For an institution that has spent the better part of five years in financial distress, the announcement by the Meat Corporation of Namibia (Meatco) that it has recorded an operating profit of N$106 million is, on the face of it, welcome news. After consecutive annual losses between 2020 and 2024, repeated government bailouts and boardroom instability, any sign of recovery in a strategic national enterprise should be applauded.
But applause must never replace accountability. We caution Meatco against becoming “trigger happy” in posting positive financial results, particularly if those results are framed in a manner designed to impress the government as shareholder rather than inform the public as rightful stakeholders. A state-owned enterprise does not exist to manage headlines. It exists to manage public assets responsibly.
The reported turnaround, while encouraging, raises questions that cannot be dismissed with celebratory language about “recovery paths” and “fundamental shifts”. The numbers require context. They require explanation. And they require independent verification.
Revenue reportedly increased from N$1.203 billion to N$1.865 billion in one financial year, a jump of N$662 million. That is a substantial increase for a company that only a year earlier was still recording losses and struggling with operational setbacks. Such growth demands detailed scrutiny. Was this increase driven by higher slaughter volumes, improved export pricing, favourable exchange rates, once-off transactions, asset disposals, or accounting adjustments? The public deserves clarity.
It must be remembered that over the past four years, approximately N$730 million in public funds was injected into Meatco. Of this, N$519 million went towards repaying Development Bank of Namibia loans, while N$211 million supported operations. When an entity receives that scale of taxpayer support, profitability cannot be viewed in isolation from state intervention. If profitability is partly the result of recapitalisation and debt restructuring, that should be explicitly stated.
Furthermore, the shadow of the Bank of Namibia’s findings still looms large. The central bank revealed that between 2018 and 2023, Meatco undersold export products by an estimated N$4 billion. According to that analysis, the corporation earned around N$2.1 billion from exports during that period but could potentially have earned N$6.1 billion if priced differently. That discrepancy cannot simply be filed away as historical misfortune.
If Meatco now reports a profit, the question becomes: has export pricing been corrected? Have new contracts been negotiated? Have internal controls been strengthened to prevent further value leakage? Or is the turnaround largely driven by temporary conditions rather than structural reform?
Equally concerning has been the instability at leadership level. In July 2025, acting CEO Patrick Liebenberg was suspended. Former CEO Mwilima Mushokabanji’s contract was not renewed. Former ambassador Albertus !Aochamub was appointed to lead the corporation amid scepticism from analysts who questioned whether diplomatic experience aligned with the urgent commercial expertise required. Board chairperson Sakaria Nghikembua resigned citing pressure to carry out illegal instructions. Around 400 cattle reportedly disappeared from the Linden Beef Feedlot contracted by Meatco.
These are not minor governance hiccups. They point to systemic weaknesses. A single year of positive operating results cannot erase that history.
The risk for Meatco, and for government as shareholder, is the temptation to present a clean narrative of redemption. In the political arena, a profitable state enterprise is a powerful talking point. It signals reform. It signals competence. It signals return on investment. But governance is not theatre.
We urge Meatco to resist any impulse to frame its results primarily as proof of political success. Instead, it must focus on forensic transparency. The audited financial statements to be presented at the annual general meeting must provide granular detail on revenue streams, cost structures, debt levels, contingent liabilities and pricing strategies. Anything less will fuel suspicion rather than build confidence.
The meat industry is too important to Namibia’s rural economy to be managed through optimism alone. Cattle farmers south of the veterinary cordon fence and producers in the Northern Veterinary Area depend on a stable and credible Meatco. If confidence is artificially inflated and later punctured, the damage will ripple across the entire value chain.
Moreover, the reported operating profit before tax of N$106 million must be assessed alongside cash flow. Profitability on paper does not automatically translate into liquidity. Has Meatco generated sufficient operating cash? Has it reduced reliance on short-term borrowing? What is the status of its balance sheet after years of losses?
A sustainable turnaround is measured over multiple years, not a single reporting cycle. Five consecutive years of losses cannot be undone in twelve months without raising legitimate questions. This does not mean the profit is fabricated. It means it must be substantiated.
Government, as shareholder, also carries responsibility. Oversight must not soften in response to positive headlines. If anything, this is the moment for more rigorous scrutiny. A state-owned enterprise that has absorbed N$730 million in public funds owes Namibians more than improved optics.
Meatco’s leadership has spoken of improved governance, tighter cost controls and strengthened internal systems. These are promising signals. But promises must be matched by evidence. Transparency must be proactive, not reactive.
If the turnaround is real, durable and rooted in structural reform, then it will withstand detailed examination. If it is cosmetic, designed to stabilise perceptions rather than finances, the cracks will soon show.
Meatco should therefore approach its newfound profitability with humility rather than triumphalism. Let audited numbers speak clearly. Let independent analysis test the claims. Let farmers, taxpayers and markets see the full picture.
Namibia does not need a feel-good narrative. It needs a credible, resilient and accountable national meat processor. Only time, and transparency, will determine whether this reported recovery is the beginning of genuine reform or merely a brief pause in a longer cycle of distress.
