Namibia’s Charcoal Industry: Driving Job Creation, Economic Growth, and Sustainability

Namibia’s charcoal industry has generated 14,500 jobs nationwide, mostly in rural regions, according to a new report.

The sector, a vital contributor to Namibia’s employment landscape, is increasingly becoming central to government strategies aimed at expanding economic growth, overcoming industry challenges, and boosting job creation.

Namibia’s industrialisation and trade agenda relies heavily on the charcoal industry, which has significantly enhanced export potential, generated foreign currency, and bolstered rural household incomes, according to the Charcoal Price Discovery Platform Final Report.

"The sector significantly enhances export potential and generates foreign exchange while creating employment, as approximately 14,500 people benefit from direct and indirect jobs within the charcoal value chain, establishing the product as a key contributor to household incomes, especially in rural communities," the report stated.

Namibia's bush encroachment — affecting over 30 million hectares of rangeland — is exacerbated by unsustainable land practices, higher atmospheric CO₂ levels, and diminished rainfall linked to climate change, the report said.

“Selective bush harvesting for charcoal production offers a dual benefit by restoring valuable grazing land and providing farmers an income source,” it noted.

While charcoal production has been a fixture in Namibia for over three decades, with operations primarily in commercial farms across central and northern regions, small-scale producers operate in areas like Otjozondjupa, Omaheke, and Erongo. For communal farmers, the industry not only mitigates bush encroachment but also offers critical household income, the report said.

Nationally, the charcoal sector contributes significantly to foreign exchange, job creation, and gross domestic product. Namibia produces around 200,000 tonnes of charcoal annually, with a target to increase output. In 2022, charcoal exports reached approximately $78.1 million, and anticipated production gains are expected to further drive export and fiscal revenue, the report said.

However, the industry faces obstacles such as seasonal demand shifts and limited infrastructure for harvesting, production, and logistics.

“Small-scale indigenous producers, particularly in resettlement and communal areas, struggle with limited capital and financing options. Moreover, insufficient processing facilities force Namibian producers to export ungraded charcoal, often packaged in foreign economies, and leaves local exporters unable to set competitive prices,” the report said.

International buyers increasingly control price negotiations on behalf of Namibian suppliers, posing further challenges. In response, the report recommends that the Ministry of Industrialisation and Trade (MIT) establish a price discovery platform to improve pricing transparency, help producers make informed choices, and promote industry sustainability.

The MIT also urged the country to adopt sustainable and innovative production methods to capitalize on emerging opportunities, aiming to enhance export volumes and overall market value.

The Charcoal Price Discovery Platform Final Report, authored by Ngeje Kefilwe Nganate, was presented to the National Authorising Officer at the National Planning Commission of Namibia. The Ministry of Industrialisation and Trade, led by former Deputy Executive Director Michael Humavindu, served as the implementing authority.