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Namibia’s Charcoal and Beef Industries Under Threat

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The European Union’s (EU) recent imposition of stringent regulations on agricultural products from Namibia has sent shockwaves through the country’s economy. The new rules, which came into effect in 2023, are designed to combat deforestation and have significant implications for Namibia’s charcoal and beef industries.

The EU’s unilateral decision, known as the Deforestation Regulation (EUDR), has sparked concerns about market access for products that originate from deforested areas. Namibia, a major exporter of charcoal and beef to the EU, faces the prospect of losing a significant portion of its market if it cannot comply with the new requirements.

“The regulations are stringent and prohibitive,” Agriculture Minister Calle Schlettwein warned. “Farmers must be mindful of their practices and ensure they comply with these rules.”

The chairperson of the Namibia Biomass Industry Group, Colin Lindeque, however, insists that the EUDR will not hurt exports to the EU. He argues that the EU is simply seeking additional information, such as geographic location tags, to verify that the charcoal being exported does not originate from deforested areas.

Schlettwein, however, disagrees with Lindeque’s assessment. “We have many industries in the agricultural sector that do have an impact on deforestation,” he said. “Farmers must be cautious and ensure they are complying with the regulations.”

The EUDR has highlighted ambiguities in Namibia’s laws regarding the definition of forests, woodlands, and savannahs. The country’s Ministry of Environment is currently revising its Forestry Act to address these inconsistencies.

Director of Forestry Johnson Ndokosho emphasized the importance of complying with the EU’s requirements. “If they found that our beef is coming out of a deforested area, it could affect our exports,” he warned.

Namibia’s charcoal industry is a significant contributor to the economy, with exports reaching 270,000 tons worth $72 billion in 2023. The EU is the primary destination for Namibia’s beef, accounting for approximately 80 percent of total exports.

The new EU regulations are not limited to Namibia. Other countries, including Brazil, Cameroon, and Nigeria, are also affected. Products such as cocoa, soy, palm oil, and coffee are among those subject to the EUDR.

As Namibia grapples with the challenges posed by the EU’s regulations, it is clear that the country’s future economic prosperity is increasingly tied to its ability to adapt to changing global markets and environmental standards.