This paper provides an overview of the short-term household-level effects and the national policy responses in Namibia to the rapid acceleration in food prices in 2007/2008. Price increases are found to have disproportionately affected low-income households, who have higher relative shares of food expenditure and whose own-production was reduced due to crop failures, and urban households who rely relatively less on in-kind consumption and more on cash purchases. Drawing on the literature on tax incidence and welfare dominance the paper further assesses the potential distributional and poverty reduction effects of the ‘zero-rating’ of the VAT for basic food items that was introduced by the Namibian government to mitigate the impacts of the food crisis. The results show that the VAT reform only led to a small and statistically insignificant improvement in the highly unequal distribution of consumption expenditure in Namibia. An illustration is provided of how a more effective way to reduce poverty and shield the poor from the worst impact of the crisis is through the existing system of cash transfers.