Kelp Blue Plans N$3 Billion Investment in Namibia Over Next Four Years

Kelp Blue, an ocean-based sustainability company, anticipates investing more than N$3 billion in Namibia’s economy over the coming three to four years, according to Co-Founder Daniel Hooft. This follows an initial N$350 million already invested.

“We have put in about N$350 million and continue to spend around N$80 million annually to maintain operations. Depending on the scale of forest expansion, there’s an additional N$100 million needed,” Hooft said.

Hooft noted that with stronger sales, Kelp Blue could increase its production capacity significantly, aiming to boost annual output from 3,000 tonnes to over 50,000 tonnes.

“We expect those numbers to multiply tenfold and could potentially invest another N$3 billion over the next three to four years,” he said, indicating that the company’s biostimulant product for agricultural crops would be key to funding the expansion.

Hooft highlighted that farmers’ cautious approach has slowed sales growth. “Farmers are highly data-driven, and with crop cycles, they often want to test the product on a small portion of their land first, which makes sales a gradual process,” he explained.

Regulatory delays have also posed challenges, Hooft added. Kelp Blue has obtained registrations in 17 countries and recently received approval to sell its crop products across Europe. Several countries in southern Africa are also on board, he said.

However, delays in securing registrations in Namibia and South Africa have impacted the company’s revenue, costing it roughly N$15 million in monthly sales. Hooft suggested that a temporary registration from Namibia’s Ministry of Agriculture, Water and Land Reform could alleviate these delays.

Despite these challenges, Hooft praised the support from Namibia’s Investment Promotion and Development Board and the Ministry of Trade and Industrialisation.

“The Ministry of Fisheries and Marine Resources and the Ministry of Environment, Forestry, and Tourism have been a pleasure to work with. The regulatory hurdles with agriculture have been the biggest and only difficulty in doing business in Namibia so far,” he said.

During a recent media visit to Kelp Blue’s operations in Lüderitz, organized by the Namibia Investment Promotion and Development Board, Kelp Blue Deputy Operational Manager explained the company’s sustainable kelp farming practices.

“We farm with giant kelp, harvesting only about 10% of the top canopy. This is then taken to our factory to produce biostimulants for agricultural use,” she said, adding that selective harvesting is crucial to kelp regrowth and channeling new energy into the plant.