Savanna Beef Operations (Pty) Ltd began trading and all operational activities on 3 May 2024.
The company’s administrative expenses included several once-off start-up costs.
These comprised debt raising fees amounting to N$2.8 million, stamp duty and bond registration fees of N$2.1 million, and legal fees of N$1.5 million.
For the financial year, finance costs were accrued for loans from the Industrial Development Corporation of South Africa (N$3.7 million) and Energy Utilities Assets (Pty) Ltd (N$0.6 million), totalling N$4.3 million, which were capitalised.
Construction of the abattoir is expected to be completed by the end of September 2025. A ramp-up period will follow, running until 31 January 2026. During this phase, the company plans to start slaughtering an average of 40 large stock units (LSU) per day, gradually increasing to 100 LSU daily. Full capacity is targeted for February 2026.
Once export certification is secured, the subsidiary will begin exports to Europe under the terms of its existing marketing agreement.
Observer Money spoke with Savanna Beef Operations chief executive officer Ian Collard about the company’s progress and plans for expansion.
Observer Money (OM): For the financial year ended 28 February 2025, Savanna Beef commenced trading, and all operational transactions were concluded with the subsidiary thereafter. What is your comment?
Ian Collard (IC): Savanna Beef Processors Ltd is the holding company, with Savanna Beef Operations (Pty) Ltd as the current sole subsidiary. All operations are planned to be in the subsidiary. No trading took place yet, as we are still in the construction phase of erecting facilities to start processing slaughter cattle nearer to the end of 2025, but still under the testing phase. The operational company is currently populating its workforce for the commissioning of the plant later this year.
OM: Is Savanna Beef confident that it will become a major player in the Namibian beef industry?
IC: Savanna Beef is not planning to become a major player in the Namibian beef industry, but our goal is to simply serve the needs of our shareholders, as per their expectations, by purchasing shares in the company. The main purpose is to rather export 50 000 less live weaners to feedlots in South Africa annually and slaughter them later locally, after they reach the correct age and weight at a higher fiscal value. This will greatly enhance the local economy, especially the rural economies, as quite a lot of our shareholders are farming/producing cattle in the rural areas of Namibia.
OM: What is the expected timeline when Savanna Beef will reach full capacity?
IC: Early in 2026, hopefully before the end of the first quarter.
OM: What is the current state of the Namibian beef industry?
IC: A lot of changes are on the horizon for the local beef industry. The abattoirs in Namibia are growing in numbers, with Savanna Beef, Reho Abattoir and other abattoirs coming into production along with the older abattoirs. This will give the country the opportunity to expand the production of beef that can be exported to other markets. This can lead to less exports of weaners in the future and more value addition within the local market. We are mainly disease-free, and this is an advantage that must be managed and protected, as this is giving us access to more lucrative markets. This aligns perfectly with the country’s vision for ‘Growth at Home’.
OM: What will be the production capacity of Savanna Beef at full capacity?
IC: Production capacity is designed to slaughter 50,000 head of cattle per annum.
OM: How many people will be employed at full capacity?
IC: The plan is to employ between 220 to 230 people.
OM: What are Savanna Beef’s export plans?IC: The main aim will be to export, as Namibia is a surplus-producing country regarding beef. It will not be to the benefit of Namibia to add to the already locally saturated market. This will contribute positively towards adding additional value to the value chain of beef and enhance the country’s GDP. Export destinations will be mainly the European Union, the United Kingdom and Southern Africa. Namibia is a very small player in global terms; thus, we as a country will not have the ability to upset the above export markets. Namibia will be the biggest beneficiary in this regard, as it will create local economic growth.
