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Namibia can earn more money from trophy hunting as it continues to promote itself as a sustainable hunting destination, president of Dallas Safari Club (DSC), Richard Cheatham, said in an interview this week.

Cheatham was part of a US business delegation which visited Namibia this week.

He cited neighbouring South Africa, which earns about US$130 million per year from trophy hunting.

“Those who come for normal holidays, may come to Namibia this year, go to Kenya the next year and Tanzania the other year. But hunters always come back to Namibia again and again.”

Figures from the Ministry of Environment and Tourism (MET) showed that approximately N$100 million is generated by the trophy hunting industry in communal conservancies per year and about N$450 million is generated from hunting on private game farms annually.

The Government earns approximately N$10 million in annual trophy hunting fees and licences (not including income tax revenues and VAT).

The hunting industry creates approximately 15,000 direct jobs in the primary sector.

According to the Namibia Professional Hunting Association (NAPHA), one of the main attractions of hunting in Namibia is the high standard of ethics maintained by its members.

Hunting requirements and activities resort under the strict supervision of MET’s directorate of resource management.

“It must be kept in mind that more revenue and jobs are created in the secondary and tertiary industries such as taxidermy, hotels, flights, curios, meals, general tourism related activities, donations and shipping,” Jofie Lamprecht, a professional hunter, NAPHA member, and wildlife photographer for Jofie Lamprecht Safaris said in an interview.

Lamprecht said tourism, specifically trophy hunting, contributes significantly to Namibia’s GDP, employment, and social development, specifically for rural people.

The hunting industry also provides much needed protein for hundreds of rural families in the form of fresh game meat or revenues from the sale of that meat to local butcheries.

Cheatham noted that trophy hunting in Namibia and the rest of Africa has again come under the spotlight because of the rising incidents of poaching of elephants and rhinos to supply ivory and horns for the Asian market.

“Worldwide anti-hunting organisations and individuals have always been against all hunting, even the regulated and sustainable hunting exercised in Namibia as well as the traditional hunting done by indigenous people for centuries,” he said.

“Their recent attempts to compare illegal slash-and-burn poachers with heavily regulated professional hunters fall short of the truth. In fact, trained hunters are stakeholders in the country’s wildlife assets and as tools for community based natural resource management in Namibia, are vital to anti-poaching and conservation efforts.”

Cheatham said that Namibia is an outstanding example of conservation.

“I just like coming here. The Dallas Safari Club is a hunting conservation community. We believe strongly in the benefits of international hunting. Not just from the stand point of providing employment opportunities to local communities, but also to provide schools and clinics. When you are protecting wildlife, you are also protecting the wilderness places where the animals live.”

Cheatham said sustainable hunting was important because the population of Africa is expected to double by 2050, which he said will lead to even more human/animal conflict unless sustainable environmental management programmes are well-funded, put in place and effectively functioning.

He said Namibia is ahead of many countries in recognising this and implementing policies and regulations to plan for better co-existence between communities and wildlife.

“Namibia is already setting aside areas and protecting the wildlife and encouraging eco-tourism. We want countries to realise the benefits of their wildlife, and the benefits of preserving and protecting places were wildlife live.”

Cheatham said the Dallas Safari Club has raised US$730, 000 for black rhino protection and another US$200,000 for leopard conservation over four years.

Since 1972, Dallas Safari Club has been the gathering point for hunters, conservationists and wildlife enthusiasts.

The Embassy of Namibia in Washington, D.C., in collaboration with the Namibia Investment Centre at the Ministry of Industrialisation, Trade and SME Development facilitated the visit of the US business delegation, which was led by Namibia’s Ambassador to the US, Martin Andjaba.

The delegation was looking at opportunities in trade and investment opportunities in the areas of agribusiness, mining, oil and gas exploration, education, affordable housing, renewable energy, manufacturing, hospitality, telecommunications, health and medical services, fishing and construction.

Labelling approval stall US beef exports

The country’s biggest meat processing and marketing company, Meatco, says beef exports to the United States have been stalled pending labelling approval for its products.

This comes as the company on 12 September, underwent a public health and assurance audit by the United States of America via Food Safety and Inspection Services (FSIS).

“As a food business operator, Meatco was audited at plant level by an FSIS auditor. No deviations (findings) were raised and the Meatco plant was found to be fully compliant. This inspection was conducted under the United States Department of Agriculture (USDA), which is responsible for the commercial supply of meat, correct labelling and packaging in that country,” Meatco Manager of Corporate Affairs , Rosa Hamukuaja-Thobias, said.

The audit by the American authorities was to verify whether Namibia remains in compliance with maintaining their required standards.

“This routine audit is conducted on an 18-month to two year basis.”

Hamukuaja-Thobias said the Directorate of Veterinary Services and Meatco performed well during the audit, indicating the commitment of both parties to work towards the commencement of the exports to the US market.

“Although Namibia was granted access to the American market in 2016, we are still waiting for final approval on the labelling of our products before we can start exporting there.”

Hamukuaja-Thobias said the product labelling approval is not part of the market access process, but a separate, continuous procedural process completed with each product.

“This means that for every new product developed hereafter, we will have to get their labelling approval.”

Once exports to the US start, Meatco intends to market boneless raw beef products such as primal cuts, chuck-and-blade and beef trimming.

The new USA market is expected to further provide an opportunity to Meatco, to fulfil its objective of maximising returns to producers.

Hamukuaja-Thobias said despite planned exports to the US, the European Union and Norwegian markets remain lucrative for the company, providing 75 percent of Meatco’s earnings.

“It’s often difficult to compare markets like for like, but the US market compares well with most of the cuts produced by Meatco, but we foresee better benefits, considering the huge fast food market.”

The planned exports also present Meatco with an opportunity to enter the high-end markets like Woolmart in the US.

“The US market will most definitely give Meatco and Namibia an alternative in terms of product movement as the demand differs from season to season.”

After the severe drought in the past three years, Hamukuaja-Thobias said the herd rebuilding phase will still continue for the next two seasons at least, posing a threat to Meatco’s optimum operation capacity, as less numbers will be available for slaughter. “Meatco can only sell what it produces and with the anticipated lower kill numbers, it will be a challenge to serve all the markets with a good quality product on a consistent basis. It will further make it difficult for Meatco to further develop new and under-developed markets with the lower volumes. The lower volumes will only allow us to maximise the producer returns.”

The Southern Regional Electricity Distributer or SORED is expected to be operational by July 2018.

A RED is a regional electricity distributing company tasked with supplying electricity to the residents in a specific region. There are three REDS that are currently operational - Erongo Red, CENORED and NORED.

Electricity Control Board CEO, Foibe Namene, said this week that technical and shareholders committees have been set up to drive the creation of SORED.

Windhoek is not part of a RED at the moment, but Namene said delegates during an Electricity Distribution Industry (EDI) Summit of 2014 pronounced themselves in favour of the establishment of a Central RED and a Southern RED.

“Regarding Central RED, stakeholder consultations are about to commence, which will be followed up with monthly consultative meetings. We expect that Central RED would be operational towards the end of 2018 or early 2019 depending on the outcome of these consultations.”

Namene defended the establishment of REDs saying that they are successfully fulfilling their respective mandates.

“Apart from competently operating, maintaining and upgrading network infrastructure facilities, they sustain commercial viability through effective revenue collection and prudent financial management.”

She argued that in contrast to smaller licensees, REDs have the capacity to leverage economies of scale, harmonise tariffs and adequately finance service delivery.

“They are financially self-sufficient and therefore do not rely on Government bail outs like smaller licensees such as Local Authorities, Village Councils and or Regional Councils. Through their current operations, REDs are able to secure commercial loans for electrification, network infrastructure development and maintenance.”

Namene claimed that customers of REDs do not experience disconnections by NamPower due to non-payment.

“These developments fit in perfectly with Government objectives towards a sustainable and efficient functioning of the electricity industry.”

She argued that the benefits of REDs include economies of scale, uniformity of standards and no direct subsidies from the Government.

Namene said the delay in the formation of SORED was caused by several factors comprising of the perceived loss of revenue made from electricity, shareholding issues and lack of a binding legal framework on the establishment of REDs.

She claimed that the notion advanced by some quarters that the establishment of REDs is against Government developmental objectives, is not accurate.

“The establishment of REDs supports the National Energy Policy’s main goals which are to ensure security of supply, to create cost-effective, affordable, reliable and equitable access to energy for all Namibians.”

Witvlei loses out on Norway exports, again

The current legal impasse surrounding the ownership of the Witvlei Meat Plant between Agribank and Witvlei Meat Pty Ltd means that the meat processing and marketing company,

one of three abattoirs in the country with the capacity to export beef to the lucrative Norwegian market, will once again lose out on the export quota next year.

Norway grants Namibia an export quota of 1600 tons per year, which was taken up by Meatco and Brukaross Meat Processors this year. Meatco exported 1400 tonnes while Brukaross exported 200 tons.

In 2016, Meatco exported the entire 1600 tons after Brukaross failed to meet export deadlines.

The Meat Board of Namibia recently invited interests for the 2018 Norwegian export quota. The bids closed on 31 October.

“The sharing and allocation of the 1600 tons beef quota will be done in accordance with the Cabinet directive for the exports of beef to Norway as well as the board’s Norwegian quota implementation procedures,” the board said.

Meat Board of Namibia Trade Manager, Goliath Tujendapi, told the Windhoek Observer that only Meatco and Brukaross had expressed interest in exporting to Norway.

Witvlei Meat owner, Sidney Martin, blames Agribank for his woes.

“The Agriculture Bank of Namibia is deliberately delaying the transfer of ownership of the plant to Witvlei Meat Pty Ltd. The plant is not operational for slaughtering; however, Witvlei does have security services that are protecting the Witvlei plant,” Martin said.

He said Witvlei has lodged a claim with the courts for losses caused by the delays by Agribank to transfer the plant to them.

Agribank CEO, Sakaria Nghikembua, maintained that the bank still owns the abattoir.

“I can confirm that the abattoir is, and has always been, owned by Agribank. The abattoir is an asset of the bank, just like any other asset. Other than that, we do not have any other comments on this asset.”

Brukaross Meat CEO, Johan Bester, confirmed that they have applied for the 2018 quota, adding that the company has a capacity to export a large quota than the 200 tonnes that it has previously received.

Witvlei has taken Agribank to court claiming N$60 million in damages.

The 10 August lawsuit, which emanates from a protracted legal fight over the abattoir at Witvlei, comes after Agribank failed to meet a 21 July deadline set by Witvlei Meat.

According to the settlement tabled by Witvlei to Agribank, the company had offered to write off its claim of N$60 million made against the bank in exchange for transfer of the abattoir and a N$35 million loan.

The amount, according to court documents, was compensation determined by Octagon Actuaries as “reasonable compensation” and due to Witvlei Meat for loss and damage.

Agribank has failed to restore occupation of the abattoir to Witvlei Meat following a court ruling which ordered the agricultural lender to restore possession of the abattoir by no later than May 12, 2016.

Agribank claimed Witvlei Meat had abandoned the property in June last year and that the bank was entitled to take possession and occupation of the abattoir. Agribank won an eviction order against Witvlei Meat in the Windhoek High Court in March 2013, having sued the company in an effort to have it evicted from the abattoir that it had been renting since August 2006.

Witvlei Meat had argued that it had a legal right to exercise its option to buy the abattoir in August 2009 and made a N$15 million offer; a position supported by a May 2014 Supreme Court decision, when the country’s highest court ruled that Agribank was wrong in its view that Witvlei Meat no longer had a valid option to buy the abattoir.

NamPower’s generation capability under the spotlight

Power utility, NamPower, has defended the slow pace at which all planned mega electricity projects are moving, saying the execution of projects such as Baynes and Kudu Gas are highly complex,

extremely expensive and require Government guarantees for financing arrangements.

This comes after an investigation by an energy expert who said NamPower and the Government have not done enough to ensure security of supply.

The expert, who preferred not to be named, said this failure had come at a very high cost which is not sustainable in the long run.

He added that the failure to invest in a local baseload is in contrast to the White Paper on Electricity, whose objective is to have 100 percent of peak demand and 75 percent of electric energy demand be supplied from local sources.

The energy expert said NamPower imported about 97 percent of its average hourly power load in September, or 465 MW out of 480 MW.

He said 77 percent of this power was imported from South Africa, 2 percent from Zimbabwe and 18 percent from Zambia.

NamPower also imported 68 percent of the country’s energy demand last year from the region, up from 64 percent in 2015.

NamPower Managing Director, Simson Haulofu, told the Windhoek Observer that they have made progress on a number of small generation projects, which include private participation to reduce the reliance on imports while waiting on the mega projects.

“Some of the renewable plants are already operating,” he said.

Haulofu said considerable progress has also been made since the resumption of project activities during the second quarter of 2017.

The company’s long-term power generation projects include the Baynes Project, Kudu Gas, Xaris and Arandis.

“Mega projects such as Bayness, Kudu, Xaris and Arandis are complex and with great funding requirements and thus need thorough risk analysis. Furthermore, projects of this nature need Government [financing] guarantees to unlock them. Hence, their implementation cannot be rushed without proper consideration,” the NamPower MD said.

Since May 2017, three rounds of gas sales agreements negotiations have taken place between the Kudu Gas Field developers and the Kudu Power Station developers, with the final negotiations expected to be concluded by the end of November, he said.

The company has also re-engaged Kudu Gas contractors, namely the consortium of Shanghai Electric and Siemens for the construction, installation and commissioning of the power station in respect of price reconfirmation.

Haulofu said the re-engagement negotiations have been positive and said the renewed consultations with Marubeni Corporation for the operations and maintenance contract and the 19 percent equity is on course.

NamPower has also re-engaged CEC Plc of Zambia for the power offtake. The talks started in August and are also progressing well, he said.

NamPower was also accused of not doing anything to make contingency plans to end its dependency on one power transmission line from South Africa.

But Haulofu defended the company’s contingency plans, saying that Namibia is connected to two utilities, Zesco of Zambia through the Zambezi interconnector and Eskom of South Africa through two lines (400 kV and 220 kV).

“This provides Namibia with a redundancy, in the event that one interconnector is out, Namibia can still be supplied via the other two lines. The situation is improving as most local IPPs are busy commissioning their generation plants and this will alleviate the burden on the interconnectors,” he said, adding that NamPower always has mitigating factors in the event one supply option is curtailed, and Eskom is no exemption.

The energy expert also accused NamPower of delaying the implementation of renewable energy projects by independent producers.

Haulofu, however, said NamPower is continuously engaging Independent Power Producers (IPPs) for the provision of electricity from renewable energy projects.

“The implementation of the Renewable Energy Feed-In Tariff (REFIT) programme which is designed to fast-track investment in renewable energy technologies by offering long-term contracts to renewable energy Independent Power Producers is typically based on the cost of generation of each technology.”

So far, 40 MW of power is being supplied by IPPs and an additional 92 MW is expected to be commissioned by end of 2018.

According to the 2016 NamPower Annual Report, despite an increase in revenue, the gross profit margin fell from 40 percent achieved in 2015 to 28 percent and the company made a loss (before tax) amounting to N$551 million compared to a profit of N$666 million achieved in 2015.

NamPower said this was due to extraordinary items that occurred on its balance sheet, which included the increased cost of electricity, and the severe drought having affected the generation capacity of NamPower’s ‑ flagship hydro power station at Ruacana.

Namibia’s business ranking improves slightly

Namibia’s ranking on the World Bank Group’s annual Ease of Doing Business Report has improved slightly to 106 in 2017 compared to 108 last year.

Notable improvements cited by the report is that Namibia made enforcing contracts easier by introducing an electronic filing system and an electronic case management system for the use of judges and lawyers.

Namibia maintained her ranking within the now 16 SADC member states at rank seven. In 2014 and 2016 Namibia ranked sixth, while in 2015 the country ranked fifth. “The bare improvement of Namibia’s 2017 ease of doing business ranking, however, recovered only some ground the country has lost since 2012 when Namibia was ranked 78,” commented, Klaus Schade, Executive Director of the Economic Association of Namibia.

“The ranking indicates that considerable efforts are required to become the most competitive economy in SADC, let alone on the continent,” Schade said.

Namibia was ranked 172 in terms of the time it takes to start a business. It takes 10 procedures to register a business in Namibia, a process that can take 66 days.

The country got a score of 68,9 on the ease of starting a business on the ranking scale of 0 to 100. In terms of dealing with construction permits, Namibia ranked 107, a process that takes 120 days.

In terms of getting electricity, Namibia ranked 68, a process that takes 37 days.

The reliability of electricity supply is considerably better rated this year at 6 out of 8 last year, which led to a much-improved ranking of 68 up from 124 last year.

In terms of registering property, Namibia ranked 175, a process that takes a gruelling 52 days.

Schade said of concern is the drop in ranking regarding ‘Dealing with construction permits’ by 40 places to rank 107 this year. The reasons are an increase in the number of procedures, 12 steps up from 10 and consequently an increase in the number of days it takes to get the permit, 160 days compared to 137 last year.

“Given the high prices for residential property and the contraction in the construction industry, these areas warrant urgent attention,” Schade said.

He was also concerned that the ranking in terms of trading across borders dropped five ranks to rank 132 simply because other countries improved and moved forward, while time and costs of imports and exports have not changed for Namibia.

The improvement is in contrast to the decline in competitiveness according to the World Economic Forum’s Global Competitiveness Report 2017-18 that was released in September 2017.

According to that report, Namibia dropped six places to 90.

Job opportunities and a wide selection of top retail shops are some of the plus points of the ultra-modern N$550 million Dunes Mall that was officially opened in Walvis Bay last week.

The 28,000m² shopping mecca, which is a first for the harbour town, and the second largest in Namibia after the Grove Mall in Windhoek, was jointly developed by South African shopping mall specialists Atterbury, Safland and Tradehold.

The Dunes Mall is strategically situated on the main arterial road between the CBD and airport circle, and has changed the skyline of the harbour town forever with its welcoming contemporary architecture.

It is already poised to become the town’s main attraction, which was clear on opening day when an estimated 10,000 people visited the mall.

The well-designed centre is anchored by a 3,500 m² Checkers store, a 2 700m² Pick n Pay and a 1 700m² Woolworths store.

Adding to the tenant mix is a large Dis-Chem, Clicks, Hi-Fi Corp and House and Home shops to mention, but a few.

Fashion retailers such as Truworths, Cotton On, the Mr Price Group, the Foschini and Pepkor Group also offer a feast for the shopper.

The Dunes Mall has a food court with a children’s play area, plus dining options, including Spur and Mugg & Bean, with ample outdoor seating areas.

Developers are working towards phase two of the Dunes Mall investment, which will incorporate a 2,500m² Game store as well as Planet Fitness.

At the opening ceremony, Atterbury CEO, Louis van der Watt, praised the Namibian Government for opening its doors to business developments such as the Dunes Mall.

Up to 3,000 people were employed on site at the peak of the construction phase, with between 700 and 1,000 permanent jobs created.

“The fact that this is the first regional shopping centre in Walvis Bay, says it all, and we designed and built a shopping centre that is on par with the very best in South Africa, with design and finishes of a high quality,” Van der Walt said.

In her address, Special Advisor to the Governor of the Erongo Region, Adelheid Kandjala, pointed out that the region is one of the most affluent in the country with the second highest per capita income, and has witnessed a number of great projects that are either underway or have been completed.

“The last few years have been tough, as not only was the country hit by a devastating drought, but also a global economic downturn which has put a halt on many projects leading to numerous job losses, especially in the construction sector. “Yet despite this, the developers of the Dunes Mall pushed forward and persevered to complete this top class project, which will draw more customers to the coast, leading to a healthy economy and creation of much needed permanent jobs in this town,” Kandjala said.

Construction of the Dunes Mall was financed through a facility from Nedbank Namibia.

The 147-room Town Lodge Windhoek hotel was officially opened this week by the Minister of Environment and Tourism, Pohamba Shifeta.

The hotel, which cost N$130 million to build, is owned by the Johannesburg-headquartered City Lodge Hotel Group. It plans to meet the accommodation needs of both business and leisure travellers.

The hotel is the 13th Town Lodge in the group, complementing 10 Town Lodges in South Africa and one each in Nairobi, Kenya and Gaborone, Botswana.

It is the 58th hotel in the City Lodge Hotel Group, which also owns and operates the Fairview Hotel, Courtyard Hotel, City Lodge Hotel and Road Lodge brands in South Africa, Kenya and Botswana.

Situated on Frankie Fredericks Street, Kleine Kuppe, Windhoek, near the Grove Mall and Lady Pohamba Private Hospital, all of the hotel’s comfortable bedrooms feature en-suite bathrooms with maxi showers.

Town Lodge Windhoek provides free and secure basement parking as well as a swimming pool, wireless internet, full English and Continental breakfast options and a sundowner bar service.

Connected family rooms are available and one in 50 rooms has been specially designed to cater for the needs of physically disabled guests.

There are three small boardrooms comprising of two 12-seater rooms and one six-seater room, ideal for lighter meeting needs.

“We are very pleased to have opened our newest hotel in Windhoek as this adds another important element to our targeted expansion programme in southern and East Africa,” a statement distributed by City Lodge Chief Executive, Clifford Ross, said.

Marco Fishing has unveiled its new fishing vessel, the M.F.V. MEKA BAY, the seventh vessel in its fleet. The vessel cost N$20 million and was built in St Helena Bay, South Africa.

The dedicated longline fishing vessel, which is 30 metres long and 8 metres wide, is the largest fibre glass vessel to be built in the Southern Hemisphere.

The vessel, according to the company, is propelled by an engine of 800 HP, giving it a top speed in excess of 10 knots.

Recently, the board of directors from both Marco Fishing and Mekarilakha Fishing made up of Peter Sylvester, Gabriel Uahengo, Appie Louw, Steve Kuverua, Shadreck Mwilima, Bernhard Gawanab and Samuel Karigub, visited the vessel at St Helena Bay.

“With the additional hake quota available to the company the board made the decision in middle 2016 to expand the factory and the Marco fleet by ordering a new hake longline vessel,” the company said in a statement.

Marco Fishing has, since its partnership with Mekarilakha Fishing, embarked on a substantial expansion strategy both on land and at sea, with the construction project for the Lüderitz factory upgrade and enlargement well under way.

“With this, Marco Fishing (Pty) Ltd has re-emphasised its commitment to the regional development and specifically investment in the town of Lüderitz. The new factory and related processing capability as well as the new vessel will result in additional job creation in excess of 100 people,” the company said.

Marco Fishing is one of the smaller hake right holders and has been operating in Lüderitz since 1993.

The company has also diversified by investing in the large pelagic sector.

The Government has set in motion plans to partially list some of its ailing commercial enterprises by next year, Minister of Finance, Calle Schlettwein, has said.

The partial listing of State enterprises on the Namibian Stock Exchange (NSX) forms part of Government’s plans to push for the companies to start operating profitably and also contribute to public revenues.

Schlettwein, however, told the Windhoek Observer in an interview this week that no decision has been made on which specific companies will be partially listed.

“I don’t think we have specific ones in mind. Of course, there are obvious candidates, but there is no decision taken as yet. There are legal issues that we have to look at. So there is no decision made yet.”

He refused to say which companies are the ‘obvious candidates’ for listing, adding that the possible recapitalisation of the companies before they are listed will depend on their balance sheets.

“I can’t give you a concrete answer. The principle idea behind this is that the State sits with a number of assets, dead assets. They are not generating income, to improve our ability to develop the country. And we must look to improve the performance of these assets and I think the Ministry of Public Enterprise is important to this. They must now inform us, what is in the best interest of the shareholders to do with the assets.”

The minister believes commercial enterprises must be able to make money and be self-sustaining. Cabinet impatience with continuing to bail out underperforming or mismanaged commercial SOEs has been expressed in various resolutions and statements from the Minister of Public Enterprises and the Prime Minister’s Office.

According to budget documents, State owned enterprises were allocated N$6,4 billion in the main budget for the 2016/17 financial year.

The funding was expected to reduce to N$4,6 billion, in the 2017/18 financial year.

In the mid-term budget announced last week, a further N$80 million was allocated to UNAM, NUST, NTA and NSFAF.

Schlettwein said from the treasury’s point of view, it is important that Namibia turn liabilities into assets to supplement tax revenue from other sources like dividends and proceeds from assets.

“I think in the next budget, we want to have the first implementations,” he said.

Commercial public enterprises include Air Namibia, Epangelo Mining, Henties Bay Waterfront, Lüderitz Waterfront, Namcor, Namibia Airports Company, Namibia industrial Development Agency, Namibia Institute of Pathology, Namibia Ports Authority, Namibia Wildlife Resorts, Nampost, NamPower, National Fishing Corporation, Roads Authority, Roads Contractor Company, TransNamib Holdings, Zambezi Waterfront and the National Fishing Corporation.

Apart from the partial listing, some of the measures announced by Schlettwein when he presented his mid-term budget include the harnessing of PPPs with an initial investment of N$2 billion, the establishment of a Venture Capital Fund, a Credit Guarantee Scheme and the setting up of the Infrastructure Fund at the Development Bank of Namibia.

Commenting on the Infrastructure Fund, Eric van Zyl, and Head of Research at IJG said the fund could be a good idea if administered and funded correctly.

“As the Infrastructure Fund will shift some of the big infrastructure projects off Government’s balance sheet, there will need to be a lot of transparency regarding the projects, progress and cost overruns. Without proper transparency there is a much higher chance for misuse of funds within such a vehicle,” van Zyl said.

He added that if the returns are adjusted for Government’s heightened credit risk, then it could be an attractive opportunity.

“However recent cost overruns for infrastructure projects such as for the fuel depot in Walvis Bay and Neckartal Dam will likely result in private investors being weary of investment into the fund. This takes us back to transparency. Private investors will require a risk premium for any investment which is backed by Government due to the recent inability of Government to pay invoices on time.”

Van Zyl said possible PPP’s would be bankable projects such as the electricity generation or the expansion of the Windhoek water reclamation plant. Land servicing and housing would be another, he said.

“There are many such opportunities which provide a return.”

The Government Institutions Pension Fund (GIPF) says its pension contributions will not be affected by the current economic down turn, which has seen Government freeze recruitments.

Namibia has over 100,000 civil servants at the moment.

Conville Britz, General Manager of Investments at GIPF told the Windhoek Observer this week that the fund has a significant member base despite a decline in new members added on a monthly basis.

“With the existing members, GIPF has more than enough members to be a self-sustaining business at current member levels,” he said.

“Our business is not dependent on continuously adding new members.”

The fund’s total asset value as at 30 September 2017 stood at over N$106,3 billion.

A pension fund has both assets (investments), as well as liabilities (benefits due to members).

Responding to a question on what would happen if the current economic down turn continues, Britz said the fund works to ensure that its liabilities do not increase more than the rate of increase in its assets.

“We ensure that the growth in liabilities is capped to annual inflationary increases in benefits as well as with the admittance of new members,” he said.

He also said that the valuation interest rates applied are long-term rates which are not influenced by short-term changes in such rates.

“Namibia’s interest rates are not expected to reduce below current levels, further increasing the value of our liabilities,” Britz said, adding that with slower economic growth locally, GIPF expects this to have an influence on the rate of growth of its asset base.

“A point to keep in mind is that GIPF does not invest all its assets locally, but also have international assets invested offshore. The overall effect on our expected growth rate of our assets is that it will be lower, but not negative.”

The GIPF currently has close to 50 percent of its assets invested in Namibia, followed by 25 percent in international markets, over 18 percent in South Africa and the remaining 6,9 percent in the rest of Africa.

Asked if all these factors have been taken into account by the fund’s actuaries, Britz disclosed that actuarial reviews are performed at least once every three years by independent actuaries.

“GIPF has an independent actuary. The actuary takes all economic and other relevant information into account in arriving at a value of our liabilities. This value of the liabilities is then compared to the value of the assets to establish the net funding position of the fund. Then results of the actuarial reviews are taken into account when investment strategy is determined.”

During the period ending March 2017, the fund paid out a total of N$2,9 billion in benefits. Of this amount, N$1,3 billion was paid as monthly pensions.

GIPF has invested over N$4 billion into the local economy via its unlisted investment policy since it appointed the first of its fund managers in 2010.

In March this year, the fund acquired a 25 percent stake in the Capricorn Investment Group at a cost of over N$2 billion.

The Government and officials from Moody’s Investors Service this week held talks on Namibia’s credit rating during which,

the Government reiterated its stance that the ratings agency was wrong when it downgraded the country’s long-term senior unsecured bond and issuer ratings to Ba1 from Baa3 and maintained the negative outlook in August.

“We spoke to them yesterday (Tuesday) and the day before yesterday (Monday),” confirmed Finance Minister, Calle Schlettwein in an interview.

The talks were part of the scheduled annual meetings on Namibia’s rating, the minister said.

“We have reiterated what we have said before and now, we are of course moving on and we discussed the mid-term budget review and we are awaiting their report,” Schlettwein said.

Moody’s latest rating on Namibia is expected in December.

Asked if he thinks Moody’s will revise its August downgrading, Schlettwein said he could not ‘pre-empt’ what the agency will do.

Moody’s raised three main concerns with Namibia, namely imbalances of public finances, weak institutional capacity and liquidity vulnerabilities going forward.

“While we find such action to have lacked substantive assessment of domestic developments and consultation, the key consideration is for Namibia to continue addressing the rating weaknesses raised by ratings agencies, public rebalancing and addressing the development needs in the real sector,” Schlettwein said during his mid-term budget address in Parliament last week.

According to analysts, Namibia can expect to borrow more money, which may raise further serious concerns about the country from international ratings agencies. The mid-term budget showed that the Government plans to spend an additional N$4, 5 billion in the 2017/18 financial year.

Eloise du Plessis, Head of Research at PSG Namibia, said she was surprised by the additional spending since revenue is expected to decline over the Medium Term Expenditure Framework (MTEF).

Economic Association of Namibia Executive Director, Klaus Schade, also noted that fiscal consolidation has not yet achieved the desired targets.

He noted that the budget deficit had increased to 5,3 percent from an envisaged 3,6 percent and the debt to GDP ratio will remain at about 44 percent without decreasing as expected in the main budget.

Confirming Moody’s concerns were figures showing that the Government will pay N$2,2 billion in more expenditure arrears from the 2016/2017 budget, whose payments were frontloaded in August this year.

Despite attempts to save money in the current budget through spending cuts, figures showed that only N$486 million was saved.

The spending cuts came from savings on travel, training, cuts on corporate gifts and refreshments as well as hiring freezes, among other cuts.

The minister disclosed that the budget deficit for the 2016/17 financial year increased from the revised budget estimate of 6,3 percent to 6,9 percent.

The Namibian Competition Commission (NaCC) last week held a public hearing on the acquisition of Samba Dutchco B.V’s 34 percent stake in MTC by the State-owned Namibian Post and Telecom Holdings Limited (NPTH

If this deal is approved by the NaCC, it means that NPTH will have a 100 percent stake in MTC. The Government has previously said that it will find a technical partner for MTC, once the shares have been transferred from Samba.

Absent from the Windhoek hearing was the communication industry regulator, CRAN and the Ministry of Communications and Information Technology (MICT).

With several key stakeholders missing and the NPTH and Samba refusing to answer several questions due to confidentially clauses in their contract negotiations, the meeting, which was slated to last for four hours, only lasted for just over an hour.

Some of the members of the public who attended the hearing felt that the Government through NPTH was not the right vehicle to hold the shares.

Chairman of Eos Capital, Johannes !Gawaxab, who attended the hearing as an investor, wondered why the Government wants to compete with itself by owning both Telecom Namibia and MTC Namibia.

“The two business entities will be competing, while being owned by Government, this is unsustainable,” !Gawaxab said.

Another member of the public, who attended the hearing, wondered how MTC under total Government control would keep up with technological advances in the telecom sector.

The Namibian Competition Commission CEO, Vitalis Ndalikokule, said the commission would take into account all the concerns expressed at the hearing before making a final recommendation.

The commission will also ask NPTH and Samba Dutchco B.V to answer in writing to the commission, issues they said they could not disclose in a public forum. Minister of Finance, Calle Schlettwein, announced late last year that the Government will use funds from the Government Institutions Pension Fund (GIPF) to buy the remaining 34 percent stake in MTC.

The shares were previously owned by Portugal Telecom. Samba is incorporated in Luxembourg.

In June, Brazilian telecoms group Oi, which owned Portugal Telecom said that Samba, Oi’s investment partner in developing markets’ holding company, Africatel B.V. (Africatel), agreed to reduce its Africatel stake from 25 percent to 14 percent, thereby increasing Oi’s Africatel ownership to 86 percent. In exchange, Africatel transferred to Samba its stake in MTC.

Long-serving Capricorn director steps down

Frans du Toit has stepped down as a director of the Capricorn Group after 19 years, but will continue to serve as non-executive director of Bank Windhoek, the group’s cash cow.

Du Toit was first appointed as a director of Bank Windhoek in 1998 and as director on the Bank Windhoek Holdings (now Capricorn Group) board in 2013, when the group listed on the Namibian Stock Exchange (NSX).

“Mr du Toit will continue to serve as a non-executive director of Bank Windhoek Limited, so we are grateful that we will continue to benefit from his many years of experience in the banking and accounting industry,” said Marlize Horn, Group Executive: Brand and Corporate Affairs at Capricorn, in response to an enquiry.

Du Toit chairs the bank’s Board Audit Committee and is a member of the Board Risk and Compliance Committee as well as the Board Lending Committee.

He will continue to chair the Capricorn Group Board Remuneration Committee.

Horn said Du Toit has contributed on various board committees, including the Group Board Audit and Risk Committee, the Group Board Remuneration Committee, the Group Board Nominations Committee, the Group Board Human Resources Committee and the Group Board Investment Committee.

She said Du Toit has had many memorable moments at Capricorn including that of seeing the group list on the Namibian Stock Exchange four years ago.

“His contribution to Bank Windhoek and the Group is immeasurable. The listing on the NSX in June 2013 is a memorable moment. It provided an opportunity for more than 5000 Namibians to become shareholders in the largest majority-Namibian owned financial services group. The value of a share in Capricorn Group has more than doubled since the public offer price of N$8, 75 to N$18, 11 today,” Horn said.

She added that Du Toit’s seat on the board will not be replaced, with Gerhard Fourie having taken over the role of lead independent non-executive director.

Du Toit’s retirement was effective 31 October. The Capricorn Group Board of Directors is now made up of Johan Swanepoel (Non-executive chairman), Brian Black – (Independent non-executive director), Koos Brandt – (Non-executive director), Gerhard Fourie (Lead independent non-executive director), Gida Nakazibwe-Sekandi (Independent Non-executive director) and Thinus Prinsloo, (Managing Director).

Other directors are Dirk Reyneke (Independent non-executive director), Esi Schimming-Chase (Independent non-executive director), John Shaetonhodi (Non-executive director) and Matheus Shikongo (Independent non-executive director).

As marketing trends continue to evolve, with companies trying to get to grips with the changes, the Windhoek Observer (WO) caught up with Multichoice Namibia Marketing Manager, Abbelene Boer (AB) who gave her view of the sector and reflected on her professional journey and experiences.

WO: What are some of the growing trends in the marketing industry?

AB: I think the fastest growing trends lie in content marketing based on big data as well as mobile and social media marketing. This will be growing even more rapidly as cheaper smart phones are already in our market and telecommunication infrastructure is nearing complete optimisation.

WO: Do you think all marketing graduates should be registered as specialists like other professions such as health officers?

AB: I don’t believe all marketing graduates should be registered as specialists, but Namibia can benefit from an accredited professional body to which you earn accreditation. This will help regulate the marketing field and to set standards.

WO: What does it take to be a marketing specialist?

AB: You have to focus on a particular specialisation within the field and keep abreast of the changes and developments in that area. Marketing is so wide, and within marketing lies several areas of specialisation that are rapidly evolving. Not everyone can be a specialist, and marketing generalists are needed at different levels of the marketing process. Marketing works best when specialist areas are integrated – meaning the best results is really a team of marketing persons in specialist areas.

WO: What is the state of the marketing field in Namibia?

AB: I am not the authority on the state of the marketing field in Namibia, but I believe that Namibian businesses are prioritising marketing more and putting it in the center of their business planning and development. In the past, many Namibian companies saw marketing as an end-note to the business process involved only in promotion. Now with a more competitive landscape developing in the Namibian market, businesses are taking the lead from marketing, so the field is more competitive, more professional, more commercial and more strategic.

WO: Do you think marketing practioners get the recognition they deserve?

AB: Marketing practitioners have not gotten recognition in the past as very little marketing work was results-driven, business-orientated or strategic therefore success was not measured against a marketing initiative. With that changing, however, more and more marketing practitioners are being recognised for initiatives that lead to growth and have turned businesses around.

WO: What is the most challenging aspect of your job?

AB: Research and acquiring accurate information on the market.

WO: How did you end up in marketing?

AB: I began my career as a journalist and broadcast media practitioner. My passion for promotion naturally led me to the fields of advertising where I could be more creative as well as get started in strategy, specifically media strategy. My writing ability naturally led me to corporate communication and public relations where I found an immediate love and comfort. Furthering my studies at Masters level led me into business management where the field of marketing was where my experience was the ideal fit.

WO: Is it something that you had planned?

AB: Not at the onset of my career. At high school I was going to be a journalist till my dying day and have six children and freelance from home for the BBCs and CNNs of the world. When I got to know myself better and really define what I enjoyed doing and what my strengths were; I began to make my decisions around my career based on that knowledge. Continued education also made changes to my plans as my learnings and developments in my field and the world at large drive my work changes. It’s an ever-evolving process of on-going self-discovery.

WO: Do you see media practitioners as partners or a threat?

AB: Media practitioners are partners of course. While earned media represents a smaller portion of otherwise paid media in the marketing realm; it is an influential portion and relationships with this stakeholder need to be respected, nurtured and maintained to be mutually beneficial.

WO: What do you do to unwind?

AB: I play with my children. I find that their laughter and pure joy totally relaxes me and I watch my favourite series on DStv Catch up – I enjoy escaping through television. I cry all my tears out through a comedy drama series such as This is us and laugh till my stomach hurts.

WO: What is your favorite sport and team?

AB: I’m not a great sports enthusiast, but I do catch an occasional live football match on television and my favourite teams in the various leagues are (EPL) Arsenal, (LaLiga) Real Madrid, (PSL) Kaiser Chiefs and (NPL) African Stars.

MANCOSA announces Actis international scholarships

Actis, the investor in growth markets across Africa, Asia and Latin America has announced that it will be providing US$100,000 in sponsorship for two Honoris United Universities’ graduates to complete a postgraduate qualification at the world’s leading educational establishments.

The graduates will have the opportunity to apply for these scholarships to study at world-class institutions such as University of Oxford, University of Cambridge, or a Russell Group University in the UK or at an Ivy League or similarly prestigious university in the US.

The first beneficiaries of the scholarship are expected to start in October 2018.

“We are proud to provide this sponsorship. It reflects the calibre of Honoris United Universities’ graduates and the benefits we see in international mobility. Through the companies we have invested in, we employ over 100,000 people across Africa. We know that African businesses have international ambitions and we understand that they are looking for candidates with global perspectives who also understand the diversity of Africa and its local markets, while demonstrating the skills to operate successfully,” Rick Phillips, a Partner at Actis said.

Luis Lopez, Chief Executive Officer of Honoris United Universities, said these scholarships embody the international mobility and collaborative intelligence at the core of Honoris United Universities’ values.

“We are proud to be forming Africa’s next generation of entrepreneurs and leaders by providing high quality, accessible education. We are delighted that our graduates will benefit from this opportunity to further widen their horizons and we firmly believe that they will also offer fantastic perspectives, forged in Africa, to these leading establishments.” The eligibility criteria for the Actis International Scholarship are available at the Provost’s Office of each Honoris United Universities’ institution and at the following link: Actis International Scholarship.

The student must satisfy the following requirements for the Actis International Scholarship:

Step 1: • Be enrolled in a Master’s degree programme at MANCOSA or have completed a Master’s degree programme at MANCOSA;

• Have an excellent academic dossier (top 10 percent of graduating class, with distinction/“mention”);

• Demonstrate a record of extra-curricular activities in support of application for a specific programme;

• Exhibit maturity and sense of responsibility as assessed by a personal statement;

• Submit three letters of recommendation, at least two from academics or employers sources who know the candidate well;

• Undergo an interview by MANCOSA;

• Pass the chosen university entrance exams as required;

• Pass all standardised tests required by the postgraduate programme.

• Applications must be received by MANCOSA before 30 November 2017.

Step 2: Students satisfying the above criteria will be pre-selected by Honoris United Universities Selection Committee.

Marco Fishing (Pty) Ltd (Marco) and its partner, Mekarilakha Fishing (Pty) Ltd, are currently working on expansion plans for their Lüderitz factory at a cost of N$10 million.

Mekarilakha became a shareholder in Marco in 2016 and is a joint venture (JV) of five new right holders, as grouped together by the Ministry of Fisheries and Marine Resources

“The construction project for the factory upgrade and enlargement is well under way. Marco is also in the last phase of the construction of their new dedicated longline fishing vessel, the M.F.V. MEKA A BAY,” a statement from the company said.

“With the additional hake quota available to the company, the board made the decision to expand the factory and the Marco fleet by ordering a new hake long line vessel. This vessel is currently in the final stages of construction and should be operational in November this year. The vessel is 30 metres in overall length, eight metres wide and will be able to accommodate a 38-member crew.”

The upgrades according to the company, involve increasing the combined factory floor space, new staff facilities and ablutions, resulting in the creation of 100 new jobs.

“Marco is now in a position to exploit the fishing rights and quotas of the two companies. These include large pelagic fishing rights.”

Mekarilakha said in the same statement, that by acquiring shares in Marco, the company has made a significant investment in ownership of fishing vessels and processing facilities, creating joint control of the Lüderitz based operations, contributing to new and existing job security.

Marco Fishing has been operating in Lüderitz since 1993.

Financial services group, Trustco, was recently voted as one of the best performing companies on the Johannesburg Securities Exchange (JSE) after delivering sustainable growth for its shareholders over the years.

The company is also listed on the Namibian Stock Exchange.

“With this JSE award, we’ve established ourselves amongst the TOP 10 Royal Companies in South Africa in the last three years,” Trustco spokesperson, Neville Basson said.

He said the JSE award was due to the tremendous value that the company has added to its shareholders’ investments and the Namibian economy as a whole.

“All our products are developed to ensure access to improved health, education and access to justice for all Namibians who were previously disadvantaged.”

Commenting on what makes Trustco attractive on the JSE, Basson said investors believe the company will continue to grow and diversify.

“If we look at last year, Trustco’s share price grew by between 42- 45 percent. Our share price in the last five years increased by a massive 346,4 percent. With the continued and innovative growth that we have shown as a group, it is clear that our shareholders share our vision. We are constantly looking for new acquisitions that will grow the business and create more wealth for our shareholders.”

Trustco also recently announced the discovery of a 476 carat diamond at its mining operations in Sierra Leone, the 29th biggest diamond ever found in modern recorded history.

Basson said the acquisition of Meya Diamond mine based in Sierra Leone once again underscores the company’s continued commitment towards its shareholders to constantly look for viable acquisitions that will grow the business and create more wealth for shareholders.

He said a preliminary process to determine the actual value of the diamond is currently underway before Trustco can announce the selling process. “We anticipate selling this diamond at an auction.”

At home, Trustco also operates a diamond mine near the Kunene River. “The Kunene River operation has been in the process of upgrading equipment during the last few months in anticipation of acquiring a full mining license. Once that is granted, we should be in position to go into full production almost immediately.”

Commenting on its troubles at home with some of its service providers, Basson said it was well documented that the company has a dispute with some of its lawyers involved with its beleaguered Legal Shield product.

“Trustco Insurance, a subsidiary of the Trustco Group of companies, is a responsible insurer and complies with the Namcode and Namfisa rules and regulations. We have to act in the best interest of our clients at all times. We found that certain attorneys raise interim invoices before the finalisation of a phase. Invoices by attorneys were also raised above the agreed fee structure.”

He said the allegations of non-payment to various law firms providing services for Legal Shield clients were addressed with the different attorneys on numerous occasions, until it reached a point during the annual financial audit process, that Trustco had no other option, but to declare a dispute with certain attorneys.

“This is an on-going process and we once again welcome all contracted lawyers to approach our offices to sort out these discrepancies.

“By far, the majority of lawyers don’t experience any problems with Trustco, because they understand that mutual compliance is the foundation of improved services and the best possible representation to Trustco clients.”

This week it was reported one of the law firms claiming that Trustco Insurance failed to pay them for legal services provided to Legal Shield policyholders, has now instituted a complaint against the company with the Namibia Financial Institutions Supervisory Authority (Namfisa) and the Bank of Namibia (BoN).

The complaint against Trustco Insurance was delivered to Namfisa and the central bank last week. It was compiled by ISG Namibia, which was asked by law firm Krüger, Van Vuuren and Co to investigate Trustco Insurance’s alleged non-payment of legal fees, the Namibian newspaper reported.

ISG wants Namfisa to investigate the cash reserves of Trustco Insurance.

PPPs expected to drive power generation projects

The Private Public Partnership (PPP) conference held in Windhoek last week revealed that Namibia will have to invest at least six percent of its GDP into power generation infrastructure to reach international benchmark levels.

According to Saurabh Suneja, who heads the PPP division in the Ministry of Finance, Public Private Partnerships are expected to provide the majority of the investments in the National Integrated Resource Plan, which envisages the development of 590 MW of generating capacity.

“Majority of these investments are expected to come from the private sector,” he said. “Demand risk can be easily managed in the case of electricity generation projects as they are relatively easy to structure.”

Other PPPs proposed by the Government include the redevelopment of the ministry of justice’s head office.

“We estimate that a dense development is possible, the ministry of justice will only need one third of the redeveloped building to accommodate all Windhoek staff members,” Suneja said.

Other building projects on the cards are staff accommodation at the Windhoek Central Hospital, the Zambezi Waterfront tourism development and a logistics hub in Lüderitz at the port for magnesium mined in South Africa’s Northern Cape.

Suneja said there is a possibility that a private operator may be appointed to maximise the usage of the Walvis Bay Container terminal, which is being expanded.

He also mentioned the expansion and management of the Hosea Kutako International Airport as one of the projects that can be developed through a PPP.

“At one million passengers per annum, the airport expansion and long term operations are likely to be financially sustainable.”

Finance Minister, Calle Schlettwein, said the PPP platform is an important dimension in Namibia’s development.

“We have also finalised the establishment of an Infrastructure Fund hosted at the Development Bank of Namibia, which also offers investment space for private capital to finance domestic economic development. The envisaged changes to domestic asset requirements are taking place amidst these diverse investment platforms,” he said.

The minister said risk allocation is one of the key value-for-money drivers in a PPP.

“It allows the public party to transfer risks to the private party, relieving it of bearing the cost of risks that it cannot manage. For the public entity, efficient risk allocation is key to creating a good deal for society.”

The minister reiterated that Namibia has an ambitious plan for private investments in the power generation sector and said given its strategic location, the country has potential to light up Southern Africa.

“Namibia must learn from the success of the renewable energy programme in South Africa, which has paved the way for renewable energy investments in Southern Africa,” the finance minister said.

The PPP Bill was signed into law by President Hage Geingob in June and the PPP regulations are expected to be gazetted by December this year.

The Road Fund Administration (RFA) has announced that it will need N$13 billion for road infrastructure projects to meet targets contained in its five-year business plan, which will be launched in April 2018.

The RFA funds road projects in the country by collecting money through various road user charges, including fuel levies, vehicle licence fees, entry fees, mass distance and abnormal load charges.

The business plan will also be funded by an expected loan of about N$492 million from the KfW of Germany.

The feasibility of executing the Business Plan is based on the first tranche of the KfW loan as disbursed in April 2018 to the amount of N$246 million and the second and final tranche of the KfW loan as disbursed in April 2019 to the amount of N$246 million.

CEO, Ali Ipinge, said this week that the new business plan will be launched on the backdrop of sluggish economic conditions currently facing the country.

“It is no secret that the current economic climate in the country has resulted in a slowdown in overall infrastructure spending by our Government. We as RFA are also not immune to the impacts of Namibia’s economic recession and resulting budget cuts in Government spending which affect our operations,” he said.

Ipinge said under these circumstances, the collection of sufficient or optimum funding has been a challenge and will continue to be so in the foreseeable future resulting in the backlog of maintenance of the national road network.

“This is a critical aspect that the sector should discuss and address, with a view to meet the targets of NDP5 and HPP.”

For the previous financial year, 2016/17, the RFA collected approximately N$2,2 billion, Ipinge said.

Related expenditure or investment made in the road infrastructure sector for the same period amounted to N$1,92 billion.

“The growth trend reflects a 5,7 percent increase in revenue from the previous corresponding period for the financial year 2015/16,” he said.

The RFA CEO said in terms of the major road maintenance programme, a total of 412km road sections have been re-gravelled in the 2017 financial year at an investment of N$162 million. In addition, 409 km of road sections have been treated with resurfacing activities to the tune of N$210 million.

The RFA also funds some road projects initiated by local authorities and regional councils. In the 2018/2019 financial year, the total proposed budgetary allocation stands at N$117 million compared to that in the 2017/18 financial year of N$85 million, which reflects an upward increase of some 39 percent. RFA chairperson, Penda Ithindi, said the slowdown in the economy has caused new motor vehicle sales to stagnate and the motor vehicle population is estimated to grow by a mere one percent over the 2018 and 2019 period, and that fuel consumption, more so for petrol, is expected to slowdown.

“As a consequence, fund revenue outlook will remain subdued over the medium-term. In this environment, potential increases in road user charges should be carefully set so that we do not impose a heavy burden on industry. Business plan expenditure should remain closely aligned to the revenue outlook. This environment calls for us to vigorously prioritise,” Ithindi said.

The RFA said up to N$318 million additional cash injection was deployed in 2017 to help the cost of urgent funding needs in the road sector.

“In addition to supporting Government funded projects, the total spending in excess of N$2,3 billion from the fund, of which 81 percent was for project funding, has contributed to the upkeep of road infrastructure and supported domestic economic activity in the sector and related sector linkages.”

One of the projects funded is the Windhoek-Okahandja dual carriageway.

Windhoek, San Antonio exchange notes on water

Labelling approval stall US beef exports

Southern RED set for 2018

Witvlei loses out on Norway exports, again

NamPower’s generation capability under the spotlight

Namibia’s business ranking improves slightly

Dunes Mall to boost economic growth

Town Lodge Hotel opens in Windhoek

Marco fishing takes delivery of new vessel

SOEs to be listed on NSX next year

GIPF sees safetyin numbers

Government, Moody’s in crunch talks

Public concerns over MTC ownership

Long-serving Capricorn director steps down

From journalist to marketer

MANCOSA announces Actis international scholarships

Marco Fishing invests N$10m in Lüderitz

Trustco shines abroad, troubles at home

PPPs expected to drive power generation projects

RFA seeks N$13 billion for road funding