Business Reporter
MEAT Corporation of Namibia (Meatco) Chief Executive Officer (CEO) Mwilima Mushokabanji, stated that the Meatco Board came up with a Debt Reduction Strategy that is aimed at delivering profitability, adding that over the last three financial years, Meatco paid over N$2 billion to the livestock producers mainly south of the redline to sustain primary production.
Mushokabanji made these remarks at Meatco’s 34th Annual General Meeting (AGM) which was held over the weekend.
The CEO stated that for the first time in the history of the company, Meatco operated without the support of any commercial bank during the past two years, notwithstanding servicing the overdraft facility debt with First National Bank (FNB) of N$540 million and that of N$94 million with Bank Windhoek.
To date, these loans are fully settled and the strategic assets of the company that were attached as collateral are now relieved, Mushokabanji said.
It was also revealed at the AGM that Meatco’s administrative costs reduced by 2% from N$167 million to N$163 million.
In addition to this, the company shared that no salary increases were offered to Senior and Middle Management for the last two years and that monthly salaries reduced from N$14 million in 2018 to N$11 million in 2022.
Meatco has also seen a significant reduction in staff, as the total staff complement reduced from 975 in 2018 to 738 in 2022, whereas permanent staff reduced from 826 in 2018 to 577 in 2022.
This reduction in permanent employees has, however, not gone unchallenged as contract workers held a protest two weeks ago, demanding for five-year contracts.
Meatco’s Chief Financial Officer (CFO), Angus Claassen, highlighted during his Financial Report presentation to the members that the improved ratios were achieved, despite a massive drop in throughput in 2021/22 (35,127) compared to 2019/2020 when the abattoir slaughtered 116,304 cattle.
“This positive development in the business will instil confidence in our key stakeholders regarding the sustainability of the Corporation,” Claassen said.
File photo for illustrative purposes only.
