Ester Mbathera
Northern Namibia Abattoir (NNA) and Meatco are currently in negotiations to form a joint venture.
Ben Shikongo, the chairperson of NNA, made this statement in an interview with the Windhoek Observer on Thursday.
NNA operates two abattoirs, located in Eenhana and Outapi.
Shikongo said this development follows a 2020 directive from the Cabinet aimed at addressing significant operational challenges faced by NNA.
“The primary challenges cited by Shikongo include the lack of a market and financial constraints. We could not secure the financing because how are you going to return that financing when you have no capital? You are just going to operate in debt,” he explained.
The Outapi abattoir has been non-operational for the past four years due to ongoing renovations, while the Eenhana facility operates sporadically based on slaughter fees.
Shikongo said they have been serving mainly for events such as weddings.
As a result, NNA has only been able to employ casual workers and has not generated any profit.
“We have been operating at a loss because we had no market. The government intervened for us to join Meatco,” he said.
Shikongo said they have been leasing the abattoir buildings for nine years, of which only five have seen operations.
The current lease contract is set to expire in September.
Shikongo highlighted the potential of the meat processing plant in Ongwediva, which is the largest in Namibia but remains closed.
“We won the tender to operate it but to date, nothing has been done. It’s just at a standstill. Once we meet with Meatco, then they will be able to operate it,” Shikongo said.
Shikongo expressed optimism about the future under Meatco’s umbrella.
“We are just going to get a stake, then Meatco will take over the operation. So we are not going to run the operation just to get some stake,” he said.
The NNA was established by the Namibia National Veteran Association, a non-profit organisation, in a 50/50 joint venture with Shaduka Trading.