Wound-up Agribusdev gets N$229m over three years

The allocation of N$229 million to Agribusdev over the next three years has been justified by public enterprises minister Leon Jooste, who says it is still expected to continue with its operations until the process has been completed.

Agribusdev is set to receive N$75 million this year and N$77 million in 2023/24 and 2024/25 respectively, according to budget information provided by the finance ministry.

Cabinet approved the winding up of the parastatal, with its green schemes set to be offered to private operators on a public-private partnership basis, it announced.

Reflecting on the allocation, Jooste said it was necessary despite the green scheme operator’s business coming to a halt, and the transfer of its staff to central government.

“The process to wind up Agribusdev will still take some time and the functions must continue unabated in the meantime,” he said.

Underperforming

Cabinet approved the outsourcing of the green schemes to private operators in line with the second phase of the Harambee Prosperity Plan.

The projects earmarked to be offered to the private sector include the Katima/Liselo and Zone green schemes as well as the yet-to-be developed Neckartal green scheme, the report noted.

Agriculture minister Calle Schlettwein had in 2021 made a 10-page submission to his colleagues in Cabinet outlining the reasons why Agribusdev should cease to exist - less than a decade after it was created.

According to him, the parastatal is the reason why green schemes are underperforming, mainly due to its business model.

He listed poor management of the operations, assets and finances of the green schemes as well as a “restrictive” management model as the biggest challenges.