The Namibia Grape Company (NGC) and its South African-based partner Capespan have officially renewed their partnership, signing a contract that extends their collaboration for an additional 20 years.
Ownership of the joint venture is divided, with a 51% stake held by NGC and Capespan owning the remaining 49%.
With an N$136 million loan from Standard Bank, the partnership projects a guaranteed profit of N$17 million per annum, plus an annual increase of 3.5%.
NGC will cover the farm's capital expenditure requirements, while both NGC and Capespan will share the annual working capital needs, including any incurring losses.
The collaboration not only strengthens Namibia's presence in the global market but also contributes to employment and development, with nearly 2,000 seasonal and full-time jobs created by the project.
"The Namibian grape industry in total has 11 different companies that are growers with a total of 2,250 hectares. So it's a big area that is dedicated to the table grape industry. And in total, the industry employs about 12,000 Namibians every year, which I think is a really big contribution to the Namibian economy," said Charles Du Bois, Managing Director of Capespan.
The partnership has already achieved significant milestones in increasing export routes and container volumes.
Key destinations now include the UK, the Middle East, and the Far East, diversifying the market for Namibian products and boosting the economy.
"The partnership provides an opportunity to overcome financial distress, reach a form of sustainability, and create marginal employment. And Charles actually indicated the numbers that we are currently employing being the biggest, not in terms of size but also in terms of production," explained Richwell Lukonga, the chairperson of NGC.
Minister of Sports, Youth and National Service, Agnes Tjongarero, stated that the partnership represents monumental value in the agricultural sector.
"It reflects a holistic approach to business that not only values economic success but also social and environmental wellbeing. As we move forward, I am confident that this partnership will deliver significant benefits for all our shareholders involved and particularly address the funding requirements of the National Youth Service."