MeatCo settles N$ 634 million bank debts
• By Erasmus Shalihaxwe
The Meat Corporation of Namibia (MeatCo) has managed to settle its debts of N$ 94 million owed to Bank Windhoek and N$ 540 million owed to the First National Bank totaling N$ 634 million all together.
MeatCo Chief Executive Officer Mwilima Mushokabanji, announced this during a press conference held at the company’s premises on Thursday.
He said for the first time in the MeatCo’s history, the company has been operating without a bank overdraft for the past two years after managing to settle all of its debts owed to the two local banks.
He added that reducing debt has been the company’s main objective in order to allow the organisation to operate smoothly with its own money.
This allows the company’s stakeholders to have confidence in the business.
“To date, these loans are fully settled and the strategic assets of the company that were attached as collateral are now relieved. MeatCo’s outstanding interest bearing debt with banks now stands at N$ 448 million. This represents a reduction of 12 per cent from an outstanding balance of N$ 508 million observed in the 2022 financial year,” Mushokabanji said.
He added that the throughput dropped by 3 per cent year on year from 36 074 to 35 127, and this has put the company operations under strain. However, the N$ 200 million shareholder injection for the 2023 financial year has significantly improved the debt-to-equity and current ratios, which is a positive development that will instil confidence in the company’s key stakeholders with regards to business sustainability.
Mushokabanji has added that discussions are at an advanced stage for MeatCo to enter the Middle East market which is one of the lucrative markets in the world and will significantly growth MeatCo’s export of meat which in turn will also increase the company’s revenue.
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