DBN rescues collapsing Lüderitz lobster industry

BY: Luqman Cloete (The Namibian)
4 March 2010

The Development Bank of Namibia (DBN) has become the saviour of the rock lobster industry at Lüderitz by offering a N$2,1 million line of credit to three small-scale rock lobster operators to keep them in business.

The operators were battling with operational capital to start the new season because market prices had plummeted during the 2008-2009 season as a result of the global financial crisis.

Earlier, the Chairman of the Lüderitz branch of the Namibia Chamber of Commerce and Industry, Manu Namukomba, told The Namibian that last season’s market prices had slumped by almost 50 per cent, meaning that the selling price was far below the production cost.

This, he said, led to 90 per cent of lobstermen recalling their vessels before the end of the last season.

In a press statement issued on Friday, Namukomba said lobstermen were prompted last year to approach DBN for financial assistance to rescue the industry as it was on the brink of collapsing.

“To many, this industry remains the heartbeat and was on the verge of collapsing after being heavily affected by the chain of reaction of economic global downturn,” said Namukomba.

Thanking the DBN for granting each of the small-scale operations N$700 000 in loans, Namukomba said the assistance could not have come at a better time as it would enable these operators to stay in business and to retain much-needed jobs.

“It’s our hope that this assistance by DBN will greatly enhance business development in the country to eradicate poverty in our community, particularly previously disadvantaged Namibians,” Namukomba said. He said the loans cover vessel maintenance costs and fuel consumption.

The industry employs about 400 people, of which 70 per cent are Lüderitz fishermen and women working in processing factories, while 30 per cent are seasonal workers, mainly from northern Namibia. This e-mail address is being protected from spambots. You need JavaScript enabled to view it