Government on Friday finalised an agreement to revive the Ondangwa Northern Tannery facility that has been dormant for the last 15 years.

 Initially established through an international loan of more than N$40 million, the facility’s revival now hinges on a multi-year investment of N$58 million by Desert Planet Industries (DPI). 

DPI signed a contract with the Ministry of Industries, Mines and Energy and the Namibia Industrial Development Agency (Nida) to lease and restart the Ondangwa tannery. Operations at the revived faciity are expected to start in March next year when the tannery is expected to start manufacturing shoes.

“It is my privilege to address you today on this occasion, the signing of the operational agreement for Ondangwa Northern Tannery, between Ministry of Industries, Mines and Energy, Namibia Industrial Development Agency (Nida) and Dessert Planet Industries (DPI). The signing of this agreement is worth celebrating as it has been a long time coming. The agreement and revival of the tannery represent a beginning of new partnership, collaborative relationship and investment in our agro-processing value chain towards value addition and job creation,” said Natangwe Ithete, Deputy Prime Minister and Minister of Industries, Mines and Energy at Friday’s signing event. 

Ithete pointed out that, the Northern Tannery that was inaugurated in 2002, has an objective to transform raw cattle hides into high-value leather products for domestic use and export. 

“The objective of the tannery is still valid, thus, we worked tirelessly to secure willing partners for its revival, because our industrialisation goals cascade to regional level. We are aware of challenges that hinder the initial operation of the Ondangwa Northern Tannery. Despite our best intentions, several factors have delayed production leading to the facility being dormant for 15 years,” said Ithete.  

He added that the signing of the agreement marks new beginnings and a pivotal moment in Namibia’s industrial revitalisation journey, through the collaborative efforts of the Ministry of Industries, Mines and Energy (MIME), the Namibia Industrial Development Agency (Nida), and Desert Planet Industries (Pty) Ltd. Said Ithete: “As we sign this agreement for operationalisation and lease, we commit to unlocking value, restoring industrial capacity, bringing service to the people and creating sustainable employment opportunities in Namibia. We are committing to turning this facility into a thriving business empowering both our farmers, skilled and unskilled workers”. 

Ithete called on all stakeholders, including livestock farmers, local authorities and the public to support the initiative, to take full advantage of the facility and guarantee a supply of minimum monthly volume of hides for cattle, small stocks and seals. “This facility belongs to all of us, let us support it by providing input, mobilising labour and logistics and encouraging its progress. The milestone we are celebrating here today came a long way, and we honour those that contributed to making today a reality,” said Ithete.  

The Deputy PM thanked the Oshana Regional Council under the leadership of Hofni Iipinge, for continuous support, as well as former industrialisation and trade minister, Lucia Iipumbu, and former Oshana governor, Elia Irimari, for laying the foundation for the revitalisation of the tannery. 

“We wish you our investors and partners renewed strength, success and impactful outcomes; we are here to support you transform this asset into a beacon of Namibia’s economic potential,” Ithete added. After its establishment in 2001, the Northern Tannery near the Ondangwa Airport eventually succumbed to under-utilisation due to an insufficient supply of hides and skins for export processing, despite having a processing capacity of 10 000 hides per month.