Namibia: Meatco Structure Under Review

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New Era (Windhoek)

2 October 2008
Posted to the web 2 October 2008

Wezi Tjaronda
Windhoek

A consortium of companies has been appointed to conduct a study to review Meatco's current structure.

Cabinet in March this year said Meatco and its ownership structure be decided upon to give preference to a cooperative type of arrangement to broaden participation and membership of the meat exporting company.

The consortium, Shangelao Capital, Shikongo Law Chambers and Conradie and Damaseb, has started conducting consultative meetings with the farming community and the public at large for their input on the possible appropriate structure of Meatco.

The meetings scheduled for Mariental, Gibeaon, Tsumeb, Omuthiya, Enhana, Oshakati, Outapi, Rundu, Nkurenkuru, Katima Mulilo, Otjiwarongo, Okakarara, Opuwo, Kamanjab, Windhoek, Omaruru, Okombahe, Karasburg, Keetmanshoop and Gobabis started end of last month and will last until October 14.

Although Meatco, the largest meat processor in the country, has established itself firmly in the meat industry, it has no legal owners defined in the Meat Corporation of Namibia Act Number 1 of 2001.

Consequently, there are limitations relating to the membership and ownership of the company, which limits the potential, an ability of Meatco to raise capital for growth and other operational requirements.

The Cabinet said in March, the new structure should ensure that Meatco, as an important player in the meat industry and contributing to the country's economy, is managed on sound business principles to ensure that Namibia continues to market meat and meat products in domestic and external markets competitively.

"Meatco's new business format must ensure that Meatco empowers emerging and communal farmers through the establishment of auction pens and marketing infrastructure in these areas," it said.

The objective, according to Cabinet is to ensure that communal farmers accrue maximum benefits from selling their animals to Meatco and not only for the middlemen who are between Meatco and communal farmers.

"Ultimately, the Government is expecting that the new ownership structure of Meatco will provide for a sound business entity that operates in the national interest, contributes to the national objectives, and provides for equal opportunities for all meat producers of the country in terms of profit sharing and shareholding in the business."

The terms of reference for the study include defining Meatco's mandate and its ownership structure, with a cooperative like type of arrangement being the preferable option with Meatco remaining a sound and competitive business empowering emerging and communal farmers and the equitable distribution of profits among Namibian farmers.

The restructuring is expected to lead to the amendment of Meat Corporation Act.

Meatco was established with an N$15 million loan from the then South West Africa administration.

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