Renthia Kaimbi
The Ministry of Education, Innovation, Youth, Sports, Arts and Culture has sought urgent legal advice from the office of the attorney general to cancel a lease agreement with northern businessman Erastus ‘Chicco’ Shapumba for an unoccupied building in Independence Avenue, documents seen by the Windhoek Observer reveal.
The lease agreement, signed in December 2023 between the Ministry of Works and Transport on behalf of the education ministry and Shapumba’s City Place and Property Management (Pty) Ltd, has cost the state about N$1.1 million per month since 2024 for a building that remains empty and is allegedly unsuitable for office use.
In a letter dated 30 April 2026, executive director Jonas Sheelongo asked the attorney general’s office for urgent legal intervention to terminate the agreement.
The letter refers to meetings held on 14 and 23 April 2026, where officials discussed legal and operational problems linked to the lease.
“It has become evident that continued performance under the lease agreement is no longer feasible or in the best interest of the state,” Sheelongo wrote.
“Accordingly, a decision in principle was reached to pursue the immediate cancellation of the said lease agreement, with effect from the date of this letter.”
Minutes from the 14 April meeting show the building was never occupied because the education ministry found it unsuitable for office accommodation.
Officials estimated that the government would need about N$33 million to redesign and partition the building to meet office requirements. The property was described as more suitable for hotel accommodation than office space.
The meeting also found that the building lacks compliance and fitness certificates.
According to the minutes, officials agreed that “the absence of a compliance certificate for the building stands as sufficient legal grounds for the government to initiate or pursue contract or agreement termination.”
The meeting also acknowledged that terminating the agreement could have legal consequences. Officials noted that the state finance act requires treasury approval before a government can terminate any agreement.
The meeting reviewed legal advice issued by attorney general Festus Mbandeka on 24 March 2026.
According to the opinion, the lease agreement is a legitimate fixed-term contract that expires on 31 March 2027.
The legal advice further stated that the government currently has no lawful basis to cancel the agreement unilaterally unless there is a material breach by the landlord or mutual agreement between both parties.
“The legally sustainable course remains to pursue a negotiated, mutual termination or alternative arrangement to mitigate further financial exposure,” the legal opinion stated.
The attorney general also noted that the state remains bound by the agreement even if the building is not occupied.
The opinion warned that continued payment for unused premises raises concerns about possible wasteful expenditure.
It further stated that if the education ministry identified and approved the premises as suitable, then responsibility for any failure in that process rests mainly with the ministry.
Representatives from the Ministry of Works and Transport, the Ministry of Education, Innovation, Youth, Sports, Arts and Culture, and the Office of the Attorney General attended the 14 April meeting.
The government resolved to engage the landlord and seek termination of the lease on the basis that the building lacks fitness and compliance certificates.
A follow-up meeting was later held on 23 April 2026 with representatives of City Place and Property Management.
The State continues paying about N$1.1 million every month for the empty building.
In his latest letter, Sheelongo asked the Attorney General to advise the Ministry of Works and Transport on issuing a formal cancellation notice to City Place and Property Management. He also requested legal guidance on possible outstanding payments, the return of the property, and any damage claims.
Sheelongo asked the attorney general’s office to treat the matter as urgent.
When contacted for comment, Shapumba referred questions to his lawyer, Veiko Shitilwe Alexander.
“Talk to my lawyer who attended the meeting. He will be able to assist you,” Shapumba said.
Alexander told the Windhoek Observer that the government had already accepted the suitability of the building when it signed the lease agreement.
“In the meeting we attended, they wanted to debate about the suitability of the building. We do not agree with their position that the building is not occupied. We gave them the keys and if they want to terminate the lease, they must pay out the remaining term according to the contract and give our keys back,” Alexander said.
Education ministry executive director Gerard Vries asked for questions to be submitted in writing.
“What you must do now is to put it in writing formally. We do not have a problem with responding, but put it in writing and we’ll take it from there,” Vries said.
Alexander added that his client would agree to a mutual termination if the government pays the remaining N$11 million due under the contract until its expiry in March 2027.
Farmers fear market loss after Katima abattoir scale down
Patience Makwele
The scaling down of operations by the Meat Corporation of Namibia (Meatco) at the Katima Mulilo abattoir has left farmers in the Zambezi region uncertain about the future of cattle marketing and the stability of the local livestock sector.
Zambezi livestock farmer Kwenani Matengu said the development has created uncertainty among producers, although he was not entirely surprised by Meatco’s decision.
“There is uncertainty, but for me it is not entirely new. I understand that Meatco was operating under a contract, so at some point it was going to come to an end,” he said.
Matengu said farmers are mainly concerned about whether they will still be able to sell their cattle.
“As farmers, what we need is market continuity. As long as there is a market and we are able to sell our animals at a good price, we do not have a problem,” he said.
He warned that legal disputes or delays during the handover process could affect operations.
“If there are challenges, especially if it goes to court, operations could stop. That is where the real problem will be,” he said.
Meatco announced last week that its memorandum of agreement with the Zambezi Meat Corporation (Zamco) had reached its contractual expiry.
Meatco is implementing a transitional exit plan which began on 16 April and will end on 30 June.
Meatco said the gradual scale-down includes stopping cattle procurement and reducing stock levels as part of what the company described as a “structured and orderly disengagement” from the facility.
Kavango West farmer Oivah Mahina said the impact could be severe for farmers in the northern communal areas if the abattoir stops operating.
“If you look at the long-term objectives for the northern communal areas, this is a setback. Farmers were expecting improved benefits, but now it feels like we are going backwards,” he said.
Mahina said the closure of the abattoir would remove formal market access for many farmers.
“If operations stop, it means there will be no formal market. Without that, farmers will suffer and so will their families,” he said.
He added that many producers rely entirely on livestock farming for income.
“Some may survive through informal markets, but not at the same level. If you have hundreds of cattle, where are you going to take them?” he asked.
Mahina also questioned whether the incoming operator has the financial resources needed to sustain operations.
Meatco resumed operations at the Katima Mulilo abattoir in 2020 after the facility had previously closed due to operational losses of nearly N$43 million recorded during the 2014/15 financial year.
The closure left farmers in the region without a reliable market for their cattle, prompting the government to invest about N$14 million into renovating the facility.
The Katima Mulilo abattoir has the capacity to slaughter around 110 cattle per day.
The Namibia National Farmers Union (NNFU) described Meatco’s planned exit as worrying and said the success of the transition will depend on the readiness of the incoming operator.
NNFU chief executive officer Kuniberth Shamathe said it is still unclear whether the development will ultimately benefit or disadvantage communal farmers.
“For now, it is difficult to tell whether this is for better or worse without knowing what has transpired and whether Zambezi Meat Corporation has the technical and financial capacity to manage and sustain abattoir operations,” he said.
Shamathe warned that similar situations in the past left northern abattoirs non-operational for years.
“We have seen cases where entities awarded leases could not operate these abattoirs for years. Farmers suffered due to lack of market access until government intervened,” he said.
He said operations at the Katima Mulilo abattoir improved under Meatco over the past six years and cautioned that those gains could now be lost.
“We witnessed better operations and benefits to farmers in the Zambezi Region over the past six years. The concern is whether those gains can be sustained,” he said.
Shamathe emphasised the need for a thorough assessment of the incoming operator’s financial and technical capabilities before proceeding with the transition.
“Does the incoming entity have the technical and financial capacity? Will it be able to sustain operations without the kind of government support that Meatco receives? These are key questions that must be answered with proof,” he said.
He warned that shutting down operations could have serious economic consequences.
“If the abattoir stops operating, restarting it is costly and difficult. We have seen this before, and the impact on farmers and the regional economy can be severe,” he said.
Shamathe called for urgent discussions between the government, Meatco, farmer organisations and regional leaders.
“What is required now is a coordinated approach involving all stakeholders, including Meatco, the ministry of agriculture, the Zambezi Meat Corporation, farmers in the region and regional leadership because what is at stake is the regional economy and the livelihoods of farmers,” he said.
While supporting the idea of local ownership, he cautioned against rushing the process.
“I am not against Zamco taking over. It can be an opportunity for local empowerment, but we must ensure it is ready. Otherwise, we risk repeating the same mistakes and going backwards,” he said.
Agriculture commentator Dobson Kawala said the uncertainty around the Katima Mulilo abattoir reflects wider structural problems affecting livestock farming in northern Namibia.
Kawala questioned the circumstances surrounding Meatco’s exit and said more clarity is needed.
“People want to understand exactly what transpired and what led to this decision, because this facility was created to support livestock producers and strengthen economic opportunities in the region. Low supply is linked to many factors, including foot-and-mouth disease controls, floods, limited grazing areas, environmental pressures and human-wildlife conflict. These realities affect production capacity,” he said.
He said communal farmers continue to face disadvantages due to weak infrastructure and limited market access.
“Northern farmers are trying to participate in formal markets while operating under very different conditions. Without strong local processing facilities and support systems, they remain at a disadvantage,” he said.
Kawala warned that weakening abattoir operations could affect broader regional value chains.
“Institutions such as schools, hospitals, supermarkets and lodges should be sourcing products from local farmers. That is how sustainable value chains are built and maintained,” he said.
On the issue of the veterinary cordon fence, also known as the red line, Kawala said the debate should focus on balancing disease control with market access.
“The discussion should focus on how to make the system more flexible and beneficial to farmers while still protecting animal health standards and market access,” he said.
He also raised concerns about weaknesses in quarantine systems and illegal livestock movements.
“Government must strengthen quarantine systems because there are still cases where fences are damaged and livestock movements are not properly controlled. Those are some of the realities affecting the livestock sector,” he said.
Kawala called for more investment in quarantine systems, local production and processing facilities in northern Namibia.
“If production facilities continue disappearing from the north, communities will continue losing economic opportunities while farmers struggle to sustain their livelihoods,” he said.
