By: Nghiinomenwa-vali Hangala
This week, the Meat Corporation (Meatco) will dispatch two containers of wet blue hides from the Okapuka Tannery to Mombasa, Kenya, marking its first export under the AfCFTA framework.
The company announced this in a statement last week.
According to the statement, Meatco has reached an agreement with a Kenyan client who will process the hides into finished leather on a trial basis.
This initial shipment will undergo quality verification and is being traded under AfCFTA’s non-tariff provisions.
Moreover, as part of the trade protocols, the client requires the full declaration of the hides’ country of origin in line with the Certificate of Origin requirements.
According to Albertus Aochamub, Meatco’s interim chief executive officer, the company’s move is a milestone for both Meatco and Namibia, contributing to the practical implementation of a market valued at US$4 trillion and representing more than 1.3 billion consumers across the continent.
He also noted that there are logistical issues that Meatco will have to solve to get its products to Kenya.
“There are still logistical challenges that we hope to address swiftly, however, this is a positive step in advancing our intercontinental trade aspirations and expanding the leather value chain within Africa,” indicated Aochamub.
He explained that Africa has a plethora of resources to generate wealth for its people through intra-African trade.
“Our continent is endowed with vast natural resources, and increased intra-African trade will generate wealth for all participating countries,” Aochamub said.
He added that he is optimistic about future market opportunities across the continent, and hopes that more African markets will open up, enabling Namibian hides to reach broader, more competitive markets.
The consignment will depart for Kenya through the Port of Walvis Bay.
The Meatco tannery is a certified tannery, one of only three in Africa that have proven processes in place to assure clients of responsible production processes.
According to their 2023/24 annual report, the short-term focus for the tannery was to find alternative international clients for the produced hides.
Early this year, the Ministry of Finance announced the reduction in the Export Levy on Skin and Hides: raw skins and hides from 60% to 15%, and pickled skins from 15% to 10%.
According to the Ministry, the approach is balanced with retaining skins and hides for domestic value addition, but allowing for the export of excess production for an additional revenue stream for producers.
Namibia is part of the 25 African nations that have submitted their schedule of tariff concessions, approved and gazetted for trading under the AfCFTA.
However, to date, the country has yet to practically implement its AfCFTA Strategy and get more local companies to access a bigger market on the continent.
