South Africa-headquartered fresh produce company Capespan has invested close to NAD$40 million (US$3.2 million) to develop 114 hectares of vineyards in southern Namibia, website Namibian.com.na reported. 

Capespan managing director Andre Vermaak told the publication the vineyard extension was part of an agreement the group signed with The Namibia Grape Company (NGC) in 2013.

The vineyards are located in Aussenkehr, which lies along the Orange river next to the border with South Africa.

As per the agreement, Vermaak his company committed to finance and implement an additional 114 hectares of table grapes and water supply to its existing 360 hectares, the story said.

“Last year we already developed 24 hectares of vineyards, and are currently developing another six hectares,” Vermaak was quoted as saying.

The company reportedly also invested a further NAD$11 million (US$900,000) in building a cooling facility at Aussenkehr in anticipation of the planned expansion.

According to Vermaak, the development of the new vineyards is expected to create about 58 permanent and 400 seasonal jobs, Namibian.com.na reported.

However, he raised concerns over the low electricity supply to the Aussenkehr farmers, saying this may delay the development of new vineyards.

Aside from those issues, Vermaak was upbeat about the possibility of a good harvest this season.

“We're positive about a bumper season and good prices this year,” Vermaak said, adding that new grape cultivars to be harvested this season were expected to help improve Namibia's grape prices.

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