Namibia: Individual Fishing Quotas to End, Nandi-Ndaitwah Announces

• President Netumbo Nandi-Ndaitwah announced that individual ownership of fishing quotas in Namibia will end.
• This policy change is driven by fish scarcity and coincides with the expiry of many fishing rights in December and May.
• The previous system, criticized for enriching politically connected individuals, led to significant lost tax revenue.
• A 2020 High-Level Panel on the Namibian Economy recommended open bidding for fishing rights and a moratorium on new allocations.
• Auctioning a small portion of quotas previously generated N$1.5 billion in five years, demonstrating potential for increased public revenue.

The shift away from individual ownership of fishing quotas is therefore not just an economic adjustment but a social imperative.

President Netumbo Nandi-Ndaitwah recently declared a significant shift in Namibia's fisheries policy, announcing that individual ownership of fishing quotas will cease. This pivotal decision, made during a town hall meeting in Swakopmund, signals the end of a long-standing practice. The President explicitly stated that the nation can no longer sustain the allocation of quotas to individuals, citing a scarcity of fish resources. This move comes at a critical juncture, as numerous existing fishing rights are set to expire, with some lapsing in December and others in May of the following year, paving the way for comprehensive Nandi-Ndaitwah fishing rights changes.

For decades, the allocation of fishing rights in Namibia has been a contentious issue, frequently leading to the enrichment of a select few with political connections. The "Namibianisation" of the industry, intended to benefit citizens, instead saw politicians and their associates allocate valuable rights and quotas to themselves, their relatives, favored institutions, and other cronies. This system has been widely criticized for fostering rent-seeking behavior rather than broad-based economic development.

The call for a fundamental overhaul of Namibia's fishing rights system is not new. This publication has consistently advocated for the government to dismantle the existing framework, which includes governmental objectives quotas, in favor of a transparent public auction system. This recommendation gained significant traction from the High-Level Panel on the Namibian Economy, which in March 2020, advised a moratorium on new rights and quotas, alongside open bidding for all remaining allocations. The panel underscored that granting fishing rights and quotas for free to individuals who lack vessels and merely sell them off is highly questionable, asserting that the benefits derived from these resources should be distributed for the collective good of all Namibians.

The economic implications of the previous system are stark. Namibia has forfeited substantial tax revenue that could have bolstered public services, a direct consequence of these rent-seeking policies. For many decades, the government struggled to collect more than N$150 million annually from fishing levies and licenses. In sharp contrast, the Ministry of Finance demonstrated the potential of a revised approach by raising N$1.5 billion over five years through the auctioning of just a small fraction of the total fishing quotas. This success highlights the significant financial gains possible through a comprehensive Namibia fishing quota auction system.

The proven success of limited quota auctions suggests that the government could readily triple its income by implementing a full-scale public auction model. Such increased revenue could then be specifically allocated, or "ring-fenced," for essential public services and projects, including critical housing initiatives. This potential stands in stark contrast to the current reality, where a few hundred Namibians have amassed wealth by acquiring free rights and quotas, while the nation's fishing sector workers have seen their numbers dwindle and their economic standing decline. The shift away from individual ownership of fishing quotas is therefore not just an economic adjustment but a social imperative.

Implementing such a radical Namibia fisheries policy reform, however, is fraught with challenges. As political philosopher Niccolò Machiavelli observed, introducing a new political order inevitably creates adversaries among those who benefited from the old system. Conversely, those who stand to gain from the new order often hesitate to defend it until its success is firmly established. President Nandi-Ndaitwah faces this very dilemma, as powerful beneficiaries, potentially including some of her own ministers and executive directors, may resist the dismantling of a system that has long served their interests.

For the new policy to truly succeed and avoid a return to past inequities, stringent measures must be put in place. The ultimate test of this reform will be whether all quotas are subjected to open auction, and crucially, whether they can be traded or leased for profit by the winning bidders. Furthermore, complete transparency regarding the beneficial owners behind every successful bidding company must be ensured, and any advantage for firms linked to politicians or the ruling party must be unequivocally prevented. Robust rules are essential to close any loopholes that might allow the same entrenched beneficiaries to re-enter the system through front companies or by selling off newly acquired rights.

This bold step by President Nandi-Ndaitwah, aiming to end Namibia individual fishing quotas, represents a significant moment for the nation's economic future and social equity. It echoes the sentiment of former Burkina Faso leader Thomas Sankara, who famously stated, "You cannot carry out fundamental change without a certain amount of madness. In this case, it comes from nonconformity, the courage to turn your back on the old formulas, the courage to invent the future." The responsibility now rests with the leadership to translate this principle into a fully transparent and equitable system.

Lawyers advising clients in Namibia's fishing sector must prepare for significant changes to fishing rights and quota allocation, moving away from individual ownership towards potentially public auction systems, especially as current rights expire in December and May. Compliance officers should monitor new regulations to ensure adherence to revised beneficial ownership and allocation criteria.

Source: Original reporting via The Namibian editorial