Namibia Grape Company (NGC) and Capespan marked a historic milestone by renewing their partnership with a contract extended to 2045. The signing ceremony at Standard Bank's headquarters brought together leaders from the Namibian government, NGC, Capespan, and Standard Bank Namibia, highlighting the collaboration's economic and social significance.
In his welcome address, Erwin Tjipuka, Chief Executive of Standard Bank Namibia, expressed pride in supporting this landmark agreement, which he said aligns with the bank's mission to drive Namibia's growth. "Namibia is Our Home, We Drive Her Growth," Tjipuka stated, emphasizing the bank's role in uplifting communities and fostering progress. This partnership, he noted, is a strong example of Standard Bank's commitment to sustainable growth, reflecting positive economic impacts through job creation and global market access for Namibian-grown grapes. The public-private partnership between NGC, Capespan, and the Namibian government has established itself as a vital part of the agriculture sector and a model of resilience.
Lionel Matthews from Monasa Advisory & Associates shared his satisfaction with the work leading up to the agreement, highlighting the critical role of stakeholder management in creating a sustainable business solution.
Capespan's Managing Director, Charl Du Bois, emphasized the transformative impact of their partnership with NGC. With deep roots in the Southern African grape industry, Capespan has improved NGC's infrastructure and expanded its international reach. Du Bois mentioned that Capespan's network now connects NGC's grapes with consumers in over 35 countries. Investments in breeding programs and best practices have enabled NGC to boost production from 1.4 million cartons in 2007 to 2.4 million in 2024—a 71% increase.
Namibia's Minister of Sports, Youth, and National Service, Honorable Agnes Tjongarero, praised the partnership for creating nearly 2,000 jobs and supporting community development. She highlighted the agreement's focus on social responsibility, particularly its support for the Aussenkehr community and the National Youth Service.
Richwell Lukonga, Chairperson of NGC, noted the partnership's growth and the importance of periodic reviews to adapt to evolving needs. Since 2020, discussions between NGC and Capespan culminated in a landmark meeting in November 2023, where a new partnership model was finalized. Under the revised joint venture (JV), ownership will be split, with NGC holding a 51% stake and Capespan 49%. The JV agreement includes an increased lease cost for NGC at N$17 million per annum, with a 3.5% annual escalation. NGC will handle capital expenditure based on its stake, and both parties will share working capital needs and any incurred losses. Capespan retains a long-term marketing agreement for the JV's fruit production, subject to review every five years.
The contract's signing symbolizes a renewed commitment to this nearly two-decade-old partnership, which will now extend another 20 years.
For more information:
Ilke Platt
Monasa Advisory & Associates
Tel: +264 61 401 472
Email: [email protected]
www.monasa.org