No local partners in Erindi deal

MEXICAN billionaire Alberto Baillères, who has been tipped to buy the Erindi private game reserve, will not partner with any locals in the ownership of the reserve.

Servaas van den Bosch, who is a director of Emergo, the company providing public relations services to Baillères, told The Namibian yesterday that the buyer – an international entrepreneur and philanthropist – intends to purchase 100% of the shares in Erindi “as his custom in similar transactions worldwide”.

Van den Bosch said this was because the Namibian government had not placed conditions around local ownership for the sale to proceed.

He added that the final transaction, however, was subject to regulatory approval by the Namibia Competition Commission.

Namibia’s most significant privately owned game reserve, located south-east of Omaruru, has been on the market for five years for nearly N$2 billion.

The Erindi game reserve is made up of three farms, namely Farm Erindi, Constantia and Otjimukaru, situated between Okahandja and Omaruru, measuring a combined 65 000 hectares.

Information minister Stanley Simataa last month disclosed that the government abandoned its plans to buy the reserve because it could not afford it.

It is, however, not clear whether the government would impose any conditions on the ownership of the reserve.

has been reporting on numerous calls on the government, from the public, to stop the ownership of agricultural and commercial land by foreigners.

The Affirmative Repositioning movement (AR) earlier this year also called for the government to enact a law that would prohibit foreigners from owning land in Namibia. Banning the sale of land and the ownership of farmland by foreigners was among several topical issues discussed at the second national land conference in October last year.

In terms of the Agricultural (Commercial) Land Reform Act of 1995, foreigners are only allowed to lease agricultural land in Namibia for not more than 10 years, but with a possibility of extending the lease.

Van den Bosch on Wednesday gave an assurance that after the transaction is completed, there would be no job losses, but more direct and indirect employment would be created. He added that Baillères aims to upgrade Erindi, creating a world-class attraction, and protecting its wildlife by implementing international best-practices in anti-poaching and conservation initiatives.

“The buyer complied in full with all applicable statutory and regulatory requirements on this acquisition. As the buyer upgrades Erindi to globally recognised standards, additional jobs and high-level training opportunities will be created,” Van den Bosch stated.

On demands from AR, Van den Bosch said given that the transaction remains subject to suspensive conditions, “the buyer has engaged on the regulatory conditions only”.

Erindi owners Gert and Paul Joubert last month said they would consider including terms that would benefit Namibians in the sale of the game reserve.

AR wanted the government to include a condition to compel Erindi buyers to also purchase a farm within a 50-kilometre radius of Windhoek to be used for the establishment of a youth township to accommodate a minimum of 2 500 houses.

AR also wanted prospective buyers to provide N$10 million to the government to be used to service 300 residential plots at Goreangab in Windhoek.

Van den Bosch, however, said Baillères was very aware of the issues around land ownership and housing that Namibia faces, and “which are similar to the challenges Mexico has faced”.

“It is nevertheless important to note that Erindi is not suitable for resettlement or mass housing, and that it is most valuable to Namibia as a wildlife reserve for the preservation of flora and fauna species that are unique and an essential part of African culture and heritage,” he added.

AR activist Job Amupanda yesterday said they had not received communication from Erindi’s owners about the transaction yet.