The Ministry of Finance and Social Subsidies Management proposes an allocation of N$212 million for fiscal year 2025/26, to resolve Namibia (MEITCO) outstanding loans with the Development Bank of Namibia (DBN) and to increase the operational liquidity of the corporation.
Finance Minister Erika Shahda, who presented budget motives in Congress, said the funds were intended to stabilize Mitco’s financial position.
“This allocation is intended to fully resolve Meatco’s obligations by DBN and to enhance its operational liquidity,” Shafudah said.
In addition to the loan settlement, Meatco will receive an additional $100 million in direct funding to support its business.
“Meatco is set to receive N$100 million, providing liquidity to operational needs, increasing competitiveness and improving market access for the meat and agriculture sector,” the minister said.
Shahuda said government intervention is attempting to improve Meatco’s performance in the agricultural value chain.
“This support is aimed at increasing competitiveness and improving market access for the meat and agricultural sector,” she added.
The ministry allocated a total of N$2.5 billion for the next fiscal year on statutory transfers, capital injections into selected public enterprises and the establishment of a national youth fund.
This latest intervention comes after Meatco secured a $200 million loan facility from DBN in 2023, backed by government guarantees.
At the time, MEITCO reportedly failed to pay 245 commercial livestock farmers N$320 million for the cattle that were supplied to the abattoir.
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Former Finance Minister Iipumbu Shiimi explained that the loan was intended to enable Meatco to fulfill its obligations to farmers and to contribute to the growth of the agricultural sector.
In the 2024/25 budget, the government similarly allocated N$222 million to MEITCO to resolve conditional debt and help its financial stability.
Over the past four years, the state has won more than N$1 billion in grants to Meatco. However, concerns continue to grow over the viability of meat processor turnaround strategies developed in 2023.
Last year, Shiimi expressed her dissatisfaction with the government’s strategy, insisting that Meetco must be independent.
“As a commercial organisation, Meatco is expected to generate its own revenue and should not rely on state subsidies indefinitely,” he said at the time.
