Cabinet slashes Amukwiyu’s tobacco proposal
Kenya Kambowe
RUNDU
Cabinet has offered Swapo Oshikoto coordinator Armas Amukwiyu and his business partners – who are planning to set up a tobacco plantation in the Zambezi Region – just 50% of what they had proposed.
Co-owners of Namibia Oriental Tobacco, Amukwiyu and his Chinese partners proposed that they are committed to invest about N$14 billion on a 10 000-hectare piece of land at Liselo, an irrigation scheme on the outskirts of Katima Mulilo for a period of 50 years.
However, in an interview yesterday with the Namibian Sun, Amukwiyu said Cabinet approved only half of that.
He said while they initially applied for 10 000 hectares, government only approved 5 000.
The same slashing was also extended to the leasehold, which was cut from the proposed 50 years to 25.
Commitment unchanged
The proposal was approved through the Cabinet Committee on Trade and Economic Development and, at the time of the announcement, it was said the terms and conditions would be finalised at a later stage.
“Our initial proposal application was for 10 000 hectares, which will then be divided into two equal parts - one for tobacco and one for maize at a minimum of 50 years leasing,” Amukwiyu said.
“However, government approved the project, but they have reduced 10 000 hectares to 5 000 and 50 years to 25. That is what government has offered.
“The value of the investment remains the same from our side. Our commitment has not changed in anyway,” he said.
“We are just saying that it is a bit of challenge if you look at the size of the land as it is 50% of what we asked for and if you look at the 25 years of leasing, it is just a bit too little for us to recoup our investment. We are still planning to engage government to hike it up.”
Still on course
On why they have yet to kickstart the project, Amukwiyu said the Covid-19 pandemic has affected their plans; however, he indicated that they will engage the public with more information next month.
“As far as our position is concerned, we are still committed to the investment. I can speak with assurance and confidence,” Amukwiyu said.
“We are, however, like everybody else affected by the outbreak of the Covid-19 pandemic, so last year we did not do much.”
“We have a high-level decision-making meeting by the middle of next month. My colleagues are coming over and nothing has changed from our side,” he said.
The project has been met with objections from, amongst others, former health minister Bernard Haufiku, who had vigorously campaigned against the initiative, describing it as a “chemical weapons” project.
He also urged residents of the region to “choose health over toxins”.
[email protected]
RUNDU
Cabinet has offered Swapo Oshikoto coordinator Armas Amukwiyu and his business partners – who are planning to set up a tobacco plantation in the Zambezi Region – just 50% of what they had proposed.
Co-owners of Namibia Oriental Tobacco, Amukwiyu and his Chinese partners proposed that they are committed to invest about N$14 billion on a 10 000-hectare piece of land at Liselo, an irrigation scheme on the outskirts of Katima Mulilo for a period of 50 years.
However, in an interview yesterday with the Namibian Sun, Amukwiyu said Cabinet approved only half of that.
He said while they initially applied for 10 000 hectares, government only approved 5 000.
The same slashing was also extended to the leasehold, which was cut from the proposed 50 years to 25.
Commitment unchanged
The proposal was approved through the Cabinet Committee on Trade and Economic Development and, at the time of the announcement, it was said the terms and conditions would be finalised at a later stage.
“Our initial proposal application was for 10 000 hectares, which will then be divided into two equal parts - one for tobacco and one for maize at a minimum of 50 years leasing,” Amukwiyu said.
“However, government approved the project, but they have reduced 10 000 hectares to 5 000 and 50 years to 25. That is what government has offered.
“The value of the investment remains the same from our side. Our commitment has not changed in anyway,” he said.
“We are just saying that it is a bit of challenge if you look at the size of the land as it is 50% of what we asked for and if you look at the 25 years of leasing, it is just a bit too little for us to recoup our investment. We are still planning to engage government to hike it up.”
Still on course
On why they have yet to kickstart the project, Amukwiyu said the Covid-19 pandemic has affected their plans; however, he indicated that they will engage the public with more information next month.
“As far as our position is concerned, we are still committed to the investment. I can speak with assurance and confidence,” Amukwiyu said.
“We are, however, like everybody else affected by the outbreak of the Covid-19 pandemic, so last year we did not do much.”
“We have a high-level decision-making meeting by the middle of next month. My colleagues are coming over and nothing has changed from our side,” he said.
The project has been met with objections from, amongst others, former health minister Bernard Haufiku, who had vigorously campaigned against the initiative, describing it as a “chemical weapons” project.
He also urged residents of the region to “choose health over toxins”.
[email protected]
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