Home Africa Namibia: Shifeta’s desert deal to cut NWR’s income by N$175m – Politics

Namibia: Shifeta’s desert deal to cut NWR’s income by N$175m – Politics

Namibia: Shifeta’s desert deal to cut NWR’s income by N5m – Politics

Rédaction Africa Links 24 with Tracy Tafirenyika
Published on 2024-04-08 17:00:00

The state-controlled Namibia Wildlife Resorts (NWR) is facing a significant financial loss of N$175 million due to the decision made by Minister of Environment, Forestry, and Tourism, Pohamba Shifeta. The minister awarded a 25-year contract to a private company owned by Heiko Dorgeloh to transport tourists into the Namib Desert. This decision has been met with criticism from affected communities who claim they were not consulted and are calling for the cancellation of the contract.

The concession was given to About Africa.Co, trading as About Adelt Sossusvlei Management, and is expected to bring in a minimum of N$250 million over 25 years for guiding travelers in the Sossusvlei area. The private company also has rights to operate a campsite, conduct guided hiking trails, and develop and operate a kiosk in the area.

The impact of Shifeta’s decision has left NWR complaining about potential financial losses. NWR’s managing director, Matthias Ngwangwama, mentioned that before the Covid-19 pandemic, the state-owned company generated N$12 million annually from the concession, which reduced to N$7 million after the pandemic.

Ngwangwama expressed NWR’s dissatisfaction with the ministry’s decision, stating that the concession was a significant source of income for the company. He highlighted the potential need to redeploy resources, including the workforce, to other sites in light of the financial implications.

Heiko Dorgeloh, the owner of About Africa.Co, defended the company’s registration status, stating that it was duly registered and incorporated under the laws of Namibia. He emphasized that the company had complied with all necessary requirements for the project and was working towards further registration and finalization.

The awarding of the concession has raised concerns about consultation processes with affected communities. The Maltahöhe community, in particular, expressed surprise and discontent with the lack of consultation in the decision-making process. Questions were raised about the involvement of the Hardap governor, Salomon April, in the selection of individuals for the concession agreement.

Governor April denied allegations of insufficient consultation and emphasized that the project is community-driven, with the aim of benefiting individuals in the community through job opportunities. Despite the disagreements, the project continues to move forward, with plans to bring economic benefits to the region.

The controversy surrounding the concession highlights the complexities of awarding such contracts and the importance of transparent and inclusive processes. The Namibian investigative unit has been monitoring the situation, providing insights into the various stakeholders’ perspectives and concerns. As the story unfolds, there will likely be further developments and responses from all parties involved in the concession agreement.

Read the original article on The Namibian

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