The Meat Corporation of Namibia (Meatco) has secured a N$200 million loan facility from the Development Bank of Namibia (DBN).
The loan, according to Finance minister, Iipumbi Shiimi, will allow the meat processing and marketing entity to make payments to farmers and support economic growth in the country’s agriculture sector.
“This week GRN assisted Meatco to secure an additional loan of 200 million from DBN for Meatco to speed up payment to farmers. This is meant to support economic activity,” Iipumbi said in a social media post.
Meatco CEO Mwilima Mushokabanji told The Brief the DBN loan will contribute towards the company’s ability to stimulate the country’s beef sector and the economy.
“The loan is there to make sure that it revamps Namibia’s beef industry and make sure it stimulates growth in the country’s agriculture sector, through employment creation, maximizing returns back to the producers but at the same time promoting employment creation at primary level, farm level, but also creating employment at agro-processing level, at the abattoir and in the transportation of agriculture produce. It allows us to strengthen our capability to export these products into markets where we can generate revenue back into the country, intensify generation of foreign earnings and ultimately contribute to the GDP,” he said.
“The loan is for Namibia’s meat industry. Its to help us as Meatco to live up to the expectation of driving economic growth for all the farmers in the country. The loans is to allow us to drive agro-processing and agriculture, allowing us to contribute to the bigger bulk of exports into the markets that we are into right now, China, Europe and the United States and continue to expand our footprint ultimately into the rest of Africa, especially Asia.Meatco remains the engine of the Namibian economy and a critical stabilizer of Namibia’s dynamically competitive meat industry. Driving inclusive economic growth through maximizing returns to all stakeholders and shrinking the wealth gulf are at the top of the company’s Agenda.”
This comes as livestock trading increased significantly in the first half of 2022, led by cattle marketing which increased by 20.3%.
Beef exports in the first half of 2022 according to the Meat Board totalled 5 063.8 tonnes, up by 97.54% from 2 563.4 tonnes recorded in the corresponding 2021 period.
The Katima Mulilo Export Abattoir resumed operations during the second quarter and Meatco shipped 14 tonnes of beef into the West African Market, Ghana specifically. Meatco also shipped a 25,9 tonnes beef consignment to Angola. While the Middle East, South East Asia as well as other African markets are being explored.
Cattle continue to be the mainstay of Namibia’s agricultural sector with two of the country’s financial institutions forecasting a 3.8% to 4% growth for the sector in 2022.
The Bank of Namibia forecasts a 3.8% growth rate for the agricultural sector, with 4.5% growth forecasted for livestock farming.
On the other hand, Agribank, whose mandate is to fund agricultural projects in the country, forecast a 4% growth in the agriculture sector for 2022.
