Government Terminates Contract with 6th Grain
Namibia's Ministry of Agriculture has formally terminated its Remote Sensing Agricultural Services Agreement with US-based technology company 6th Grain Corporation, scrapping a $2.4 million (about N$40 million) project that was meant to deploy artificial intelligence and satellite imagery for crop monitoring.
The decision was announced by ministry spokesperson Romeo Muyunda, who said a comprehensive review of the agreement and the circumstances surrounding its conclusion found that it did not meet the standards required for government contracts. "The review established that the agreement did not meet the requisite legal and procedural requirements applicable to contractual arrangements entered into on behalf of the government," Muyunda was quoted as saying. He added that the government had invoked the applicable termination provisions and issued a formal written notice to 6th Grain.
The agreement, signed in June 2026, was designed as a one-year project to strengthen agricultural monitoring and planning using satellite-based remote sensing, geospatial analytics, and artificial intelligence. According to the ministry, the system was intended to monitor staple crops including maize, mahangu, millet, sorghum, cowpea, and wheat, while providing crop maps, crop-health monitoring, production forecasts, drought risk assessments, and land-suitability analysis. It also included a geo-tagged farmer survey database and a digital platform, along with technology and skills transfer to the agriculture ministry. 6th Grain had previously said the government would eventually receive the software, AI models, and intellectual property needed to operate and expand the system independently.
Government's Justification
In announcing the termination, the Ministry of Agriculture stressed that the move was designed to protect the state's interests and ensure compliance with applicable laws, policies, regulations, and established procedures. Muyunda said the matter had received attention at the highest level of government and stressed the ministry's commitment to transparency and accountability in the management of public resources.
This outcome follows months of controversy since the contract was revealed. Reports in July 2026 said government officials were examining how the agreement was awarded, with questions raised about procurement procedures and whether senior officials and Cabinet had been adequately consulted. The debate also involved concerns about food security and data sovereignty, with some political figures questioning whether a foreign company should be responsible for technology monitoring the country's agricultural production.
6th Grain disputed the criticism, defending the agreement and saying the project was donor-funded rather than financed by Namibian taxpayers or by the company's assertions that it had engaged with the ministry since 2025. The US Embassy in Namibia welcomed the deal as an example of American technology supporting agricultural development, local skills, and commercial ties between the two countries.
The termination ends the agreement before the planned monitoring system can move forward under the existing contract, leaving the future of the initiative uncertain.
This article is based on reporting from Namibian and international news organizations; the names of the outlets are not available in this article's source material, but the account provided is drawn from published reports.