Savanna Beef Processors Limited (SBPL) received unanimous approval from its shareholders to initiate the construction phase of a proposed abattoir and processing facility during their annual meeting on 23 August.
While there are still available shares worth N$19 million for cattle farmers in SBPL, shareholders have collectively endorsed the commencement of the facility’s construction.
“This significant milestone comes after the successful culmination of diligent groundwork and efforts,” said Mecki Schneider, the chairman of SBPL’s committee.
Shareholders unanimously adopted four special resolutions, with the most substantial being the authorisation for the SBPL board to use shareholders’ investments, which currently amount to approximately N$181 million at their discretion.
Consequently, this approval has effectively paved the way for the progression of construction work, as conveyed by Schneider in a letter addressed to Savanna’s stakeholders.
According to SBPL’s annual report, the preferred tender was submitted by the Nexus Group and Emcom Consulting Engineers.
The annual meeting also featured comprehensive discussions on various matters, including advancements in engineering work, the tendering process and negotiations with potential tenderers.
Initially, the initial tender exceeded the financial scope of the business plan, which had been established based on a feasibility study conducted in 2019.
Subsequently, an updated plan was developed, revealing that while construction costs had escalated, the potential income from foreign exchange had also grown, as stated in the annual report.
Schneider said this data suggests that Savanna could potentially achieve internal returns exceeding 40%.
Savanna Beef was formed following discussions from the Beef Value Chain Forum that there was a need for a sustainable cattle slaughter and marketing industry to ensure a prosperous future for the Namibian beef industry through profitable beef exports.
The company’s board has some of Namibia’s wealthy men, and is chaired by Mecki Schneide with Diethelm Metzger as his deputy.
Other board members include – John Muinjo, Frederik Voigts, Harald Marggraff, Fanie Oosthuizen and Ebbie Fischer.
The Namibian understands that the offer was open to all beef producers registered with theMeat Board of Namibia, and did not specify farmers beyond or within the redline.
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