NAMIBIA – Savanna Beef Processors Limited (SBPL) has recently achieved a momentous feat as its shareholders overwhelmingly sanctioned the commencement of the construction phase for an envisioned abattoir and processing facility.
The resounding approval took place during the company’s annual meeting on the 23rd of August.
Despite the presence of shares amounting to N$19 million, available for acquisition by cattle farmers within SBPL, the shareholders collectively rallied behind the initiation of the construction endeavour.
Mecki Schneider, the chairman of SBPL’s committee, hailed this accomplishment as a monumental milestone, the result of assiduous groundwork and unwavering endeavours.
“This significant milestone comes after the successful culmination of diligent groundwork and efforts,” he said.
The shareholders’ endorsement encompassed the adoption of four special resolutions, among which a standout decision was to empower the SBPL board to judiciously employ shareholders’ investments, presently tallying around N$181 million.
This green light effectively paved the way for the seamless progression of construction activities, a development succinctly communicated by Schneider through a letter addressed to Savanna’s stakeholders.
In accordance with information gleaned from SBPL’s comprehensive annual report, the esteemed Nexus Group and proficient Emcom Consulting Engineers emerged as the entities that tendered the preferred proposal for the project.
A pivotal facet of the annual meeting was the extensive deliberation on a multitude of subjects, encompassing the strides made in engineering work, the intricacies of the tendering process, and the ongoing negotiations with potential tenderers.
It is noteworthy that the initial tender initially surpassed the financial scope delineated in the original business plan, which had been meticulously crafted based on the insights furnished by a feasibility study conducted back in 2019.
Subsequently, a recalibrated plan was formulated, laying bare the fact that while the costs associated with construction had experienced an uptick, there was a concomitant augmentation in the potential revenue generated from foreign exchange, as duly highlighted in the detailed annual report.
Schneider underscored the significance of this data by indicating that Savanna could potentially bask in internal returns that surpass the impressive threshold of 40%
Savanna Beef was formed following deliberations within the Beef Value Chain Forum, an entity that recognized the imperativeness of a sustainable cattle slaughter and marketing industry in propelling the Namibian beef sector toward a prosperous future, buttressed by profitable beef exports.
Worth noting was the fact that the offer to partake in the venture was extended to all beef producers duly registered with the Meat Board of Namibia, devoid of any explicit restrictions pertaining to geographic boundaries.
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