Ramatex Buyers Given 10 Days

WINDHOEK City Council has backtracked on terminating the N$143 million Ramatex deal with Namusa.

The textile firm, a joint venture between Namibian and American businesspeople, was given the nod last year to buy the 38-hectare piece of commercial land once occupied by Malaysian textile firm, Ramatex.

In August this year, the municipality cancelled the contract, citing lack of progress at the disused facility in Otjomuise as the reason, but Namusa wrote back appealing the decision.

The municipality said it had resolved to cancel the offer according to the terms and conditions of the sale.

However, at a council meeting last Thursday, Windhoek mayor Agnes Kafula described the deal as a “thorn in the flesh”.

Although the item was deferred for further consultation, the municipality indicated that the appeal should be considered and granted Namusa a final opportunity to buy the property on condition that it signed an amended Deed of Sale within 10 working days after the date of the resolution.

Namusa is also required to pay the full price within 10 days of the resolution, while the interest accruing on the purchase price should be regarded as occupational rent until such time the transfer is done.

Furthermore, the municipality told Namusa that requests for amendmentschanges or extension of the Deed of Sale by the company would not be entertained.

Should the firm fail to adhere to these conditions, the municipality, through the strategic executive: economic development and environmental, would market and sell the property to others.

Namusa co-onwer, Alfred Cooper, yesterday said that his company would definitely sign the contract should it be presented to them.

The company will offer 40% of its shares to Namibian investors, while 30% will be held by the American group represented by Cooper.

The other 30% is owned by a group of Namibian investors including the former Ministry of Education permanent secretary Vitalis Ankama.

The firm promised to create 20 000 jobs in two years once the “fully fledged world class apparel and garment operation” starts operations in Windhoek.

The delay in finalising the Ramatex deal has resulted in the Windhoek municipality losing N$20 million in rent which the city would have earned had it signed the contract with Namusa.

Source : The Namibian