Namibia Cancels $2.4 Million AI Crop Monitoring Deal With US Firm 6th Grain

Namibia’s Ministry of Agriculture has terminated a N$40 million ($2.4 million) agreement with US technology company 6th Grain to develop an AI-driven crop monitoring system, following a review of the contract's legal and procedural compliance. The Remote Sensing Agricultural Services Agreement was signed in June 2026 as a one-year project. The ministry has since issued 6th Grain with formal written notice terminating the agreement.

“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,” ministry spokesperson Romeo Muyunda said.

AI System Was Designed to Monitor Major Crops

The proposed system would have combined satellite imagery, geospatial analysis and artificial intelligence to monitor some of Namibia's key staple crops, including maize, mahangu, millet, sorghum, cowpea and wheat. Its planned functions included crop mapping, crop-health monitoring, production forecasting, drought-risk assessments and land-suitability analysis.

The project also included the development of a geo-tagged farmer survey database and a digital platform for agricultural monitoring. 6th Grain said the agreement included technology and skills transfer to the ministry. According to the company, the Namibian government would eventually receive the software, AI models and intellectual property needed to operate and expand the system independently.

The technology could have strengthened Namibia's ability to monitor agricultural production, particularly as drought remains a recurring challenge for food security. It could also have supported agricultural planning in areas where extension services and field-level data collection remain limited.

Questions Over Procurement and Government Approval

The agreement faced scrutiny in the months following its signing. Reports in July raised questions about how the contract had been awarded, including concerns about procurement procedures and whether the necessary government authorities had been consulted.

Separate concerns were also raised about a foreign company developing technology capable of monitoring Namibia's agricultural production. Those objections focused on food security and data sovereignty. However, the ministry's stated reason for terminating the agreement relates specifically to legal and procedural requirements. It did not say the decision was based on the technology itself or on 6th Grain's ability to deliver the project.

6th Grain Defends the Agreement

6th Grain defended the agreement, saying it had been engaging with the ministry since 2025. The company also said the project was donor-funded rather than financed directly by Namibian taxpayers.

According to 6th Grain, the system was designed to eventually transfer the software, AI models and related intellectual property to the Namibian government. The company said this would allow the ministry to operate and expand the platform independently.

The US Embassy in Namibia had previously welcomed the agreement as an example of American technology supporting agricultural development, skills development and commercial cooperation.

Namibia Continues Building Its AI Framework

The cancellation comes as Namibia develops its wider artificial intelligence governance framework. The country has drafted an AI Bill, Data Protection Bill and Cybercrime Bill and is working on a National AI Strategy.

Namibia has also established an AI Council and technical working groups. ICT Minister Emma Theofelus holds one of eight African seats on the AI for Good Global Commission, while Namibia signed a separate AI satellite initiative with Chinese company STAR.VISION in July.

The termination highlights the importance Namibia is placing on ensuring technology agreements involving government institutions comply with the country's legal and procurement requirements. The cancellation also leaves uncertainty over whether the crop monitoring system will be restructured and offered through a new procurement process or abandoned altogether.

For now, the Ministry of Agriculture says the decision was taken to protect the interests of the Namibian state and ensure government contracts comply with applicable laws, policies, regulations and procedures.