Govt ready to take 30% stake in Meatco

Government is ready to take a 30% stake in the country’s largest meat processing company. This announcement was made at Meatco’s annual general meeting that was held this past Friday in Windhoek. Meatco board chairperson Martha Namundjebo-Tilahun said Agriculture, Water and Forestry Minister, John Mutorwa confirmed that government will take a 30% stake in the form of equity in Meatco. Mutorwa in 2012, announced that Cabinet had approved a government shareholding of 30% in Meatco. At the time, Meatco’s members had unanimously rejected government’s proposal for the company’s future ownership, operational structure and legal framework. The members were prepared to compromise and accept the 30% stake the government wants, on condition that it pays for that stake in cash or in kind, and that there is no interference in the company’s day-to-day management. It is not clear when and how government will take up the 30%. “I will share with members the developments, and I do this for transparency, as all these are major issues which have a material impact on you, the Meatco members,” said Namundjebo-Tilahun. She added that the lingering effects of the 2013 drought have been compounded by the current drought, which has become a national crisis. “It is clear to all of us that our industry is in a crisis and it will be to our detriment if we don’t apply our minds, as well as interrogate everything that is presented to us as the implications on... all of us and our livelihoods cannot be ignored.” Meatco chief executive officer Vekuii Rukoro highlighted the company’s performance for the 2014/15 financial year. Rukoro said Meatco recorded increased revenue of 14.61%, mainly due to the additional Norway quota and the weakening of the Namibian dollar against other foreign currencies. In total, Meatco slaughtered 116 771 cattle during 2014/15, compared to 116 912 during previous financial year. This was only 141 fewer animals, representing less than a 1% decrease. Rukoro said the recent foot-and-mouth (FMD) disease outbreak is a threat to the meat industry and has caused the Katima Mulilo and Oshakati abattoirs to remain closed for a much longer period this year than planned. WINDHOEK ELLANIE SMIT