‘Mystery’ investor gets half of Naute date operation

A private company has been selected to take over half of the date farming operations at the N$233 million state-owned Naute Irrigation Farm near Keetmanshoop, one of Namibia's major state-owned agricultural projects.

The selection follows an expression of interest (EOI) issued by the Namibia Industrial Development Agency (Nida) in April, seeking strategic investors to manage and expand the farm. The EOI closed on 30 April.

Nida acting chief executive officer Phillip Namundjebo confirmed that the agency had selected a new investor but did not name the company. "Nida confirms that an investor has been selected as the preferred strategic agricultural management partner for the Naute Fruit Farm following a competitive process,” he said.

Namundjebo said the proposed management agreement would run for an initial five years, with net profits split 60% to Nida and 40% to the private operator. “No portion of the Naute farm has been sold or transferred," Namundjebo stressed. He said the agency retains full possession of the land and ownership of all underlying public assets, infrastructure, equipment and water rights.

Bid process - According to him, four companies submitted proposals.

“Proposals were evaluated based on technical capabilities, operational experience, financial capacity, proposed investment, farm-management approach, market/export capabilities, and overall sustainability,” he said.

The Nida board approved the process to select the investor. Namundjebo also confirmed that Al Dahra initiated and formally notified Nida of its intention to discontinue operational services under the existing joint venture, effective 10 April. Its shareholding interests, however, have not yet been finalised. “Corporate and shareholding arrangements relating to the existing joint venture are being addressed through a separate transaction, subject to due diligence, valuation, negotiation and governance approvals,” Namundjebo said.

He said the new operator would carry the farm's primary operating expenses, including water, electricity, fertilisers, pesticides, packaging, logistics, fuel and labour-cost reimbursements. As of the end of July, Namundjebo said 118 permanent and 164 seasonal jobs had been preserved.

N$233 million state asset - The deal involves one of government's longest-running commercial irrigation projects.

The Naute Irrigation Farm is situated about 50 kilometres south-west of Keetmanshoop in the //Kharas region and covers around 2 000 hectares. The project dates back to the early 1990s, with the first date palms planted in 1991.

Nida documents seen by Namibian Sun, dated 2020, indicate that about 235 hectares were under production at the time, producing dates, table grapes, pecan nuts, prickly pears and pomegranates. By 2023, about 130 hectares were planted with dates and another 54 hectares with grapes, while smaller portions were devoted to other crops.

The Naute farm has recently been valued at N$233 million and remains one of the major agricultural assets managed by the agency. The farm sells dates and grapes locally and exports them to international markets. Namibia's date industry generated US$7.8 million in export earnings in 2023, according to figures contained in research published by the Bank of Namibia.

Al Dahra's 50-year deal - The arrival of a new investor raised questions over Al Dahra and its interests in the Naute date operation.

The company became involved at Naute through the former Namibia Development Corporation (NDC), whose functions and assets were later incorporated into Nida. The partnership dates back to 2008, when the NDC joined forces with Al Dahra to expand commercial date production at Naute.

The venture was structured as a 50/50 partnership between Al Dahra and the NDC, with profits to be shared equally, while the government approved the lease of 220 hectares under a 50-year renewable arrangement.

At the time, Al Dahra's planned investment was reported at approximately N$140 million, or around US$20 million, with ambitions to substantially expand Namibia's date exports to Middle Eastern and other international markets.

The project targeted annual production of 2 000 tonnes of high-quality dates and 270 tonnes of table grapes, alongside the creation of permanent and seasonal employment.

Alleged secrecy - A senior government official told Namibian Sun that a company had been selected but alleged that Nida had not communicated the process openly.

“A company has been selected to have half of the date farm at Naute," the official said. "It was never brought to management. There was an expression of interest, but beyond that it was all secrets. Nida has not publicly announced the matter,” the official claimed.

Nida’s EOI did not disclose the value of the proposed investment, the amount of land or operations to be placed under a private investor, the duration of the arrangement or its financial terms. Instead, under the title 'Strategic Investment Opportunity', it advertised two opportunities: 'Naute Irrigation Farm Management and Expansion' and 'Previous Nida Date Palm Pty Ltd Joint Venture and Expansion'.