Ester Mbathera
Meatco has reported an operational profit of N$111 million for the financial year ending January 2025, marking its first profit in ten years.
This figure excludes government grants, which would have increased the total to over N$250 million.
On Friday, outgoing chief executive officer, Mwilima Mushokabanji, whose contract ends on 31 January 2025, attributed the achievement to strategic interventions and stakeholder engagement.
“We arrived there because we are managing our stakeholders abroad where we are exporting this product (meat),” he said.
He explained that the profitability was driven by the 1200 tonnes of beef exported to Norway, a highly lucrative market for Namibian beef.
Mushokabanji also revealed that Meatco delayed filling its Norwegian order of 400 tonnes earlier in the year due to unfavourable market conditions.
“When I actually went to Norway, I had a problem with feeding the quota earlier, around May and June, because the prices in Norway had gone extraordinarily down. I was not going to realise more. So what did we do? I decided I would stop filling up the Norwegian quota. I’ll only fill it up in November. I can tell you now. We began to send containers on 1 November and by December we were done with,” he said.
According to Mushokabanji, this decision yielded an additional N$20 million compared to what the company would have earned had it exported the meat earlier in the year.
Mushokabanji was responding to a question about trips he made with his personal assistant between 19 October and November 2024, which incurred flight costs of N$368 494.
These trips, he explained, were essential to managing stakeholders in Norway, the UK, and China.
“Last year, I did not have time to travel three or four times, but I normally travel once a quarter. I only travelled twice last year,” he said.
According to him, these trips were necessary to oversee Meatco UK, the company’s subsidiary in Europe, and manage stakeholders in other markets such as Norway and China.
Meatco’s board chairperson, Sakaria Nghikembua confirmed the importance of these international trips, stating that they were aimed at creating and enhancing marketing networks, securing customers, and engaging strategic business partners.
He dismissed concerns about irregularities in the travel expenditure, noting that any anomalies would be addressed according to company policies.
“Meatco does not currently have an international marketing agency, which necessitates the need for the CEO to periodically travel to engage the international stakeholders. The fact that the CEO’s contract is coming to an end does not mean that market stakeholders need to be neglected. Meatco’s work needs to continue being executed,” he said.
Nghikembua credited Meatco’s turnaround plan for the improved performance.
He said the company has enhanced operational efficiencies, improved cattle procurement management, and streamlined slaughter processes.
Nghikembua added that Meatco has also enhanced its product marketing, logistics, and cash flow management, which has had a positive effect on supplier payments.
“Our current financial year ends on 31 January 2025. We expect to see a significant financial turnaround in the business. Barring any extraneous adverse events, Meatco should deliver a credible profit for the year ending 31 January 2025, marking a return to profitability for the first time in five years,” he said.
Meatco board chairperson Sakaria Nghikembua confirmed that Mushokabanji’s contract ends on 31 January 2025.
“The Board will make the necessary announcements with regard to interim executive leadership of the business and the CEO recruitment process at the appropriate time in due course,” said Nghikembua.
Last year, the interim Meatco board initially decided not to renew Mushokabanji’s contract, a decision overturned by the cabinet in August 2024.
“Cabinet directs the Ministry of Finance and Public Enterprises to ensure that the board adheres to the resolutions of Cabinet decision and to further retract the non-renewal of the employment contract notice issued to the current Meatco CEO,” reads the Cabinet resolution.
A special meeting of members is scheduled for 11 February 2025 after the November 2024 annual general meeting failed due to a lack of quorum.
