 1991, the MFMR has played a critical role processing locally, most notably within the hake value
in Namibia’s fishery sector. Since independence, it has chain would need revision.
focused on rebuilding fishery stocks, especially those
that had suffered long periods of over-exploitation. Oth- The draft of the Namibia Fisheries Policy (2015) is the lat-
er focus areas were monitoring, control and surveillance est framework targeted towards fisheries. The policy will
measures within fishery operations. There is still signifi- become an important framework update for the contin-
cant emphasis on ‘Namibianisation’ of the fishery sector, ued governance of the Namibian fishery sector. The new
particularly through issuing rights and allocating fishing policy also touches on the marine resource processing
quotas to previously disadvantaged and marginalised

12
industry, with chapters dedicated to investment, market- 1.4 Classification of Namibian
ing and value addition.
Producers and Businesses
In 2013, the Growth at Home strategy, a Ministry of In-
dustrialisation, Trade and SME Development (MITSMED) Many Namibian businesses operating in the industrial
initiative approved by the cabinet, was launched to serve segment of the marine-resource product value chains
as a roadmap for industrial policy in line with the Fourth are highly vertically integrated and own large portions
National Development Plan (NDP4) and Vision 2030. of the value chain, from harvesting to processing and
sometimes distribution. The key focal
Marine-resource processing has been highlighted as a
areas targeted for
priority industry within the Growth at Home strategy.
Hake and other demersal fish are caught by net trawlers this industry in
The key focal areas targeted for this industry in particular
and longliners. However, few long-lining licences current- particular are greater
are greater industrial value addition to marine resourc-
ly exist and no new licenses are currently being issued, industrial value
es, product diversification to satisfy market demands,
due to the perceived negative impact of this form of fish- addition to marine
continued creation of jobs, broadening of Namibia’s eco-
ing on the overall health of the resource (removal of key resources, product
nomic base and raising of government tax revenues. The
breeding animals). Therefore, hake is typically fished with diversification to
growth strategy is required to focus exclusively on the
freezer trawlers that allow basic processing on board di- satisfy market
marine-resources-processing industry, omitting any ob-
rectly after harvest; the basic products are packaged and demands, continued
vious fishery-sector area of focus. Based on its targeting
frozen on board and can be offloaded on shore for direct creation of jobs,
within the Growth at Home strategy, this document will
distribution, repackaging or further onshore processing. broadening of
serve as the first attempt to address specific challenges
Longliner vessels, on the other hand, specialise in landing Namibia’s economic
regarding the processing and manufacturing segments
fresh, so after basic processing at sea (gutting), the fish base and raising
of the most important value chains for Namibia’s marine
is chilled on ice for further onshore processing, mainly fil- of government tax
resources. For the thematic areas that overlap between
leting and portioning of wet fish, followed by packaging revenues.
the new fishery policy and this document, projects con-
cerning industrial production and technology, market- and freezing or focus on the further processing of frozen
ing and distribution and support service delivery will be fillets and blocks through glazing, portioning and pack-
structured to include input from the MFMR to ensure that aging. The majority of Namibian hake is processed into
there are joint efforts between the two ministries rather skin-on and skin-off fillets or into portions or blocks for
than duplication. further manufacturing elsewhere (see Figure 2). There
are currently some national seafood manufacturers de-
veloping frozen crumbed hake products and frozen hake
fillets with marinades and sauces. A number of hake pro-
cessors also process monkfish; basic processing is done
on board, and some further processing may take place
on shore before distribution.

13
 Hake Horse Mackerel
(35% of industry (29% of industry Micro Meso Macro
export value) export value)
Direct Stakeholders Indirect Stakeholders

Operators Service Providers Enablers

Functions Foreign Foreign consumers

consumers (Zambia: 33%,
(ES: 47%, Mozambique: 28%, Local consumers
HS Product RSA:34%) Local consumers DRC: 17%)

(standards)
EU, China…
groups

NSI
Share in total value of
industry exports (%,
2014) Foreign Local Regional Local
Distribution Wholesalers Wholesalers wholesalers
Wholesalers and retailers NFCPT
& and retailers and retailers and retailers
Activities
Trade
Packaging (bulk, > 90% > 10%
Team
retail), cold storing, production production
Namibia
NAMIBIA’S containerising, Fats, oils and
transport, their fractions
SEAFOOD wholesale, retail
(Re-)packaging Cold
(HS 1504)
Namport

INDUSTRY AND Cold storage storage

Extracts and
ITS VALUE CHAIN Manufacturing of
seafood products,
juices (soups,
etc.) (HS 1603)
including ready Frozen

Financial Service Providers

Equipment and
Manufacturing

Input suppliers
made meals whole fish

MITSMED
Prepared / (HS 0303) Cured and
(prepared, smoked fish,
preserved
seasoned and (HS 1604+ fishmeal
cooked) and 1605) (HS 0305)
(6%)
dishes processed
(1%)
for preservation

Vertical integration & traceability

MFMR
(frozen or canned). n = 15

Frozen (whole round)

n=5
Fillets and
fresh, chilled,
frozen pieces Onshore Onshore
(HS 0304) Processing Processing
and and Residues
(24%) Manufacturing
Plants
De- Manufac-
(glazing, forming, frosted turing

Unions
First-stage Basic offshore and

abour
portioning…) Plants
Processing onshore processing (canning,
of marine resources Frozen IQF…)
(ISIC, Rev 4: 1030):

NAMFI

Other ministries: Finance, Health,

Labour, Home Affairs, Transport
Freezer Freezer
Frozen Trawlers Trawlers
whole fish with
(HS 0303) offshore
Process- (Weighing,

Fishing Associations
(59%) Wet Freezing
ing
Whole- Wet
Frozen
whole fish (Filleting round Refrigera-
Primary (HS 0302) Freezing Packing) ted
Production Marine-based Packag-

(MFMR)
Seawater
capture fishery Wet Long-

R&D
(6%) ing) (RSW)
(ISIC, Rev. 4: 031 Trawlers liners
Vessels
+ 032)

n = 13 n = 49 n = 11 n = 18 n=2

Figure 2: Value chain map seafood

Source: GIZ ProCOM, based on Impact-Namibia Economic Consulting

14
Whereas hake is the single most relevant catch in terms aged and frozen on shore and distributed. Landing horse
of value, horse mackerel is the single most important mackerel fresh is beneficial, as more diversification can
catch in terms of tonnage landed, second in value. take place, resulting in higher-quality products (see Fig-
ure 4). Certain horse mackerel processors are currently
Midwater fish are typically caught by freezer trawlers, planning to switch from landing frozen to landing fresh,
which use large nets to drag the fish up to the vessel. as they recognise these benefits.
There, the fish are weighed, frozen and packaged into
5–20 kg whole-round horse mackerel. Pilchard is also typically processed by horse mackerel
processors, as it shares similar production requirements.
Thus, unlike hake, horse mackerel is historically and cur- The majority of pilchard is currently landed fresh and
rently to a very large extent caught in Namibian waters canned for the local and regional markets.
to be frozen whole at sea with very limited value addition
through offshore processing. As for the processing of other marine resources: for crab,
all processing occurs off shore on freezer trawlers; in NAMIBIA’S
The frozen blocks are then landed and mostly distributed contrast, rock lobster processing occurs exclusively on
SEAFOOD
to market as they are. Some of the frozen blocks are fur- shore; currently there is only one seal processing facility,
ther processed on shore by defrosting and canning for but another facility is being constructed. INDUSTRY AND
the domestic and regional markets. However, this second ITS VALUE CHAIN
value chain is currently undergoing a technology shift at Seals are processed into pelts and oils on shore and then
the primary-production level: a few refrigerated seawa- exported to Turkey and China, respectively; shark is pro-
ter (RSW) vessels have started catching horse mackerel cessed on shore after either being caught as by-catch
and landing them fresh. or being targeted by longline vessels. Lastly, there are
a number of line vessels targeting linefish species, of
As with hake, this allows for more complex processing. which the majority is chilled or frozen or is cured (salted
The fresh horse mackerel can be sorted, graded, pack- or smoked), depending on the species.

15
 1.5 Classification of Namibian Products
Table 3: Classification of Namibian marine resources and industry actors engaged in offshore and onshore processing and manufacturing activities

Offshore processing Onshore processing

Marine resource Number of vessels Product outputs Number of onshore Product outputs
(types) processing plants

Hake 13 (freezer trawlers), Fillets, medallions, cutlets 15 Fillets, loins, portions,

49 (wet trawlers), 11 (chilled whole round, for steaks, H&G, H/G/T, prime
NAMIBIA’S (longliners) onshore processing) cuts, medallions,
blocks, sausages
SEAFOOD
INDUSTRY AND Horse mackerel 18 (freezer trawlers), 2 Frozen (whole round), 5 Canned, dried, soup,
(wet trawlers) chilled whole round, for paste, smoked, IQF, fish
ITS VALUE CHAIN onshore processing oil,
fishmeal
Monk 17 (freezer trawlers), 1 Tails 0 N/A
(wet trawler)
Crab 4 (freezer trawlers) Claws, sections, flakes, meat 0 N/A
Pilchard 7 (purse seiners) Chilled whole round, for 2 Canned,
onshore processing cutlets,
fish oil,
fishmeal
Shortfin & mako 18 (longliners), 12 (pole Chilled whole round, for 1 Fins, trunks, fillets
shark & line) * includes other onshore processing
large pelagics
Rock lobster 16 (trap/ring net) Live for onshore process- 2 Tails,live lobster,
ing whole cooked, raw frozen
Seal 0 N/A 1 Skins,
dried meat, dried organs,
oil,
animal fodder,
shoes, jackets, bags
Linefish 19 (line vessels) Salted, frozen, (chilled 4 Salted, dried, frozen,
whole round) smoked

Source: Compiled by Impact-Namibia Economic Consulting, based on data from MFMR

16
As evidenced in Table 3, industry actors produce a wide The fourth and final tier, Tier 4, contains products that
range of marine-resource and seafood products, most of have taken 10 or more irreversible processing steps to
which have undergone offshore and/or onshore process- reach finished-product status. Examples of Tier 4 prod-
ing to one degree or another. ucts are frozen, crumbed hake fillets (11 irreversible pro-
cesses) and canned hake portions, battered and fried (11
In terms of product classification, it is therefore recom- irreversible processes).
mendable to apply two classification schemes nested to-
gether. The first is the standard taxonomic classification 1.6 Local Industry Performance Both marine fishing
system, which is an input-based classification scheme
and off- and onshore
based on the marine resource and groups the marine-re-
Both marine fishing and off- and onshore fish process- fish processing have
source products into taxonomically similar categories.
ing have formed a keystone of Namibia’s economy since formed a keystone of
independence, with the two industries together growing Namibia’s economy
However, to provide further insight, a second classifica-
in value in real terms, from NAD 300 million of net-val- since independence,
tion system must be applied alongside the first. The sec-
ue addition at independence in 1990 to NAD 3.6 billion with the two
ond classification uses a process-based method where-
in 2014. The percentage of the country’s GDP generated industries together
by each product type is evaluated and classified by the
from the two industries grew to a strong 7.2% in 2003 growing in value
number of irreversible processes the raw material has
but then declined to 2.4% by 2014, largely as a result of in real terms, from
undergone before it is considered an end product. This
faster growth in other parts of the Namibian economy. NAD 300 million of
can be used to categorise each end product into one of
Nevertheless, as a sector, fisheries and marine-resource net-value addition
four tiers.
processing/seafood manufacturing rank third in contri- at independence
bution to GDP after mining (13%) and tourism (3.9%) and in 1990 to NAD 3.6
The first product tier, Tier 1, contains all the products
therefore remain key players in Namibia’s economy. billion in 2014.
that have undergone between one and three irreversible
processes to reach their end-product stage. Examples of
Tier 1 products are frozen whole-round horse mackerel
(one irreversible process) and fresh, headed and gutted
hake (two irreversible processes).

Tier 2 contains products that have undergone be-

tween four and six irreversible processes to reach their
end-product stage. Examples of Tier 2 products are fro-
zen, headed, gutted, tailed and skinned monkfish (five
irreversible processes) and canned horse mackerel (six
irreversible processes).

Tier 3 contains products that have undergone between

seven and nine irreversible processes to reach their fi-
nalised product stage. Examples of Tier 3 products are
frozen hake fillets, skin off (eight irreversible processes),
and horse mackerel soup powder (seven irreversible pro-
cesses).

17
 Contribution to Namibian GDP

4,000

3,000

NAD million
Even with increasing
2,000
local consumption,
the industry remains
largely export driven;
Namibia exports 1,000
over 90% of total
unprocessed fish and
manufactured fish 0
products by value. 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013
Years
Fishing and fish progressing on board Fish progressing on shore

Figure 3: Contribution to gross domestic product by activity – constant prices – NAD million
Source: Namibia Statistics Agency

In the 2014 Namibia Labour Force Survey, the NSA es- mibia, both by the private sector involved in catching and
timated total direct employment in the fishing and marketing fish and by government-supported initiatives
fish-processing/seafood-manufacturing industries com- such as the Namibia Fish Consumption Promotion Trust
bined at 11,936 – with about 60% employed at sea (both (NFCPT), which promotes fish consumption in Namibia
in fishing and fish-processing activities) and 40% work- by making fish more accessible and affordable. These ef-
ing on shore. Over the past decade, employment num- forts have yielded positive results; Namibia’s per capita
bers have ranged between 11,000 and 13,000. However, fish consumption reached 12 kg in 2011. However, even
in terms of contribution to overall employment, at 1.7% with increasing local consumption, the industry remains
the sector’s share in the total Namibian workforce is rela- largely export driven – Namibia exports over 90% of to-
tively modest compared to agriculture (27.8%) wholesale tal unprocessed fish and manufactured fish products by
and retail (13.6%) or construction (8%). value, a figure that has changed little over the last dec-
ade despite efforts to promote domestic consumption.
Namibia’s per capita fish consumption falls way behind Therefore, export markets will remain of utmost impor-
the average world consumption of 19.2 kg (2012). Since tance to the marine-resource-processing industry in the
independence, much progress has been made in making future, even if the domestic demand further increases
fresh fish and seafood products available throughout Na- substantially.

18
Over the past 25 years, unprocessed fish and processed On the other hand, Namibia’s export portfolio in this in-
fish products have contributed between 13% and 25% dustry relies heavily on products that have undergone
to Namibia’s merchandise exports, averaging 12.7% over only basic processing, i.e. frozen fish and fish fillets (com-
the last decade. The relative decline was due primarily to bined at 83% of the total export value; see Figure 4).
strong growth in other exports, particularly unprocessed From a risk-mitigation standpoint, Namibia is in a riski-
minerals and mineral beneficiation exports. Nonetheless, er position due to its relatively uniform export-product
unprocessed and processed marine-resource products portfolio. This alone should be reason enough for the
still represent Namibia’s second-biggest foreign currency marine-resource-processing industry to strive for growth
earner after mining exports. Hence, the marine resource in categories such as cured, preserved or prepared fish
processing industry is undeniably important to Namibia’s (HS 0305 and 1604) instead of remaining so reliant on
economy, because 90% of all sector exports (by value) basic processed/frozen fish (HS 0303 and 0304). This is
relate directly to processed products from fish and oth- especially important as growth projections by utilisation
er marine resources. In value, this represented over NAD category suggest that there will be almost no growth in
6.8 billion in 2014 alone, which is significant, given that frozen fish by 2030, while growth in prepared or pre- NAMIBIA’S
the industry has been relatively overlooked and unfor- served fish will reach almost 24% by 2030 (projections SEAFOOD
malised until now. for OECD member states).
INDUSTRY AND
ITS VALUE CHAIN
Fish & Fishery Product Exports (%) - Namibia 2014

6% 0% 6%
2%
2%
1%

301 & 302 - Live, fresh & chilled fish

24% 303 - Frozen fish (excl. fillets)
304 - Fillets and other fish meat (fresh, chilled or frozen)
305 - Dried, smoked & salted fish
306 - Crustaceans (live, fresh or frozen)
307 - Mollusks (live, fresh or frozen)
1604 - Prepared or preserved fish
1605 - Prepared or preserved crustaceans or mollusks

59%

Figure 4: Composition of Namibia’s marine resource export portfolio (%, 2014)

Source: Namibia Statistics Agency

19
 Namibia’s most economically important marine resources setting requirements for the products they buy and influ-
are hake and horse mackerel, both in value and in landed encing the growth of international distribution channels.
volumes. Processed and unprocessed hake accounted for Processing is becoming more intensive, geographically
at least 35% of the total industry exports in 2014. Hake concentrated, vertically integrated and linked with global
is the highest export earner of Namibia’s marine resourc- supply chains. Processors are becoming more integrated
es, and keeping in mind that over 90% of Namibia’s fish- with producers to enhance the product mix, obtain better
based and fishery-product-based exports are processed, yields and respond to evolving quality and safety require-
it can be inferred that the large majority of hake is pro- ments in importing countries. The outsourcing of process-
cessed before export. However, as basic processing often ing activities at the regional and world levels is significant,
occurs at sea on trawlers that also capture the fish, by in- with a growing number of countries doing so, although its
ternational standards this type of processing is counted as actual extent depends on species, product form and costs
part of primary production rather than as manufacturing. of labour and transportation.

NAMIBIA’S The second-most valuable Namibian marine resource, The seafood market is very dynamic and is changing rap-
SEAFOOD horse mackerel, accounts for over 29% of the total export idly. It is becoming much more complex and stratified,
value for Namibian fish and fishery products. Other eco- with greater diversification among species and product
INDUSTRY AND nomically important marine resources include monkfish, forms. High-value species such as shrimp, prawns, salmon,
ITS VALUE CHAIN pilchard, deep-sea red crab, rock lobster, shark, other tuna, groundfish, flatfish, seabass and seabream are highly
white fish and Cape fur seal. traded, in particular in more prosperous markets. Low-val-
ue species such as small pelagics are also traded in large
The majority of hake is exported to Spain (47%) and South quantities, mainly exported to low-income consumers in
Africa (34%), primarily frozen headed and gutted, frozen developing countries. However, in recent years, emerging
in fillet blocks or frozen as fillets. Horse mackerel, on the economies in developing countries have increasingly been
other hand, is mainly exported to Zambia (33%), Mozam- importing species of higher value for their domestic con-
bique (28%) and the Democratic Republic of Congo (17%), sumption.
primarily in whole-round frozen block form. Namibia’s ex-
ports are substantial for the region and for certain interna- Along with the globalisation of fish and fishery-product
tional markets. Namibia was sub-Saharan Africa’s largest trade, traceability concerns have also increased and be-
exporter of fish for human consumption, with a market come very important demand drivers. The need for trace-
share of 33%, according to a 2007 study by WorldFish. ability in the food supply chain is now widely recognised.
Additionally, Namibia was the seventh-largest supplier When a potential food-safety problem is identified, trace-
of white fish into the EU in 2013 (excluding intraregional ability enables corrective action, such as a product recall
trade between EU members), according to Eurostat. to target the affected batch or lot rapidly and specifically,
minimising trade disruptions and preventing such prod-
1.7 Global and Regional Demand for ucts from reaching consumers. Traceability is among the
regulations in major seafood-importing regions and coun-
Products of the Industry tries such as the European Union, the United States of
America, and Japan. It is also required in order to demon-
In recent decades, the complex patterns of globalisation strate that fish has been caught legally from a sustainably
have transformed the fish-processing industry, making it managed fishery or produced in an approved aquaculture
more heterogeneous and dynamic. Supermarket chains facility. This makes it an important component in many
and large retailers have been more and more involved in private eco-labelling schemes.

20
 Global Trade Flows

NAMIBIA’S
SEAFOOD
INDUSTRY AND
ITS VALUE CHAIN

Seafood consumption per capita (kg/year) White fish: cod, pollock, halibut, tilapia, carps, catfish
Salmon: Atlantic salmon, Pacific salmon, trout
0-99
Tuna: skipjack tuna, yellowfin, albacore, bigeye
10.0 - 19.9
Pelagics (excl. tuna): sardines, anchovies, mackerel, swordfish
20.0 - 29.9
Crustaceans: shrimps, lobsters, crabs, krill
30.0 - 49.9
Mollucs (excl. cephalopods): oyters, mussels, scallops, sea cucumbers
>50.0
Cephalopods: squid, octopuses, cuttlefish
Zero/unknown/uninhabited
Fishmeal and fish oil.
Seafood tradeflow

Figure 5: Global trade flows related to seafood and marine-resource products

Source: Rabobank, 2015

21
2. IDENTIFIED OPPORTUNITIES
FOR AND CONSTRAINTS TO
INDUSTRY GROWTH
2. IDENTIFIED OPPORTUNITIES FOR AND CONSTRAINTS TO
INDUSTRY GROWTH
In the following chapters, the emphasis will be on two value chains in particular: hake and horse mackerel products.
Hake is Namibia’s most valuable marine resource and is the country’s largest source of export revenue of marine resourc-
es. Horse mackerel is the second-most valuable marine resource and the most abundant marine resource in Namibian
waters. The two value chains have been selected as they represent 87% of the average annual landed catch by value
(2010–2014), 82% of the average annual landed volume according to the MFMR and at least 64% of the total export value
(unprocessed and processed products) from national trade statistics.

In addition to these two largest value chains, smaller marine-resource value chains have also been analysed where it was
found that they could easily be connected either to the hake or horse mackerel value chains. Examples of this include
monkfish products, which can be added to the hake value-chain analysis and proposed interventions, and pilchard prod-
ucts, which can be included in the horse mackerel analysis and recommendations for value-chain and industry upgrading. IDENTIFIED
OPPORTUNITIES
Micro Level Meso LevelIndirect StakeholdersMacro Level FOR AND
Direct Stakeholders CONSTRAINTS
TO INDUSTRY
Consumption Service Providers Enablers
GROWTH
Service Business
Delivery Environment

Opportunities
Opportunities
Opportunities

Product

Constraints

Constraints
Constraints

Distribution
& Operational
Trade Services

Institutional
Framework
Opportunities

Opportunities
Opportunities

Constraints
Constraints

Transformation Constraints
&
Technology Business
Development
Services

Regulatory
Opportunities
Opportunities
Opportunities

Primary Framework
Constraints

Constraints
Constraints

Production
&
Input Supply Financial
Services

Figure 6: Analytical framework developed for detecting opportunities and constraints

Source: GIZ ProCOM

23
 2.1 Primary Production and Input nities. Hake from the wet quota is generally processed
further than the frozen-quota hake, with higher-priced
Supply products ultimately exported. However, some industry
players argue that in processing hake beyond a certain
Currently, the comparative advantages of the hake point, value is actually destroyed rather than added.
value chain are closely related to Namibia’s natural re- Nonetheless, most industry players acknowledge that
source endowment and its sustainable long-term man- continued government pressure for further process-
agement, ensuring that processors and manufacturers ing of hake along with the above-mentioned licencing
have continuous access to supply. The high overall practices have contributed to the growth of the on-
quality of the Namibian hake species is already rec- shore processing and manufacturing segment of the
ognised by the world market. Hake is by far the most hake value chain, though the impact on overall profit
valuable single catch in Namibian waters, making this margins along the value chain is subject to debate.
marine resource the largest single contributor to over-
IDENTIFIED all sector export revenues. In addition, Namibia’s hake A serious constraint to competitiveness in the hake
OPPORTUNITIES stocks are generally found relatively close to the ports value chain originates at the level of input sourcing
from which the fleets operate, which ensures interna- but also affects processing and manufacturing, and
FOR AND
tionally competitive productivity and efficiency levels that is the significant fluctuations in the total allowa-
CONSTRAINTS at the harvesting stage of this important value chain. ble catch (TAC) in recent years (by up to 50%), since
TO INDUSTRY Still, industry stakeholders feel that given the superior the introduction of the TAC control system. This is
GROWTH quality of Namibian hake, there are untapped oppor- partly due to the variations in the recorded hake bio-
tunities for achieving higher prices and profit margins mass over the period, which may have been affected
via additional marketing and product differentiation/ by climate change or other unknown factors but could
branding efforts (see end markets and trade), and also partly be attributed to the method of calculating
also through developing products to optimise input the hake TAC, which has changed a number of times
use (e.g. new products from offcuts and lower-quality since control systems were put in place. Overall, the
fish). hake value chain is currently under consolidation, as
quotas have been falling due to reductions in the TAC.
As has been pointed out, hake and other demersal fish It is this unpredictable and mostly declining nature
are caught by net trawlers and longliners. Generally of the TAC and corresponding quota allocation that
speaking, longliner technology is more conducive to might be reviewed with regard to the effects on the
onshore processing and manufacturing activities but value chain. Since company effort (investment, em-
less conducive to sustainable management of this ma- ployment, etc.) so far does not seem to be considered
rine resource than freezer trawler technology is. The in quota allocation, the value-chain stakeholders are
fact that no new licenses are currently being issued minimising efforts to gain access to quotas, and con-
for longliner hake fishing due to its perceived negative sequently the value chain is trapped in a minimum-ef-
impact on the overall health of the resource (removal fort paradigm in which it is counterintuitive for actors
of key breeding animals) can be interpreted as a short- to reinvest large amounts. This is affecting technology
term constraint but also as a long-term opportunity to and productivity levels, both for primary production
the sustainable development of the hake-processing and processing and manufacturing. It is also the main
industry and this value chain at large. Similarly, the reason why the majority of the hake fleet in operation
current practice of licensing “wet” and “frozen” quo- is more than 30 years old. This is causing large ineffi-
tas has similar short- and long-term impacts on land- ciencies within the value chain and inhibiting growth;
based processing and onshore employment opportu- the investment climate is mostly unfavourable, and the

24
overall risk to international competitiveness is high, as by quality, the demand for horse mackerel and its rec-
industry stakeholders keep stalling any significant re- ognition on the regional market are based its status
investment for as long as possible. as an affordable, healthy and highly nutritious staple
food source for a large part of the global population,
However, the newly drafted Fisheries Policy 2015, point especially in Africa.
64, states, “The amount of quota (allocated) may vary
depending on performance of right holders against As has been outlined, despite a stable TAC, an ongo-
predetermined criteria which shall include investment, ing constraint to growth in the onshore processing
The switch from
employment, value addition and socioeconomic fac- and manufacturing segment of the horse mackerel
landing frozen to
tors”, which seems to indicate that the MFMR aims to value chain is the use of freezer trawlers for captur- landing fresh is
take investment efforts into consideration in future ing the fish, because the fish is then frozen whole at generally considered
quota allocations; consequently, there are opportuni- sea, with very limited processing taking place either an important
ties for industry upgrading and growth. at sea or on shore. However, the current technological opportunity to
shift towards refrigerated seawater (RSW) vessels and upgrade and
Aside from the ambiguous effects of the current quo- landing horse mackerel fresh is opening new business diversify the
ta and license system, other constraints to value-chain opportunities related to more complex onshore pro- Namibian seafood
growth that originate in the primary production seg- cessing. While some industry actors question wheth- processing and
ment include: er further onshore processing equals value addition manufacturing
in the case of hake, where the primary unprocessed industry.
• The availability of a skilled labour force is limited; product is of high market value, this is not the case
the local skill level is relatively low, and local capac- with horse mackerel.
ity-building options are limited.
• Access to spare parts is poor, adding to operating Wet landing horse mackerel is held to be beneficial not
expenses for the sector – this may be linked to the only to the marine-resource-processing industry but
aging infrastructure. to the horse mackerel value chain at large, because
real value-added processing and seafood manufactur-
As with hake, the comparative advantages within ing can take place on shore. Therefore, the switch from
the horse mackerel value chain are closely related to landing frozen to landing fresh is generally considered
Namibia’s natural resource endowment and sustain- an important opportunity to upgrade and diversify the
able long-term management. Unlike with hake, the Namibian seafood processing and manufacturing in-
horse mackerel TAC has been relatively stable in re- dustry. This doesn’t imply that fresh horse mackerel
can undergo only basic onshore processing, i.e. being
cent years (between 300,000 and 350,000 tonnes);
sorted, graded, packaged and frozen onshore for lo-
however, the overall trend across the past 25 years
cal and regional distribution. However, certain horse
has been a decline in TAC. The 1991 White Paper on
mackerel processors are currently planning to switch
Fisheries estimated that the long-term sustainable from landing frozen to landing fresh, as they recognise
offtake of horse mackerel was between 400,000 and the business opportunities related to more complex
450,000 tonnes, but the TAC since the early 1990s has onshore processing.
declined, though it is still considerably higher than ac-
tual landings for most of the decade. During the last Nonetheless, much like with the aging infrastructure
10 years, the conservative approach adopted by the of the hake processors, the horse mackerel value chain
MFMR to managing the resource has proven effective; also faces a minimum-effort paradigm leading to inef-
the resource has shown recovery in recent years, help- ficiencies at the primary production and processing/
ing to keep the TAC stable. Rather than being driven manufacturing levels.

25
 A considerable constraint has been identified with Traditional production capacities are high, as the
regards to the highly perishable raw material. Horse freezing trawlers can process and store large volumes
mackerel, being a small and relatively oily fish, is of raw material and thus stay out at sea for long pe-
very sensitive to spoilage, which can be a risk if the riods, after which the product is stable enough to be
cold chain is not maintained correctly or if correct redistributed for retail or can be defrosted and further
processing steps are not taken soon after harvest. processed. Most of the raw material is still exported
The main constraint for horse mackerel in the post- in whole-round form. However, with the shift towards
harvesting stage of the value chain is the limited cold landing fresh, production capabilities will have to be
The main constraint
storage capacity at the Walvis Bay port. As the cold significantly improved to ensure that the fresh raw
can be summed up
chain is imperative for the sector, this is a serious material is suitably processed in a timely manner to
as a lack of prod-
shortfall. maintain high quality. This shift in production will lead
uct-development
to further onshore processing, such as the canning
research.
2.2 Transformation and Technology of horse mackerel as a substitute product for popu-
lar canned pilchard products. Hence, there are several
  opportunities in this dimension. There is scope for de-
The technologies within the hake value chain rely veloping improved or new products from horse mack-
heavily on the maintenance of the cold chain from erel, such as fish paste/pâté, smoked horse mackerel
harvest to retail. A large portion of hake processing or filleted horse mackerel.
currently occurs off shore, such as H&G, filleting and
freezing. Additional processing takes place on shore There is a noticeable local demand for dried fish, and
and revolves around glazing, forming and portioning. yet there are no commercial fish-dehydrating facilities
Currently, Namibian hake processors lack the capacity for horse mackerel. Therefore, there is an opportuni-
to produce battered and crumbed products, but some ty to develop such a facility. It could potentially be
are in the process of developing frozen marinated hake community run, as dried fish may not be viable on a
products. As the processing taking place with hake is commercial scale.
fairly simple, production capacities are typically high.
However, many hake processors have large numbers This is closely correlated with the constraint analysis
of employees for some of the processing steps, which for the hake sub-sector, indicating that product devel-
diminishes overall efficiency. opment is an industry-wide concern. The main con-
straint can be summed up as a lack of product-devel-
The horse mackerel value chain has historically de- opment research. Very little industry-generated profit
pended on freezer trawlers with plate freezing capac- is currently being seeded back into product research
ity, ensuring that a majority of the processing takes and development (R&D), and very little independ-
place off shore. However, as mentioned in the previ- ent research is being conducted within the two value
ous chapter on input sourcing, there has been a fair- chains on processing and manufacturing. Hence, op-
ly recent shift in the form of RSW vessels with the portunities for potential new product categories and
capability to land horse mackerel fresh for onshore improvements and innovations around existing prod-
processing. This reduces losses and improves quality ucts, which would otherwise be discovered through
in downstream processes and products, as outlined baseline R&D, are not being realised. While some enti-
above. Additionally, the fresh landing allows the adop- ties are doing this research, it may be more in line with
tion of IQF technology. This permits a wider product their current markets and therefore overlook the local
range and differentiation of products and markets for and regional markets, or the R&D may lack efficacy for
more convenient frozen horse mackerel products. technical or capacity reasons.

26
There are several opportunities within the production 2.3 Product Distribution and Trade
and technology dimension in both the hake and the
horse mackerel value chains. Currently, most waste The majority of the annual hake catch is exported to
materials and residues are processed into relatively the Spanish market, where prices have remained sta-
low-value fishmeal and oil. Some residues are even ble and relatively high for a prolonged period. Spain is
discarded. Hence, there are opportunities within deep the largest importer of hake in Europe. While a small
processing technologies to convert these wastes into portion of Namibian hake is still exported whole, gut-
much higher-value products. However, further re- ted and fresh by air directly to Spain, the majority is There is an
search is required on the feasibility of this. typically exported in IQF fillet form to Spanish whole- opportunity for
salers or directly to retailers. At the same time, pric- research and
Processing in general is very energy intensive, and es for minimally processed hake products (Tiers 1 & feasibility studies to
fish processing is no exception. Energy costs for the 2) have not increased as much as those for more ad- be conducted.
industry, whether for electricity or fuel, are prohib- vanced processed products (Tiers 3 & 4).
itively high. These factors drive up the costs of the
final products, affecting profit margins and reducing The Spanish market is always receptive to Namibian
industry competitiveness. However, numerous existing hake, as the fish is always in high demand there. How-
technologies are available for producers to save on en- ever, South African hake is MSC (Marine Stewardship
ergy, either through improved efficiency or alternative Council) certified, giving it a distinct advantage in the
energy production. Therefore, there is an opportunity European market over Namibian hake, which is not
for research and feasibility studies to be conducted, to certified for sustainability.
make the marine-resource-processing industry aware
of such options. A smaller percentage of Namibian hake is exported to
South Africa as frozen fillets or in headed and gutted
In both value chains, there is an opportunity for re- form for retail or for further processing into portions
search into new packaging technologies, particular- or battered and crumbed products. Namibian hake is
ly in the horse mackerel value chain regarding retort commonly retailed under large South African brands
packaging, jarring or modified-atmosphere packaging such as Sea Harvest and I&J.
for consumer products.
Other markets for Namibian hake are small, such as
Lastly, due to the typically uncertain nature of raw ma- Germany, which imports only about 3% of the annual
terial availability, especially in the hake sub-sector, it is Namibian harvest through a German–Namibian joint
generally difficult for the marine-resource-processing venture, All-Fish. Markets in Northern Europe such as
industry to justify high capital investments to acquire Germany have higher barriers to entry, as their retail-
new equipment, machinery and technologies. Invest- ers prefer recognisable sustainability guarantees and
ment support structures may be key to encouraging certifications such as the MSC eco-label. Therefore, if
the necessary industrial upgrading, as well as to the the products were marketed correctly, higher values
industry becoming more competitive on an interna- could be realised compared to the other main market
tional scale through new technology uptake. Without shareholders.
such support, much of the industry will continue to
operate with aging infrastructure, decreasing efficien- Hence, a current constraint to growth of the local hake
cy throughout the value chains. value chain is the absence of joint branding or eco-la-
belling efforts, leaving the local hake processors to
compete against each other as well as against inter-

27
 national hake processors, even when the internation- the way horse mackerel products can be processed
al products are usually considered inferior in quality. and marketed and will contribute to the diversification
It follows that a national product differentiation and of horse mackerel products, markets and price points
branding effort, inclusive of all Namibian hake proces- in the future. However, a major constraint to this shift
sors, could potentially increase product recognition towards onshore processing is the enormous capital
and thus lead to higher value perceptions within key investment required to change from freezer trawlers
markets. A Namibian hake brand (quality seal of ap- to RSW vessels, as well as to build new onshore pro-
proval) for hake processors to add to their own brand- cessing facilities. The markets may change with the
ing efforts could also help to unify Namibian hake and shift to landing horse mackerel fresh as higher-value
mitigate the risks of inferior hake harming the rep- products become possible.
utation and quality perception of Namibian hake. In
addition, a sustainability certification scheme for Na- The NFCPT (Namibia Fish Consumption Promotion
mibian hake products would enhance distribution into Trust), governed by the MFMR, has the mandate and
IDENTIFIED diversified and potentially higher-paying markets. The the infrastructure to deliver locally harvested horse
OPPORTUNITIES options are to either join a globally recognised sus- mackerel to the rural areas of Namibia. It is suggested
FOR AND tainability standard, such as MSC, or develop Namib- that the business model of the NFCPT could shift more
ia’s own local sustainability standard, as Iceland did towards cost recovery and selling at market-related
CONSTRAINTS through its Iceland Responsible Fisheries label. How- prices so as not to inhibit private-sector involvement
TO INDUSTRY ever, using an established sustainability certification within the local horse mackerel distribution chain. An
GROWTH such as MSC would probably be more beneficial in the underdeveloped local distribution chain makes it diffi-
short and medium term. cult for Namibian processors to access the Namibian
market. It is also noted that the MFMR intends to allo-
Horse mackerel is currently being marketed as one of cate 30% of issued quotas to local distribution. While
the cheapest protein sources in African markets. The this will be a major step in the right direction when
large majority of horse mackerel is being sold as fro- the distribution networks are sufficiently developed,
zen whole rounds in 5–20kg blocks to end consum- the industry isn’t yet at that stage, and as such this
ers in Zambia, Mozambique, the Democratic Republic move might be premature unless secondary options
of Congo and South Africa. This ensures a high and are considered. In addition, it is not always clear to
continuous regional demand but also entails the con- the consumers whether they are purchasing Namibian
straint that these markets are very price sensitive. This horse mackerel, due to the common practice of retail-
price sensitivity has historically kept most processing, ers repackaging horse mackerel into smaller portions.
beyond simply freezing whole, to a bare minimum The traceability is usually lost, as the original informa-
to ensure the highest profitability margins possible tion is not always included on the new packages. Main-
while keeping the product affordable for end consum- taining traceability is important from public health
ers. As mentioned above, recent trends in RSW off- and consumer protection standpoints, because in the
shore storage and onshore processing are changing possible case of contamination or spoilage it is imper-
this status quo. Pressure from the government to add ative to be able to identify the source of the danger
more value to this marine resource, as well as food as soon as possible. Therefore, it is recommended that
security issues and the search for additional market local traceability is better enforced throughout the re-
opportunities, have encouraged some horse macker- tail chain and that any repackaged products should
el processors to migrate from primarily offshore pro- include correct traceability information.
cessing towards landing fresh. This shift is changing

28
Despite the activities of the NFCPT, fresh and frozen as the fishing associations, do not seem to provide
horse mackerel seem to be scarce within the local comprehensive services to their respective members
market, both for consumers and local fish processors in the fields of processing and manufacturing. In fact,
looking to add value. This boils down mostly to logis- the majority of the public and private service provid-
tical constraints. Distribution-chain improvements ers focus on fishery service provision, leaving room
may provide better access to horse mackerel, which for more assistance to the marine-resource-process-
would enhance food security and potentially encour- ing industry.
age further value addition to horse mackerel products
within the local market. A local consumer awareness One opportunity is a result of the Namport expansion:
drive could be conducted to educate local consum- the ongoing development of a new port in Walvis Bay
ers on horse mackerel as a sustainable, local, healthy may allow for the repurposing of the existing port to
and affordable protein source. Activities could include be better suited for the fishing and fish-processing in-
school lunch programmes and print media campaigns dustries. It is suggested that the new port will focus
for better awareness and more demand. primarily on container ships, potentially leaving room IDENTIFIED
Another opportunity related to international trade for the old port to cater more for both the fisheries OPPORTUNITIES
with horse mackerel products could result from free and the seafood industry. FOR AND
trade agreements. At the moment, import and export
duties within regional markets can be prohibitive for Regarding capacity development, there are no local CONSTRAINTS
the trade of horse mackerel products. Therefore, a tri- training courses offered for higher-level technical per- TO INDUSTRY
partite free trade area between Namibia and the major sonnel within the industry. NAMFI, the sole provider GROWTH
African horse mackerel markets could be negotiated of training for the fisheries sector, caters only for low-
to encourage more regional trade. er-skilled personnel. This forces the fishery sector to
send their staff for training internationally, which is
Along with the regional markets, China has been iden- expensive. Instead, a training institute in Walvis Bay
tified as a potential major market for Namibian horse could be set up to provide accredited training courses
mackerel products. However, China’s imports are con- locally for higher-skilled personnel.
trolled through the China Inspection and Quarantine
Declaration. Currently, Namibian horse mackerel is not The main constraint to support service delivery is lim-
recognised by the Chinese border authorities, severe- ited access to finance. This is a broad constraint for
ly limiting access to this market. It is therefore recom- both industries which, as already highlighted, require
mended that efforts be made to ensure that Namibian sizable capital investment at both the primary pro-
horse mackerel is formally recognised by the CIQ to duction and the processing and manufacturing lev-
allow for export of final products into China. els. However, given the uncertainties surrounding raw
materials, investments are counterintuitive not only
2.4 Service Delivery to the industry but also to the financial-sector service
providers. Currently, fishing entities cannot be guar-
The meso-level assessment was completed separately anteed future raw material allocation, which keeps
for each of the two major marine resource value chains. most financial providers at bay or results in higher risk
However, the identified opportunities and constraints charges for borrowers.
were more or less identical. Many service providers
are government agencies, such as the NSI, NAMFI and
Namport, and private meso-level organisations, such

29
 2.5 Business Environment offer any raw material while the supply contracts re-
main open.
For the macro-level assessment, industry stakehold-
ers were engaged as a whole instead of in groups by Comparing Walvis Bay and Lüderitz, the ease of do-
value chain. Hence, like in the meso-level assessment, ing business varies greatly between the two port lo-
the below opportunities and constraints apply to the cations. This is a deterrent for industry to establish or
entire industry. invest further in Lüderitz, where access, infrastructure
and other costs were all generally more expensive
The marine-processing industry’s environment makes than those of Walvis Bay. Fuel cost discrepancies be-
it very challenging for potential newcomers to enter, tween Walvis Bay and Lüderitz can be highlighted, as
as SMEs especially may not have the large capital re- well as differences in certain harbour fees.
serves to buy in. However, there is potential for SMEs
to engage in the industry and help to diversify it and In general, stakeholders suggested that the fees and
IDENTIFIED potentially serve local markets with new products or levies imposed on the sector are prohibitive, and there
OPPORTUNITIES improved local distribution networks. At the primary is little clarity for the stakeholders on where the fees
FOR AND production level, a number of quota holders do not and levies are spent. Additionally, it was highlighted
have the capacity to catch their allocated quotas and that there is no regular review of such fees and levies,
CONSTRAINTS suggesting that some may not be relevant anymore.
are forced to sell their quotas to others who have the
TO INDUSTRY necessary equipment and capacity. It was suggested This indicates room for clarification in further discus-
GROWTH that the quota holders without harvesting capacity sions and potential opportunities for improvement.
should be empowered to procure their own equipment
in order to harvest their own quotas and attain their Another perceived constraint is that the quota pro-
own rights. This point links to the above-mentioned curement process is not streamlined and that there
issues of access to finance and investment support. are opportunities to improve and expedite the pro-
cess.
Several constraints to the regulatory and institutional
framework conditions were identified. Whether it be On a broader level, ecologically damaging activities
the annual biomass fluctuations leading to variable such as global warming, pollution and deep-sea min-
ing may all have detrimental effects on fish stocks in
TACs or other external factors such as the quota allo-
the long term. Stakeholders believe the government
cation system, availability and volumes of marine-re- could do more to mitigate these possible risks.
source inputs for further processing and manufactur-
ing are highly unpredictable from season to season. Lastly, industry stakeholders feel the need to improve
their communication with the relevant ministries, as
From the perspective of individual entities, the prob- well as coordination within the industry itself. In ad-
lem lies in the high, inflexible overhead costs reliant dition, stakeholders see a potential to increase trans-
on raw material supply, which can be unpredictable. parency in some of the ministerial processes, such as
Due to the raw material uncertainties and the typically manufacturing status and its related incentives.
large, rigid supply contracts, entities are reluctant to

30
3. INDUSTRY GROWTH STRATEGY
 3. INDUSTRY GROWTH STRATEGY

3.1 Vision of Industry Stakeholders

During stakeholder consultations, it became evident that along with an overall industry growth vision, it is also necessary
to define a specific vision for each of the two major product value chains. Industry stakeholders strongly voted for this
approach, as the two value chains are currently at different industry lifecycle stages and hence face not only common
challenges but also stage-specific ones. Therefore, a growth vision was formulated for the marine-resource-processing
industry at large that also outlines specific growth targets for the hake and horse mackerel value chains.

Industry growth vision:

INDUSTRY
“By 2020, the Namibian marine-resource-processing industry will have achieved qualitative growth and positioned
GROWTH
itself nationally and internationally as a competitive supplier of high-quality seafood products.
STRATEGY
Within this overall industry growth vision, horse-mackerel-processing companies will be supplying a wide range of
new value-added seafood products to more price-sensitive market segments, while hake-processing companies will
contribute to a significant increase in export earnings, mainly by supplying premium seafood products to the most
discerning global markets.”

3.2 Industry Growth Indicators and Targets

• Grow total gross value addition for selected Namibian seafood products by TBD%
(Base 2016: TBD%; Target 2020: TBD%; Data source: NSA, MFMR)
• Grow (re-) investments by processors and manufacturers by TBD%
(Base 2016: TBD%; Target 2020: TBD%; Data source: MFMR)
• Grow the share of dried, smoked and salted fish (HS 0305) and prepared or preserved fish (HS 1604) in overall ex-
ports from 7% to 15% by 2020
(Base 2014: 7%; Target 2020: 15%; Data source: NSA)

32
3.3 Strategic Objectives, Indicators and Proposed Interventions
The stakeholders identified 3 core intervention areas as follows:

Intervention Area 1: Intervention Area 2: Intervention Area 3:

Transformation and Product Distribution Business Environment
Technology and Trade

INDUSTRY
GROWTH
STRATEGY

Intervention Area 1: Transformation and Technology

Strategic Objective 1:

“Increase the production efficiency within the processing and manufacturing segment by facilitating industry-
specific research and development and incentives for technological upgrading.”

Indicators and Targets:

• Average % of cost reductions and efficiency gains for processors and manufacturers adopting new technologies
in the fields of waste-residue processing and energy savings
(Base 2016: 0; Target 2020: TBD%; Data source: MITSMED/MFMR)
• Number and total sales value of new products that have been supported by industry-wide product- and pack-
aging-development efforts between 2016 and 2020
(Base 2016: 0, NAD 0; Target 2020: TBD, NAD TBD; Data source: MITSMED/MFMR)
• Number of technological upgrading and product-innovation projects in the industry supported by new invest-
ment support schemes between 2016 and 2020 (Base 2016: 0; Target 2020: TBD; Data source: MFMR)
• Increase production volume of processed horse mackerel products by TBD% to TBD tonnes and production
value by TBD% to NAD TBD
(Base 2016: TBD tonnes, NAD TBD; Target 2020: TBD + Y tonnes, NAD TBD + Y; Data source: NSA, MFMR)
• Broaden range of processed horse mackerel products by TBD% p.a.
(Base 2016: TBD; Target 2020: TBD; Data source: MFMR, NSA)
• Broaden range of processed hake products by TBD% p.a.
(Base 2016: TBD; Target 2020: TBD; Data source: MFMR, NSA)

33
 Proposed Interventions:

Support to research on techniques for enhancing production efficiency

Key activities:
• Conduct research into opportunities for deep processing waste residues and disseminate relevant findings to
the industry
• Conduct research into and benchmark for existing cost-saving strategies and technologies for increasing energy
efficiency and disseminate findings to the industry
• Conduct research into other potential industry-wide efficiency constraints and develop measures to mitigate
these constraints

INDUSTRY
GROWTH Support to identification of best practices for production efficiency in marine-resource pro-
STRATEGY cessing
Key activities:
• Identify best practices and disseminate to the industry via a central and easily accessible portal (e.g. online
presence)
• Provide further training to processors on implementing best practices as needed
• Encourage additional knowledge exchange within the industry
• Disseminate information about procedures for obtaining equipment, e.g. via IUMP

Support to identification and use of new packaging technologies for horse mackerel prod-
ucts

Key activities:
• Identify existing packaging technologies suitable for processed horse mackerel products (e.g. retort, jar, modi-
fied atmosphere packaging) and disseminate information to the industry
• Provide support with implementation of new packaging technologies (e.g. training, support via IUMP)

34
Develop feasibility studies, facilitate technical research and provide investment support
Key activities:
• Assess current state of the industry and processing, evaluate opportunities for expansion through benchmark-
ing with international efforts and draft a report
• Facilitate applied research and feasibility studies and link local and international researchers to instigate re-
search collaborations
• Offer start-up support for new operations (e.g. equipment, technical support) and upgrade support for existing
operations

INDUSTRY
Investigate training opportunities for higher-skilled personnel in Walvis Bay in the area of GROWTH
processing and manufacturing STRATEGY

Key activities:
• Appoint a consultant to conduct research into existing training institutions
• Provide recommendations on ways to incorporate training courses for higher-skilled personnel into existing
structures or to establish a new training institute
• Implement these recommendations

35
 Intervention Area 2: Product Distribution and Trade

Strategic Objective 2:

“Enable marine-resource processors to maximise value generation through opening up new markets, improving
current market sales prices and improving traceability in the local distribution chain.”

Indicators and Targets:

• Increase share of hake products marketed under a sustainability scheme from 0% in 2016 to 25% by 2020
(Base 2016: 0%; Target 2020: 25%; Data source: MFMR, Namibian Hake Association)
INDUSTRY • Increase average price (ex-processor) of selected processed hake products via international marketing campaigns
GROWTH and sustainability schemes
(Base 2016: TBD; Target 2020: TBD; Data source: MFMR, Namibian Hake Association)
STRATEGY
• Increase value of domestic sales of processed horse mackerel products via marketing campaigns and improvements
in the local distribution chain and product traceability
(Base 2016: TBD; Target 2020: TBD; Data source: MFMR, NSA)

Proposed Interventions:

Support to Marine Stewardship Council (MSC) certification for hake

Key activities:
• Liaise closely with processors, manufacturers and the MFMR regarding MSC requirements and provide support
as needed during the certification process

Support to strategic sub-sector marketing and branding campaigns

Key activities:
• Identify industry needs for sub-sector-specific marketing and branding campaigns and develop relevant strat-
egies
• Facilitate the launch of the sub-sector marketing and branding strategies in collaboration with industry stake-
holders
• Identify the local marketing shortfalls for processed fish products
• Develop an information-dissemination and awareness campaign to encourage consumption of local processed
fish products
• Facilitate the launch of the local campaigns

36
Support to development and implementation of a local traceability system

Key activities:
• Identify key issues within local distribution chains and local traceability enforcement
• Identify which responsibilities and issues fall under which specific stakeholders and address these stakeholders
• Support the stakeholders in solving these issues and monitor improvements

Investigate opportunities for access to new markets for horse mackerel

Key activities:
INDUSTRY
• Identify options for free trade agreements with the major markets for Namibian horse mackerel
• Lobby and negotiate for free trade agreements as applicable GROWTH
• Identify options to export horse mackerel to China STRATEGY
• Lobby and negotiate for recognition of Namibian horse mackerel within the China Inspection and Quarantine
Declarations

37
 Intervention Area 3: Business Environment

Strategic Objective 3:

“Create an enabling environment for the sustainable growth of Namibia’s seafood-manufacturing industry by for-
malising the industry and improving public support to infrastructure, investment and innovation.”

Indicators and Targets:

• Effectively address X (TBD) regulatory and policy-related constraints via public–private dialogues (PPD) and nego-
tiations by 2020
INDUSTRY (Base 2016: 0; Target 2020: TBD; Data source: MITSMED, MFMR)
• Increase the share of Namibian onshore seafood processing and manufacturing companies affiliated with/organised
GROWTH in a specific industry association / committee
STRATEGY (Base 2016: 0; Target 2020: TBD; Data source: MITSMED, MFMR)
• Achieve a yearly increase in net investment in the seafood processing and manufacturing industry between 2016
and 2020
(Base 2016: 0; Target 2020: TBD; Data source: MITSMED, MFMR)
• Streamline support schemes according to the specific needs and demands of processors and manufacturers
(Base 2016: 0; Target 2020: TBD; Data source: MITSMED, MFMR)

Proposed Interventions:

Amendment of national statistics and publications to suit international standard defini-

tions of the industry

Key activities:
• Disaggregate data collection with key stakeholders as needed
• Amend national statistics and publications with regards to use of international standard definitions
• Continuously monitor and evaluate data

Facilitation of PPDs and other industry-specific coordination and negotiation structures

Key activities:
• Identify key industry-specific regulatory and policy-related issues in cooperation with industry stakeholders
• Set up suitable forums (PPDs or other negotiation structures) and encourage participation and communica-
tion
• Support stakeholders to use these structures as needs arise

38
Facilitate the setup of an operational marine-resource-processing association or commit-
tee

Key activities:
• Review existing associations for adequate representation of fish processors and manufacturers and determine
the need for a new association or committee
• Develop a business plan to ensure the new association/committee is self-sustainable and self-sufficient
• Facilitate stakeholder buy-in using the business plan via stakeholder meetings
• Facilitate the implementation of the association/committee through staffing, operating space and initial cap-
ital, e.g. for an online portal

Review existing investment support opportunities, reform existing instruments and design INDUSTRY
new instruments as needed GROWTH
STRATEGY
Key activities:
• Map existing investment support opportunities and incentives
• Review current incentive measures and investment opportunities
• Develop and introduce additional support and incentive measures as needed
• Disseminate investment directory and support industry stakeholders as needed

Investigation and development of processing and manufacturing usage of old Namport

port area in Walvis Bay

Key activities:
• Establish a committee to liaise with Namport
• Lobby for use of the old port area for processing and manufacturing
• Draft amendments for the old port for future use by processors and manufacturers

Support to negotiations with Namibia Fish Consumption Promotion Trust (NFCPT)

Key activities:
• Establish a committee to liaise with NFCPT and MFMR
• Lobby for mandate amendment as well as infrastructure setup to minimise market distortion regarding horse
mackerel
• Identify potential areas of cooperation between NFCPT and horse mackerel stakeholders

39
40
NOTES

41
NOTES

42