HORTICULTURE MARKET SHARE PROMOTION (MSP) SCHEME

The scheme is a growth-at-home strategy implemented by the Namibian Agronomic Board (NAB) and aims at stimulating horticultural production in Namibia and promoting local sales of locally produced fresh fruit and vegetables by encouraging importers such as the wholesalers, catering companies and retailers to source locally.

The scheme requires importers of fresh fruit and vegetables to procure Namibian horticultural products equivalent to at least the minimum percentage factor in monetary value per quarter, as determined and approved by the NAB Board, on recommendation from the National Horticulture Advisory Committee (NHAC). The minimum MSP currently stands at 47% and it serves as a prerequisite to obtaining an import permit, which means that only traders/importers who have achieved their minimum MSP are allowed to import horticultural products unrestricted. Traders/Importers that fail to comply with this requirement are restricted to only importing horticultural products equivalent to a predetermined monetary value obtained at the end of each quarter.

Initially, the MSP started at 5% in 2005. However, the intervention led to an increase in local fruit and vegetable production to the current 47%. The MSP trends over the years also indicate that in 2012 the MSP stood at 37.5%, with 39% for 2013, 41.5% for 2014, 44% for 2016 – 2018, 47% from 2019 to present. This means that local production contributes 47% to the horticultural (fresh fruit and vegetables) domestic demand and the remaining 53% is imported mainly from South Africa, and this is from a formal trade perspective, excluding informal markets.

The implementation of the MSP scheme is funded through horticulture levies. The NAB collects 1.4% levy on sales from local producers, 5% on horticulture imports, and 1.4% from traders as a general purchasing levy.