Namibia’s government to allocate US$11.3M to settle Meatco’s debt, keep operations running
The move includes loan repayment and additional funding for operational expenses. Concerns, however, are lingering over the long-term viability of Meatco’s turnaround strategy.
NAMINIA – The Ministry of Finance and Social Grants Management has proposed a budget allocation of US$11.3 million (N$212 million) for the 2025/26 fiscal year to clear Meat Corporation of Namibia’s debt with the Development Bank of Namibia and improve its cash flow.
Finance Minister Ericah Shafudah told Parliament the money is meant to stabilise the state-owned enterprise’s finances and restore its operational capacity.
She said the full amount will be directed toward settling Meatco’s outstanding obligation with DBN and strengthening the company’s ability to continue running.
In addition to the debt repayment, the ministry has set aside another US$5.3 million (N$100 million) to support Meatco’s day-to-day operations.
According to Shafudah, the direct financial support is aimed at helping Meatco manage its running costs, improve its competitive position, and expand its access to meat markets locally and abroad.
She added that the intervention is part of broader government efforts to enhance the performance of entities involved in the agricultural value chain.
This proposed support package follows a US$10.6 million (N$200 million) loan Meatco received from DBN in 2023, which was guaranteed by the state.
At the time, Meatco was facing difficulties paying 245 livestock producers a combined US$17 million (N$320 million) for cattle delivered to its slaughterhouses.
The issue was highlighted in a review by consulting firm Ombu Capital, which found serious financial and operational gaps in the company.
Former finance minister Iipumbu Shiimi had stated that the previous loan was intended to assist Meatco in clearing its debts to farmers and help stimulate growth in the livestock sector.
In the current 2024/25 budget, government made a similar allocation of US$11.3 million (N$212 million) to address Meatco’s financial liabilities.
Ongoing funding raises questions
Despite receiving over US$53 million (N$1 billion) in state support over the past four years, Meatco continues to struggle with financial instability and has yet to show signs of recovery.
The company’s 2023 turnaround strategy has come under scrutiny, with several stakeholders questioning whether it can succeed without fundamental structural changes.
Shiimi last year expressed concern over the prolonged dependence on public funds, stating that the meat processor must start generating its own revenue to operate independently.
He warned that as a commercial enterprise, Meatco cannot continue to rely on government bailouts to remain functional.
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