Staff Reporter
WINDHOEK, Oct. 1 — The Namibian government has recently launched another round of bidding for its monkfish quota, putting 600 metric tons (MT) up for sale. The aim of this initiative is to generate revenue that will contribute to the country’s federal budget. This move follows the implementation of the fishing quota auction program in Namibia three years ago, which has seen a mixed performance despite its promise of transparency and reform.
A Troubled History
Namibia introduced its fishing quota auction scheme in 2020, shortly after the widely-publicized “Fishrot” scandal came to light. The scandal involved allegations of government officials accepting significant payoffs from Icelandic fish-processing company Samherji in exchange for fishing rights originally allocated to Namibia’s state-owned fisheries company, the National Fishing Corporation of Namibia (FISHCOR).
In response to this scandal, the Namibian government aimed to establish a more transparent quota auction program. This revised program stipulated that local operating companies would be entitled to 40 percent of government quotas sold.
However, the program faced initial challenges as it struggled to regain the trust of seafood industry investors. The first auction in August 2020 resulted in the sale of just 1.3 percent of government-held fishing rights and quotas. The Namibian Ministry of Fisheries and Mineral Resources attributed this poor performance to the participation of bidders who lacked a substantial presence in the fishing industry and, in many cases, did not own vessels.
Progress Made
Despite a rocky start, subsequent auctions in Namibia have shown improvements. In 2021, the country conducted six auctions for government-held fishing quotas, generating NAD 567 million (USD 29.9 million, EUR 27.8 million) in revenue for the nation’s treasury.
The recent monkfish quota auction marks the second auction carried out by the Namibian government in 2023, following the successful horse mackerel sale in March, which raised NAD 52.3 million (USD 2.76 million, EUR 2.57 million) in revenue.
Future Outlook
The outcome of the 2023 monkfish bidding, which ran from September 4th to September 15th, will be revealed at the end of September. It remains uncertain whether the government will successfully auction all 600 MT of monkfish quota.
However, the decision to auction more fishing rights and quotas underscores the government’s commitment to utilizing this mechanism to raise revenue and enhance transparency in the fishing sector. While challenges persist, Namibia is determined to learn from past mistakes and build a more accountable and efficient fishing industry that benefits the country’s economy and its citizens.
