The Ministry of Finance has proposed an allocation of N$212 million in the 2025/26 financial year to settle the Meat Corporation of Namibia’s (Meatco) outstanding loan with the Development Bank of Namibia (DBN) and to enhance the corporation’s operational liquidity.
Finance Minister Ericah Shafudah, presenting the budget motivation in Parliament, said the funding is aimed at stabilising Meatco’s financial position.
“The allocation is intended to fully settle Meatco’s obligation with DBN and strengthen its operational liquidity,” said Shafudah.
In addition to the loan settlement, Meatco is set to receive a further N$100 million in direct funding to support its operations.
“Meatco is set to receive N$100 million, which provides liquidity for operational needs, enhances competitiveness, and improves market access in the meat and agricultural sector,” the Minister said.
Shafudah said the government’s intervention seeks to improve Meatco’s performance in the agricultural value chain. “This support aims to enhance competitiveness and improve market access in the meat and agricultural sector,” she added.
The Ministry has earmarked a total of N$2.5 billion in the upcoming financial year for statutory transfers, capital injections to selected public enterprises, and the establishment of a National Youth Fund.
This latest intervention comes after Meatco secured a N$200 million loan facility from DBN in 2023, backed by a government guarantee.
At the time, Meatco was reportedly unable to pay 245 commercial livestock farmers a combined N$320 million for cattle supplied to its abattoirs—an issue flagged in an organisational review conducted by consultancy firm Ombu Capital.
Former Finance Minister Iipumbu Shiimi had explained that the loan was intended to allow Meatco to meet its obligations to farmers and contribute to growth in the agriculture sector.
In the 2024/25 budget, government similarly allocated N$212 million to Meatco to settle contingent liabilities and support its financial stabilisation.
Over the past four years, the state has channelled over N$1 billion in subsidies to Meatco. However, concerns continue to mount over the viability of the meat processor’s turnaround strategy, developed in 2023.
Shiimi last year voiced government’s dissatisfaction with the strategy, insisting that Meatco must become self-sustaining. “As a commercial entity, Meatco is expected to generate its own revenue and should not rely indefinitely on state subsidies,” he said at the time.
