Market Share Promotion
HORTICULTURE MARKET REGULATIONS
The Namibian Agronomic Board regulates the horticulture industry through the Market Share Promotion (MSP) scheme, which is implemented by AMTA as the agent of the NAB.
In terms of the MSP, importers of fresh horticulture produce are required to source a minimum percentage of their products from Namibian producers, prior to qualifying for an import permit in a given quarter.
The initial MSP threshold was set at 5% in 2005, which increased to, and remained at 44% during the 2017/18 period. The MSP % that traders need to achieve, is determined by the NAB, through mutual industry consensus based on references for the availability of local produce as recommended by the National Horticulture Task Team (NHTT).
The objective of the MSP is to create a more dynamic and favourable marketing environment. Traders are encouraged to engage producers through commissioning planting agreements, to increase local sourcing. Producers are therefore motivated to increase production according to market demand, as the marketing risk is reduced. Ultimately, by implementing the MSP, the investment in the Namibian agriculture sector is stimulated.
The implementation of the MSP scheme is funded through horticulture levies. According to the Government Gazette of 31 December 2014, AMTA collects 1.4% levy on sales from local producers, 5% on horticulture imports, and 1.4% from traders as a general purchasing levy.