Black Business Leadership Network of Namibia president Irene Simeon-Kurtz last Friday said the network does not support the imminent threat of closure of the Meat Corporation of Namibia in favour of previously advantaged farmers.
“What is happening at Meatco is a growing crisis of legitimacy. Whether the private sector is socially responsible, are they really growing this economy? thereby equitably sharing the benefits of economic growth and development,” asked Simeon-Kurtz.
The Black Business Leadership Network of Namibia (BBLNN) was formed by a group of previously disadvantaged entrepreneurs from different business sectors.
They noted with concern that for every government-owned or black-owned entity, “there is a white version”. They labelled this as “cartel collusion and racism caused by the private sector”.
The network was responding to the arrival of Savanna Beef Processors, a conglomerate of private beef producers, which they see as a direct threat to Meatco’s existence.
Savanna Beef Processors was formed to develop and invest in a new beef export-processing facility in Namibia and is understood that it will kick off with full-scale operations in the final quarter of 2024.
Simeon-Kurtz added it is immature of this new beef entity to brag that they single-handedly established a new entity. BBLNN further asked for government intervention in the matter to start driving production at Meatco. She added goals of speed must be set and these goals must be reached as soon as possible.
“Meatco does not need manpower. They need millions of dollars worth of meat for production. There is an urgent need to examine ways in which businesses can be strengthened and improve its capacity to be able to fully and meaningfully participate in the economy,” she said.
Finance minister Iipumbu Shiimi indicated that the troubled parastatal is receiving government’s attention.
He recently stated that government is analysing a forensic report by a local firm into the state of affairs and viability of Meatco, with a view to secure the long-term sustainability of the beef sector.
The entity was allocated N$66.7 million for the 2023/24 financial year.
“We recognise the ongoing difficulties at Meatco, and realise the importance of the entity in anchoring the performance of the livestock subsector and the economy broadly,” Shiimi said.
Meanwhile, the Namibia National Farmers Union (NNFU) demanded a formal agreement with government and its agencies on funding and implementing key interventions that can unlock marketing and improve the livestock sub-sector in the northern regions below the red line.
This decision, among others, came from a workshop that took place in Windhoek on 28 February 2023 to 1 March 2023. NNFU regional leadership representatives came from the 14 regional farmers’ unions. The meeting was aimed to craft the union positions on stressed Meatco and issues surrounding the veterinary cordon fence (VCF), commonly known as the red line.
Meatco’s operations in the northern communal areas (NCAs) face an onslaught after disgruntled previously advantaged commercial farmers approached authorities in Ghana to discontinue importing beef from Namibia which emanates specifically from the NCAs.
The farmers cited that beef from the NCAs is infected with foot and mouth disease (FMD).
The NCA, which covers parts of the Kunene, Omusati, Oshana, Ohangwena, Oshikoto, Kavango West, Kavango East and Zambezi regions have about 1.5 million cattle.
The areas, however, do not have access to the lucrative beef markets in the European Union, which is currently reserved for those south of the red line.
“A new committee was established to spearhead the initiative. The members acknowledged the importance of maintaining the red line, but set options for legal action should the ignorance and sabotaging of the northern regions’ livestock sub-sector continues. With legal experts’ support, the committee will document the proposed position and interventions and take it forward,” reads the statement released by the union last week.
The union further stressed that there is a need for a diversified and competent board and management to right size Meatco and build trust with the farmers.
It urged government to provide marketing incentives through Meatco NCA due to the challenges in the NCAs while providing subsidies to communal farmers both south and north. It also recommended Meatco South’s skyrocketed debt to be written off and/or turned into equity by government so the new governance and management start on a clean slate given it will require effort to turn around the organisation.
The unions will further seek to affirm their positions with the relevant ministers.