Naute farm without power, risking produce worth millions

The Naute Irrigation Scheme in the //Kharas region has been without electricity for the past week, exposing date produce worth millions to the risk of rotting in the absence of power for cold storage facilities.

The irrigation scheme produces grapes and dates for international and local markets. It is managed by the Namibia Industrial Development Agency (Nida), established under the Ministry of Industrialisation and Trade to foster industrial development, youth empowerment and entrepreneurship development, investment facilitation and attraction, export-oriented industrial growth and import substitution.

NamPower spokesperson Tangeni Kambangula yesterday said the company cannot share information about their clients with third parties.

However, Nida spokesperson Wessel !Nanuseb confirmed the power cut due to accrued debt with NamPower over the last two years.

“Yes, it is affirmative that power has been suspended at the Naute Irrigation Scheme for a N$4 million debt we have with NamPower,” said !Nanuseb.

It has been widely reported in local media that Nida has been facing financial and operational challenges across its business subsidiaries, including 148 industrial estates, tourism centres and small and medium enterprise (SME) business parks across the country, housing about 1 080 enterprises.

!Nanuseb highlighted high utility bills, high production input costs, strict export markets, low produce prices and limited resources to meet some of nida’s farming obligations.

“Our utility bill on electricity alone ranges from N$300 000 to N$360 000 per month and that is the reality on the ground. Over the last two years, we paid some months and not others. We have made arrangements with NamPower, of which we could honour some and others not,” said !Nanuseb.

The Naute Irrigation Scheme was established in 1990 and the first dates planted in 1991 with the aim to develop a commercially sustainable project that would contribute towards the economic growth of the //Kharas region, while creating much needed employment for the community.

The project employs about 54 permanent employees, while seasonal employees fluctuate between 300 and 500 workers per annum, depending on the season.

Currently, the scheme only has an export market for grapes with Rainbow Exporters, a South African marketing company, for a consortium of fruits trading on international markets and none for the dates. The dates are currently only for the local market.

Grape production has been developed on 54 hectares (ha) and dates on 140 ha of land. Though there are currently no figures for produce available and for export.

“I can confirm that none of our produce is at risk. We have alternative sources of energy on the farm and since the power cut, we have been using generators to power the production and cooling facilities. We are also engaging NamPower and are expecting power to be restored over the weekend or by Monday next week,” !Nanuseb said.

For the 2022/23 harvest season, a total of 85 157 cartons of grapes were produced, of which 64 621 cartons were exported. Additionally, 64,7 tonnes of raisins were also exported, he said. This month, it was reported by New Era that tenants at the !Homs-Ai community market at Keetmanshoop, located between Krönlein and Tseiblaagte, have also been without water since September 2021. !Homs Ai is also managed by Nida and has outstanding debt of N$190 000 for water and electricity with the Municipality of Keetmanshoop.

“Since the power and water supplies were cut off, practically all tenants have fled the market, leaving only two businesses to continue operations,” noted the report.