Total Allowable Catch (TAC) allocation: the industry awaits the crucial weighting of its categories

Namibian Fishing Sector Voices Frustration Over Licensing Delays and Quota Auction System

NAMIBIA
Wednesday, April 30, 2025, 00:10 (GMT + 9)

Industry leaders at annual meeting express concerns that bureaucratic inefficiencies and governmental quota practices hinder growth, investment, and Namibianization.

During the annual meeting of the Namibian fishing industry at Walvis Bay, the Confederation of Namibian Fishing Associations (CNFA) Chairperson, Matti Amukwa, articulated significant frustrations hindering the sector's progress.

A key concern highlighted by Amukwa was the detrimental impact of delays in vessel licensing. He emphasized that these delays disrupt the continuous supply of raw materials to processing facilities, leading to substantial costs for companies and lost fishing days for right holders. The CNFA urged the Ministry to streamline this process to avoid unnecessary operational disruptions.

Furthermore, Amukwa stressed the industry's need for a predictable quota allocation system that rewards right holders based on tangible contributions such as employment, investment, and operational performance. He noted the significant capital invested by right holders and operators in catching, processing, and cold storage infrastructure, underscoring the necessity for consistent fishing and processing schedules to ensure a steady market supply. While acknowledging the collaborative development of a scorecard for Total Allowable Catch (TAC) allocation, the industry awaits the crucial weighting of its categories.

The CNFA also voiced its strong disapproval of quota trading and called for stricter control and penalties for such practices, advocating for a system that prioritizes genuine investment and job creation within the industry.

A particularly contentious issue raised was the government's increasing role as the largest quota holder, a position that lacks the obligations imposed on traditional right holders. Amukwa argued that this governmental quota issuance is contributing to job losses and reduced value addition within the Namibian seafood processing sector.

The auctioning of fishing quotas to the highest bidder was heavily criticized as a practice that undermines value maximization and effectively reverses the rights-based management system, pushing Namibia back towards a vessel-based approach. This auction system, Amukwa contended, discourages "Namibianisation" by favoring operators without long-term commitments over established companies employing numerous Namibian workers and new domestic entrants to the fishing business. He likened the auction system to a "lottery" that hinders long-term planning and discourages value-added innovations due to the unpredictable nature of quota acquisition and the government's limited ability to impose further conditions post-auction.

Echoing these concerns, fishing rights holder Vetaruhe Kandorozu questioned the Ministry's intent to invite new right holders amidst declining TACs and urged the government to divest from the quota business entirely. He proposed a system where the industry manages the quota, pays increased levies, and undertakes vessel ownership and operation, arguing that the current auction system inadvertently empowers foreign entities who are often the only ones capable of affording government quotas, creating unfair competition for Namibian businesses.

Herman Honeb from the Hanganeni Artisanal Fishing Association (HAFA) advocated for the formal recognition and support of the small-scale fishing sector through a dedicated legal framework, expressing concern that the current focus remains predominantly on large-scale operations.

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