Meatco PPP under discussion
Cabinet is currently discussing Meatco's future, its restructuring as well as possible partnerships with the private sector. No decisions have been made so far, agriculture, water and land reform minister Calle Schlettwein told Namibia Media Holdings yesterday.
This comes amid media reports that Schlettwein allegedly rejected a proposal for the privatisation of Meatco and proposed a N$1.7 billion plan for the recapitalisation of the institution.
"We received a report from a consultant proposing a public-private partnership (PPP), which includes both private participation and capital, as well as public funding and involvement.
"The details of the proposal are still being discussed, and no decision has been made regarding the revival of Meatco. At the same time, an agreement still needs to be reached on the amounts to be contributed by private and public partners," he said.
"What I can confirm, however, is that the country's livestock sector heavily relies on Meatco functioning properly, which is currently not the case.
"Therefore, a turnaround strategy as well as the restructuring of the current Meatco is urgently needed. The finer details of it still need to be deliberated upon – by all stakeholders in the livestock value chain," Schlettwein added.
The minister referred to a report by Ombu Capital, which was compiled at the request of the ministry of finance and public enterprises and allegedly discusses Meatco's challenges. It also includes a proposal for a PPP.
This comes as Meatco's latest annual report showed that it incurred a loss of N$118 million during the past financial year, with auditors from Grand Namibia suggesting that the institution has reached a point where it can only survive with state aid.
– [email protected]
This comes amid media reports that Schlettwein allegedly rejected a proposal for the privatisation of Meatco and proposed a N$1.7 billion plan for the recapitalisation of the institution.
"We received a report from a consultant proposing a public-private partnership (PPP), which includes both private participation and capital, as well as public funding and involvement.
"The details of the proposal are still being discussed, and no decision has been made regarding the revival of Meatco. At the same time, an agreement still needs to be reached on the amounts to be contributed by private and public partners," he said.
"What I can confirm, however, is that the country's livestock sector heavily relies on Meatco functioning properly, which is currently not the case.
"Therefore, a turnaround strategy as well as the restructuring of the current Meatco is urgently needed. The finer details of it still need to be deliberated upon – by all stakeholders in the livestock value chain," Schlettwein added.
The minister referred to a report by Ombu Capital, which was compiled at the request of the ministry of finance and public enterprises and allegedly discusses Meatco's challenges. It also includes a proposal for a PPP.
This comes as Meatco's latest annual report showed that it incurred a loss of N$118 million during the past financial year, with auditors from Grand Namibia suggesting that the institution has reached a point where it can only survive with state aid.
– [email protected]
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