Namibia is reshaping the operating model of one of its largest state-owned agricultural assets, with the Namibia Industrial Development Agency (NIDA) selecting a private company to manage half of the date farming operations at the N$233 million Naute Irrigation Farm near Keetmanshoop.
The appointment follows an expression of interest issued by NIDA in April to attract strategic investors capable of managing and expanding commercial agricultural production at the 2,000-hectare farm. NIDA Acting Chief Executive Officer Phillip Namundjebo confirmed that an investor had been selected as the preferred strategic agricultural management partner following a competitive process. The company has not been publicly identified.
“NIDA confirms that an investor has been selected as the preferred strategic agricultural management partner for the Naute Fruit Farm following a competitive process,” said Namundjebo. The proposed management agreement will run for an initial five years, with net profits allocated 60% to NIDA and 40% to the private operator. He added, “No portion of the Naute farm has been sold or transferred. NIDA will retain full possession of the land and ownership of the underlying public assets, infrastructure, equipment and water rights.”
The arrangement signals a shift towards a more commercially driven operating model for Naute while preserving state ownership of the strategic agricultural asset. Four companies submitted proposals following the EOI, with bids assessed against technical capability, operational experience, financial strength, proposed investment, farm-management strategy, market and export capacity and overall sustainability. The selection process was approved by the NIDA board, providing the governance framework for bringing private-sector expertise and capital into the operation.
The development also follows the decision by Al Dahra to discontinue its operational services under the existing joint venture, effective 10 April. Namundjebo said Al Dahra had formally notified NIDA of its intention to exit the operational arrangement, although its shareholding interests have yet to be finalised. “Corporate and shareholding arrangements relating to the existing joint venture are being addressed through a separate transaction, subject to due diligence, valuation, negotiation and governance approvals,” noted Namundjebo.
Under the proposed new management structure, the private operator will assume responsibility for the farm’s primary operating costs, including water, electricity, fertiliser, pesticides, packaging, logistics, fuel and labour-cost reimbursements. The transition is taking place against a backdrop of significant employment and production activity at Naute. As of the end of July, 118 permanent and 164 seasonal jobs had been preserved.
Located approximately 50 kilometres south-west of Keetmanshoop in the Kharas region, Naute Irrigation Farm is one of Namibia’s longest-running commercial irrigation projects. The first date palms were planted in 1991, establishing the foundation for what has become a significant date-growing operation. Historical NIDA records indicate that around 235 hectares were under production in 2020, with a diversified crop portfolio comprising dates, table grapes, pecan nuts, prickly pears and pomegranates.
By 2023, approximately 130 hectares were planted with dates and another 54 hectares with grapes, alongside smaller areas dedicated to other crops. The farm produces for both the domestic market and international export destinations, giving the project strategic relevance within Namibia’s efforts to expand high-value agricultural production and reduce reliance on imports. Namibia’s date industry generated US$7.8 million in export earnings in 2023, according to figures cited in research published by the Bank of Namibia, highlighting the potential for commercial date production to contribute to agricultural export diversification.
Al Dahra’s involvement at Naute dates back to 2008, when the former Namibia Development Corporation partnered with the company to expand commercial date production. The venture was structured as a 50/50 partnership, while government approved a 50 year renewable lease covering 220 hectares. Al Dahra’s original investment plans were reported at approximately N$140 million, with the project targeting an expansion of Namibia’s date exports into Middle Eastern and other international markets. Initial production targets included 2,000 tonnes of dates and 270 tonnes of table grapes annually, alongside permanent and seasonal employment.
The emergence of a new private operator has nevertheless raised questions about transparency surrounding the latest investment process. A senior government official told Namibian Sun that while a company had been selected, the process had not been sufficiently communicated internally. “A company has been selected to have half of the date farm at Naute. It was never brought to management. There was an expression of interest but beyond that it was all secrets. NIDA has not publicly announced the matter,” the official claimed.
NIDA’s April EOI identified opportunities covering Naute Irrigation Farm management and expansion, as well as the previous NIDA Date Palm Pty Ltd joint venture and expansion. It did not disclose the proposed investment value, the precise land or operations to be allocated to a private investor, or the commercial terms of the arrangement. The strategic objective is to leverage private-sector expertise and investment while retaining public ownership of a valuable agricultural asset.
