Namibia Grape Company, Capespan extend partnership by 20 years

Namibia Grape Company (NGC) and Capespan marked a historic milestone in the agricultural sector by officially renewing their partnership with an extended contract valid until 2045.Richwell Lukonga, chairperson of NGC, said the partnership provides an opportunity to overcome financial pressures, reach a form of sustainability and create much-needed employment, both permanent and seasonal.“However, NGC and its shareholder, Namibia Youth Service, are aspiring to create more impact and greater beneficiation for Namibia and Namibian businesses. The board of NGC and Capespan discussed a review and change in the model and partnership since 2020 where the parties agreed on a modality for a new partnership,” he said.High standardsThe key principles agreed upon for the joint venture (JV) between NGC and Capespan aim to establish a balanced distribution of risk and reward, ensuring equitable participation from both parties. Under these principles, ownership of the JV will be divided with a 51% stake held by NGC and a 49% stake held by Capespan.Additionally, the lease cost or guaranteed profit for NGC will increase to N$17 million per annum, with a 3.5% annual escalation, providing financial stability over a 20-year period.NGC will cover the farm&#039;s capital expenditure requirements, proportional to the JV percentage, while both NGC and Capespan will share the annual working capital needs, including any incurred losses.Capespan will benefit from a long-term marketing agreement for the fruit produced by the JV, subject to review every five years, Lukonga added. He emphasised NGC’s commitment to further expansion and to setting a high standard for Namibian agriculture on the global stage. Lukonga also promised provision of housing to table grape workers at Aussenkehr. Deep rootsCapespan’s managing director, Charl du Bois, emphasised Capespan’s deep roots in the southern African table grape industry and its extensive contributions to NGC, including infrastructure improvements and international market access.“Through our international network, we have connected NGC to leading global markets, allowing consumers in over 35 countries to enjoy these delicious, sun-kissed grapes from the Namibian desert,” he said.Du Bois expressed Capespan’s commitment to growing these opportunities further, expanding shipments through Walvis Bay and strengthening their impact on the Namibian economy.“With new plantings, improved infrastructure, access to world-class breeding programmes and best farming practices, the NGC managed to increase production from 1.4 million cartons in 2007 to 2.4 million cartons in 2024, a phenomenal 71% increase," he pointed out. Growth supportedErwin Tjipuka, CEO of Standard Bank Namibia, expressed pride in supporting this landmark deal, which exemplifies the bank’s mission to drive Namibia’s growth.“This public-private partnership has demonstrated resilience and success over time, establishing itself as a true jewel in the Namibian agriculture industry," he said. “Through this collaboration, the Namibian government, through the Namibia Grape Company, plays a pivotal role in uplifting local communities by creating jobs and bringing Namibian-grown grapes to the international market. This partnership highlights our commitment to fostering sustainable growth and proudly presents the positive impact we aspire to make across Namibia,” he added.Youth minister Agnes Tjongarero said this collaboration not only strengthens Namibia’s presence in the global market but also brings meaningful employment and development to communities, highlighting the nearly 2 000 seasonal and full-time jobs created by the project.“I am also pleased to note the emphasis on social responsibility within this agreement. The commitment to supporting the Aussenkehr community as well as our youth through the immediate shareholder, the National Youth Service, is commendable,” she added.Lionel Matthews, head of corporate advisory division Monasa Advisory & Associates, expressed his satisfaction with the journey to materialise this agreement within 18 months. The signing ceremony took place on Tuesday at the Standard Bank Blue Bank headquarters in Windhoek.- francoise@nmh.com.na

Namibia Grape Company, Capespan extend partnership by 20 years

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Namibian Sun 2024-11-21

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Namibia Grape Company, Capespan extend partnership by 20 years

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Namibian Sun 2024-11-21

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