Niël Terblanché
The Namibia Grape Company (NGC) has declared and paid its first dividend since inception.
The NGC transferred N$10 million to its sole shareholder, the National Youth Service (NYS), during a ceremony held in Windhoek on Thursday.
According to the NGC board chairperson, Richwell Lukonga, the inaugural dividend represents a major turning point for the company, which has been on a path of recovery and expansion since its partnership with Capespan was renewed in 2024.
He said that the renewed agreement, which will now run until 2045, redefined the terms of engagement between the two parties, with NGC now holding a controlling 51 percent interest and Capespan 49 percent.
Lukonga also said the arrangement allows the NGC to participate fully in both operations and profit-sharing, shifting from a passive leaseholder to an active commercial partner.
“The purpose of the renegotiation was to ensure that the NGC fully participates in the business, rather than merely leasing the farm to Capespan. This arrangement enables NGC to participate proportionally in both operations and profit sharing, thereby maximising shareholder value and ensuring greater beneficiation for the shareholder,” he said.
The dividend payment follows a period of financial consolidation and strategic planning that has allowed the NGC to overcome previous challenges and secure a stable position in Namibia’s agricultural export sector.
The company has created both permanent and seasonal employment opportunities, and now looks to deepen its contributions to the local economy.
A member of the NYS’s board of directors, Tobias Nambala, who spoke on behalf of chairperson Emmerentia Leonard, said the dividend represents more than just financial gain.
The NYS became the NGC’s sole shareholder in October 2021 following a government handover.
Nambala said the NYS sees this payout as a reinforcement of its mandate to empower young Namibians.
“Today marks a historic milestone, as it is the first time since the handing over that the NYSA receives a dividend from its subsidiary. This achievement reflects not only sound management and governance oversight, but also the fruits of a formidable partnership,” he said.
According to Nambala, the funds will be reinvested to support the NYS’s core objectives.
He added that the dividend will enable the NYS to increase its youth intake from 750 to 1 000 in its upcoming 16th training cycle, and will also fund improvements to training infrastructure.
“A part of the dividend will be channelled into agricultural production, including the acquisition of centre pivots to enhance food production and sustainability. These investments will also create employment, internship opportunities, and Work Integrated Learning placements for NYS trainees as well as students from other institutions,” he said.
The deputy chairperson of the NGC’s board, Nangula Shailemo, said that this first dividend is just the beginning.
She added that the partnership between NGC and Capespan has evolved into a model for how public-private cooperation can yield mutual benefits.
With the service agreement now in effect for the 2024 financial year, the NGC has started realising the operational and financial returns of a more hands-on approach.
“The Namibia Grape Company remains dedicated to honouring the strong partnerships it has built over time, as well as fulfilling its financial responsibilities. The first dividend payment of N$10 million is the first of many,” she said.
She added that the company intends to continue creating long-term value for its shareholders, while maintaining transparency and accountability in its operations.
