Roots project turns Stampriet into oasis

A N$100 million investment in an agricultural project has turned Stampriet village in the south into an oasis in the arid Hardap region.

The Roots Development project is being conducted on a 3 200-hectare farm situated 64 kilometres north-east of Mariental.

According to a profile brochure, the project entails a self-sustaining township for the integration of agriculture, education and other supporting commercial trades.

The company also acquired an additional N$30 million loan from the Capricorn Group in October 2020 for infrastructure development and only N$20 million has been drawn so far, the brochure said.

In an exclusive interview one of the directors, Salomon Kalondo, said the project is based on the concept of agricultural towns that first create a mini-local economy and then grows to export products to the international market.

“The greater vision is to roll out this model and establish an agricultural town in each of the 14 regions of Namibia.

“These towns will empower the youth who want to venture into the formal agricultural sector through either becoming an entrepreneur who creates jobs, or by being employed as a well-trained employee,” said Kalondo, pointing out that currently there are no other projects similar to Roots in the country.

The farm, which employs 350 people in different sections produces blueberries, apples, table grapes, citrus fruit and poultry. More workers will be employed as the project expands.

“The farm is the only commercial producer of apples in the country and also has intensive sheep farming and a piggery,” said Kalondo.

He said the aim is to ensure food security in the country, the transfer of skills and promote import substitution of agricultural produce.

“Agriculture plays an important role in both social and economic dimensions in Namibia and despite the presence of commercial farms, Namibia still depends on food imports from South Africa, Zambia, Botswana and Europe,” Kalondo said.

The company subdivided part of the farm into smaller units of a minimum 10 hectares, to create small farms for different entities and individuals.

“Some of these farmers will be trained at the Roots Agricultural College together with some of our farmworkers to empower them and enhance food security,” he said.

The vision of the Roots Agricultural College is two-fold. Firstly, in collaboration with Stellenbosch University in South Africa, it will be the research centre for global warming and climate change. This centre offers an opportunity for international research partners to come to the country that is ideally located for research on climate change, according to the brochure.

Secondly, the college will train young individuals on precision farming and new technologies to enhance food security and job creation.

Kalondo said because of different maturity times of different activities, the project had not broken even yet although they expect to do so in the next three years. Immediate expansion plans are set for the chicken business as this is seen as a low-risk entry point for investors.

According to the company, Namibia currently imports more than 16 800 tonnes of poultry meat per year but with intensive farming, more chickens can be produced in the country.

Roots has secured off-take contracts, locking in future sales of chicken but the full capacity of the company’s broiler unit does not even represent 5% of current chicken import levels, so the company will not meet the current shortage and ever-growing need for chicken in Namibia.

“At least N$20 million is being raised to expand the hatcheries, broiler house and abattoir, as well as for working capital. The additional capital will see production increase from 20 000kg to 50 000kg per month, generating revenue of N$36 million in year one and earnings before interest, taxes, depreciation, and amortisation of N$8,7 million, and N$14,2 million in year two.”

Roots says it will invest at least N$18,5 million to establish the first phase of the college which will offer diplomas and certificates up to a bachelor degree in agriculture.

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