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MTI imposes restrictions on dairy imports into Namibia

Cabinet has granted approval in principle to the Ministry of Trade and Industry to proceed to institute interim quantitative restrictions on imports of fresh, Extended Shelf Life (ESL, Ultra High Temperature (UTH) milk, buttermilk, curdled, yoghurt and other fermented milk through the introduction of an import permit system to be administered by the Meat Board of Namibia.
This decision comes after the Government, through the Ministry of Trade and Industry received a submission from the Dairy Producers Association (DPA) of Namibia stating serious difficulties that local livestock farmers and dairy producers are facing due to alleged unfair competition mainly from imports.The Ministry to the rescue of the industry has instituted urgent interim measures to restrict the quantity of fresh, Extended Shelf Life (ESL), Ultra High Temperature (UTH), milk, buttermilk, curdled, yoghurt and other fermented milk being imported in the country.
The short term relief being sought by the local dairy is to be instituted in terms of the relevant provisions of the import- Export Act. (Act No.30 of 1994). It is however envisaged that a permanent control measure will be instituted through an amendment to the Meat Industry Act, 1981 (Act No.12).
The SACU agreement allows the Government of Botswana, Lesotho, Namibia or Swaziland to impose temporal restrictions on goods being imported into their territories for purposes of protecting their budding or infant industries that are threatened by such imports. In 2000, Namibia exercised its right in terms of Article 26 and other relevant provisions of the SACU Agreement and granted Infant Industry Protection (IIP) to its dairy industry. The measure entailed the imposition of an additional tariff of 40 percent on all imports of Fresh, ESL and UTH milk. The protection was extended in 2008 for another four years up to 2011.
In an attempt to find a viable solution and avoid a potential closure of milking operations in the country, a series of emergency meetings took place between Namibia Dairies and the Dairy Producers Association, during which the parties agreed on an interim arrangement whereby the DPA members agreed to a base price reduction of 40c wper litre of raw milk delivered to Namibia as from 1 April 2013. This interim arrangement will be in place for three months. The reduced price of raw milk is negatively affecting local milk producers and has resulted in a loss of income estimated at N$328 000 per month. If causal factors are not promptly addressed they will result into a loss of N$3,9 million per annum.
The size of the Namibian market for fresh milk and ESL milk combined is estimated at 950 000 litres per month and about 1.6 million litres per month for long life UTH processed milk. Monthly raw supplies for the local market originate predominately from a contribution of 1, 3 million litres by Namibia Dairies’ own ! Aimab Super Farm near Mariental and 820 000 litres from the milk delivery quotas of the independent commercial dairy producers. Namibian Dairies currently has an estimated 50 percent share of the local commercial dairy product market.

About The Author

Following reverse listing, public can now acquire shareholding in Paratus Namibia


20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.