Fish auctions rake in N$408m for Covid
04 November 2021 | Fishing
Namibia has been able to raise approximately N$408 million from recent hake, horse mackerel and monk auctions, finance minister Iipumbu Shiimi informed Parliament.
Government auctioned 15 948 metric tonnes of hake, raising N$189.8 million; 87 500 metric tonnes of horse mackerel, raising N$128.6 million, and 392 metric tonnes of monk, raising N$4.3 million, the minister told lawmakers this week. “The auctions were held at different dates and subsequently raised a total of N$408.6 million, inclusive of N$62 000 raised from application fees,” Shiimi said.
Government had been able to raise an additional N$86 million from a recent horse mackerel quota sale to the Democratic Republic of Congo (DRC), he said, following poor take up and a residual balance of 27 300 metric tonnes of horse mackerel. “Subsequently, given the quantum of the metric tonnes available and with six months remaining on the horse mackerel fishing season coupled with the limited demand from domestic players, the ministry of fisheries engaged the government of the DRC, which expressed desire to take up these remaining metric tonnes,” the minister said.
That country’s government successfully settled its financial obligations – to the tune of N$85.7 million - on 7 October.
“As normal auction rules dictate, the quota was sold at the average price of the auction for horse mackerel. This approach increased the total metric tons for horse mackerel from 60 200 metric tons originally sold on auction to a full allocation of 87 200 metric tons at N$214 million,” Shiimi said. The proceeds from the auction will fund government priorities, especially in the health sector, which needs additional funds to combat Covid-19, he added. Given the outcome of the auctions, it has also convinced government that auctions remain an appropriate method of exploiting quotas allocated for governmental objectives, the minister said.