The Namibia Industrial Development Agency (Nida) is yet to establish the value of Namibian grapes marketed internationally for the 2022/23 harvest season by Rainbow Exporters, a South African agency.
It has, however, emerged that for the season under review a total of 85 157 cartons of grapes were produced, of which 64 621 cartons were exported. Additionally, 64,7 tonnes of raisins were also exported, says Nida spokesperson Wessel Nanuseb.
In terms of how much money the agency generated in total exports on the international market, Nanuseb recently told The Namibian: “Rainbow Exporters is a South African marketing company for a consortium of fruits trading on international markets. As such, we are still establishing the worth of the agency grapes marketed on the international market.”
Nida entered into a contract with Rainbow Exporters for the marketing of grapes for three years as of July 2022.
Nanuseb refuted allegations that Nida was not privy to information relating to the size of the harvest which was shipped to South Africa, or that Nida was not briefed on the projected monetary gains from the harvest.
He said the export regime in Namibia is very clear and it would be a falsehood to claim that the agency was not privy to the quantum of grape harvest exported to South Africa, suggesting that all exports and imports are controlled by the Customs Office at the border, and there is a paper trail in this regard.
Sources close to the transaction told The Namibian that about N$10 million is said to have been generated from the export market, and that about N$7 million was claimed to have been spent on fertilisers and the entire exportation process.
Nanuseb told The Namibian Nida is not yet in the know as to how much money was generated through the deal.
“We are not privy to how much Rainbow Exporters generated on the international market. Safe to say that parties are still reconciling supporting documents at this stage.”
With regard to the fertilisers, which initially formed the basis on which the South African agency was commissioned, Nanuseb maintained that production of crops like grapes require heavy input costs for fertilisers and pesticides annually in order to maintain prerequisite quality standards in terms of food health locally and internationally.
“We are not at liberty to divulge how much Rainbow Exporters spent because it is a confidential matter between the parties,” Nanuseb said.
Nanuseb stressed that since the deal with Rainbow Exporters will span over three years, a determination on whether Nida is satisfied with the transaction cannot be made solely on the first year harvest.
“Being the first year of the deal, we have learnt areas for improvement moving forward until the contract is ended. Operating on international markets is completely different from conducting business for local markets. As such, both parties are on a learning curve aimed at ensuring the success of the relationship,” Nanuseb said.
On claims that Nida may have only received N$1 million from the entire transaction, he said it is premature to determine how much the agency gained from the deal.
“It is premature to conclude that the agency only received N$1 million from the transaction, because parties are still authenticating appropriate documents to arrive at a determination on the performance of the deal,” he said.
NAUTE PROJECT AT GLANCE
According to Nanuseb, physical development activities at the Naute Project commenced during 1990 and the first date palms were planted during 1991.
He said the development initiative at the Naute Dam was based on a desire to extend developmental activities to the southern part of Namibia.
As such, the initiative was based on among other principles, development of a commercial sustainable project that would contribute towards the economic growth of the //Kharas region, while creating much needed employment for the community, as well as the establishment of a commercial date plantation that would serve as a nucleus for further date palm development in Namibia.
“The objectives were met in terms of economic development and employment creation as the project currently employs 54 permanent employees, while seasonal employees fluctuate between 300 and 500 workers per annum depending on the season. Nanuseb listed high utility bills, high production input costs, strict export markets, low produce prices and limited resources to meet some of the farming obligations and develop the remaining available land as some of the challenges that have marred the progress of the development through the years.
However, the project has achieved the development and improvement of grape production on 54 hectares (ha) and dates on 140ha, as a result contributing to increased employment opportunities.
Also an achievement, according to Nanuseb, is the restoration of prickly pears and pomegranate production and the development of these for export standards. In addition, Nanuseb said the project provides information to school pupils and tertiary students for educational purposes, while serving as a source of cuttings (grapes) and seeds (dates) to the Directorate of Forestry for seedling production.
“The project further supplies local livestock farmers with substandard produce and other products (leaves) for animal fodder,” he said.
