NCCI urges FMD compliance to minimise impact…disease confined for now as private sector reaffirms support

The Namibia Chamber of Commerce and Industry (NCCI) has urged businesses and farming communities to strictly comply with veterinary directives and movement restrictions after confirming Foot-and-Mouth Disease (FMD) in the country’s previously FMD-free zone.

The Chamber warned that the outbreak poses a significant threat not only to livestock producers, but also to transport, auctioneering, meat processing, banking, insurance and other businesses linked to the agricultural value chain.

NCCI President Vetumbuavi Mungunda said Namibia’s ability to contain the outbreak would depend on coordinated action by Government, farmers and the private sector.

“Namibia has the institutional capacity to manage this outbreak successfully, but only if all stakeholders act with urgency and discipline,” Mungunda said.

“With over 60% of our country’s livelihoods dependent on the agricultural sector, with most livelihoods directly linked to the livestock subsector, this outbreak poses the greatest risk to our country’s immediate capacity to feed its citizens.”

He said the consequences would extend well beyond farms, with disruptions potentially affecting transport, auctioneering, processing and banking.

“This is a moment for national unity. We must protect our livestock sector, safeguard food security, and maintain confidence in Namibia’s agricultural reputation. The private sector stands ready to support Government in the national response effort,” Mungunda said. The NCCI said it would continue engaging government, veterinary authorities and industry stakeholders to ensure containment measures remain scientifically sound, proportionate and economically balanced. It also plans to consult businesses across agriculture, logistics, retail, banking and insurance to identify the economic challenges created by the outbreak and develop mitigation measures. The Chamber has called on financial institutions and insurers to provide responsive and flexible support to affected businesses, with appropriate policy support from regulators. It also encouraged further contributions to the national FMD Support Fund, commending businesses that have already provided financial and other resources towards containment efforts. Maintaining confidence among international trading partners will also be critical, the NCCI said, as Namibia seeks to limit unnecessary trade disruptions.

**Bank Windhoek reaffirms pledge **

Against this backdrop, Bank Windhoek has reaffirmed its N$2 million commitment to Namibia’s FMD Support Fund, originally made in February 2026.

The commitment has taken on greater significance following the confirmation of the disease inside the country’s internationally recognised FMD-free zone.

Bank Windhoek Managing Director James Chapman said the original pledge was intended to strengthen national preparedness and protect agriculture, livelihoods and food security.

“When Bank Windhoek pledged N$2 million to the FMD Support Fund in February 2026, our commitment was driven by the need to strengthen Namibia’s preparedness and protect the agricultural sector, the livelihoods it supports and our national food security,” Chapman said.

“With the confirmation of an outbreak, that commitment takes on even greater significance.”

The Ministry of Agriculture, Fisheries, Water and Land Reform confirmed the outbreak on 23 September after taking samples from cattle showing clinical signs of FMD on a commercial farm in the Karasburg State Veterinary District in the //Kharas region.

Ten of 11 samples tested positive at the Central Veterinary Laboratory in Windhoek. Authorities subsequently suspended the movement of cloven-hoofed animals and their products nationwide, and also suspended imports and exports of cloven-hoofed animals.

According to Simonis Storm’s research team, the restrictions extend to cattle, sheep, goats, pigs and game, as well as products including hides, dairy and meat. The nationwide restrictions could mean economic consequences that extend well beyond the affected farm and the beef industry.

The outbreak has also come at a difficult time for livestock producers, who had begun rebuilding herds after two years of destocking and were preparing to market animals.

With movement restrictions preventing sales, farmers may have to retain livestock and absorb additional feeding costs through the end of the dry season.

**Markets at risk **

The outbreak’s location is particularly significant because //Kharas falls within Namibia’s recognised FMD-free zone south of the veterinary cordon fence.

That status has taken decades to establish and has supported Namibia’s access to premium international beef markets.

Simonis Storm estimates that approximately 60% of Namibia’s beef export earnings, worth around N$3.3 billion annually, come from European, British and Norwegian markets. These markets apply stringent sanitary requirements and are expected to be among the first to react to the loss of FMD-free status.

While Namibia could potentially restore its WOAH-recognised status relatively quickly if it contains and eradicates the outbreak, regaining access to individual export markets could take significantly longer.

“12 to 24 months remains realistic for full premium market access,” Simonis Storm said, citing the need for audits, surveillance and renegotiation of bilateral export protocols.

**Financial consequences **

Financial services firm Simonis Storm noted that the Agriculture Minister told Parliament in February that approximately N$1.5 billion was required for FMD prevention and preparedness, compared with only N$57.5 million Cabinet had approved at the time. The industry-led FMD Support Fund has raised close to N$13 million.

Simonis Storm now estimates the outbreak could ultimately cost the national budget approximately N$1.8 billion under its base-case scenario. The outbreak is also likely to put increasing pressure on agricultural lenders, as Simonis Storm expects banks and other agricultural financiers to receive more requests for loan restructuring in the next quarter as farmers face lost income, higher feeding costs, and potentially weaker livestock and farmland values. The research firm also expects more agricultural loans to be classified as higher risk by year-end.

“Livestock insurance usually excludes notifiable diseases, so losses stay with farmers and their banks,” Simonis Storm said.

Emerging and resettled farmers are considered particularly vulnerable because of their thinner financial buffers. Development-finance institutions could also face significant pressure, given existing arrears in the agricultural lending sector. Although agriculture represents a single-digit share of private-sector credit for commercial banks, Simonis Storm said the risk is concentrated in rural branches and agricultural loans secured against farmland and livestock. Bank Windhoek said it would continue engaging with government, industry bodies and other stakeholders as the national response develops.

“The Bank will continue to engage with government, industry bodies and other stakeholders as the national response develops,” Chapman said.

For Namibia’s livestock industry, the immediate priority is containing the outbreak while protecting the economic foundations built around the country’s FMD-free status.

The N$2 million Bank Windhoek pledge, made before the outbreak was confirmed, is now part of a much broader private-sector response that could prove critical as Government, farmers and financial institutions confront an economic shock whose eventual cost could run into billions of dollars. *–ebrandt@nepc.com.na *

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