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GOVERNANCE IN NAMIBIA
Hon Leon Jooste Minister of State Owned Enterprises
The Ministry of Public Enterprises (MOPE) came into existence during March 2015 with the primary purpose to transform the current public enterprises landscape from being a resource burden – in most instances - towards contributing to the socio-economic development of the Namibian nation. This translates into a scenario whereby the current portfolio of public enterprises would need to be remodelled and re-aligned towards globally competitive practices to ensure business sustainability going forward. The State-Owned Enterprise Governance Council (SOEGC) was established in terms of the State Owned Enterprises Governance Act, (Act No.2 of 2006) to primarily provide efficient governance of State Owned Enterprises (SOEs) on behalf of Government as the owner/shareholder, vested with concomitant powers and responsibilities for implementing an integrated governance policy framework against which to monitor compliance by SOE's. The Public Enterprises Governance Amendment Act (PEG Act) came into existence during 2015 whereby the Ministry replaced the SOEGC. However, the Ministry
inherited critical challenges pertaining to the Public Enterprises landscape that are synoptically listed hereunder. • Increasingly high state financial allocations mainly to sustain high current expenditures related to over-sized organization and personnel structures. • Monopolistic practices resulting in uncontrollable prices to the concern of the general public. • Low productivity and contribution towards the achievement of national development goals. • High exposure to unsustainable debt. • Poor leadership at both Board and Management level. • Lack of intra-agency co-ordination, planning and linkages, including promotion of local industries through preferential procurement of goods and services.
• Remuneration at both Management and Board levels not linked to productivity and the ability of the enterprises to carry the expenditure burden. These and other challenges such as resource wastage, bankruptcies and internal boardroom infightings associated with public enterprises are symptomatic of the prevailing ineffectiveness in the public enterprises governance environment, which in turn is attributed to a combination of entrenched complications in the governance system of Namibia as outlined below: • In Namibia the current dual governance model of the PE’s sector where ownership responsibility is shared between the line Ministry and the MOPE, is cited as a key hindrance to PE efficiency. Accordingly, the dual model, with its multiple owners (Cabinet, MOPE, various portfolio Ministers, Boards of Directors and Management /Executives of PE’s) have too many layers of authority and communication which makes it difficult for the Ministry to efficiently and effectively perform its oversight functions as stipulated in the PEG Act. This multiple-principal agency scenario blurs reporting and accountability lines due to the presence of different role players and also result in delays to, timely, arrive at crucial decisions required to address business challenges. • Furthermore, different Acts and policy documents of various PE’s prescribe different governance structures which create overlaps in effecting provisions of the PEG Act, e.g. the Companies Act differs from the PEG Act and from PEs' constituent Acts in terms of; risk, liability and fiduciary responsibility which it (Companies Act) places with the Boards while the latter leave it to line Ministers. Sometimes, the multiplicity of ‘bosses’ and conflicting policy instruments lead to clashes between Management, Boards and Ministers due to differing interpretations of company vision, mission and responsibility, hence, resulting into ‘blame games’, suspensions, low morale and low productivity. • Another difficulty lies in lumping together PE’s, which widely vary in their objectives, nature and
functions, into a homogenous group and using uniform yardsticks to measure their performance. For example, it is extremely difficult to use same measures to evaluate profitmaking PE’s with those rendering public goods and services e.g. Nampower versus the Namibia Tourism Board, or August 26 Holding (PTY) Holding versus the National Disability Council. • It therefore follows that, a need exist to segment PE’s into different classes, e.g. those which are economically productive may require a different governance architecture from the ones with strong social objectives. Consequently, other PE’s could continue to resort under individual Ministries while still receiving some macro-level policy guidelines from MOPE. • Finally, the PEG Act is silent on the issue of non-compliance by PE’s with its provisions and requirements. • Additionally, the MOPE institutional structure and competency requirements need urgent scrutiny and capacitating to enable MOPE to deliver on its core mandate. Based on the afore-stated shortcomings, it is an inescapable conclusion that the current governance architecture for PE’s in Namibia is unsustainable, inadequate and unable to transform PE’s into agents of development, to comprehensively address the challenges of unemployment, poverty and inequality and contribute to the realization of full industrialization and a knowledge based society by 2030. Inversely, a continuation of the current state of PE governance could result into: increased pressure on the national budget and risk of fiscal deficits due to PE operational losses; increase in public debts and a rise in real interest rates which would reduce overall investment as a result of continuous PE subsidization; and divert resources away from essential government priorities, hence negatively impacting on growth and development. Therefore, to address these shortcomings, the MOPE shall embark on a journey to transform Public Enterprises through focused strategic imperatives.
State Owned Companies The Ministry of Public Enterprises operates a number of programmes to align, integrate and oversee the functions and responsibilities of the 98 parastatals, and to benefit from synergies between the State Owned Companies. Namibia has a number of State-owned Enterprises that fall under the Ministry of Public Enterprises established in 21 March 2015, Hon. Leon Jooste heads this Ministry. Some of the companies owned by the Government of the Republic of Namibia
Company Name Namibia Power Corporation Limited (Nampower) Namdeb Diamond Corporation (NamDeb) Namibia Diamond Trading Company Bank of Namibia Namibia Post & Telecommunications Ltd NamibRe University of Namibia (UNAM) Namibia Students' Financial Assistance Fund (NSFAF) Air Namibia Veteran Subversion Fund Namibia Broadcasting Corporation (NBC) Namibia University of Science & Technology (NUST) Namibia Training Authority (NTA) Development Bank of Namibia National Housing Enterprises (NHE) Agribank
Description Namibia Power Corporation Limited Diamond Mining Diamond Trading Balance sheet, payiment system, exchange control rules, and announcements of auctions of government debt Post and telecommunications company Reinsurance Tertiary Education Student Loans National Airline Uplifting veterans of the Namibian Struggle for Independence State Broadcaster Tertiary Education Vocational Education Development funder Provisioning of housing for low and middle-income families Financing of Agricultural projects and farm acquisitions
Namibia Airports Company (NAC) Namibia College of Open Learning ((NamCOL) Namport Land Acquisition and Development Fund National Youth Service (NYS) Namibian Institute for Public Administration and Management (NIPAM) SME Bank of Namibia Namibia Statistic Agency (NSA) Namibia Standards Institute(NSI) Namibia Tourism Board (NTB) Regional Equity and Development Fund (REDF) TransNamib National Emergency and Disaster Management Fund (NEDMF) Namibia Qualifications Authority (NQA) Youth Credit Scheme (YCS) Namibia Press Agency (NAMPA) New Era National Youth Council (NYC) Namibia Wildlife Resorts (NWR) Social Security Development Fund (SSDF) Namibia Development Corporation (NDC) Financial Intelligency Centre (FIC) Epangelo Mining Company (EMC) Namibia Zimbabwe (NamZim) Fisheries Observer Agency (FOA) Namibian Martime and Fisheries Institute (NMFI) Roads Authority (RA)
Maintenance of Namibian Airports Secondary Education Management of Namibian Ports Implementing land reform according to the willing buyer, willing seller principle Employment and Training projects for the Namibian Youth. Tertiary Education for Government Financing Namibian Small Medium Enterprises (SME) Collect, Analyse, and disseminate statistics for the formulation of public policy Develop and maintain standards for Namibia Development of Tourism sector Traces regional development Operation of Namibian Railways Managing floods, droughts, and assistance programmes Registering Namibian Educational qualifications and evaluating foregn degrees State Press Agency State Funded Newspaper Council for the youth Operation of the major tourist resorts in Namibia National social security agency Development agency Centre for financial transactions in Namibia Monitors mining development Regional (SADC) run state owned publication Fish agency Tertiary Education Maintenance of Namibian roads
Ministry of Public Enterprises Organogram
Honourable Leon Jooste (Minister)
Honourable Engel A !Nawatiseb (Deputy Minister)
Mr. Frans Tsheehama (Permanent Secretary)
Directorate
Division
LEGAL ADVICE: Mrs. Martha N. Nuujom-Domingo (Director)
GENERAL SERVICES: (Deputy Director)
Hezekiah !Awaseb (Deputy Director)
ECONOMIC AND PUBLIC GOVERNANCE: Mr. Romanus Kawana (Deputy Director)
GOVERNANCE & FINANCIAL Advisor: Director
FINANCIAL ADVICE: Mrs. Martha N. Simasiku (Deputy Director)
Subdivision
HUMAN RESOURCES: Mrs. Linea Mumba (Chief Human Resource Practioner)
Ms. Josephina Nangolo (Human Resources Practioner)
MINISTERAL SUPPORT
CONTENTS 14 18 22 24 28 32 36 40 42 46
People, Partnerships, Planet and Profitability Sarel van Zyl: FNB Namibia, Chief Executive Officer
IMPORT SUBSTITUTION
Ian Collard: Namib Mills Investments (Namibia) (Pty) Ltd, Chief Executive Officer
CENTRICITY
Baronice Hans: Bank Windhoek, Managing Director
BEYOND OBVIOUS
Dougie Truter: Pupkewitz Group, Chief Executive Officer
Geared to meet electricity needs of Erongo Region Robert Kahimise: Erongo RED, Chief Executive Officer
A LONG TERM HORIZON
Bisey Uirab: Namport, Chief Executive Officer
Purpose: The Essence of Leadership
Sven Thieme: O&L Group of Companies, Executive Chairman
DIVERSITY MANAGEMENT
Jason Nandago: Metropolitan Life (Namibia) Ltd, Managing Director and Director
PIVOTAL
Nillian N. Mulemi: Petroleum Training and Education Fund (PETROFUND), Chief Executive Officer
HOME GROWN
Bertus Struwig: Prosperity Health Namibia
50 52 54 58 62
QUEST FOR QUALITY
Tania Hangula: DBN Board Chairperson
SUCCESS PERSONALITY John Savva: Entrepreneur
POSITIVE OUTLOOK
George Simataa: SME Bank, Chairman
CULTIVATING GROWTH
Foibe Namene: ECB, Chief Executive Officer
Purpose: The Essence of Leadership
Shihaleni Ndjaba: Namibia Diamond Trading Company (NDTC), Chief Executive Officer
65
VITALITY
68
From Innovation to Invention
72
Holding Fort ENLIGHTMENT
76
UNLIMITED Holding Fort Collective
78 80
Emma Kantema-Gaomas: Social Security Commission, Acting Executive Officer
Heroldt Murangi: Namibia College of Open Learning (Namcol), Director
Emma Kantema-Gaomas: SSC, Executive Officer Professor Lazarus Hangula: ViceActing Chancellor, UNAM
Sam Shivute: Board Chairman, National Housing (NHE). Emma David Namwandi: Kantema-Gaomas: Politician, SSC, Academic Acting & Executive Entrep Enterprises Officer
MOVING Holding Fort FRONTIERS
Rosalia Emma Kantema-Gaomas: Martins-Hausiku: Chief SSC,Executive Acting Executive Officer, Motor OfficerVehicle Accident (MVA) Fund
COLLECTIVE
David Namwandi: Politician, Academic & Entreprenuera
People, Partnerships, Planet and Profitability Sarel van Zyl: FNB Namibia, Chief Executive Officer
PROFILE Sarel was born on 30 April 1962 in Mariental, Namibia and matriculated in Otjiwarongo in 1979. He started his banking career in 1982 in Okahandja and boasts 32 years’ experience in Retail Banking. He holds a Bachelor’s degree in Business Administration as well as a Master’s degree in Business Administration, both which he obtained through the University of Potchefstroom in South Africa. He was the Chief Executive Officer of FNB Namibia Unit Trusts and also served on the Board of FNB Insurance Limited until January 2011. At the same time, he was a member of the Executive Committee of FNB Namibia Holdings. He headed up the Retail Bank, a division of FNB Namibia Holdings responsible for the Branch Banking network of 50 branches with 1200 staff members, Credit Card Division, Micro Loans, Agriculture as well as Tourism Divisions. He was transferred to Zambia in February 2011 as the Chief Executive Officer of FNB Zambia. Under his leadership in Zambia, the business increased from 5 branches to 20, the number of accounts from 11,000 to 190,000 and the business was turned around from its loss making position (as a start-up), to generate N$100m profit in June 2014. He returned to Namibia in November 2014 and assumed responsibility as CEO for FNB Namibia Holdings wef 1 December 2014. He is married to Cecilia Johanna van Zyl and blessed with two children aged 27 and 22.
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When you were appointed in December 2014, the bank’s halfyear earnings were at N$486m. December 2015’s new halfyear earnings are already over N$590m. What has changed?
industry is very well regulated and therefore more stable, and I think there is a lot more separation between the Monetary and Fiscal policies in Namibia than that of Zambia. Whilst we do not experience interference by Government in the Banking industry, banks here at home are generally very involved with the Bank of Namibia, working in partnership to secure a stable banking system. The Namibian market is also substantially more liquid than the Zambian market which makes it easier for banks to continue to fund development projects in the Namibian economy.
Our focus continues to be on ensuring the excellent performance of the Company. At the same time, we are innovatively addressing some cumbersome legacy issues that will improve our efficiency and in turn add more value to customers. In order to deliver this, we have substantially changed our Executive Committee structure, developed a 5-year Business Strategy which rests on four pillars namely People, Partnerships, Planet and Profitability, and clearly segmented the market to ensure focused sustainable growth.
What should a stable financial system look like? The industry must be competitive but there is a limit to the number of banks in an economy. It must be well regulated with no political influence and banks should have strong governance structures and polices. Banks should be well capitalised and wellfunded and should do enough to understand and mitigate the ever-changing political and economic landscape of the country within which it operates. It is also important for banks to have prudent credit policies to maintain a healthy lending portfolio.
We have placed huge focus on improving collaboration between our different brands in the group, to optimise all opportunities on offer to customers, and ensure that we are the most comprehensive and end-to-end Financial Services Group in Namibia. We have also recognised and embraced our preferred fused and focused culture which continually provides the impetus to take us positively into the future.
How could external and internal risk factors affect Namibia’s lending performance in 2016-2017? Our economy, together with the rest of the African economy is on a downward cycle as a result of low commodity prices, exchange rate volatility, rising inflation and rising interest rates. Add to that the long drought situation as well as the political and economic uncertainty of South Africa, then we are almost in a perfect storm. There are however still good opportunities for growth and our growth forecast for Namibia remains higher than most other countries in southern Africa. We will therefore continue to lend money where there is a strong business case to ensure the continued growth of the Namibian economy. We must however take cognisance that the risk profile is definitely elevated and that it will become more difficult to secure loans in the next year or two.
How did you find yourself in Zambia? FirstRand was on an expansion drive into Africa and was using these growth opportunities to develop talent for future leadership roles. I was previously heading up the Retail and Operations divisions of FNB in Namibia and my experience in growing the retail base and opening branches, made me a good candidate for the Group’s expansion plans in Zambia. I was excited about the personal development and growth opportunities, even though I was not guaranteed a job back in Namibia at the time.
So if you were to compare the banking industry in Zambia and Namibia, what would be your take?
In any sense does the regulatory climate need to develop to help you win? Yes, it must, but we are very fortunate in Namibia that our regulatory authorities are in favour of using technology to enhance efficiency in the financial sector and allow us to make financial services and products available to all the people of Namibia, at affordable rates.
At the time I left Zambia there were 19 commercial banks in the country and my personal view was that this was too many, as it seemed to have started to put the viability of all those banks, and therefore the stability of the banking sector in jeopardy. In Namibia our own financial services
NAMIBIA’S TOP CORPORATE GOVERNORS EXECUTIVE NAMIBIA
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But should the level of regulation be dependent on a bank’s size and complexity? No, I don’t think so. There should be a framework within which all banks have to operate to secure stability of the sector and the protection of the customer, wherever he chooses to bank.
What challenges does the local banking sector face in complying with loan concentration directives? It is possible that a single bank can disrupt the entire sector if that bank is over-exposed to a specific loan product. It is therefore important for the Bank of Namibia to regulate possible concentration risk. I am however not currently aware of regulations that hinders any bank’s operation due to concentration risk.
Does the current trend of innovation at FNB particularly digital-wise bring more complexity and risks than benefits?
establishment of a Central Security Depository and changes to legislation to support increased issuances and secondary market trading. Aside from FNB Namibia Holdings Ltd listing on the NSX, which was the first bank to list in Namibia, we also issued our first subordinated debt programme in 2007, and re-issued in 2012. FNB is also active in the NCD market. We plan to approach the market with further programmes later-on. Furthermore, RMB Namibia offers innovative products in the capital market and is active in syndications as well as the distribution of debt and quasiequity instruments.
strategy is to be the Best Employer to the Best People in Namibia. The ongoing management of talent as well as the development of our current and future leaders is therefore critical for our future success. Our philosophy is to recruit young and academically qualified talent and grow them into future leadership roles, as opposed to merely circulating the same talent through the industry. Being part of one of the biggest financial services groups on the continent, allows us further to rotate our staff between divisions and even countries, to gain much needed experience, which is eventually ploughed back into the Namibian skills pool.
For years it has been alleged that most major decisions at the bank are made in South Africa? How
n It is possible that a single bank can disrupt the entire sector if that bank is over-exposed to a specific loan product. It is therefore important for the Bank of Namibia to regulate possible concentration risk. I am however not currently aware of regulations that hinders any bank’s operation due to concentration risk n
No definitely not. A very important part of the innovation process is to identify and mitigate risks. That includes building in risk processes to any new product or service offering. It is also important that our customers become a lot more risk averse and make sure they protect their personal profiles wherever these may be in evidence, including cellphones, laptops, tablets and passwords, as if it is cash.
But how are you developing the local capital market? A well-functioning capital market is closely correlated with solid economic growth; as productive capital is channelled in an efficient manner between market participants. An efficient market entails regular issuances by various market players (Government, Financial Institutions and large corporates / SOE’s). An increase in issuances aside from Government will help build a Namibian curve that will serve as important benchmark for companies that want to tap into the debt capital market. Legislation should be supportive to enable safe and efficient operation. Initiatives to develop the local capital market entail collective industry projects, i.e. the
What form do your efforts take in leading change and how do you engage employees in these efforts? Change is the one constant we can always be sure of and all businesses therefore have to be prepared to manage change. We have employed an Organisational Behaviour Specialist in our Human Resources team whose exclusive job it is to manage change in the organisation, ensuring all of us travel easily together on our business journey. Innovation is also a very important part of our strategy and all staff members are encouraged to take part in identifying and introducing new products, services processes, etc all the time. This initiative, which has been part of our culture for more than 10 years, made FNB in SA the most innovative company in the world, and we continue to encourage our staff to come up with game-changing innovations.
How extensive does your investment in training need to be? The 5-year goal of our “People” pillar in our
empowered are you and your management to make independent decisions?
FirstRand’s key philosophy, and the main reason behind its success, is its Owner/ Manager culture, which expects staff to take ownership of, and manage businesses as if it is their own. Our delegated levels of authority are therefore revised on a continuous basis, depending on the skills level of the in-country staff and the risk appetite the Board and Shareholders have for a specific asset class. Currently, and in direct answer to your question, the deciding of more than 98% of the number of lending deals is made in Namibia by the various Credit Committees of the Group.
Government has stated in the past that there is not enough competition in the country’s banking sector and this has allowed banks to be abusive and at the same time providing substandard services. What is your take on that? I have a different view from my own experience. As a former bank CEO in Zambia, I cannot see that the high number of banks in Zambia improved service levels at all. It has also been admitted by the SARB that an increase in the number of banks a few years ago, did not improve the competitiveness of those banks in South Africa. Competitive advantage and customer loyalty lies in the quality of service and products offered, not in the quantity thereof.
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Namibia Institute of Pathology Limited Donates Computers and Printers to Schools! The Namibia Institute of Pathology Limited is a State Owned entity that was established under the NIP Act 15 of 1999. It started its operations on 1 December 2000 with the objective of providing medical laboratory services to both state and private health facilities. The NIP currently has 40 laboratories countrywide which provide a comprehensive pathology service of high quality to public and private clients. Vision To be the medical laboratory service provider of choice in Africa Mission To provide accessible, affordable and excellent medical laboratory services. As part of its Corporate Social Responsibility drive, the Namibia Institute of Pathology Limited recently donated computers and printers to three different Schools. The total value of the items is estimated to be N$ 186,445.20. The recipients of the computers and printers were: 1. Eden Primary School in Okahandja (Otjozondjupa Region), Gammams Primary School in Windhoek (Khomas Region) and the Ngone Combined School situated 25km from Rundu in the Kavango Region. The Primary School with over 1000 learners, of which 147 learners are Orphans and Vulnerable Children only had two outdated computers in its school computer laboratory and received 10 computers and 2 printers. 2. Gammams Primary School with over 1300 learners received 15 computers and three printers. Before the donation, the School only had two (2) outdated computers. 3. The Ngone Combined School with 544 learners out of which 11 learners have disabilities, 93 learners are vulnerable and 80 learners are orphans received 15 computers and 3 printers. Below is the value of the full donation. School 1. Eden Primary School 2. Gammams Primary School 3. Ngone Combined School Total Value
Computers 10 15 15
Printers 2 3 3
Value N$ 46,611.00 N$ 69,917.10 N$ 69,917.10 N$ 186,445.20
During her handover remarks, Ms. Jennifer Kauapirura, the Chief Strategy and Business Development Officer of the Namibia Institute of Pathology Limited encouraged learners to work hard and become what they aspire to be, especially now that they have computers at their disposal. “We at NIP trust that these computers will be put to good use and will play a major role in shaping the minds of tomorrow’s leaders and allow them to make informed choices as far as career guidance is concerned” she said.GOVERNORS She also EXECUTIVE emphasized the need for other SOE’s to emulate the gesture of NIP NAMIBIA’S TOP CORPORATE NAMIBIA by strengthening public-private partnerships and 17 creating more symbiotic relationships.
IMPORT SUBSTITUTION Ian Collard Chief Executive Officer Namib Mills Investments (Namibia) (Pty) Ltd Holding company of Namib Mills, Feedmaster and Namib Poultry Industries
n I try to be as humble as possible in my daily interactions with anybody. I always make a point of greeting everybody I pass at the workplace or elsewhere and always be friendly. I also try to be an example to fellow employees regarding working hard and being honest in everything I do. Be hard on targets, but soft on people. n Since taking over as MD, how did you make the necessary swift changes to the company without losing what works?
more valuable to the company. I never shied away from new challenges or tasks, even if it was not a traditional Financial Manager’s responsibility.
service levels are maintained and improved continuously. Quality of product and service are not negotiable in the market place.
I did not make any swift changes as at that stage of becoming the MD, I was already with the company for 13 years as part of the Management Team. My ideas and culture was part of the company at that stage.
I have learned that as a MD you still have to be in very close contact with the operations of the company, in order to attain continuous growth and keep the company sustainable over the long-term. Thus there has to be a fine balance on working on the future strategy and current business.
How are external and internal risk factors affecting Namib Mills’ performance today? For instance, you recently had to close Katima Mulilo, a few years after upgrading it.
But how has your value grown over the years? I think my value has grown over the years with the broader experience that I gathered over different sectors and disciplines of the business. Through this I acquired more knowledge and experience that made me
What are your key priorities in order to ensure that you maintain your industry impact in the future? Always maintain market share and ensure that
There are certain risk factors, internally, we always have to be competitive regarding possible local or international competition. Improvement of efficiencies is therefore crucial. Lack of economies of scale is a risk against any international competitor. Thus increasing the quantity of product handled
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is crucial. In addition, lack of trained management, means we have to maintain a high standard in the workplace and advocate a learning culture. b. External i. Growing intervention from Government in the industry is making the industry less efficient. We thus strive on maintaining good dialogue with all stakeholders. ii. Unfair competition from international producers. Dialogue with Government to create a favourable environment locally to ensure food security through continuous availability from local suppliers.
But how are you developing the local capital market? Apart from starting the local milling industry many years ago, before I was even employed by Namib Mills, the main drive of the company is import-substitution. The erection of the 4 Pasta-plants and Chicken business are testament to that. This is however not the end of possibilities, as some new projects are on their way in the near future.
How extensive does your investment in training need to be? I believe mainly in on the job training. The reason is that training is quite expensive, and thus should be effective. Employees should experience what they are being trained in order
to get a better result from the training. The aim is also that our employees should be the best in what they do, from a merchandiser to a miller. Long workshops and break-away events do not work for us, as it is very expensive and the training does not become part of the trainee’s future behaviour at the workplace.
Standards are a new industry in Namibia. But what does it really entail for Namib Mills? And what key interventions are being made? We have always been proud of standards that we maintained within our industry norms. Product quality has always been according to legislation or better. We are also ISO 9000 and HACCP accredited. We therefore see ourselves as leaders in the industry regarding standards in Namibia. We are currently also very much involved in the new standards industry in Namibia.
So how does the Namibia brand fare against the more established South African Brand? Many Namibians still tend to prefer everything South African? We have always measured ourselves against international products. Hence we have sought over the years to have all our products either on par or in some cases even surpassing the quality of South African brands. This is especially true regarding our Maize Meal, Wheat Flour, Pasta and Poultry. By this and continuous branding of our products we are not that much affected by imported brands. Luckily the milling industry is protected against imports, but in spite of this our milling
products compare favourably with the best South Africa can offer.
What form do your efforts take in leading change and how do you engage employees in these efforts? We do not maintain an autocratic management style at the company. We believe in a participating management style. It is thus my responsibility to sell any new ideas to fellow employees until they buy into it. If they are not buying into it, I am either not selling it correctly to them, or it is not a good idea. Buy-in is crucial for the success of any ideas or future projects and good implementation.
What are the key ingredients to effective leadership and how do you define the role of the CEO? I try to be as humble as possible in my daily interactions with anybody. I always make a point of greeting everybody I pass at the workplace or elsewhere and always be friendly. I also try to be an example to fellow employees regarding working hard and being honest in everything I do. Be hard on targets, but soft on people.
How critical is the Namib Mills culture and how do you maintain it? Culture is everything to us. As we venture into the services sector with distribution and client liaisons, we are not just selling products, but also our services. Every employee is therefore an ambassador of the company. Culture is then very important in order to maintain good service levels and relations. Maintenance
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n We have always been proud of standards that we maintained within our industry norms. Product quality has always been according to legislation or better. We are also ISO 9000 and HACCP accredited. We therefore see ourselves as leaders in the industry regarding standards in Namibia. We are currently also very much involved in the new standards industry in Namibia. n
of scale from us, but we believe that we do have a sustainable model, should we maintain market share. The industry is known for high volumes and very low margins.
International expansion: What excites you about that? How broad can the Namib Mills global footprint be and is it expanding in international markets? Unfortunately, due to the nature of our product the chances to expand internationally are limited due to the low margins. Pasta is about the only product that can be exported and we also had good success with exports of Pasta to South Africa, Zambia and in the near future to Zimbabwe. We are remarkably successful with this and are quite excited about the growth opportunities. We are seeing some opportunities with exporting our expertise to other neighbouring countries and starting subsidiaries there, like is already the case in South Africa. Our global footprint would probably only be to neighbouring countries.
But where are the frustrations? What are the limiting factors to your leadership? Frustrations are the many economic changes being implemented by Government currently with little or no consultations. All new laws and procedures are making business more expensive, and are contributing to making us less efficient against bigger economies. The scarcity of competent senior management in the country makes the burden of managing a company of this size a very busy job.
of culture is through setting an example and living it on a daily basis.
Transformation: What efforts have you made to create a diverse workforce to mirror your client base? We have not been as successful as planned in this regard. We believe in equal opportunities to everybody, but our current standards are not negotiable. People coming through this system is thus of high value to other employers and we then lose a lot of employees that was part of the transformation plan. We are however continuing with the process as we do keep some stars in our company and is therefore making progress.
How strong is the Namibian market for Namib Mills and can it be sustained? The market is quite strong as we are in basic food stuff, for which there will always be a market. The small population robs economies
What else should government do in your sector? Although we appreciate a lot of things that Government is doing, like creating protection for our milling industry and creating and maintaining vehicles like Infant Industry Protection for new industries, we have the following criteria: a.
Doing business is slowly but surely becoming very expensive in Namibia through new legislation, like the VET Levies, work permits, higher Agronomic Levies etc. Government should therefore strive to keep the cost of business as low as possible. High cost of doing business does not attract new investments.
b.
Government is becoming more involved in business and we believe that it is unfair competition.
Government should only create a platform for the private sector to do good business. It is difficult for the private sector to compete against the tax payer’s money. c.
Service levels from Government are not on par with that of the private sector. Referring to TransNamib, Receiver of Revenue, Ministry of Home Affairs, and VET etc. Improvement will make the private sector more competitive with imported products or services.
Price increases. Is government regulation enough or just too much? We do not have price control on our products currently, apart from the locally produced raw materials from producers. We believe that the market is efficient enough not to harbour any inefficiency regarding prices. We thus are firm believers of a free market inside the country with no Government intervention on prices of product. We also see ourselves as responsible corporate citizens in this regard and are as transparent as possible with prices.
n Apart from starting the local milling industry many years ago, before I was even employed by Namib Mills, the main drive of the company is import-substitution. The erection of the 4 Pasta-plants and Chicken business are testament to that. This is however not the end of possibilities, as some new projects are on their way in the near future. n
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FOOD [
[ FOR THOUGHT
Namib Mills aims to be the leader in the Regional FMCG market, creating exceptional prosperity for all stakeholders, while being good corporate citizens; we are socially and environmentally responsible.
A Year of Giving to Our Community The key focus areas of Namib Mills as a corporate citizen are focused on nutrition, access to basic foodstuffs, Education, Environment, and SME development.
Namib Mills also supports innovation and SME development by creating an opportunity for entrepreneurs and young business owners to feed their minds and open the doors to their futures, both for themselves and their communities.
Namib Mills Feeding Scheme
Friendly Haven Women’s Shelter
Edu- Light Programme
Namib Mills proudly supports 130 registered charity organisations throughout the country. These institutions benefit monthly from the Namib Mills CSR Food Programme, which accounts to over 14 083 beneficiaries a year and assists with the donation of food products that focus on: maize meal, pasta, rice, sugar, mahangu and spaghetti.
To ensure that Friendly Haven will be able to sustain the Shelter in terms of basic foodstuffs in the long-term, Namib Mills has added them to their Feeding Scheme Programme, the FOC, which will allow the Shelter to receive food on a monthly basis. Namib Poultry, the sister company of Namib Mills, added to this by supplying the Women’s Shelter with 50kg worth of chicken.
Edu-Light is an initiative that aims to provide solar lights to leaners and students living in informal settlements and rural areas that do not have access to electricity, so use paraffin and candles for studying. The aim of this initiative is to increase the productivity of students and improve their school performance.
Classic Clashes with Namib Mills
Namib Mills handed over dry foodstuffs for drought relief in partnership with NamibRE
For more information, assistance or support with regards to the FOC Feeding Programme or sponsorships, kindly contact Ashante Manetti at AManetti@namibmills.com.na
NAMIBIA’S TOP CORPORATE GOVERNORS EXECUTIVE NAMIBIA www.namibmills.com.na 21 y a different way Pasta Polana. Everyda
CENTRICITY Baronice Hans: Bank Windhoek, Managing Director
Editor’s Note: A chartered Accountant by profession, she graduated with a Bachelor in Commerce Accounting from the University of Cape town and then with an Honours Degree in Accounting Sciences from the University of South Africa (UNISA). For the past seven years, Baronice was employed at Standard Bank Namibia and for the past four years, held the position of Executive Director and Head Personal and Business Banking. She won the accolade of Namibian Businesswoman of the Year in 2015 and has served on a number of boards in diverse disciplines such as Telecommunications, Power Distribution, Non-bank Financial Regulation, Life Assurance, Asset Management and Fishing and Marine Resources. In February 2016 she was appointed as MD Designate.
What attracted you to Bank Windhoek? I was attracted to Bank Windhoek because it is a well-run, fully Namibian-owned, successful and entrepreneurial business.
What is your definition of a good bank? Is the banking industry too regulated/not regulated enough? The industry is well regulated and generally in good shape, however we are cognizant of the anticipated economic headwinds and are; in my view; geared to respond to these.
Financial institutions are struggling with restoring confidence in the industry and regaining the trust of their clients/ customers. At the same time, they are faced with: • The need to attract top-flight executive talent in an environment where there is pressure, legal and commercial, to cap executive pay; • Provide lending/liquidity to the marketplace, while faced with regulatory pressures and; • Simultaneously provide shareholder value.
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n I believe that to remain relevant I have to constantly invest in myself, never stop learning or questioning but also be true to who I am and my values. Being relevant also means being relevant as a wife, mother, daughter, relative and friend and thus investing in key relationships that shape who I am n
What is the right balance? I don’t agree with the blanket statement regarding a loss of confidence in the industry. Our stable and advanced financial system has stood us in good stead and is something we can be proud of. Client focus and centricity remains a core priority and has to evolve as our client needs evolve. Attracting top flight talent is a challenge as well as retaining the talent developed in-house.
What is the state of loan repayment for Bank Windhoek? Bank Windhoek has a healthy loan book. Our non–performing loans are far below the industry average. We do expect increased pressure on consumers given the upward interest rate trend. I believe that our proactive stance in this regard has not only positioned us well in terms of responding to these challenges, we are also identifying and realising opportunities that present themselves in these challenging times. Our partnership with our clients is long-term and therefore, what is of paramount importance to us is
remaining relevant and tuned in to the needs of our clients, irrespective of the economic cycle.
Personally, and being a woman, what is the secret to remaining relevant?
Would you say that your internal challenges are similar to all the other banks in Namibia?
To remain relevant I have to constantly invest in myself, never stop learning; or questioning but also be true to who I am and my values. Being relevant also means being relevant as a wife, mother, daughter, relative and friend and thus investing in key relationships that shape who I am.
Whilst there are challenges that are similar, I believe each bank has unique challenges and strengths.
Your leadership style. How would you describe that? I like to think of myself as an inclusive and collaborative leader. I believe that; before we lead, we must learn to serve. I like to see the people I lead grow, develop and believe that the essence of leadership is to create an enabling environment that brings out the best in our people, but underpinned by the core values of integrity, accountability, innovation, honesty, empathy and respect. Lastly, I believe that a team that loves what they are doing; also has fun.
Looking ahead for the next five years, what do you think are your next big objectives personally? Firstly, I strive to be the best follower of Christ, mother and wife that I can be. In the context of Bank Windhoek, I strive to be a leader that my team, organisation and my country can be proud of. I will work with our Board and entire team and build an organisation that is sustainable in the long-term, socially responsible, commands eminence in banking and is focused on sustainable success.
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Beyond Obvious Dougie Truter: Pupkewitz Group, Chief Executive Officer
PROFILE
Dougie grew up and matriculated in Wellington, Western Cape and played professional rugby in France after his compulsory military service. He then returned to South Africa where he started a logistics business called Broco with his brother in 1998. The business was sold to Imperial Holdings in 2003. He then joined Imperial as their Marketing Director in Johannesburg in 2006 and was subsequently appointed as CEO of their Consumer Division in 2008 and by 2011 he became CEO for all operations outside SA. In August 2015, he became the CEO of Pupkewitz Group of Companies in Namibia.
Upon your arrival, how did you make the necessary swift changes to the company without losing what works? Upon my arrival, the decisions on the way forward were done in collaboration with the Senior Executives in the businesses. The business was in very good health and was run in each division by very capable executives. Strategically there were a few changes that I wanted to make and I got the buy-in from the Executive Committee that I immediately established.
What are your key priorities in order to ensure that you maintain your industry leadership in the future? I consider my commitment to people development and empowerment at all levels a business imperative. Not only will I put a strong focus on the structure and strategic direction of the Group, but I foresee the business to grow by increased output. Progress will be spearheaded by the current supply, customer base and value chain extensions and we will also consider strategic bolt-on acquisitions.
How are you making sure you have the right people in the right places to help you run the business? My dream is to make Pupkewitz the most successful business in Namibia. The competitive advantage I have is that my Executive Team has the key competencies and expertise required in our industries to run the business. Besides, it was their team spirit and gravitas that kept the business on an even keel and successfully led its people in the absence of a leader. When we grow the business we will promote from within first, before we look outside. Additionally, I have employed a Talent and Leadership Development Executive to assess the current skills levels and abilities within the Group, to identify those high potential individuals that are ready to take more demanding positions. This group of high performers and high potential employees will be developed to assume greater responsibility in particular areas of business. Not only to deepen their knowledge, expertise and leadership skills, but ultimately to preserve the Group’s competitive advantage.
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What has been the greatest leadership lesson since taking over Pupkewitz Holding?
What do you single out as your top two major achievements, since joining the firm?
What is your secret in remaining competitive in such a dynamic environment?
We have been very successful in establishing our position in the market. No company can however rest on its laurels. There have been a stagnant phase where new entrants entered the market. We need to consider growth as a business imperative to continue to compete for the consumer that votes with their wallets. Being there is not good enough anymore, we need to create the excitement to get the feet in our stores and to delight our customers consistently. Leading is about doing things that are beyond the obvious.
Winning the trust and confidence of my team and shareholders. Bringing a thinking culture to the organisation.
An infrastructure that was established over decades and very good cost control.
How did you end up at Pupkewitz Holdings? Did you have any relationship with Mr Harold of some sort? I was appointed as Group CEO on 1 August 2015 after a leading international recruitment firm that specialises in CEO appointments, interviewed me for the position. Not only did I meet the necessary criteria in terms of leadership, financial acumen, being disciplined and my understanding of family business dynamics, but I had a very good connection with all the Trustees from the first meeting. I also believe that my Africa experience and entrepreneurial spirit counted in my favour.
What challenges did you experience at the time of you joining the company? I am concerned that our competitors are more aggressive than us and that our market position ought to be stronger. We could also be more externally focused and exploit the value chain extension opportunities that exist of an enviable infrastructure base better.
How will you manage to overcome such challenges? We will have to focus on what the consumers want as they are the ones that are voting for us with their wallets. I also believe that we should be more externally focused, as we have great internal controls and processes in place.
But how efficiently and effectively do you supervise the rest of the enterprises? We have a very strong base to work of. There were no major crisis that I had to deal with and I could immediately start focusing on my job of streamlining and growing the business through rallying the executive team around me.
What have been your top two major draw backs, if any? Probably the Head Office structure that I had to create and that took time.
n The Pupkewitz Group is uniquely positioned by its diverse and decentralised business outlets, rendering a national footprint in 15 towns and one village, and creating exciting career opportunities for ± 1,600 employees n
Do you agree that Africa (excluding South Africa), particularly all those countries under your care, have always been a net exporter of capital, thus creating an acute shortage of investment capital in these countries? Yes, sadly I agree. SADC is rich in resources and poor in skills. To turn these resources through manufacturing into cost effective, competitive, attractive products that demands attention from consumers. Manufacturing has fallen behind in SADC’s growth and should be a focus area. Fortunately our Government agrees and Harambee will for sure inspire businesses to put manufacturing and job creation on their strategic radars fast.
Does Namibia as a country need a serious economic reform to protect and meaningfully empower Namibians? The Namibian Government in my view is responsible and act very accountable towards the people of Namibia. Evidence of that is the budget statement of Pro Growth Consolidation. The realisation that spending was out of control but without growth, we will face dire consequences is very mature. I therefore believe that that maturity will prevail in economic reform but with a very hard no nonsense approach to empowerment.
How critical a role does the private sector play in helping develop Namibia’s corporate governance? Government relies on a healthy relationship with the business community and private sector. Engagement through conversation and rigorous debate will ensure that public servants continue to be accountable and responsible.
How critical is the Pupkewitz culture and how do you maintain it? The Pupkewitz Group is uniquely positioned by its diverse and decentralised business outlets, rendering a national footprint in 15 towns and one village, and creating exciting career opportunities for ± 1,600 employees. As a proud Namibian company, the Group cultivates a strong culture of business and family values that are incorporated in a set of unifying principles – an important ingredient for business progression and the continued satisfaction experienced by its various clients.
What efforts have you made to create a diverse workforce to mirror your client base? We have not successfully transformed to the degree that our workforce is demographically represented. Through our Talent Management and Leadership Development initiatives we will aim to rectify this representation in the selection of participants.
How critical is that entrepreneurship is encouraged?
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n I am concerned that our competitors are more aggressive than us and that our market position ought to be stronger. We could also be more externally focused and exploit the value chain extension opportunities that exist of an enviable infrastructure base better. n Extremely critical. Entrepreneurship keeps an organisation agile and exciting. It is therefore one of our unifying principals.
Are there key areas the Group intends to focus on? People development, capital allocation, returns and strategic growth.
So what is the speed of your growth? Are there any metrics in place to track the success of the Group? My goal is to double the business in 5 years, therefore growing at 15% compounded.
What is the focus for the firm’s pro-bono work? The Pupkewitz Foundation under the leadership of Mrs Meryl Barry, daughter of the late Mr Harold Pupkewitz, is doing exceptional work in changing the lives of thousands of Namibians through their financial support of many worthy causes. The Foundation has become a fully-fledged division in our business to keep up with the demand for financial support in the fields of Education, Housing, Sport and many more focus areas. The Foundation is fully funded from profits generated in our trading businesses.
To what do you ascribe the success and national footprint of the Group? The vision and tenacity of Max Pupkewitz and Sons. Mr Harold Pupkewitz must be credited for his ability to see opportunities and to have a “no one can stop me” approach. That tenacity and hard work lead to the success of many people in the organisation over decades and the Pupkewitz Group has been a major contributor to job creation and Government coffers.
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Geared to meet electricity needs of Erongo Region Robert Kahimise: Erongo RED, Chief Executive Officer
PROFILE
Certified Regulation Specialist (University of Loughborough) UK Master’s in Business Administration (University of Stellenbosch) SA Advance Dipl. in Business Administration (University of Stellenbosch) SA National Diploma in Accounting (Polytechnic of Namibia) NAMIBIA Kahimise held senior leadership roles at various companies such as the Electricity Control Board (ECB) and Air Namibia. He brings more than 10 years electricity industry experience and he holds an MBA from University of Stellenbosch. Kahimise is also a Certified Regulator by University of Loughborough (UK). Kahimise joined Erongo RED in 2010 as a General Manager for Commercial Services until 2013. In 2013, Kahimise was appointed as the Chief Executive Officer of Erongo RED, a position he holds to date.
Erongo RED has been established as an electricity distribution company for Erongo region. Our fundamental business model is based on the supply of electricity through economies of scale, pooling of human and operational capital resources to ultimately stabilize electricity prices and ensure reasonable, affordable and cost reflective tariffs to electricity consumer in the region. From the humble beginning, Erongo RED has grown to become a trendsetter in the electricity supply industry. In our drive to become customer a focused company, we have invested significantly to improve our customer service. One such investment was the implementation of the Call Centre. Our Call Centre software is designed in such a way that we are able to keep track of the calls received each day and how many of these calls have been resolved. The Call Centre will receive customer complaints through several channels such as telephone, fax, email, etc.
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The customer complaints are registered and resolved immediately or forwarded to the field personnel for timely action and rectification. The status of the complaints are periodically tracked and updated and the customers can know the status of the complaints logged and registered by contacting the call centre personnel. In case the complaint is not resolved within a specified time limit, the complaint is escalated to higher authorities for expediting the resolution thereof. The benefits of this Call Centre are that our customers are empowered with information they need within regulatory accepted standards. The call centre also serves as a central hub that links a customer and our organisation together. Our customers have quick access to the information they want and this enhances customer-to-business relationships. In addition to the Call Centre, we have introduced the SMS platform and we are continuously training our staff members so that they attend to customer queries timely and professionally. We are also in the process of revamping the website in order to make it responsive for our clients. Another area that is continuously receiving our attention is the network infrastructure. Since inception, Erongo RED has upgraded network capacity and infrastructure in various towns town to meet the demand for this basic commodity. One of the biggest projects undertaken to date by Erongo RED is the Walvis Bay Bulk Upgrade. Erongo RED faced various challenges to strengthen the electricity supply to Walvis Bay. The existing infrastructure can only deliver 50MW with no redundancy. Hence, the upgrade involved both transmission and distribution networks. The upgrade to the town of Walvis Bay mainly consists of 3 parts. Part 1 is the new 132kV power lines from the NamPower Kuiseb transmission substation to Walvis Bay. Part 2, is the new 132/11kV Walvis Bay substation constructed by NamPower, which will be located in Walvis Bay. Part 3, is the new 11kV Walvis Bay Intake Substation which is the main distribution substation for the entire town of Walvis Bay. The new Walvis Bay Intake Substation project has already started in 2013. The project is already at a very advanced stage (95% completed). The contract was awarded to ABB Namibia via Board approval. The switchgear was manufactured in Republic of Czech, Brno. The primary equipment is rated at 17.5kV with a busbar rating of 2500A and capable to transfer 120MW at 11kV.
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The design was based on achieving exceptional high reliability with redundancy on critical components. This substation is the “gateway” for all power to the town of Walvis Bay, and supply residential (14,000), business (1300) and industrial (140) customers. Hence, the design include redundant equipment and is based on a double busbar arrangement. Once the entire project is completed, the Port of Walvis Bay will be directly supplied from the new substation with and estimated power requirement of more than 20MW. In order to accommodate the 3 x 40MVA transformers, a three bus-section arrangement was necessary. This arrangement gives an N – 1 redundancy which will allow for the provision of 80MW at a significantly high availability index. Furthermore, the double busbar arrangement further increase the reliability and availability of individual feeders to distribute the power to the various load centres. Under certain network conditions or constraints, the busbar could be operated with flexibility to ensure continuity of supply.
including voltage regulation. For control and monitoring purposes, a fibre optic link between the two utilities will be implemented. Interlocking and protection will also be achieved via this communication link.
The benefits of double busbar are vast and the utility is getting a huge return on investment as well as improvement on Quality of Services indices.
The latest technology will be employed in terms of protection, automation and information schemes and will be based on the IEC61850 standard. This standard was not previously implemented by the company and the Project Leader had to convince all the stakeholder of the benefits and advantages of this standard.
A single supply point with three individual feeders at 11kV will be the interface between Erongo RED and NamPower. NamPower, as the generation and transmission utility, will ensure total synchronism at all times,
Research was done on how to approach first time implementation of this standard at utility level. An independent 61850 Technical Advisor was appointed to oversee all network and 61850 related matters.
Besides the latter, Erongo RED is also involved in Renewable Energy and regards itself as a pioneer in terms of Renewable Energy deployment. To date one wind power generator has been installed and more than 160 roof top solar power panels have been installed and commissioned in the region. A 3MW solar plant is under way at Arandis and it is expected to be commissioned towards the end of 2016. In addition to this, Erongo RED is also busy conducting an impact study to determine the impact that the implementation of renewable plants could impose on our existing network. On the corporate social responsibility side of the company, Erongo RED has ploughed back over 300 000 Namibian dollars in this current financial year into the communities in which it operates. The company’s social investment is rendered in five key areas, namely: education and training, community support, environment; and sponsorships of temporary electricity connections for events and functions. As a corporate citizen, Erongo RED acknowledges that it has a role in complementing government efforts towards social economic development and upliftment of the Namibian people. Erongo RED is indeed on the mission and the mission is to ensure that we distribute and supply affordable, reliable and accessible electricity to all in Erongo region. Hence, the need to ensure that our facilities and network infrastructure is robust and operated optimally to serve the region.
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THE IMPORTANCE OF CAREER FAIRS – NSFAF PERSPECTIVE
Career guidance involves assisting people navigate through
interface between high school education and training
various phases of one’s career path
institutions, as well as to provide adequate information on career options and career development. It is imperative to
Development for grade 12 learners, or those who have
acknowledge that career guidance, if done well and on
completed NAMCOL and are looking into further
time, will assist our learners to navigate through the
education and training prospects, is highly important.
daunting task of choosing careers and sustaining them,
Career guidance resonates largely with assisting learners
hence defining their lives and largely those of their
at an early stage to pick the right university, college or
families and society.
vocational training and development programme, in relation to their career choices. It is worth noting that
A student who has been properly assisted often saves the
career development is often a lifelong process, and it is
fund and institutions of high learning the trouble of
necessary for individuals to receive adequate assistance
wanting
with this process.
to
change
courses,
unexplained
poor
performance which ultimately lead to delayed graduation
High school learners usually have limited knowledge with
and increased costs in the long run.
regards to career options, often owing to the unavailability of information and tools. This generally leads to learners
Career guidance assists learners to align their personality,
making hasty decisions with regards to what career paths
interests, abilities, skills and values with their career
to follow. We can boldly attribute this to the influence of
choices. This is largely imperative consideration that failure
peers who have limited information, misleading media
to do this could frustrate an individual for the rest of their
advertisements, parents who often impose their interests
life.
and a cohort of other similar factors. In the long run,
Through career guidance, which is an integral part of
because of in adequate career guidance, the individual
career development there are a number of benefits such as
often chooses an inappropriate career path.
improved
preparation
for
the
participation
at
NSFAF recognises that there is a high failure rate at
post-secondary
Institutions of Higher Learning and training institutions in
achievement, better articulation among the levels of
Namibia, with high dropout rates and frequent
education, higher graduation rate which NSFAF is
programme changes, all because of a lack of proper career
struggling with and retention chances. Also there is a
guidance, which leads to the wrong career choices.
degree of alignment with job security and the need of the
education,
improved
educational
economy.
What is the aim of career guidance? Career guidance is essential, especially at a stage where
We believe that career guidance should be integrated into
career choices are made. Generally speaking, from NSFAF’s
the basic education curriculum and taught at all levels, in
perspective, there is a lack of proper career guidance for
this way we can have better preparations and results at the
high school learners. The main aim is to bridge the
end of their academic journey.
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A long term horizon Bisey Uirab: Namport, Chief Executive Officer at Home Strategy which focuses on industrialization, manufacturing and value addition. Another is the Harambee Prosperity Plan which embraces a targeted approach to significantly reduce poverty and inequality and spans the financial years 2017 to 2021. The broad parameters of the Plan are supported by the following pillars – •
Social Development
•
Effective Governance and Service Delivery
•
Economic Development
•
Infrastructure Development
The socio-economic aspirations of Growth at Home and Harambee have also been amplified in the recently enacted Public Procurement legislation which adopts preferences for Namibian-produced goods and services. The expectations of our Customers, which are predominantly major shipping lines like Maersk and CMA CGM, continue to focus on productivity, reliability, efficiency, and cost effectiveness. In addition, the trend to megaships is here to stay resulting in larger vessels being cascaded to other trade routes, especially along the Europe-South Africa trade route.
I am indeed very blessed to be leading a critical public enterprise such as the Namibian Ports Authority in a country as great as Namibia in the era of the “new Africa”. Namport operates in the economic and productive category of public enterprises and as such must be commercially viable. In this respect, the key drivers of Namport’s strategy and sustainability are the expectations of our Shareholder (the Government of Namibia) and of our customers.
Managing Expectations In terms of Shareholder expectations, our Nation has a Vision which it wants to achieve by 2030, supported by a National Development Plan, with one of its most critical goals being
economic growth with attendant job creation and alleviation of poverty. Namport makes a major contribution towards achieving the desired outcomes in the Strategic Areas of Logistics and Public Infrastructure, but it also contributes to other strategic areas. One of the most exciting objectives stemming from the Logistics outcome is the development of our country as a logistics hub with the Port of Walvis Bay being the main spoke in this hub. To further secure the achievement of the overarching objectives of our Nation’s Vision, our country has developed various plans and strategies in synergy with the National Development Plan. One of these complementary initiatives is the Growth
This is a burden on our ports as they have to heavily invest in infrastructure to accommodate such larger vessels with no guaranteed return on investment nor increase in volumes. In addition, larger vessels equate to fewer vessel calls resulting in business peaks. The challenge is to mitigate the risk of reduced cash flows arising from inflexible labour costs incurred due to the continuous shift system operating during business troughs. Currently, the average container vessel size is 8,000 TEUs, however, 89% of the world order book is in respect of vessels of more than 8,000 TEUs. The Port of Walvis Bay can handle 5,700 TEU vessels at its container terminal. We must also remember that larger vessels also place pressure on the hinterland logistics of rail and road with congestion being a very unwelcome and costly side effect. And finally, we also have the expectations of our workforce and the communities in which we operate. We pride ourselves on being a socially responsible enterprise - we
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look after our people by not only ensuring they are fairly remunerated and respected, but also that they work in a safe and healthy environment. We care for our communities by carrying out our operations in a safe and environmentally friendly manner, supporting various community upliftment projects and providing financial assistance for education.
Punctuated Growth The highway to prosperity in Namibia is currently not paved smoothly but at times is punctuated with potholes which we must repair and we may even need to divert our highway to accommodate a changed vision. Currently these potholes are poverty, youth unemployment, water shortages, lack of affordable housing, and education shortfalls. The economic situation has been exacerbated by the drop in the oil price, the slump in commodity prices, the slowdown in growth in China, and weakening of the Namibia Dollar against major currencies. This forex experience has a pronounced negative impact not only on the cost of our imports but also the contract sums payable in terms of our foreign currency based major contracts, for example the New Container Terminal EPC Contract. Our cargo volumes have sharply declined with concomitant decrease in revenue, but at the same time operating costs are increasing. The global container market is growing at a slow pace with a modest growth of 3.3% worldwide, and 3.8% in Africa, predicted for 2016. As a port we deal with a lot of economies along the West Coast of Africa, more especially the oil reliant economy of Angola which has been seriously affected by the drop in the oil price resulting in a drastic reduction in imports through the Port of Walvis Bay to Angola. Southern African ports continue to aggressively drive port expansion and transport corridor development. Our Namibian ports are competing for the same hinterland business as our neighbouring ports – cargo to and from Zambia, Zimbabwe, Botswana, and the DRC – and to remain relevant in the SADC Region, Namport has to ensure that our port infrastructure is on par, if not better, than the competition. In this stressful time of a marked downturn in business, our dilemma is to strike a balance between satisfying the expectations of the various stakeholders and ensuring we sustain a healthy balance sheet and cash flows. More importantly, we must strive to maintain and improve our port of call status in Southern Africa and continue to provide a strong foundation for the establishment of the Namibia Logistics Hub.
Restrategising
•
So taking into account all the above scenarios and constraints, we fine-tuned our strategy and focused on projects which develop capacity to service both container and general cargo current and future demands and ensure our ports are competitive in the SADC Region, whilst at the same time endeavouring to support the attainment of the socio-economic imperatives of our Shareholder. In terms of long-term development our key achievements have been – •
Developing container capacity for the future: New Container Terminal Port of Walvis Bay
n The expectations of our Customers, which are predominantly major shipping lines like Maersk and CMA CGM, continue to focus on productivity, reliability, efficiency, and cost effectiveness. In addition, the trend to megaships is here to stay resulting in larger vessels being cascaded to other trade routes, especially along the Europe-South Africa trade route n About 50% of construction of the New Container Terminal at the Port of Walvis Bay on 40 hectares of reclaimed land has been completed. This infrastructure will enable us to accommodate the larger and longer container vessels as well as efficient ship-toshore cranes. The terminal will have two berths of 600 metres in length, have a -16.0 CD water depth, can accommodate container vessels of 8,000 TEUs, and be able to handle 750,000 TEUs per annum. The terminal will be commissioned in early 2018.
Developing bulk and break bulk capacity for the future
Once the New Container Terminal comes on stream, the current container terminal will be utilized for multi-purpose cargo which will create the opportunity for increased bulk and break bulk business in that larger cargo vessels can be accommodated at the existing container terminal berths. The most prolific development in terms of increasing capacity and expanding our Port of Walvis Bay footprint is undoubtedly the SADC Gateway development which is situated further north from the current port area. There is a growing demand for the import and export of bulk commodities in SADC and this port area will be ideally suited for this purpose. The 1330-hectare development will be the key spoke in the Namibia Logistics Hub and will be a major port gateway serving the “shopping mall” of SADC countries. This development was kick started by the construction of a Liquid Bulk Terminal by the Ministry of Mines and Energy in 2015. This terminal, which is 20% complete, will provide two 60,000 DWT tanker berths and includes dredging the entrance channel and turning basin. Namport has initiated the feasibility study process for the establishment of a Multipurpose Bulk Terminal accommodating under 10 million tonnes per annum at the SADC Gateway. •
Harnessing the efficiencies of Port Automation
A Port Automation Study has recently been completed and one of the key outcomes of this Study is the provision of a Port Community System at the Port of Walvis Bay. Through this system information interchange between customers will be streamlined through technology thereby improving efficiency and productivity levels. The next step is to draft the Port Community System concept. •
Increasing throughput cargo at the Port of Lüderitz
o The construction of a new port rail network at the Port of Lüderitz, which connects to the Aus- Lüderitz railway line, was completed in February. We have, however, advised the relevant authorities that for the rail from Aus to Lüderitz port to offer an optimal transport solution, the 42 km of rail between Sandverhaar and Buchholzbrunn requires urgent attention o The first containerized grape exports through the Port of Lüderitz took place in December 2015 and it is foreseen that this will be an annual event o We have commenced with a feasibility study relating to the extension of the main quay wall at the Port of Lüderitz by approximately 30 metres. This will enable the port to
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accommodate longer vessels as well as smaller vessels simultaneously
•
Supply Chain, Transportation – 7
o There is potential for exporting manganese ore from the Northern Cape of South Africa through the port.
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Accounting and Finance – 3
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Information and Technology – 3
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Law – 2
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Environmental Studies – 1
Socio-Economic Contributions In terms of our social-economic contribution, we are proud of the following achievements – •
•
•
•
We increased our workforce from 854 employees in 2014 to 1,011 in January 2016. Some of our major infrastructure projects have also had a great spinoff in terms of job creation. In December 2015 we fully implemented a multi-shift continuous shift system in critical operations of marine, containers and security – that is provision of a 24/7 service to our customers at the Port of Walvis Bay Namport is exploring various interventions to further enhance the housing benefit of our workforce. Localising and diversifying our supplier base – We introduced some tender qualification criteria of 51% Namibian Ownership, of which 30% is previously disadvantaged.
During the past six months our percentage procurement OPEX spend on – •
Namibian registered / owned businesses: 65% (N$ 129,052,898.00) Namibian SME owned suppliers: 9% (N$ 18,344,223.00) Namibian BEE/BBBEE owned suppliers: 49% (N$ 96,225,696.00)
Logistics,
Communications
o Vocational education has also received attention through the award of 11 apprenticeship bursaries (8 males, 3 females) in the fields of – •
Mechanic Instrumentation – 1
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Mechanic Petrol and Diesel - 1
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Millwright Electrical - 4
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Electrical General - 2
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Boilermaker -1
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Fitter & Turner -1
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Welding and Fabrication -1
o On the Marine side, deck and engineering officer training has been sponsored through our Seafarer Training Scheme which boasts 6 cadets (3 males, 3 females) with four participating in the deck officer training and two in marine engineer training; o Furthermore, in terms of maritime studies, Namport has sponsored six students (4 males, 2 females) to participate in our Catch Them Young secondary school nautical studies programme at Lawhill Maritime School in Simonstown, South Africa. This programme serves to attract young people to a maritime career by exposing them to nautical studies
during the latter half of their secondary school studies (Grade 10 to 12). Two of these students have graduated and will be furthering their studies at University. o Seafarer training will be further enhanced through the envisaged establishment of a Namibian School of Maritime. Development of a cruise terminal at the Port of Walvis Bay, which can accommodate one 300 metre LOA passenger ship, and provision of a passenger landing barge at the Port of Luderitz. In the past six months the number of passenger vessels calling at our ports were 31 compared to 13 the same period the previous year. Namport’s support of marine tourism has been showcased by the proposed development of the Walvis Bay Waterfront and Marina. At this stage certain project zones have been identified for private development and in due course expressions of interest will be invited in this regard. At the same time, we have not lost sight of the empowerment of our female colleagues and various development paths and mentorship programmes are being progressed to bring more women on board the Namport ship with an aim to eventually achieve our target of 50:50 gender representation.
To date in respect of the construction of the New Container Terminal – •
Total Namibian spend: 567,408,632.00)
16.48% (N$
•
Total Previously Disadvantaged Namibian spend: 1.55% (N$ 53,393,331.00) Total Namibian SME spend: 1.19% (N$ 41,149,224.00)
•
Namibians trained:
152 persons
We are making great strides in terms of providing innovative learning and development programmes to ensure 100% availability of critical skills and more specifically the development of females. Since 2008 Namport has sponsored 30 external Bursary students (16 males, 14 females) in various port related studies – •
Civil Engineering – 6
•
Mechanical Engineering – 6
•
Electrical Engineering – 1
•
Electronics and Engineering - 1
Communications
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Council 2016 Core Values [‘RAP IT’]
Mission Statement
Vision
The core values are the non-negotiable style in which the Municipality of Walvis Bay and its partners will perform its services, the style in which the Municipality will travel on its journey to realise its vision. We cherish good governance through Respect, Accountability, Professionalism, Integrity and Teamwork
To maintain a tradition of excellence in service delivery to ensure diversified social, economic and environmental opportunities to our residents, investors and visitors for improved growth and prosperity
Walvis Bay, Namibia’s industrial and logistics hub of choice for integrated investment opportunities
His Worship, Immanuel Wilfried (Alderman) Mayor
Cllr. Hilka Erastus Deputy Mayor
Cllr. Lilo Niilenge Member of MC
Cllr. Tobias Nambala Chairperson of MC
Cllr. Saara Shailemo Alternate Member of MC
Cllr. Ndishoshili Nghilumbwa Member of MC
Cllr. Penelope Martin
Cllr. Paulus Kauhondamwa
Cllr. Gibson R. Goseb
Member of MC
Cllr. Manuel Ngaringombe
Municipality of Walvis Bay NAMIBIA’S TOP & CORPORATE GOVERNORS EXECUTIVE NAMIBIA Public Relations Customer Service Division 35 Tel: +264 64 201 3111 / Fax: +264 64 205 590 / Email: pr@walvisbaycc.org.na
Purpose: The Essence of Leadership Sven Thieme: O&L Group of Companies, Executive Chairman
Company Profile:
As a truly African company employing almost 6200 people in various sectors, the Ohlthaver & List (O&L) Group emerged from the early Ohlthaver & List Bank Kommission partnership between Hermann Ohlthaver and Carl List in 1919; subsequently Ohlthaver & List Finance and Trading Corporation Limited (Olfitra) was established in Namibia on the 13th of May 1923. The Group’s Headquarters is located in Windhoek, Namibia. Today, O&L is Namibia’s largest privately held group of companies, with revenues contributing about 3% to GDP, business interests in food production, fishing, beverages, dairy, retail trade, information technology, advertising, renewable energy, property leasing and development, marine engineering, steel retailing and engineering, and the leisure and hospitality industry. The parent company of Olfitra is O&L Holdings (Proprietary) Limited and List Trust Company (Proprietary) Limited, with the controlling shareholder of the O&L Group being the Werner List Trust. With annual revenues of over N$5 billion, O&L is a major contributor to state coffers and is in the position of representing a significant contributor to GDP in Namibia. Wherever it operates, this broad-based group is actively engaged in uplifting the lives of its people, its consumers and society generally.
O&L has on numerous times been nominated the Best Company to Work For. In a country where the skills gap is on every employer’s lips, how do you make sure you have the right people in the right places to help you run the business? First of all, we are very proud and appreciative to have won this title for a couple of years, and have learned a lot from that process. We are now preparing for an international benchmarking exercise to measure ourselves against the best in the world. These evaluations and awards measure more the environment within which our employees operate and to a
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n The greatest lesson to me is that leaders are not only born but can also be created and developed. I believe that everyone is a leader, just think if you disagree, everyone is leading his or her life, family etc., so why can’t you lead other things too n lesser extent whether the right person works in the right place. Leadership development is a very important part of our corporate culture. In addition to investing in the growth of our people, our corporate culture with the values and leadership model, ensures that we empower our people to make a difference as we believe that everybody is a leader.
But should leaders focus on results or people? There may be many views, but our approach is that we focus on our people to enable them to focus on the results. This we do by creating a high performance culture to be able to achieve breakthrough results.
What have been the greatest leadership lessons of your management career? The greatest lesson to me is that leaders are not only born but can also be created and developed. I believe that everyone is a leader, just think if you disagree, everyone is leading his or her life, family etc., so why can’t you lead other things too? So what do you consider to be the major contributing factors to being a successful businessman? It’s like everything you touch turns to gold. Purposefulness, honesty and integrity – these are the basis for everything. Then this needs to be incorporated with leadership dimensions such as ensuring there is affinity amongst people, ownership and interdependence. This will drive you to focus on the issue and not make matters personal, but ensure that everyone is working together to resolve matters and achieve a common goal or purpose.
What have been your top three major draw backs, if any? How challenging is it for you as a leader to stay on top of the game?
One of the biggest lessons I have learnt is that it is important to pace myself and look after myself sufficiently. The second lesson has been that one shouldn’t assume that what is obvious to one person is obvious to the other, or that one person’s understanding of a matter is necessarily the same as another person’s understanding of the same matter. Thirdly, that it is important to not underestimate the impact we have, and therefore to remain conscious of continuously steering things in the right direction.
Harambee Prosperity Plan? Where should the caution be? I think this is a great plan with very clear targets – and it should serve as direction for all to channel our energy in working towards the achievement of our common goals. What makes it even more exciting is the way it has been launched with clear ownership taken by the President Dr. Hage Geingob. The caution I have is that we shouldn’t think that putting in place a great plan is a guarantee of great results. The real crunch comes now, to ensure the plan is widely owned, receives the necessary focus, and is executed relentlessly – to deliver what it sets out to achieve. The last thing we want is a great plan that raises expectations, but doesn’t deliver.
Where do your fears lie with the NEEEF and do you think your concerns are being accommodated enough? The current NEEEF draft consists of seven pillars, five of which are what one would expect any responsible corporate citizen to do in any case, and which many corporates have embraced without a legislative requirement. The two pillars on ownership and management are what is concerning. The way ownership transformation is currently written into NEEEF creates the risk of creating an entitlement culture. It also signals to the person who is
ambitious and work’s hard, that their efforts may be in vein as they are not guaranteed to bear the fruits of their labour. On the management pillar, while one would want to see transformation whereby management of companies is representative of the diversity of our country, this needs to be done in a responsible manner. The way these two pillars are currently written is not practical (think of a sole proprietorship or specialist), responsible, or conducive to achieving the objectives of Harambee. Instead of growing black businesses, we are trying to cut up a small cake rather than growing the cake. I believe that putting a framework in place to support poverty eradication, transformation and empowerment is the right thing to do, however this should be done in a systematic manner that grows the cake for the benefit of all, addresses the needs of the poor, and builds the Namibian home for all.
There are those who maintain that the country is economically under siege, mainly from the Asians and other nationals, who seem scattered all over Namibia, and participating in the Namibian economic empowerment stream on an equal footing with Namibians, but financially backed by their respective governments and thus perpetuating Namibians to remain job seekers and beggars. What is your comment? Unfortunately, I have to agree that there is that risk and this is already happening in some cases. We need to be careful that we don’t allow ourselves to be colonized a second time. We need to empower Namibians by allowing skills to flow into the country, and so doing to allow for skill transfer. We need to be on an international skills hunt to develop Namibians. For that we need to become very sophisticated and lenient in a clever manner that allows us to attract the best talent, and keep them for long enough through longer term work permits, ensuring that skills are transferred to Namibians.
How strong is the Namibian market for O&L, and can it be sustained? The Namibian market is very important for O&L, this is our home. But we need to be careful to rely on that solely. We need to export our products and also develop businesses elsewhere to be able to sustain ourselves and compete against international giants.
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We endeavour to do this by ensuring that our beer, milk and other products don’t contain harmful substances, and that our processes are benchmarked against global best practice, embracing sustainability and ensuring we live our value of naturally today for tomorrow – as caring about the future is engrained in who we are and what we do.
How bad has been the events in South Africa, considering your growing footprint in that country? The implications of events in South Africa are disastrous and concerning mostly because the impacts are felt by the poorest of the poor – who will be exposed even more by the rise in food prices. It also impacts competiveness as imported raw material becomes increasingly more expensive, and so doing impacting the cost of production, eroding profitability, and putting pressure on reinvestment – which all negatively impacts the sustainability of the business.
Of all the companies you have led at board level, which one was the toughest and why?
n Our speed of growth has been amazing over the last couple of years and we endeavour that it continues going forward. Our vision metrics for 2019 is to create 4000 additional jobs, a 20% reduction in our carbon footprint - to which we are well on track, achieving N$2 billion Earnings Before Interest and Taxes (EBIT) which we lacking a little behind, and being an employer of choice, which I am pleased to report, we are on track with n So what is the speed of your growth? Are there any metrics in place to track the success of the Group? Our speed of growth has been amazing over the last couple of years and we endeavour that it continues going forward. Our vision metrics for 2019 is to create 4000 additional jobs, a 20% reduction in our carbon footprint - to which we are well on track, achieving N$2 billion Earnings Before Interest and Taxes
(EBIT) which we lacking a little behind, and being an employer of choice, which I am pleased to report, we are on track with.
It is certainly O&L. Every business under the umbrella of O&L had to be turned around when I took over in 2002. This really makes you stronger and equips you with skills of turnaround which you can use over and over again.
If you were to change something in Namibia’s corporate governance, what would it be? I would look at laws that would hold people accountable either at board level or elsewhere. I would declare war on corruption and implement lifestyle audits to ensure we eradicate poverty and do not enrich a few.
Are there moments when you can appreciate the successes or is it always looking ahead at what further needs to be done? There is no doubt that we constantly have to ask ourselves “what else can we do” to ensure we stay sustainable. But part of this is of course celebrating achievements and learning where we can improve ourselves. Remember if you control the past, you control the future and if you control the present, you control the past.
Is it possible to differentiate services in this market and show what makes a company unique?
Of all you have accomplished, what are you most proud of?
Yes of course. We are passionate about high quality and realness and I believe this is a real differentiator of our products and services.
It is difficult to say, but I am proud of the O&L, Development Bank, NBC and Windhoek Country Club achievements.
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DIVERSITY MANAGEMENT
Jason Nandago: Metropolitan Life (Namibia) Ltd, Managing Director and Director
Background
Born in Omeege, Namibia. Educated at University of the Western Cape, obtaining a B. Econ. Degree and a Masters Degree in Economics and Fi¬nance (M. Sc.) from Loughborengh Uni¬versity in the UK. Jason joined Norwich Investments as a Fund Manager in 1997, in Cape Town S.A. He operated as Executive Director - Port¬folio Management at Metropolitan Na¬mibia until 2012 when MMI Holdings appointed him as group CEO responsible for overseeing Metropolitan Namibia, Momentum Namibia, Momentum Investment Namibia, as well as Methealth Namibia Administrators.
Since 2012, you have been very forthcoming on a number of goals for MMI. What have been the priorities and how have they progressed? The merger was announced in 2010 and the MMI Holding group Namibia was put together in 2012. Between 2012 and present day, MMI Holding has grown to be the third largest insurance company in Namibia in terms of assets and products. The priorities came from the challenges presented by the merge. We had two different cultures that we put together. One was Swabou and the other was Metropolitan. Marrying these two different brands that had been operating in the same market and that were focusing on the same client which was largely middle to lower income market, was no easy task. As a result, our products were quite similar, so we needed to rationalise the products. We needed to look at the products that we have in the market and see the ones that are selling better and come up with a good product suite. Currently we now have four cooperating brands; Metropolitan Swabou which is largely retail, Momentum which is catering for the higher end market as well as corporates; Momentum Asset Management and our health administration company; Methealth.
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Would you give an overview of MMI’s business and your view of what has made it so strong under your leadership? How do you maintain balance? Behind every successful business is its people. You can have the best pricing in the market but if you don’t have qualified people then it does not make a difference. What has made us strong is the people. All the brands focus on the different audiences and none of our products overlap into the other. It supplements us when our products are under one house in the name of a holding company. The best part is that each of the business units have chief executives who run their own shows and I have a competent Group Exco made up of these chief executives. It is easier to manage the business if I am not operationally involved. It gives me time to plan and concentrate on strategy. Weekly I meet with each chief executive. They have delegated authority and there is no conflict. My role is to keep the team working.
Should leaders focus on results or people? People bring results. People drive the business. If your reward system is working, you will get results. Results come as a result of happy people.
So are there moments when you can appreciate the successes or is it always looking ahead at what further needs to be done? While celebrating success, you need to plan the next step. We do not celebrate the victories of a small battle every day when the war is not over. We have a share incentive scheme mainly for the senior management and executive committee. We also reward top sales gurus by sending them oversees on holiday with their partners annually.
With such experience and wisdom, how else do you see yourself contributing to the growth of Namibia in the future? Statistics will show that we are in line with Harambee Prosperity Plan. We pride ourselves to be one of the biggest employers in Namibia with close to 1000 people thus helping to eradicate poverty through employment creation. We are key participants of promoting investment friendly initiatives through the chamber of commerce and industries, NCCI. No one should be left behind as the President has declared in everything we do.
What have been the greatest leadership lesson of your MMI career? Diversity management. It is not easy putting different cultures together. In 2012 as the two giants merged, it was a case of us versus them. There were divisions and my job was to create one team with less differences. It is not easy to mix water and oil but if you try harder it will mix, that was the biggest lesson.
What are your growing pains? When you become big the growth opportunities become challenging. Growing the asset base with the same margin becomes tricky especially in an environment of slow economic growth. If there are no new industries coming up, one cannot do much. If there are not enough jobs created, we cannot generate more new business.
n Statistics will show that we are in line with Harambee Prosperity Plan. We pride ourselves to be one of the biggest employers in Namibia with close to 1000 people thus helping to eradicate poverty through employment creation. We are key participants of promoting investment friendly initiatives through the chamber of commerce and industries, NCCI. No one should be left behind as the President has declared in everything we do n
Compared to other countries where Metropolitan operates, would you say the industry in Namibia is over or under regulated? Regulation is meant to be an enabler not an obstacle. Comparing Namibia to South Africa, one can observe that Namibia well-regulated and the latter is highly regulated. But our local regulation practises need more consultations particularly with the industry. If there is no proper consultation the industry, it is the consumer that suffers more.
What is your take on the allegations that the roles of some Namibians running foreign-owned companies have no decisionmaking powers, as all major decisions are made elsewhere? •
Is that the case with your firm?
Those allegations are somewhat true to some institutions but not to us. Decisions are taken based on the amount of money invested, that’s why some decisions are only taken at group groups level. For example, if I own a business and invest N$2 billion, I would surely want to have a say in my N$2 billion. Fortunately, at MMI, we are the most localised insurance business in Namibia both in terms of ownership and the people that are running the business. We do not have ex-patriots working with us. If we have people who were not born in Namibia then they should have been resident here for more than 10 years and are either domiciled or permanent residence. We understand the business better and we have delegated authorities between Exco, the management and the Board. About 12% of the group is owned by BEE companies and the chairman and structure of the board is Namibian while about 49% of Met-health shares are held by Namibians of which the Union representing the broader Namibian public holds 17% under the company called Prim- Health.
Of all you have accomplished, what are you most proud of? I am proud to see the smiles in the faces of our staff as I enter the office. Since we have never had any retrenchment cases when we merged, as many people thought, the feeling that we are doing things right inspires us. There are three things that certain to us and that is change, taxes, and death. We accept change at MMI. It is inevitable.
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PIVOTAL Nillian N. Mulemi: Petroleum Training and Education Fund (PETROFUND), Chief Executive Officer
Background
Nillian has been managing Namibia’s capacity building programme for the petroleum industry for 14 years. She joined the Petroleum Training and Education Fund in 2002, Nillian has been instrumental in ensuring that the Funds are prudently managed and all parties hereto honour their legal training obligations. In the infant years of Nillian’s career, she worked for a non-governmental organization whose main objective was to advance gender equality by availing opportunities for all. Nillian holds a Bachelor’s Degree in Law obtained from the University of Namibia and Masters Degree in Finance obtained from the University of St. Andrews in Scotland. Nillian also holds a Bachelor’s Degree in Accounting obtained from the University of Namibia.
You have been at the helm of Petrofund for over a decade now, what do you single out as your major achievements, since joining your firm? In no particular order, amongst the notable achievements of my career are the following; i. Ensuring that the organisation is sustainable for the foreseeable future. It was the vision of the founders of the Petrofund that every effort should be made to ensure that the Trust Fund’s resources are managed prudently but most importantly in a sustainable manner to continue executing its mandate for a foreseeable future. The Trust Fund has been in existence for 24 years now. It was established shortly after independence in 1992. It has a solid financial base which has grown 5 fold during my tenure. ii. I have been privileged to select and offer young Namibians opportunities to acquire top class education at various prestigious universities. Most of these young people have become professional employees of high calibre who have made remarkable contributions to the country’s economy. The Trust Fund has trained in excess of 245 Namibians mainly in engineering sciences and geosciences; iii. I played a pivotal role in influencing and supporting the Department of Geology at the University of Namibia to introduce the MSc. Degree in Petroleum Geology. The Trust Fund pledged N$1.3 million to acquire all the necessary equipment to rollout the program in 2015. Namibia shall graduate its first locally trained MSc. Petroleum Geologists this year – 2016. All students in the program are funded by the Petrofund.
Any strategy used to remain at the helm? What is the secret to remaining relevant? I attribute my stay in the organisation to my extraordinary levels of commitment, ability to listen to the opinions of others and finding joy in what I do. I also attribute my stay to a team of Board
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Starting in the job much younger, I am, without doubt, not short of strength but this granted me an opportunity for creativity and originality in many aspects of the job while acquiring academic proficiency gave me added confidence to execute my tasks. I was not afraid and I am still without fear to propose organisation operational changes to the Board of Trustees. For instance, as a young employee, I was instrumental in proposing the logo that the Petrofund trades on because the organisation did not have one when I was appointed more than a decade ago.
So how has your leadership style evolved over the past 14 years?
of Trustees who have at all times maintained their role as that of overseeing the integrity of the business affairs of the organisation as well as developing and monitoring the implementation of the corporate strategy. The secret to remaining relevant is to respond promptly and appropriately to the changing business environment.
Any major draw backs? The Namibian oil and gas industry’s potential has remained unexploited due to the delay in commissioning the Kudu Gas to Power Project. It is common knowledge that the gas was discovered offshore Namibia in 1973 but has remained unexploited due to several reasons, the most recent being cost. It has been my sincere wish since I took up this job to build the necessary capacity for Namibia’s hydrocarbon industry with the Kudu Gas to Power Project as one of the key factors of consideration. You can imagine that uncertainty about its future role-out has called on us to re-visit our long term plans.
But do you still possess the same originality, strength and creativity that you had 14 years back? Without sounding like a politician, my answer is absolutely yes. I joined the organisation in my mid-20s. I undertook every aspect of the job that was expected of me including delivering board packs to the Board of Trustees if time was of essence. I also undertook both undergraduate and postgraduate studies during the period, firstly obtaining, a Bachelor’s Degree in Accounting at the University of Namibia (UNAM) and went on to obtain an MS. in Finance at the University of St.
n I attribute my stay in the organisation to my extraordinary levels of commitment, ability to listen to the opinions of others and finding joy in what I do. I also attribute my stay to a team of Board of Trustees who have at all times maintained their role as that of overseeing the integrity of the business affairs of the organisation as well as developing and monitoring the implementation of the corporate strategy. n Andrews in Scotland and most recently a B. Juris at UNAM again. I have offered part time lectures to B. Accounting students at UNAM.
I do not ask of my team more than what I am able to do. I have strived for excellence in my work and so has implored the same on the team. I pay attention to every detail put before me. Thus, my leadership style is based on application of what I say and ensuring that the team has the ability to execute their tasks. I have made adjustments to this style. I have learnt to be more patient because there is a fine balance between coaching and frustrating employees. I am learning to allow more time to team members to master the art of the job. I have also learnt to make time for strategic planning and execution as an inherent aspect of my daily job.
What excites you going forward? Are there any opportunities for growth? The call for operational efficiency excites me. That our President has echoed the need for improved efficiency in the way we render services to the public is a source of excitement for me. I have found myself using this call to reinforce what I have always strived for except that I now have a big supporter to fall back on when I want to reemphasise the impact of lacklustre attitude to work. This has given me renewed passion and excitement for the future. Namibia is a young democracy with globally renowned sovereign legal infrastructure which has demonstrated ability to work despite our varied ethnicity. This inherent foundation enables all of us to exercise our human potential. There are a lot of opportunities for growth, for young and elders alike. This gives me confidence that as a country, we are in the best space of time to make a real difference; for example, to the issues of energy deficiency, water shortage, good health systems, literature – books that tell our heritage, art – that depict moments in our evolution; architecture - buildings that are admirable; food - genius ways to ensure food security. It is an exciting time indeed irrespective of what industry you are!
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As for the oil gas sector, the sector still lacks oil and gas vocational graduates. My office, in consultation with the Namibia Training Authority (NTA) is looking into this matter. We have plans in place to create a sector skills plan for the oil and gas sector preferably by the end of 2016. Once the sector skills plan is finalized, we shall proceed and look into training programs for our young people who have a passion for technical skills. I am very excited about this development because it has been a long standing challenge for the industry at large.
What are the challenges? My observations cut across all sectors. •
Changing old ways of thinking or doing things is a big challenge. The attitude of ‘if it’s working, why fix it’ appears to be deeply rooted in our mode of operations. I am always adorned with admiration about how our European, Asian and Western friends are in the constant search for systems that improve their ways of life. Simple but yet very powerful inventions are developed and celebrated. For example; these countries have integrated transport systems that enable you to travel to several destinations conveniently on time.
•
We don’t invest a lot in planning. As the saying goes, failing to plan is planning to fail. I would like to see us as a nation develop blue print plans for every economic sector that we should constantly revisit to ensure that we are meeting strategic goals.
•
Sometimes where we do have plans in place, we do not execute the plans straightway. Institutions like the Petrofund and higher institutions of education for that matter, whose focus is availing human resources require to be informed by blue print strategic and development plans as well as associated human resources plans in order to deliver the required human resources.
What are your key priorities in the current business set-up? The commodity prices and currency parity are unprecedented within the oil and gas industry. Many experts would not have predicted oil and gas prices of about +/- US$40 barrel/pd since 2015. There have been mixed reactions to investments within the sector due to the erosion of the price from the investment side of the sector.
n I do not ask of my team more than what I am able to do. I have strived for excellence in my work and so has implored the same on the team. I pay attention to every detail put before me. Thus, my leadership style is based on application of what I say and ensuring that the team has the ability to execute their tasks. I have made adjustments to this style. I have learnt to be more patient because there is a fine balance between coaching and frustrating employees. n Most corporations have understandably cut exploration budgets. None oil producing countries like Namibia are entirely dependent on exploration revenue to finance capacity building programs. The key priority is thus to ensure that Namibia retains the current oil and gas explorers by maintaining the good working relationships that exist with each one of the existing operators. It is also incumbent upon us to come up with smart ways of managing our revenue in such economic environment – for example, we should invest in local training institutions in order to cut costs associated with international training programs.
How do you see the oil and gas industry evolving in the next 100 years? Like any other industry, the oil and gas industry must constantly reengineer itself to remain relevant to changing needs and energy
related technology. The industry is already working hard to utilize the so called green energies since there is a global drive to wean the world off its dependency on hydrocarbons. I foresee a reduced usage of hydrocarbons and increased usage of mixed mechanical and building designs i.e. mixture of hydrocarbons and renewable energy but I don’t foresee the world completely ridding itself from the use of hydrocarbons because of their proven ability to guarantee mechanical excellence. For example, jumbo jets and many more machines will still need to run on hydrocarbons for sustained operational efficiency while most of the green technologies have a weather limitation. E.g. the sun and the wind - The sun ceases to shine every night, at least in the southern hemisphere where it is in abundance while its availability is limited in the northern hemisphere.
Training: how crucial is it in the industry and do we have enough women in this sector? I cannot over emphasise the importance of technical skills for this sector. It’s a sector that places huge emphasis on proven and recognisable technical skills due to the risk associated with accidents. It is therefore imperative that anyone deployed within the industry receives accredited appropriate training. The oil and gas industry demands science and mathematics based skills. Most global statistics will tell you that women are still not well represented in sectors that have a science and mathematics emphasis. The oil and gas sector is no exception because of the prevalence of these elements in the skills of interest. I am however, very pleased to report that Namibia has, through the Petrofund, trained remarkable females who have taken up strategic roles within the oil and gas industry. For example, the recently appointed Petroleum Commissioner and the Acting Exploration and Production Executive at the national oil company are females. In addition, all female geologists at the national oil company as well as some of the female employees of the Directorate of Petroleum Affairs are trained by the Trust Fund. We trained the first female Petroleum Engineer who is a graduate of the prestigious university of Aberdeen this year, 2016. The local industry does indeed have females but these number are relatively smaller than males. We need to do more to groom more females into the oil and gas sector.
Tell us more about the Centre for Oil and Gas. Where are the misconceptions?
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The Center for Oil and Gas is a creation of the Petrofund Board of Trustees. Our initial interest was to set up a Petroleum Institute. Talks of this idea started in 2006 when Petrofund held consultations with key industry players to garner support for this idea. Following this meeting, the then Polytechnic of Namibia was engaged to consider being a strategic partner. PoN was already hosting the Renewable Energy and Energy Efficiency Institute. To cut the long story short, further consultations with other stakeholders produced a grand idea of what has been called the Namibia Energy Institute. It was launched in May 2013. It has four centers. The Center for Oil and Gas is one of them. The Petrofund Board of Trustees undertook a global research that involved visiting mature and operational oil and gas economies like Norway, Brazil and successful international oil and gas companies like Shell and Repsol to draft a scope of work for the Center for Oil and Gas. This scope includes but not limited to: 1.
Policy and Regulatory enhancement;
2.
Promotion & Marketing/ Stakeholder Engagement;
3.
Research and Development;
4.
Capacity enhancement.
There are no misconceptions about the Center for Oil and Gas. It is a young institution which must be given time to grow. The Petrofund Board of Trustees is committed to supporting its development.
How can the industry create smart partnership with government to provide holistic solutions in the sector? Namibia still attracts successful independent oil and gas operators who apply for Petroleum Explorations Licences (PEL) because of the hydrocarbon potential of the country. It is incumbent upon industry stakeholders, especially multinational oil and gas companies who have accumulated years of expertise in this sector to share knowledge of models that have sustained their operations for our consideration as a host country. In fact, the Petrofund Board of Trustees is already engaged in such kind of a relationship with Shell Namibia Upstream BV where the Board of Trustees commissioned a research to understand the key strategic needs of a ‘functioning’ oil and gas industry. A Technical Committee lead by the Permanent Secretary of the Ministry of Mines and Energy is now working to implement the key findings of the report. In other words, it is important for operators to approach the host country
and offer solutions where the operator is confident they have some lessons to offer for our consideration or vice versa. For instance, as the host country, Petrofund initiated the relationship with Shell Namibia Upstream BV. Of course the host country retains the right to consider and accept recommendations. I have no doubt that such cooperation stands to strengthen our systems but also assist in creating transparent systems and holistic solutions that are based on mutual interest.
What qualities makes you a better leader? Without coming across as bragging, firstly, I have sound academic knowledge but most importantly, I have a combination of attributes that have earned me admiration. For instance; I am humble, I pay attention to detail in every matter put before me, I have the ability to listen to the opinions of the team and take such
into consideration when arriving at a strategic decision; I couch others were I observe weakness and I learn from the team members too; I admit when I make a mistake; I grant every team member a fair chance to provide working solutions and most importantly I am on the constant search for better and cost effective ways of service delivery.
Where do you see the Fund by 2030? I see a Trust Fund that will be instrumental in leading research and development within the oil and gas sector but I also foresee an institution that will contribute directly to the reduction of poverty and improved health systems through multifaceted interventions that address the changing role of the Trust Fund.
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HOME GROWN Bertus Struwig: Prosperity Health Namibia
Over the years you have worked to improve claims processing, how has that impacted on the brand and your operations? Prosperity processes in excess of three million claim lines per annum and 90% of our claims are processed electronically in real time or in batch with less approximately 10% of transaction still in paper. Our objective is to become paperless in the next 24 months which will reduce turnaround time and payment cycles which has a direct impact on an improved cash flow position of service providers and improved service standards as it removed all potential human error.
You recently re-joined Prosperity as CEO, is that proof that you lost faith in those that were leading your brainchild during your sabbatical? Explain your journey in between as Prosperity became an international brand. Re-joining the executive team of Prosperity contributed that I could add new ideas and innovation to the way Prosperity conducts its business. Since starting the company in 1995 (21 years ago) I had the opportunity to grow from our mistakes and successes. Today I’m more equipped to lead a diversified group of companies which are involved in medical insurance, paramedical services, development and tourism.
What were the biggest lessons learnt upon your return to the organisation? I’ve learned that an entrepreneurial idea is only a small component of developing a small startup company into a successful corporate. Understanding your business is embedded into also understanding the risk and not just the opportunity and that the foundation of your company is not just in leadership but in strong management that can execute strategy. Briefly detail how your value has grown over the years? Are there core sectors you’re focused on? Besides healthcare, of course.
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Prosperity has diversified and today has a highly successful industry leader in EMED Rescue, Namibia’s leading ambulance and emergency evacuation service provider. We’ve made large investments under Sun Karros into the tourism and accommodation industry. Our core focus thus covers medical aid. Medical insurance, paramedical services, property development and tourism.
How did you swallow NAMAF’s loss to the NaCC? What are your fears in the regulation in the publication of benchmark tariffs? I believe the legal battle is a waste of time and money and that both parties should have spent more time to explore a mutually acceptable new direction. The benchmark tariffs kept a uniformed system in place in Namibia and we could end up with multiple price and tariff system which will complicate the service processes for both funders and service providers. I see that the current tariff system could make way for a more risk sharing remuneration model within a service network model which will replace the current guarantee of payment model with a contracting model.
Are there cartels in the medical aid sector? I believe the cartel formation is by far stronger in the pharmaceutical industry which maintains price fixing with the current pricing model. Medical aid business needs some form of protection against the unsustainability of cost of health care. The collapse of medical aid system will overburden the state resources which will be a devastating blow to the financial existence of private health care practitioners.
What are your more viable partnerships across the globe and how do you rate them? The health care business in different countries across the globe is severely influenced by the legislative and economic framework of that country and regardless of the size of the Namibian industry I believe that we are on par with our global peers.
How do you rate your efficiency in resolving complaints compared to other stakeholders/competitors? I believe we are on par keeping in mind we have the most diversified health and medical insurance portfolio in Namibia which consist of various medical aid funds and insurance portfolios. As business is a marathon, not a sprint I believe Prosperity has already taken great technology strides to be the leading service provider in Namibia.
n I believe the legal battle is a waste of time and money and that both parties should have spent more time to explore a mutually acceptable new direction. The benchmark tariffs kept a uniformed system in place in Namibia and we could end up with multiple price and tariff system which will complicate the service processes for both funders and service providers. I see that the current tariff system could make way for a more risk sharing remuneration model within a service network model which will replace the current guarantee of payment model with a contracting model. n
Do you think the Namibian public is aware of the possible risks and persistent problems experienced with medical aid funds? I believe the possible removal of benchmark tariffs in the industry will have a severe impact
on out-of pocket expense of members and medical aids will even be more challenged to maintain reserve levels at the same time providing comprehensive private medical cover. Namibia is already the most expensive country in Africa measured on the costs of medicine and medical services – this could worsen which will make medical aid funds unaffordable to the larger population and become a luxury for high income families.
How have you managed to survive in South Africa where healthcare fraud is one of the leading crimes? The cost of inflated inappropriate billing and fraudulent transactions in both South Africa and Namibia could be as high as 17%+ of the total private healthcare expense. This cost relates to over servicing, tariff bundling and charges of items which were not used by the patient. This is even higher in the rest of Africa where less sophisticated tariff and price systems are used. This cost is naturally costed into the premiums payable by members. Medical aid funds cover this inappropriate cost component through member premiums and has become the norm in the industry.
But how prevalent and sophisticated is healthcare fraud in Namibia, particularly the collusion between medical aid members and healthcare providers? Medical aids are in a strong competition with each other for members and cooperation only exist with the setting of annual industry benchmark tariffs. All funds in Namibia pay at various percentage levels above the benchmark tariff. Healthcare providers have a stronger non-competitive gentleman’s agreement amongst themselves which strongly guide the cost of medicine. This across Namibia is set at an exit price (wholesale price) plus 50% profit margin for acute as well as chronic life sustaining medicine.
How much are you losing to this kind of fraud annually? The cost of inappropriate billing in Namibia across the medical fund industry could be as high as exceeding N$500 million per annum.
But the perception remains that Prosperity Health uses political connections to get business? Prosperity is the only 100% owned Namibian company and all our competitors are South African controlled businesses. We strongly use our position as the only Namibian “homegrown” company to promote and compete with our South African owned competitors.
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Having started with N$25 000 and operating on a phone booth, what makes Prosperity special today?
Which of these companies and countries do you think has needed more and special attention? Why?
Starting the company in 1995 with N$25,000.00, we were up against multinational owned competitors from the beginning. This forces Prosperity to continuously ensure to stay relevant and lead with innovation. This has created a Prosperity culture of a high commitment of services and regarding every client as the most important asset of the company. Prosperity is still today the leading innovator of medical insurance products and 21 years later we are still a fierce competitor fighting every day, week, month and year to retain and grow our business across the Group. We learnt not to take our top player position for granted as the “neighbourhood� is packed with strong competitors which is strongly backed by their SA holding companies.
Only countries in Southern Africa makes extensively use of the medical aids funding
Of course access and affordability is key. Prosperity still maintains its cost structures below 10% of member premium and currently operates as the most cost efficient medical insurance administrator in Namibia. We are also the leader in affordable low cost medical coverage in the market.
Are the governments in the countries under your care, creating that enabling environment to conduct business and ensure continued growth of your company? The biggest problem we experience is the absence of main the Ministries directly involved in the health care industry relating to supply of services to the cost of health care services. Whilst the regulators only sets rigid frameworks, the absence of political framework to strengthen and promote private health care and healthcare funding is mostly absent which results in the industry only covering a small percentage of the total population.
n The cost of inflated inappropriate billing and fraudulent transactions in both South Africa and Namibia could be as high as 17%+ of the total private healthcare expense. This cost relates to over servicing, tariff bundling and charges of items which were not used by the patient. This is even higher in the rest of Africa where less sophisticated tariff and price systems are used. This cost is naturally costed into the premiums payable by members. n
system whilst the rest of Africa has National Health Insurance systems and medical insurance companies. The current medical aid system is very much a response to the lack of National Health Insurance systems in Southern Africa which is a result of the past political dispensation.
Do you agree that Africa (excluding South Africa), particularly all those countries under your care, have always been a net exporter of capital, thus creating an acute shortage of investment capital in these countries? Our supply of technology systems to markets outside Namibia has in fact generated revenue. Prosperity does not have the luxury of SA owned multinational owners which largely finance the R&D and IT development of their subsidiaries in Namibia. Prosperity has over the last 21 years started in Namibia several companies which are outside the medical aid funding business and in comparison with our SA owned competitors we have become a major innovator of new Namibian owned businesses in Namibia.
What do you consider to be the major contributing factors to being a successful businessman? Success is a blessing, therefore remain humble with your feet cemented on the ground, know your own shortcomings, be a responsible and compassionate leader and earn respect from your staff and the industry through leading by example.
When you reflect on the progress made by entrepreneurs over the past 20 years, where are the frustrations? Frustration is an important ingredient of business as it stimulates innovation and solution creation and force a business to continuously adapt to its environment.
What excites you going forward? Our country is blessed with a stable responsible Government that sees business as an important side of the same coin. Our country is a perfect breading ground of new and future Namibian entrepreneurs which is perfectly positioned to play and compete across the African business Feld. We have an excellent opportunity to partner with our government and develop and improve vital services and resources.
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Helping create opportunities for success “Our people excel when given the opportunity. A crucial aspect of the war on poverty will, therefore be, to create economic and social mobility opportunities for all, through the greatest equalizer; education”
- Dr. Hage Geingob, President of the Republic of Namibia.
Funding a
Brighter Tomorrow!
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QUEST FOR QUALITY Tania Hangula: Development Bank of Namibia, Chairperson
What will be the key priorities of DBN’s consistent performance under your leadership as Board Chair? The DBN has a sound and visionary strategic plan in place. The strategic plan is aligned to national strategic goals such as the recently launched Harambee Prosperity Plan by the Head of the State, NDP4 and Vision 2030. The key priority areas of DBN’s consistent performance aligned to its strategic plan is to: •
Ensure that DBN is adequately capitalized, to provide financing and business support to its clients.
•
Stress on operational efficiency to ensure that DBN executes its mandate timely, effectively and efficiently.
•
Encourage research that will reveal alternative lending, support and risk assessment models.
•
Encourage an environment of growth where our services are rolled out to all the fourteen regions of our country.
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Propel regional economic growth, in particular for regions with lower levels of economic activity. The Bank views transformational impacts, such as fostering of BEE participation in the economy and support to women and young entrepreneurs as particularly important.
•
Attempt to fund industrialisation, taking cognisance that industries are taking the digital route.
That in essence, makes my job easy, for the Development Bank is governed by the mandate of its shareholder, the Government of the Republic of Namibia. This mandate, as set out in the Development Bank of Namibia Act (Act No 8 of 2002), is to contribute to the economic growth and social development of Namibia by providing financing in support of key development activities. To that effect, the DBN finances projects and enterprises with an annual turnover of N$10 million or more. My job therefore is to provide guidance and direction to the organization, and encourage a stimulating environment which makes it possible for DBN to execute its mandate. DBN, under my leadership, should thus strategically position itself in such a way that it is a catalyst for change, as change is known to be the only sustainable constant in life.
PROFILE
Tania Hangula has an extensive administration experience in the public sector, is currently the Executive Director for Business Development at Arandis Mining Services. She is also a managing member of Umoja Trading Enterprises, which is a company with interest in the Namibian petroleum industry and other business sectors. Hangula currently holds a National Diploma in Commerce from the Polytechnic of Namibia and a Paralegal Certificate from the University of Cape Town. She also completed the Women in Leadership Program at the University of Cape Town, the Management Development Program at the University of Stellenbosch, as well as the Director Development Program at the Institute of Directors (IoD) in South Africa.
You came onto the scene a few months after the DBN had to let go of its loan book to the SME Bank, how challenging is the future of the Bank without the loan book, which was once the Bank’s Holy Grail? That in itself should perhaps be seen as a positive development in the sense that DBN has outgrown that element of its loan book and are now being entrusted to focus on its core mandate. Operationally, we are still administering loans to SMEs made prior to the shift of focus. We do not see the change in focus as a
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challenge, but rather an operational evolution, which will allow us to narrow our focus and deepen operations on our core mandate. And thus, DBN expects to become the preferred lender for larger enterprises.
How do you see the DBN evolving towards 2030? The question should rather be ‘what role DBN should play in the realisation of Vision 2030’? And simply put, we will stimulate an environment that will encourage and finance projects with a greater focus on decentralisation of key services, industrialisation, digitalisation, manufacturing, health and wellness, education and agriculture, amongst others. And with that approach, the Bank responds to the mandate it received from its shareholder, thus putting our weight behind the energies of implementing national development goals, driving regional economic activities and aiding the transformation of economic participation as mandated by our shareholder, which all in the end contribute to Vision 2030.
What governance factors are likely to limit your leadership and ability to deliver?
n If you have a look at the Harambee Prosperity Plan, there you will find a growing understanding of greater and shared contributions that each individual and organisation can make in addition to their various mandates, thus proving the latter. n
Governance is empowerment for all who work within its frameworks. It gives confidence to decision making processes. And in principle, governance enables effective delivery and is not limiting at all. Consequently, there is no limitation.
increasing footprint. DBN manages to retain credible ratings with internationally acclaimed rating agencies. We do not solely rely on our shareholder for capitalization, but manage to raise capital from a plethora of local and international financiers.
Is there some common thread or theme throughout everything you do?
When you grow so quickly in such positions of influence, is it difficult to maintain your personal values and integrity considering the pressure that comes with such growth?
For I have a zero tolerance for mediocrity, I constantly engage in a quest for quality, therefore, everything I do should have a touch excellence and be of highest decorum.
The opportunities for women executives in Namibia are pretty much improving; would you say women executives are at the same level as their male counterparts when it comes to remuneration? Fundamentally, there is a heartening and growing awareness of the responsibility that women can take and the contributions that they make towards the economic growth of our nation. And although, I have no clarity on the broader industry, remuneration at DBN is not predicated on gender, it recognizes responsibilities, experience and qualifications.
But how do you want your performance to be judged? My current mandate at DBN, and how that made a meaningful and material difference to Namibia's socio-economic upliftment should be the benchmark for my judgment if any.
How large can the footprint of DBN be, particularly within the private sector? DBN aims to play a leading role in providing development finance and enterprise support for economic development in Namibia. It recognizes that it is not the only player and will thus walk hand-in-hand with other likeminded development partners. If you read our annual reports and development impact reports, you will see that the Development Bank has been growing up to this point in a very sustainable manner. DBN has enabled many start-ups in the private sector to thrive in various sectors of the economy. We respond to demand, so our operational footprint is as wide as demand requires it to be. We are able to meet our obligations towards our creditors favourably. We maintain a positive outlook that makes it possible for us to raise capital beyond our current scope and in line with growing the demand of an
Not at all. There is no dichotomy between my personal values and the execution of my mandate. In fact, my personal values and principles guides me in maintaining the position of credibility and transparency. Chairing the Board is a position of responsibility that has an imperative to guide the Board to collective decisions that further the execution of the mandate of the Bank. Consequently, there are well-defined governance rules, and if my personal values conflicted with those of the Bank, I would have been honour-bound to refuse the responsibility.
What persisting issues do you find in private and public leaders of today? Where is the need to change? If you have a look at the Harambee Prosperity Plan, there you will find a growing understanding of greater and shared contributions that each individual and organization can make in addition to their various mandates, thus proving the latter. Leadership qualities are evolving for the better. Leadership in general is unilateral, there is no divide. Instead, there is a keen awareness of the responsibilities of leadership and the intricacies that comes with accepting leadership responsibilities.
Was it luck or sheer determination for you to be this high at an early age? As a youthful Namibian, I am humbled to have been entrusted with such a noble responsibility. I have always earned my accolades by taking full responsibility of what I am assigned with, and by always making quality contributions to the best of my ability. And that in itself, has allowed the appointing authority to notice in me the attributes they were looking for in filling the void of leadership. Thus, my being nominated as chair of the DBN Board doesn’t come as a mistake or sheer luck, it comes from years of hard work and dedication to excellence.
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Success Personality John Savva: Entrepreneur
Editor’s Note Walvis Bay billionaire, John Savva, is a man with many friends in every circle of the society, especially the high places and is considered one of the wealthiest men in Namibia where he has lived for 45 years. Being a personal friend of the founding president, Dr. Sam Nujoma, President Pohamba and other political leaders, Savva warns that money cannot buy friends. “We know money is a powerful thing. Nothing can be done without money. It can affect real human feelings; such as friendship or love and can also make you enemies. Some individuals become jealous, because of your wealth and success. Jealousy can change attitudes which it is quite easy to notice. Some individuals who call themselves businessmen knock at your door and offer business ventures. In fact, they can be cheats who want to take the opportunity to get easy money. Money can’t make friends. Be humble, be yourself and recognise everybody around you with due diligence and respect. Money must never define your personality. At all times, be a philanthropist - in Greek ‘philos’ means a friend and ‘anthropos’ a human being. I have believed in that since I was young. Savva’s beginning was a very difficult, long journey. He made mistakes in business he, calls it affordable and learnt from them, believing that easily and dishonestly earned money will always be easily lost. “My first job was personal assistant and when the opportunity came my way at the age of 25 I started my own business in retail and ventured into other different businesses which I have a passion for. “My shop was the size of two rooms; that was the beginning. I tightened my belt and ate brown bread. No wine and dine; no expensive things. It was just to keep on moving; that is how successful people start. You start from the bottom and learn the bolts and the nuts of the trade. To set out on the way to wealth and become a self-made entrepreneur, you will have to develop many qualities at a higher level than ever before. You will have to become an exceptional person. You will have to become more than you ever imagined possible for yourself. You must develop the virtues of integrity; courage and persistence. You will have to practice the qualities of clarity, competence, creativity, concentration and continuous action until they are as natural to you as breathing,” says Savva who is also the Honorary Consul for Cyprus and Greece.
What about amassing wealth? “Don’t spend frivolously. Don’t buy a car unless you can afford it. Don’t trust anyone coming to sell you nice stories about investments. If you are in debt by more than 10% of your annual income, that is a red card. Track your spending, make a budget. Self-discipline is more important now than ever. Get in the habit of making smart choices. There are no gains without pain. Successful leaders in business often demonstrate attributes such as an ability to effectively communicate their vision, honesty and openness with their dealings, skilfulness in planning and developing strategies, clear vision of business goals, positivity, reliability, pro-activeness and self-awareness, as well as self-direction. I understand my processes and know how to direct myself.”
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Make decisions quickly when necessary, Savva adds, but also slow down to carefully consider all your options. Decide on what is important to you and pursue that. Good work habits can pay enormous dividends. Most wealthy men are self-made. They may have studied hard in school, took some calculated risks, worked even harder on their businesses and reached their goals. They know what it’s like to be poor or middle-class. Good times cannot last in business, so keep on working to ensure your business is protected and never take for granted what you have. Choosing the best girl in the world to be his wife, Roulla, has been his biggest success in life, Savva enthuses. “There is nothing better than having a good partner/spouse. That was my biggest success that no money in the world could buy. She is my partner, companion and she understands me. Caring is not a matter of convenience, it is a commitment of one soul to another.” With the best partner and friend, Roulla, by his side, Savva fears nothing.
to persist in the face of all adversity until you finally win. When you develop these twin qualities - the ability to step out in faith and then to persist resolutely in the face of all difficulties - your success is guaranteed.
n My first job was a personal assistant and when the opportunity came my way at the age of 25 I started my own business in retail and ventured into other different businesses which I have a passion for n
According to Savva, success is simple it comes through hard work, 24 hours a day. Love what you do, Savva advises; be motivated and determined. “You will have to accept complete responsibility for your life and everything that happens to you. You are the managing director of your destination. The good entrepreneur is the one who undertakes the risks of a new venture in pursuit of profit. The majority of people all over the world don’t have sufficient courage to
launch a new venture, to start a new business, to boldly go where no one has gone before. “First of all you need the courage to begin, to move out of your comfort zone in the direction of your goals and dreams, even though you know you will experience many problems, difficulties and temporary failures along the way. Secondly, you need courage to endure,
Namibia’s economic growth is stunted by numerous problems, it’s true. Savva’s recommendations for the solutions thus include combating unemployment, nurturing skills development, revamping quality of education, fostering a partnership between government and the private sector, to improve skills training in all sectors of the economy and improve on service delivery to our citizens from the private and Government sectors unconditionally. Being the generous man that Savva is -spending money and time – he has cultivated a passion to help people who are honest and have good intentions, when it comes to business development, I assist and advise upcoming entrepreneurs to do it right at all times. “That way, I invest in the economy of our country by creating entrepreneurs. We were designed to seek and discover happiness in loving and caring and we have been taught from an early stage in our lives, to respect and be kind to others. However, in some cases, individuals take advantage of your generosity, expecting more than is fair or right. Such individuals may repeatedly ask for favours and cause you to feel obliged to help them without showing you any respect. If you feel some individuals are taking you for granted, protect yourself by setting boundaries.”
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POSITIVE OUTLOOK George Simataa: SME Bank, Chairman
You have recently taken over the reins at the Bank. What is your road map in the next few years in making the Bank relevant to the Namibian market?
capability ensuring our clients can transact with their ATM cards both domestically and internationally. This will be accomplished through EMV (Euro, Master Card, VISA and Union Pay) compliance and affiliation.
The Bank is already relevant to the Namibian market as it is for Namibians, by Namibians with a mandate to support and develop the Micro to Small and Medium Enterprises (MSME) sector in Namibia. This is done through increasing value added production, services, jobs and income through the provision of affordable and accessible financial services and effective business support. We are determined to deliver on the mandate.
My predecessors did a great job and I intend to continue to ensure that the Bank’s mandate is translated into realistic vision and mission objectives, and consequently, to implement programmes and strategies that achieve results. Our attention is focused on banking needs of MSMEs, rural communities, microentrepreneurs and previously disadvantaged individuals.
Our roadmap is focused on the strategic plan set up by my predecessors which is based on representation in all the regions of the country. This will improve accessibility and reduce the distance between the client and the Bank. Therefore, we are working on strategic partnerships with key stakeholders in the areas of MSME financing and mentorship. Part of it includes, inter-operable card
Namibia is planning on growing the MSME scale enterprise sector to drive job creation; do you think the SME Bank is adequately financed to deal with this drive? Perhaps I should also touch on the issue of the loan book being handed over from DBN to SME Bank, but to start with, the Bank’s support is not limited to MSMEs that were previously assisted by DBN but to the SME
sector in general without a time limit. The magnitude of the Bank’s support is dependent upon resources that are available to the Bank. The Bank should be able to deal with increased demand of financing from MSMEs with more public support in terms of deposits as well as institutional investors including the Government. The government of Namibia, which is the majority shareholder in SME Bank has committed to invest in the Bank’s newly created Fund - “SME Revolving Fund” - a special fund that the SME Bank has created specifically to provide medium to long-term funding to MSMEs that have projects of a developmental nature that need funding. This is essentially to address the challenge MSMEs face, lack of traditional collateral to support their borrowings. It is difficult to use ordinary depositors’ funds for such projects but with a special purpose funding vehicle such as the Revolving Fund it will be much easier for SME Bank to support MSMEs. Entrepreneurs supported through the Fund will also receive mentoring support for their businesses.
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Main branch staff
The Bank’s expansion drive is to improve visibility countrywide, do you think the Bank has now managed to lay its roots and become an institution of choice to Namibians? Do you feel that the Bank’s brand has now become synonymous with the needs of Namibian MSMEs and do they look at it as a Bank of choice?
mark is proof that we have matured in a short period of operation. The trust and faith we have received from our clients in such a short spell has inspired us to strive to provide more solutions to entrepreneurs in our country.
For us, the issue has been of the unbanked or the under-banked Namibians. Financial inclusion has been recognised by key stakeholders in the financial services sector as a vehicle for sustainable and inclusive growth and development. Our government has undertaken a number of initiatives to accelerate financial inclusion, including the development of the Financial Sector Action Plan. Recent Finscope survey statistics show that only 62 percent of Namibians are banked. And this is quite disheartening in this day and age where technology has aided banking in a positive light. However, in adherence to the Bank of Namibia regulation, the SME Bank is playing a major key role of inclusivity. Harambee! Inclusiveness in entrepreneurship and banking.
The Bank has been financing businesses with viable business plans in some cases without collateral. The viability of the project is the determining factor which makes us synonymous with the needs of Namibia’s MSME sector.
The SME Bank is a low cost banking institution, which means more people can access banking services. We are proving beyond reasonable doubt that we are becoming an institution of choice. The Bank’s Loan Book currently stands at N$400 million, projected to increase to N$500 million by the end of 2016/17 financial year, and the Board and Management is satisfied with the loan repayment. In just over three years, the bank has over 10,000 clients who make deposits and normal transactions on a daily basis. We have grown tremendously within a space of three years. To pass the N$400 million
SME Bank is a local bank with all its operations managed locally and that is one of the areas where we bring convenience to the clients since decisions are made within Namibia.
The challenge of being an MSME financing institution is the challenge of having loan seekers presenting weak business plans, is it in the Bank’s future plans to start introducing mentorship programmes for future beneficiaries? In order to address critical issues facing MSMEs, the Bank has special programmes to suit MSMEs needs and work closely with clients to ensure that they receive end-toend advice. The Bank helps grow start-ups or micro businesses, and provide them with financing and or business development advice with the aim to promote entrepreneurship across priority and growth sectors. We educate the borrowers on how to manage their businesses and monitor them to ensure that they are delivering on what they would have promised when they borrow from the Bank. The Bank is working on a mentorship program that entails strategic partnerships with key industry players or networks with experienced business persons.
What should the Bank do to be more attractive and stifle competition from competition (other Commercial Banks)? The Bank has adopted strategies and one area where we bring convenience to the clients is being a local Bank. We don’t need to consult or go outside the boundaries of Namibia in making decisions as what happens with other banks. As far as customers are concerned, the turnaround time for decisionmaking is relatively short ensuring customer satisfaction. Lastly we are open to the public for longer hours.
Since inception how many clients has the Bank gathered to date? As we talk of inclusivity, it does not become
n With the branch rollout for the regions, some of the challenges that we have observed and expected is the literacy problem. The Bank proactively recruited staff from all the regions of the country and has produced leaflets printed in indigenous languages. n
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deposit fee service to bring convenience to the clients. The Bank managed to come up with strategic partnerships; one such partnership is between the Bank and the Environment Investment Fund (EIF), which promotes the use of renewable energy at a subsidised rate. The initial funds budgeted for that partnership were exhausted before the end of the year it was allocated for and the Bank had to request for additional funds to take care of the high demand. Towards the end of 2015, the Bank signed an MOU with AgriBank to offer financial assistance to MSMEs in Agribusiness.
Rundu Branch opening a numbers fact anymore. It becomes ‘all’. However, since inception, the Bank’s clientele is now over 10,000 businesses and individuals who make deposits and normal transactions on a daily basis. Inclusivity for us is when the Bank customers are from all sectors of the economy, Construction, Property development, Transport, Hospitality, Tourism, Manufacturing and Renewable energy. Interest rates are always a restrictive measure to MSMEs sourcing financing, what are the rates of the Bank and what is being done to make sure that they are attractive? Paying interest is unavoidable when it comes to sourcing financing from banks. The bank offers competitive interest rates and interest rates are dependent on the type of financing required. The rates are in line with competitors and are linked to the prime lending rate which in turn is linked to the repo rate.
Can you distinguish between the role of SME Bank and Development Bank of Namibia (DBN) in terms of providing funding the SME sector? Cabinet passed a resolution that charged SME Bank with the responsibility of supporting the MSME sector while DBN is supposed to focus on infrastructure and large businesses. The MSME sector is defined as enterprises or projects within an annual turnover of up to N$10 million, effective 1 November 2015. This falls outside the scope of the DBN threshold.
and also offer banking services to individuals and companies that are not necessarily MSME’s, through Personal Banking (Retail), Corporate Banking, Treasury and Investment Management. We are also bringing entrepreneurship banking closer to the people.
With the country’s industrialisation seemingly in the hands of the entrepreneurs operating in the MSME sector, what has the Bank done to enhance financial literacy to the point that these entrepreneurs are suitably positioned to capitalise on the services it offers? With the branch rollout for the regions, some of the challenges that we have observed and expected is the literacy problem. The Bank proactively recruited staff from all the regions of the country and has produced leaflets printed in indigenous languages. The Bank is also involved in stakeholder engagement sessions such as NCCI meetings, SME hubs, women gatherings, etc.
Could you outline the growth of the institution since it opened its doors a few years ago with particular reference to the challenges that the institution has had to overcome between then and now?
Besides the figures mentioned, SME Bank provides special attention to projects of Micro to Small and Medium Size Enterprises (MSMEs), and those catering to Rural Communities, Micro Enterprises and Previously Disadvantaged Individuals (PDIs).
Some of the Bank’s major highlights is the ability of the team to have set up the institution from scratch and put in place the Bank’s infrastructure. The Bank was able to rollout branches, set up ATMs for the customers to be able to access their funds, products that are customer focused and come up with convenient banking hours.
We have a full Commercial Banking License
The Bank also introduced the zero cash
The Bank is working to get onto the EVM (Euro, Master Card, VISA and Union Pay) Platforms, to enable our clients to use their cards both nationally and internationally. Products development and enhancement is another key area that we work on daily. Namibia has three major payment streams which are Electronic Funds Transfer Stream, Cheque Payment Stream and the Card Payment Stream. In this short time, we have managed to integrate in the first two and the Card Payment Stream is receiving our attention. The Bank continues to see an increase in the number of customers that are opening accounts with the Bank and applying for funding. We continue to sensitise the public that SME Bank is a Commercial Bank which provides banking services to depositors, investors and borrowers. SME Bank will continue with its Branch expansion plan of having a presence in all 14 regions of the country. Besides being the first to offer clients no cash deposit fee on all cash deposits, we have amongst other new products, flexible collateral requirements. The Bank has conveniently longer banking hours (08:00 to 17:30 weekly and 08:00 – 14:00 Saturday). The introduction of the E-Alerts functionality coupled with the issuing of ATM Cards, Cellphone Banking and Internet Banking Facilities offers convenience for our valued clients. A new addition on our Value Added Services menu is the purchasing of airtime and electricity and other bill payments such as telecoms tariffs as well as utility companies. This suite of value added services will offer a seamless banking experience to customers providing self-service options that are available with ready-to-perform transactions. Non-customers can walk into our Bank and buy electricity at any one of our friendly tellers.
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Your card, your future NSFAF to implement Student Payment Card
Kennedy Kandume, NSFAF Senior Manager for Operations
The Namibia Students Financial Assistance Fund (NSFAF) is in the process of implementing a student payment card in Partnership with Nam-Mic Payments Solutions. This means that NSFAF will change the current practice where funds meant to cover tuition fees are disbursed directly to the Institution of Higher Learning and non-tuition fees directly to students. With the new payment method, all payments will be made directly to NSFAF student cards and in turn card holders can then utilize the money for various purposes (tuition and non-tuition).
The student card will be used for the following purposes: • As a confirmation that an applicant has been awarded financial assistance and he/she is a NSFAF beneficiary • As an Identity Card for any queries at NSFAF • As a debit card to allow for the receipt of funds from NSFAF as well as friends or family • Withdrawing money at ATM’s • Loyalty Cash Back when paying for products In order to ensure that money is used for the intended purposes, the student payment card is designed to have three pockets i.e. tuition, upkeep and personal pocket.
Here are some of the questions students may have and the answers: How do the different Pockets work? 1. Tuition Pocket - this pocket will be used to pay tuition fee directly to Institution of Higher Learning. Thus, money loaded in this wallet will be assigned to a specific university, i.e. it must be emptied by that specific university (cashier desk’s point of sale) and cannot be used for anything else. This means, money meant for tuition fees is ring-fenced and cannot be utilized for any other purpose.
Withdraw Cash and do balance enquiries at ATMs. Use your mobile phone, Card and the Internet to access your account. Get more value for money with no deposit fee. No minimum balance on your account. Your NSFAF Card Account does not expire if not used. Pay lower transaction fees. Dial *140*575# and use your mobile phone to buy airtime and get 5% instant cash back or conveniently buy electricity (certain regions only). • Safe, secure and instant access to your money.
What if I lose my NSFAF Card? Notify us immediately if your NSFAF Card is missing by phoning 061 234 895. Visit the nearest Nam-mic Office to verify your personal details and request a new NSFAF Card after the payment of a Card Replacement Fee.
Is my NSFAF Card safe?
2. Upkeep Pocket - is where NSFAF will pay funds meant for accommodation, books, meals, transport. These funds are to be used to pay the Institution or retailers for expenses incurred while studying. Students will be able to withdraw cash at ATM’s from this Pocket but it would have limits imposed to encourage responsible usage of allocated funds.
Yes, your NSFAF Card is like a Debit Card and requires you to enter a PIN (Personal Identification Number) each time a transaction is done with your Card or on your mobile phone. Only you must know your PIN, so nobody else can use your NSFAF Card and take your money, even if you lose your card.
3. Personal Pocket – this pocket is for personal use, like a savings account where students can deposit money or receive funds from friends and family into this pocket. The funds in this pocket can be used to purchase discounted airtime, buy electricity, pay for groceries at participating retailers, or withdraw money from Bank Windhoek ATM’s.
How do I get my NSFAF Card? Students will be notified where to receive NSFAF Cards from their respective institutions. If still are unsure, send an SMS to 57500 and we will contact you. You will be required to fill in an Application Form before obtaining your NSFAF Card.
What are the costs involved? The initial issuing of the card is free of charge, however students will be required to pay for replacement costs should they lose the card. The card does not expire, but the lowest possible transaction costs will be charged There is no minimum balance, no penalty fees for declined transactions, and you save and get instant cash back as a reward for using your NSFAF Card and linked mobile phone for applicable loyalty purchases.
Can I use my NSFAF Card instead of, or as my Bank Account? Yes, the card can be used as a bank account, with additional benefits of getting instant cash back discounts when paying for products and services. Deposit money into your NSFAF Card and pay no cash deposit fee. Use your NSFAF Card as an ATM Card and withdraw money or send money to other students, friends or family using your linked mobile phone or the internet. Use your mobile phone to do account queries, buy discounted airtime and where applicable electricity too. See the Merchant Brochures in your region to find out at which retail outlets you can use your NSFAF Card and how much instant cash back you can get. You will receive an SMS notification when there is money movement on your NSFAF Card. This means you are always in touch with what is happening with your money.
Can I use my NSFAF Card as an ATM Card? You can use your NSFAF Card to receive money from family and friends (personal pocket). This money is available and can be withdrawn from any ATM but also use to pay for goods at selected retailers, when you need it.
What are the benefits of me using my NSFAF Card? • • • • • •
• • • • • • •
Access to pre-negotiated discounts on groceries, clothing, airtime and more. The card does not expire, therefore no account dormancy. The card is PIN protected. Convenient banking at participating Merchants (Deposit, Withdrawal and Account Enquiries). Safe and secure access to your account from your Mobile, Card or the Internet anywhere, anytime. Lower transactional fees, saving you money with every purchase.
How do I deposit money into my NSFAF Card? You can deposit cash into your NSFAF Card at any Bank Windhoek branches or at participating retailers. When depositing money at Bank Windhoek branches please ask for a Nam-mic deposit slip. Remember you do not pay a cash deposit fee for deposits less than N$2000.00, so the money you deposit, is the money you get to spend or save. If you are employed, you can ask for your salary to be paid into your NSFAF Card. You can also receive money into your NSFAF Card from electronic funds transfers from other bank accounts. It is important that with each deposit made that your NSFAF Card e-money account number or your mobile phone number is clearly noted as a reference. Contact us at 061 234 895 for more information on where and how to deposit money into your NSFAF Card.
How do I know if a merchant offers a discount or if I can use my NSFAF Card at a shop? There are leaflets that highlight participating merchants and these leaflets are distributed to Institutions of Higher Learning, selected merchants and Nam-mic offices. Leaflets can also be found on the Nam-mic payment solutions Facebook page. Please also look out for posters and in-store marketing material showing you to swipe, save and get more cash back.
How do I deposit money into my NSFAF Card: • • • •
Besides getting money from NSFAF you can deposit money into your Personal Pocket. If you are working, use your NSFAF Card to receive your salary. Deposit Cash at Bank Windhoek branches countrywide using a Nam-mic Deposit slip. Transfer money via EFT from another bank account using the banking details below.
In which bank account can I deposit money: If you intend to deposit money into your NSFAF debit card, use the following banking details: Account Name: Bank: Branch: Branch Code: Account No: Account Type: Reference:
Nam-mic Payment Solutions (Pty) Ltd Bank Windhoek Windhoek Main 481972 8003042771 Cheque Account Number or Card Number or Mobile Phone Number.
Your deposit is loaded when it reflects in our bank account. You will be required to forward proof of deposit by fax to 088 651 8341, or via e-mail to card@nps.com.na
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Cultivating Growth Foibe Namene: Electricity Control Board, Chief Executive Officer
specific time may be fed back into the distribution grid and will be used to offset part of the consumer’s future energy requirements. According to Namene, Net Metering Rules will contribute significantly in reducing investment requirements of utilities and conventional independent power producers, thus allowing customer-generators to reduce their imports from distribution networks through generating for own consumption. This will consequently enable the promotion of sustainable renewable energy sources, small scale investments, value addition and electricity market development and contribute towards reducing unemployment. Ultimately, Net Metering Rules are expected to increase the uptake of rooftops thereby contributing to energy efficiency. Namene explains that ECB does not build or develop power plants, hence the Regulator’s involvement to ensure a level playing field for investors, from both the public and private sector. “We aim to ensure that there are policies, procedures and regulations that remove barriers and ensure that people will see our country recognised as being open for energy business. Apart from issuing licences we are also looking at resource mapping in terms of identifying resources where they are and putting incentives to make sure that people try to tap into the balanced and environmentally friendly exploitation of those resources. We are currently reviewing the NIRP as a coordinated way of large scale projects and the timelines of such projects and when they should come on-stream. Recognizing the sheer size of our country, we realize that not everyone can be supplied from the grid. Our vision and pre-occupation apart from encouraging renewable energy is to look at mini-grids and hybrid systems for certain areas,” she says.
Reliance and dependence for electricity The Electricity Control Board [ECB] is doing all it can to help increase electricity generation in Namibia. For the uninitiated, one of the ECB’s key responsibilities is to create competition in generation by establishing policies, procedures and regulations that enables investors, especially private investors, to enter the Namibian electricity industry. To this end the ECB is exploring a number of viable initiatives. “The REFIT program is one such program which is aimed at attracting especially local investors to invest in energy. So far the first phase is geared at adding 70MW into the grid by June 2017. The second phase is envisaged soon thereafter. Other than the REFIT, we continue to issue licences to investors interested in investing in plants of less than 5MW. Since its inception, the ECB has issued 35 licences. Of those, we expect about 94MW to come online by the second quarter of 2017,”says Foibe Namene, ECB Chief Executive Officer. In addition, the ECB developed what is known as Net Metering Rules. The purpose of the rules are amongst others, to allow electricity users to use renewable energy generation technologies such as roof top based PV and wind energy systems to offset part of their conventional electricity requirements. Energy produced and not consumed on premises at that
Responding to talk about reliance and dependence on South Africa, she argues that Namibia is a member of SADC, which comprises 14 countries, therefore it is unfair and speculative to say that the entire region relies on South Africa for supply. She underscores the fact that there are other countries such as Mozambique and Zambia that has surplus and not just South Africa. The Southern African Power Pool (SAPP) predicted that surplus capacity will diminish in 2007/2008, but unfortunately it happened earlier. As a result of the surplus, countries’ priorities changed and this led to a number of interconnectors being commissioned. “I can say at the time in question, and circumstances prevailing, as well as information available then, for different countries it was a good decision. Of course for Namibia if we knew then what we know now, we could have taken a different decision,” she says.
Cost and cost reflectivity As for tariff increases, Namene says Namibia finds herself in an unfortunate situation as it remains a net importer of electricity, and the biggest driver of any tariffs is generation cost.
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“Any net importer such as Namibia has no control over the cost of imported energy. In order to supply our demand we have to pay for the import, generation and transmission costs, which has an impact on the end tariff. NamPower as a utility has to recover those costs. In addition distribution cost has to be covered as well, for the electricity to be made available at our respective places,” she explained Cabinet, in 2005, took a decision (Cabinet decision no 21/20.09.05/006) that NamPower tariffs should reach cost reflectivity by the year 2011/2012. This decision was revised in 2009 and the due date to reach cost reflectivity was extended to the year 2011/2012. Cost reflectivity means that the utility is allowed by the Regulator to recover all costs of supplying electricity which includes operational, administrative and customer care cost. The ECB has been committed to this decision and has granted NamPower real increases for the past 10 years to ensure that cost reflective tariff levels were reached by 2011/2012 and maintained beyond. “Unfortunately those costs will remain until our own power plant that uses local primary resources are built. But we are also confident that as more renewable energy plants are commissioned, reducing the amount of energy we import will mitigate the impact of such cost on tariffs. The substantial shortage of energy in the Southern Africa region at this stage is putting pressure on energy tariffs, not only in Namibia, but in all of the countries in the SADC region. This situation will prevail until enough new generation capacity has been built. In order to address the situation several generation projects are planned, in line with the National Integrated Resource Plan (NIRP). Most of these plants will only start generating after 2020 due to construction lead times,” she cautioned.
According to Namene, since electricity tariffs in Namibia, just like in most other Southern African Development Community (SADC) countries, will continue to rise until enough generation capacity is available, the ECB in consultation with Government embarked on two studies a) National Electricity Support Mechanism and b) a study to improve electrification in Urban and Rural Namibia. These studies are aimed at: 1.
Addressing the issue of affordability of electricity to low consuming households; and
2.
Improving the electrification of urban and rural Namibia.
Socio-economic impact of energy projects Generation plants should not only be looked at from a financial perspective, Namene says. “As a Regulator, we are bound to look at the socio-economic, technological resources and strategic perspective of any project, whilst ensuring that the investor and consumer interest are protected. I will implore you to research the history of the Ruacana power station, which is currently the country’s flagship plant. If we have to take the “voice of reason” arguments then, that power station might never have been built. Other dimensions other than tariff and affordability were taken into consideration. Today we cannot do without that substation as it is our lifeline.”
For the period ended June 2015 Namibia consumed electricity as follows: Generation
MW
% Energy Supply
Local
1,681,738
42%
Imports
2,307,462
58%
Total
3,989,199
100%
For the period ended June 2015 Namibia’s demand was met by the following imports with an average tariff of N$ 1.06/kWh. Import Source
MW
% Energy Supply total consumption
Eskom – South Africa
652,637
16%
ZESCO – Zambia
681,963
17%
ZESA – Zimbabwe
462,547
12%
Aggreko – Mozambique
510,315
13%
Total
2,307,462
58%
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She adds, “We believe that all energy resources in the country should form part of our energy portfolio, that such resources should be developed to create jobs and create markets such as gas. We also believe that those resources should be developed in a prudent, sustainable, environmentally friendly and transparent manner, and only when we can afford it. Only then can we truly speak about industrialization and the attainment of our national goals. Thus as a Regulator we need to look at natural local resources as opposed to imported resources (importing fuel has the same risks as importing electricity), look at diversification of our portfolio, bring in alternatives including renewable energy.” “But we are also realistic about the intermittent nature of some of these renewable energy technologies (PV and wind) and the cost aspect related to a technology such as CSP. The latest State of the Nation Address in South Africa still spoke about coal, nuclear and renewable energy. We need to ask ourselves what we mean when we talk about “Growth at Home” and how energy, and energy produced by local resources can play a role. Yes we are constantly aware of the rising cost of living, energy, poverty, hence the needs for a balancing act, and I hope that sums up our position on Kudu,” she clarifies. In terms of renewable energy, 27 IPPs tendered for 70MW of renewable energy technologies comprising solar PV, CSP, biomass and wind. Another project is the 3X10MW solar PV tender. “The implementation of these projects is expected not only to increase the renewable energy intake into the generation mix, but also the involvement of the private sector in generation, to improve the security of supply situation in the country. Because of the potential and the sustainability of renewable energy in Namibia, the interest from potential investors is huge,” she states.
Leadership and direction for the sector Namene disagrees with assertions that the ECB failed to provide leadership and direction to the sector on the impending electricity shortages in the country. She insist that the Regulator has lived up to its mandate and functions by developing regulations, procedures and rules for the sector, and advised government on ways to ensure security of supply. “That we can comfortably say we did. We have an NIRP which is currently being reviewed. We have issued licences since we have put up policy as a country that enables any investor to come in and be able to earn reasonable returns and make profits. The Regulator does not implement or build power plants. Yes, we still have a dominant player to a large extent being a monopoly in certain parts of the electricity value chain. But credit be due at the time that monopoly has served the country well. Someone might ask whether this is still the case? Well, in moving with the best practices, there is a need to relook at our market model and restructure it in a way that fit and benefit the country systematically, and we are doing that. But this does not only apply to generation but to distribution, trading and other parts.”
According to Namene the electricity challenge is not just a Namibian problem but a regional one, seeing that other countries in the region have started implementing their own generation projects. “Before 2008 there was an oversupply in the region. The regional tariffs, especially from Eskom, were relatively low. Thus there were few countries that could compete with those prices. At the time it was also difficult for any project to be funded whilst there was surplus capacity and low tariff. Independent Power Producers were just coming in and required government guarantees that were not forthcoming.” As for Namibia, a few projects could have already come online, but they were and continue to be delayed. Namene indicates that the delays are caused by opinions on cost factors, thus the attention on alternatives. “Renewable energy was not such a hot topic as it is now. In fact it is not until the last 4 years that we saw the price of renewable energy technology dropping significantly. However, we are happy to see that investors in renewable energy technology are willing and enthusiastic about the development of more renewable energy plants.”
Managing possible load shedding Three things come to the fore to effectively manage possible load shedding, says Namene. “Firstly, consumer awareness is very important with regard to energy efficiency, which includes Demand Side Management. Secondly, renewable energy should be expedited and be connected to the grid. Lastly, Namibia is part of the regional block, thus the country will continue to negotiate favourable deals with other countries who have implemented their plants, until Namibia’s energy projects are implemented.”
Looking ahead The ECB Board approved the Namibia Energy Regulatory Authority Bill and the new Electricity Bill. The Bills will be submitted to the Minister for further inputs and approval. Under the NERA Bill, ECB will be transformed into an Energy Regulator that will in addition to electricity regulate downstream gas and petroleum storage facilities. “We are also in the process of transforming the industry in terms of its market structure operation and efficiency. This is, I believe, how we will help the licensees and industry players to keep the lights on. Close cooperation with the utility to ensure that it remains sustainable and efficient is important, whilst protecting consumer interest. Programs such as REFIT, Net Metering, Support Mechanism for Electrification, tariff, Performance Framework for the Licensees and the NIRP will ensure an efficient, sustainable industry, and to keep the lights on.”
“Security of supply is not simply a matter of advice to Government. Government does aslo not build power plants. It is a coordinated effort of policy makers, the Regulator and investors who are willing to trust a country without asking Government to guarantee an arm and a leg. We have a good Constitution and other laws that protect investors. It is therefore our hope that these and our Regulatory rules will assure investors that really exorbitant Government guarantees are not needed,” she explains.
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Vitality Shihaleni Ndjaba: Namibia Diamond Trading Company (NDTC), Chief Executive Officer
PROFILE
Shihaleni started his career way back in 1991 as a Deputy Director and eventually Director of Operations in the Ministry of Fisheries and Marine Resources in Namibia, where he spent 8 years. His main role was to contribute to the proper management and sustainable development of Namibia’s marine resources, which, among others, included allocation of rights of exploitation of such resources. He specifically put in place policies related to fisheries protection and training programs for staff. After a successful and fulfilling career in this sector he moved on to become the Deputy Permanent Secretary in the Ministry of Finance, where he spent some 5 years. In this role he dealt with issues such as national budget formulation, development of economic policies in various sectors and allocation of scarce and competitive financial resources to the various sectors of the economy via the national budget.
How has the NDTC grown the diamond manufacturing industry? NDTC has been fundamentally important to growing the diamond manufacturing industry in Namibia. To date, we have sold over N$16 billion worth of rough diamonds to in-country sight-holders for cutting and polishing. This regular supply of rough diamonds is vital for the domestic industry’s success. We have also worked with Government to create an effective enabling environment for downstream diamond beneficiation
Shihaleni also served as Acting Chief Executive Officer of the Agricultural Bank of Namibia (Agribank) for close to a year and as head of the bank was in charge of approving loans applications for the purchase of farm land and other agricultural products. He has been Permanent Secretary of the Ministry of Works, Transport and Communications. As administrative head of the Ministry, reporting to the Minister, he had the responsibility of looking after the various sectors falling under the Ministry, such as planning for the country’s road networks, construction of government installations, and mobilization of financial resources for the different programs. As a government senior official then, Shihaleni served as head of the government negotiation team during the previous negotiation process for the Sales and Marketing Agreement between government of Namibia and De Beers. Shihaleni is the pioneering CEO of NDTC and has been at the helm of the company since 2008 and gained deeper insight and understanding of the entire value chain of the diamond industry. He is happily married to Dr Hilen Ndjaba and they have 3 girls and one boy who are quadruplets aged 18 years.
through appropriate policies and processes. Our allocations process looks at relative beneficiation performance (including important aspects such as skills transfer, etc.) that incentivize positive outcomes for the local industry. Meanwhile, we have also worked with the Government (Diamond Commission) employees responsible for import/export monitoring to ensure that they have the requisite diamond knowledge and skills to oversee the industry from a monitoring perspective.
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How do you perceive the domestic downstream activities that add value to the locally-mined rough diamonds? Are you impressed with such activities? Despite the challenges faced last year due to inventory indigestion challenges in the global diamond industry and volatility in the global economy in general, the Namibian diamond industry continues to show resilience.
•
Easy access for Namibian jewellers and goldsmiths to polished diamonds produced in Namibia, easing pressure on the sourcing of polished diamonds that would normally be sourced from outside of Namibia
While the diamond industry continues to face a number of challenges, NDTC is constantly exploring ways of working with all stakeholders to maintain sustainable success in the local industry.
•
Increased business for SMEs providing services to the industry e.g. Namibian companies that supply catering services to factories
Describe the local marketing activity of the industry? Is it satisfactory?
Over the past five years, what is the estimate amount of rough diamonds being sold to NDTC sight holders, for local cutting and polishing?
Most NDTC sight-holders have very widereaching international diamond networks that enable them to market their products successfully into the world’s leading markets, whether these are B2B or B2C marketing activities. The marketing activity of NDTC sight-holders is therefore very positive.
Cutting and polishing factories, although reducing activity to reflect the reduction in demand in 2015, remain committed to beneficiation and value adding activities in the Namibia diamond industry. The sight-holders in Namibia are among the world’s leading diamantaires and they have excellent distribution channels into the international marketplace, enabling greater value addition. The establishment of the Namibian cutting and polishing sector, largely on the back of the NDTC supply, has resulted in meaningful employment and skills transfer for Namibian citizens. Skills transfer continues to happen with the majority of factories reducing the number of expatriates and promoting Namibian citizens into supervisory and managerial roles. Meanwhile, NDTC (in partnership with its sight-holders) continues to invest in creating capacity for further downstream activities through initiatives such as the Shining Light Jewellery Design Awards. Launched in 2008, the competition is aimed at creating a platform for young Namibian jewellery designers to showcase their talent and has seen tremendous growth over the years. Alongside this, other indirect benefits are: •
Regular inflow of foreign reserves with payment of rough diamonds in US$
•
Introduction of state of the art technology to support value addition activities in Namibia
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The establishment of specialist security and shipping companies in Namibia
In total, over the last five years NDTC has supplied in excess of N$16.5bn of rough diamonds to its sight-holders in support of the in-country cutting and polishing sector.
As a leader, how do you evaluate the success of your efforts and are you able to put metrics in place that track that impact? NDTC’s performance in this regard is measured against the beneficiation criteria as agreed by the two shareholders, Government and De Beers. Despite the various challenges faced by the global industry, NDTC has been successful in fulfilling its mandate of facilitating the creation of a viable diamond cutting and polishing industry.
Would you say government has created an enabling business environment for the industry? Yes, as a joint venture partner with De Beers in both the mining and distribution of rough diamonds in Namibia, Government has played a positive role for developing an enabling environment. As a relatively young diamond manufacturing centre, development of the local industry will continue but government has done a good job in supporting the industry to date.
Meanwhile, for NDTC itself, we have regular performance reviews to ensure success in our activities whether that is related to the commercial side of things or management of our workforce, etc.
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What were the biggest lessons learnt from the global economic downturn?
What particular legislation is hampering your full potential to deliver?
The challenges faced reinforced the following lessons:
We are comfortable with the legislative environment in Namibia and are proud of the success we have delivered. We have no particular legislative issues we would like to highlight but are confident that Government would engage positively in the event that there were concerns.
•
•
The diamond industry has to continue to find ways to respond positively to a number of global challenges, it can be a volatile industry to operate in, and it is significantly influenced by external forces There is a need to have companies with the strongest manufacturing, market and distribution ability – this is why NDTC has such exacting customer selection criteria
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There is a need to promote competitiveness in the Namibian cutting and polishing industry
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Planning for the future is crucial: tomorrow belongs to those who plan for it today
What moves allowed you to maintain NDTC’s success after the financial crisis? There were several things that were very important in this regard: •
We work hard at creating strong client relationships
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We introduced various austerity measures aimed at ensuring the long term viability and sustainability of the business
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We introduced unprecedented flexibility in the selling process allowing the sightholders to better manage their business through the crisis. Some of those flexibilities are still in place today and continue to be beneficial to the industry
•
We introduced a dynamism in the sales process to allow for effective distribution of the limited availability of rough diamonds according to demonstrated demand and beneficiation performance of each customer relative to the rest of the NDTC sight-holders
•
We continue to focus on providing a very strong product and service offering
n Most NDTC sightholders have very widereaching international diamond networks that enable them to market their products successfully into the world’s leading markets, whether these are B2B or B2C marketing activities. The marketing activity of NDTC sight-holders is therefore very positive n
Is your influence in the industry being felt though? We believe NDTC has a positive influence on the Namibian diamond industry and we are proud of what we have been able to achieve in partnership with the sight-holder community and Government for the benefit of Namibia.
How else are you as a leader seeking and evaluating strategies that will enable NDTC to exceed expectations? We undertake many activities to look at how we can improve the performance of NDTC. These include internal reviews of activities, processes and strategies; engaging
with external experts from other industries who may have lessons for us; and looking at activities within the diamond industry in other locations to see if there are opportunities for Namibia.
If you were given powers to change something in the industry, what would it be? For people around the world to be able to see fully the transformative powers of diamonds in countries like Namibia and elsewhere in southern Africa. As younger consumers increasingly want to know about ethical credentials of products, I would like more people to understand fully just how much diamonds can do, and how much they are already doing for development globally.
What do we need to do to achieve real growth as an economy? This is really more a question for Government, but my view is that growth can be supported by continuing to invest in education so that we continue to have skilled workers to support the industries of the future; by continuing to invest in the right infrastructure and development activities to support our current industries; and by continuing to seek opportunities to develop new industries, either independently or in collaboration with our international partners as appropriate.
How are opportunities for women and entrepreneurs in this industry? One of the current beneficiation criteria requirements is aimed at incentivizing real business opportunities for Namibians through equity participation. This has resulted in a number of Namibian’s, some of them women, being meaningfully empowered and being exposed to the highest levels of the diamond industry. This is clearly a positive for entrepreneurship in the industry. In terms of opportunities for women, traditionally the diamond industry was a male-dominated sector but it is certainly developing along the right lines. In NDTC we have a gender split and we continue to focus on opportunities for our female employees so we can ensure we have diversity in our operations.
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Holding Fort Emma Kantema-Gaomas: Social Security Commission, Acting Executive Officer
Editor’s Note:
If you were to ask CEOs what key ingredient drives the success of their business, many would state their culture. Leaders clearly understand, nurture and propagate the cultural blend within their firms, thus creating a deeprooted philosophy within the company's DNA. For Emma Kantema-Gaomas, the culture is what it is, it has evolved, morphed through previous leadership generations, while some other cultures have been derived from an overadherence to a specific management trend that has run its course or most likely was never intended for that purpose. Acting Executive Officer for Social Security Commission for eight months, KantemaGaomas discusses change and an effective culture. She deals with strategic change, how when the SSC sought a successor to Kapara Tjivikua, she was groomed to maintain legacies, hold fort and depart from acting authority in subtle ways, as the new EO was appointed.
What has been the challenge working in an Acting capacity? How critical is your decision making? As the saying goes, it is what you make out of it. Others saw it as a challenge I saw it as an opportunity. The challenge was basically working towards a period which is uncertain but at the same time it became an opportunity granted to me to ensure that the organization functions fulfilling our mandate of administering the funds established by the Social Security Act and the Employees Compensation Act. An organisation must continue and should not be disrupted by change in leadership. We are here to serve the organization and its stakeholders who are the people of Namibia. As a leader I have to ensure that I provide direction and execute the mandate entrusted by the Board and that of course came with decision making.
When in an Acting capacity, what are your key priorities in order to ensure that you maintain your
industry leadership and the SSC brand? You have to be committed and focus on the objectives and goals of the organization. We have a mandate to deliver on what we are established for and the strategic plan charts
the way for implementation. As acting I have had to ensure stability whilst at the same time being creative.
But was it luck or sheer determination to be accorded an
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opportunity this high at an early age? Definitely not luck, I don’t have luck in my vocabulary. Born from a family of only five girls our father raised us in a manner that we have to be determined and work hard in order to achieve what you set yourself up for. I reminisce moments my Dad will gather all 5 girls and challenge us to set goals in our lives in our careers, personal. I grew up believing in hard work.
The SSC is mulling the introduction of national pension funds in 2017, take us through these plans? What does this entail? The Social Security Act mandates the SSC to establish four Funds, chief amongst them is the National Pension Fund (NPF). The purpose of this Fund is to provide pension benefits to all employees who are members, and grant loans to its members within the confines of the pension legislation. This Fund is not yet operational. We embarked on exploratory research with regard to the design, development and implementation of both the NPF and the National Medical Benefit Fund (NMBF). The research work was completed and now will have to follow through governance structures.
Why now? The SSC in aligning itself to national priorities and the now Harambee Prosperity Plan identified the operationalisation of the NPF as one of the initiatives to address inclusivity and a catalyst to address social regression. In order to fulfill its legal mandate and fill the gaps in the establishment of national floors of social protection in Namibia (as per ILO recommendations), the SSC plans to operationalize a National Pension Fund as mandated by the Social Security Act, 34 of 1994 subject to regulatory amendments been taken through relevant governance structures. Many employed Namibians are currently excluded from pension/retirement fund arrangements; this is the gap that the NPF will be closing once implemented.
What do you think contributed to the delay of the National Pension Fund approved by Cabinet in 1994? Establishing the NPF requires a lot of effort including legal frameworks that lay
a foundation for the operationalization. In addition, stakeholder engagement is one of the key steps to ensure that we obtain buy in from all involved and that it addresses the core issue. Priority and processes to be followed can be attributed to the delay.
Take us through the business plan? What is key? And are you empowered as an interim EO to see that it succeeds? The board plays an oversight role and directs the organization to fulfil its mandate and
n An organisation must continue and should not be disrupted by change in leadership. We are here to serve the organisation and its stakeholders who are the people of Namibia. As a leader I have to ensure that I provide direction and execute the mandate entrusted by the Board and that of course came with decision making. n create value for the shareholder. I have to say in doing so, they provide an enabling environment for the Commission to achieve its goals through whatever leadership present in that moment. Regarding the SSC Strategic Business Plan (SBP 2016/17 – 2020/21), the SSC team is convinced that this plan will enable the institution to improve the welfare of its members and their beneficiaries through the provision of comprehensive social protection. Salient features of the SBP are the:
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We have revised the Mission Statement: To improve the welfare of our members and beneficiaries by providing comprehensive social protection.
capacity growth. Improvement is required in the following areas; infrastructure and system satisfaction, reduced down time, improved network,
And our Vision Statement: To be the preferred provider of comprehensive social protection in Namibia.
Improve Governance systems. SSC is determined to engage in endeavors that are aimed at de-risking the business, building trust, improving financial sustainability and creating a sound control environment. As such, SSC aims to establish an integrated and effective governance system, risk management framework and a sound internal control system Improve Work Performance Culture. SSC aims to “design” a workplace approach that is aimed at fostering employee Commitment to organizational goals, values, and success whilst eliciting a sense of wellbeing amongst its staff.
This is a strong plan calling for bold shifts in the way business is conducted. This plan outlines four (4) strategic focus areas; Operational Excellence, People and Culture, Stakeholder Engagement and Governance and Control on which staff will dedicate their efforts. Collectively, the strategic plan aims to: Increase Customer and Stakeholder satisfaction. A concerted approach to customer and stakeholder satisfaction is required to create an enabling environment at the relationships and service level. Improve Financial Sustainability. The major goal over the five-year period will be to meet short and long term liabilities/commitments whilst achieving optimal return on assets (benchmark). Operational costs need to be kept below an agreed percentage of revenue. Improve Operational Efficiency. The emphasis over the next five years will be on information technology (IT) and infrastructure
As an Acting executive, if you were to have different views with the board esp. with the Chairman, how best do you present your opposing views? At SSC we adhere to ethical standards and good governance. Conflict management is what I will apply.
supportive, when they know you are there for the interim? Indeed, they are supportive as the Board is entrusted to provide leadership and exercising an oversight function.
A recent research by the Hay Group of US company Korn Ferry established that women leaders score higher than men on emotional intelligence competencies, do you think this makes women better leaders/ managers? Raised in a family of five daughters with no brother, we were taught that girls can do anything that boys do. Unfortunately, emotional intelligence is only one of the many competencies required for a leader to successfully lead an organisation.
After a short stint in charge, would you say you are a leader or a manager? Definitely a leader. There are many differences between leaders and managers one of them is that leaders have people follow them while managers have people who work for them.
But what are the Board’s expectations when acting? Are the directors pro-active and
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From Innovation to Invention Heroldt Murangi: Namibia College of Open Learning (NAMCOL), Director
PROFILE
Heroldt Vekaama Murangi currently holds the position of Director at the Namibian College of Open Learning (NAMCOL) since 2007. He is a teacher by profession from 1992 to 1997, He worked in the Ministry of Education as Inspector for Continuing and Distance Education Programmes in the country’s various political regions. He started working for NAMCOL since 1998 in various capacities, first as Regional Manager and later as Deputy Director before being appointed as Director in 2007. Murangi completed his Higher Education Diploma and B.Ed. Honours at the University of Namibia, M.Ed. in Adult Education at the University of Massachusetts, USA. Currently, he is a scholar at the University of Pretoria pursuing a PhD in Education. Over the years, Murangi has been a key factor in initiating partnership agreements with some national, regional and international bodies, especially in the area of Open and Distance Learning. Under his leadership, NAMCOL received an award of Excellence for Institutional Achievement from the Commonwealth of Learning in Canada.
n The vision I had when I started is still the same. I might not have the energy I had in terms of running fast. But I think the whole idea is to take the institution to greater heights. n
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EDITOR’S NOTE: NAMCOL
is a State Owned Educational Institution created to provide learning opportunities for adults and out-of-school youth.
Nineteen years of NAMCOL, what is there to celebrate for the institution? How has NAMCOL evolved over the years? When NAMCOL was established, it was the only dedicated open and distance learning Institution in Namibia. We should first appreciate that in Namibia we now have an institution that accommodates those who have not done well in the conventional system of education. When we started in 1997/98 we had just over 16 000 learners enrolled in all our programmes. This year we have 42 000 learners in all programmes. This is an indication that the institution has become an institution of choice many. It is also the largest education institution in Namibia with regards to numbers. We continue to receive several international recognition starting with an accolade from the Commonwealth of Learning in 2007 as the best open and distance learning institution among Commonwealth countries. The college also received recognition from the quality of materials developed and is the only institution in Namibia that has developed materials and content for the secondary education sector. NAMCOL develop her own materials that is accepted and accredited by the Ministry of Education for use in formal schools. This evolution has seen 500 000 learners passing through the gates of the institution in those nineteen years. In a population that until 2011 has been a little around 2 million this is a massive feat. On average the college enrolled 25 000 learners per year. Of course not all learners are successful but we have managed to make a difference in the lives. We have testimonials from former learners that progressed to NUST, Unam and other institutions of higher learning. They became professionals in different sectors of the country, including deputy Ministers.
Where is technology in your evolution? We are no longer innovating; we are now inventing technology. Upon inception we were heavily reliant on print based materials and learners received it, paper based materials. Over the years we have moved with technology and we use radio
to communicate the content to learners to supplement the print based materials. We also use video and television through Channel 6 on the NBC digital Decoder. The content is NAMCOL’s and NBC is just a vehicle for us to broadcast to all Namibians, irrespective of if they are NAMCOL learners or enrolled in the formal system. As a state funded institution, I believe it is our duty to add value to the whole education sector of the country. Open and distance learning has evolved from postal to the current forms of technology available nowadays to transport material. We are planning on changing our paper based materials to online content where learners can get their information on mobile applications and on the internet.
That’s the ultimate goals of which we have started this year with one tertiary programme, the Certificate in Early Child Development, where we are piloting the delivery of content online through templates. Learners are connected to tutors and have to answer the assignments online. We are really in the process of moving away from print to online.
And personally, what is there to recollect? I have served as director since 2007. My priority has been to take education to the people. My priority area is infrastructure development so that learners can have easy access to our facilities. We have managed to set up infrastructure in Ongwediva, Otjiwarongo, Rundu and we are
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currently busy in various towns like Katima Mulilo, Walvis Bay and Gobabis. The challenge of distance education is that if the institution is far away from the learners there is transactional distance and learners become isolated. With my colleagues we have a vision of bringing the institution closer to the learners. I believe that collectively on an annual basis we are trying to make a difference in the lives of Namibians. It is critical to be proud of what we are doing in the lives of Namibians. No matter how small the difference is, it is great to someone who maybe have lost hope or was left behind.
But do you still possess the same originality, strength and creativity that you had years back when you started? The vision I had when I started is still the same. I might not have the energy I had in terms of running fast. But I think the whole idea is to take the institution to greater heights. The whole idea is to make sure that the institution is recognized by every Namibian and makes a difference in people’s lives. I am passionate about what I’m doing which is why I believe I still have the same energy. As we come to the late afternoon of our lives the aim now is to live legacy behind. Before I retire, I have the remainder of my few years to make sure we take the institution where we have always wanted it to be— NAMCOL becoming the National Open University of Namibia. That is my ultimate goal and I have to strive towards it.
Has the number of people who fall from the formal education system increased or decreased? The number of learners who fall from the formal education system are increasing every year. When we started, learners for secondary programme were just under 16 000. This year alone we have 38 000 learners who did not do well in the formal system and are improving their grades in order to get back into the formal education system or qualify for entry into institutions of higher learning. The number is ever increasing. As the number of learners in the formal education system increases, the number of learners enrolling with NAMCOL also increases. This does not mean that the formal education system has failed. This is because education is a system with various components that contributes to producing successful learners. There learners, parents, stakeholders, ministry, public and private sector are all elements of this system. Our system therefore did not achieve the results it wanted. If the formal education system achieved its results, NAMCOL would not be accommodating the large numbers.
Is this number an indication or improvement or failure of the formal system? The formal education system is not delivering the desired results. Innocent institutions like NAMCOL are blamed for the failures of the system because ‘they accommodate failures’ but the question that should be asked is, where are the failures coming from? Is it not from the formal education system?
We are always being criticized yet we are only here to help someone who has been failed elsewhere. We have managed to get people enroll in the institution with F and G symbols. Many of them leave NAMCOL with A and B symbols. A classic example is the Deputy Minister in the Office of the Vice President, Honourable Alexia Manube-Ncube who have also passed through the NAMCOL gates and made it in life. She had been failed by the formal education system but made it through NAMCOL. It does not mean formal education is failing. No. It means NAMCOL provides the solutions of the problems that are being experienced in the formal education system. I am not only referring the secondary but also any formal conventional system of education including institutions of higher learning. Not all of us can study full time at Nust or Unam because of work, family and other commitments. The fact that we are an open and distance learning institution means that we creating a solution to those who are excluded from any other form of education. We have managed to develop some diploma and certificate programmes to people who cannot be accommodated by Unam or Nust. We have made arrangements with the institutions of higher learning that once they have completed they can pursue degree programmes at those institutions.
You are not a public critic of government when it comes to our education system. Does that mean you offer your solutions behind
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the scenes as well? And what solutions have you advocated for in order to improve the education system in Namibia? Its not easy to suggest how to improve education but what is important and critical is for us to realise that education is a collective responsibility. It is important for us to put the blaming theories aside and really come together for a collective solution. There are shortcomings within all the stakeholders in the system. For example, if the ministry does not release funds on time, it would greatly inconvenience the learners and teachers. Parents have a role to play by motivating their children, learners have a dedication and commitment role to play. There are so many dynamics in the education sector and the only solution in my view, after the education conference with the late Dr Iyambo, is now to conduct yearly analysis of performance and put strategies in place to address the problems identified together. Most of the time, we come together and hold conferences to come up with strategies on a national level but implementation should start at the micro level.
How has the pilot project of employing your own teachers paid off? Do you still need retired teachers? We have abandoned the pilot project three years ago because it did not produce desired results. The teachers that people claimed are out there, are not actually there. We do not want to recruit tired retired teachers. We struggled to recruit the people but we found some. The perception was if you appoint your own teachers, they will have more time with the learners but an evaluation after the pilot project revealed that using retired teachers is worse than that of formal education. We did not get the results we wanted. It was also a costly exercise. The budget was big and we were not satisfied with the outcomes. It will be good for NAMCOL to have its own teachers at its centres. It will also become the second leading employer but the fear is that teachers will resign from the Ministry of Education, Arts & Culture to join NAMCOL. So by trying to solve a problem, we were going to create another one. The current system we have is working fairly well. Maybe we can have a small group of teachers specialising in certain subjects and are there to support permanent one.
Will we ever have a situation where all (100%) the sitting
candidates are graded? How do we get to D-grades? The challenge is not only for NAMCOL but for all for us. How do we move learners from lower to higher grade? To move from D-class to A-class. We need to put strategies in place to get learners to improve. But it only works if the learners are serious.
n The challenge is not only for NAMCOL but for all for us. How do we move learners from lower to higher grade? To move from D-class to A-class. We need to put strategies in place to get learners to improve. But it only works if the learners are serious. n The institution can provide the best print based materials, best teachers, best study guides and everything else but if learners are not serious enough they will not achieve desired grades. If we compare the learners of today to the learners of past years, there is a difference in commitment. You can go to tutorial centres and find that 60% of learners do not attend classes. They miss practical’s and oral assessment and end up ultimately failing the subject. We have an sms platform where learners can communicate when teachers are absent, we get some serious learners complaining about absent teachers through this platform. This enables us to provide quality student support. In the end, it is also up to the student.
Despite the great efforts to develop, the NAMCOL brand has been associated with failure. Has enough been done to transform
the brand? Considering it’s not your fault that you take learners that have failed the formal system. We are trying. The challenges we had when we started are less than those we have today. The biggest challenge today is the perception about open and distance learning. Many think to be successful you have to be in the formal sector. Those that enrol at NAMCOL are mocked and demotivated in the end. We are fighting the perception that NAMCOL means failure. No one wants to be associated with failure. Interestingly this comes from mostly people studying at Unisa (South Africa’s open and distance learning university). So why is NAMCOL considered a curse if Unisa is not? I have heard some saying government should ban NAMCOL because it represents failure. That hurts. So we collectively including the media, should change the perceptions and provide, understand and appreciate what NAMCOL is doing.
In 2015 you registered a combined 37 000 learners for Grades 10 and 12. That’s a huge number. Do you have the resources and capacity then? Of the 42 000 learners we have only 101 fulltime staff and over 1600 part-time staffeditors, writers, markers, setters etc. The resources are never enough but we don’t have reason to complain. We are not well funded but the line ministry gives us the necessary support. The number of learners are an indication for us to do more, and to do more, we need more financial resources.
Is private sector involvement in education enough? The support is not at the level that we want it to be. Education is a collective responsibility. If private sector is involved, then we can move at a faster pace.
Where do your fears lie with free education and how can it be abated? Has NAMCOL begun to feel the effects? NAMCOL is different because learners are not exempted from fees. They had the opportunity in the formal school. If the situation changes and warrants us to provide free education, pressure will be on the line ministry to fill the gap. Implementing free education means more learners and in turn it means more learners will also come to NAMCOL. If they come and we have insufficient resources it means not all of them will be accommodated.
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ENLIGHTMENT Professor Lazarus Hangula: Vice Chancellor, UNAM
n I am a team player. I believe in attaining highly competent staff, who are qualified, and beam with integrity, passion and the ability to act independently in the execution of their duties n
PROFILE
Lazarus Hangula, DPhil, MA, is vice chancellor for the University of Namibia, a post he has held since 2004. Prior to this post, he served as the pro vice-chancellor for academic affairs and research, as a council member, and as vice-chairperson of the Senate of the University of Namibia. His other appointments include serving as a member of the National Council for Higher Education and as an exofficio member of Namibia Qualifications Authority. Prof. Hangula is a former technical advisor to the Joint Angola-Namibia Team of Experts on the Demarcation of the Maritime Boundary between Angola and Namibia, and former member of Namibia’s country program for the International Atomic Energy Agency, Vienna, Austria. Prof. Hangula is the author or co-author of numerous scholarly articles. He holds a doctor of philosophy and a master of arts from Johannes Gutenberg University, Mainz, Germany.
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Twelve years of leadership, what is there to reflect and recollect on the institution? When I was appointed VC, the University only had the Main Campus, the Oshakati Campus and a few distance education centers. It was predominantly an undergraduate institution of some 6000 students and with a handful of professors where I was one of the two Namibian professors that time. We had no flagship programmes; capacity building programmes of the Namibian staff in the faculty was very limited and so was research and access to higher education. There were very few Namibians, more so, fewer Namibian black women in positions of responsibility at UNAM. The infrastructure (including laboratories) was limited; and the institutional visibility was poor. However today, that whole picture has changed dramatically! Knowing the developmental needs of the country, we remained committed to the cause of development through education. We knew the road ahead would not be easy. But the onus placed upon our shoulders by the Namibian nation demanded unfailing action from us going forward. So we kept on pushing and learning until we began to succeed and evolved to be the giant we are today. It was a burdensome process. Some of my colleagues gave their lifetime to this process. Today, UNAM is still determined to play its role in the development of human resource for this country. Through the services we offer, UNAM is a beacon of hope for a post independent and self-reliant Namibia. UNAM graduates populate all key institutions of this country and at senior levels. We have inspired minds to greatness and we continue to shape the future of others.
Would you say this is mission accomplished? When I came on board ten years ago, I had a multifaceted goal – to introduce postgraduate and flagship programmes, increase intake and capacity building, create visibility for the institution, increase access to University programmes across the country, making it reachable to all Namibians no matter where they may happen to find themselves
n My passion for contributing to nation building is never ceasing. But I must caution, that my originality has its bounds; my creativity is limited; and my strength alone is not great enough to make this place what it has become or even what it will be n
But where do your regrets lie? The journey of enlightenment leaves no room for regrets, only lessons learnt. This is especially true for things that are only judged at the end. Some tasks, like a new programme, leave no immediate room for correction, but demand that one starts differently over again if one stumbled at first. However, even when mistakes are made, one can really not effectively despise that, for it is from them that we learn the most. Unfortunately, the nature of life is such that regret is unavoidable. Yet, I am fortunate, to have always had by my side willing minds and able hands ready to assist drive this national institution forward.
in this country. I am glad to say that we now have UNAM campuses and or centres within accessible range of any region in the country. The University is also proudly visible among the top 50 African Universities and its programmes have vertically arose from certificates to PhD’s, and research and development.
But do you still possess the same originality, strength and creativity that you had 10 years back? My passion for contributing to nation building is never ceasing. But I must caution, that my
originality has its bounds; my creativity is limited; and my strength alone is not great enough to make this place what it has become or even what it will be. I can do, and have done relatively very little by myself. But when I place my strengths next to that of my team, seniors and subordinates, it becomes impossible to run out of enthusiasm, creativity and will-power. The saying is indeed true: “if you want to go fast, go alone, but if you want to go far, go with others”. At UNAM, we are a team, so we are never short of creativity, strength or any other catalyst of success. How
do you describe your leadership style then? I am a team player. I believe in attaining highly competent staff, who are qualified, and beam with integrity, passion and the ability to act independently in the execution of their duties. I pride myself in creating an open and conducive non-threatening or confrontational environment. I believe that when you create the ideal conditions for people to work in, their minds thrive. This has been the defining philosophy of my leadership and I am glad to note that it has worked in my opinion. At UNAM, through and through I only had and have my great team who believed in me; inspired, encouraged, trusted and supported me and together, we moved mountains.
So what excites you going forward, aren’t you just bench warming for the next two years as you work in your successor? The space provided cannot fit the quantity and quality of projects underway. But to satisfy your question, the School of Geosciences will come to life during this period, significantly impacting the country and the South (of Namibia) in particular. Additionally, UNAM has just begun to actively innovate in regard of its intellectual property through the newly establish Office of the Pro-Vice Chancellor for Research, Innovation and Development. This will forever change the face of Namibia academia.
The proposed Funding Formula for Public Higher Education Institutions continues to be ignored, where is the risk in ignoring this proposal? It’s to your advantage if it is left like that, isn’t it? The University of Namibia is but a beneficiary of that formula. We do not manage the said formula or have any sense of control over
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n Comparisons are a fool’s errand. We compete with excellence; the way we see it. Not based on how it may be perceived elsewhere. We learn from those who are better than us and we teach those that are willing to be taught n
it. That question is thus best directed to the appropriate authority which should implement the formula.
How tough has it been to improve staff-student ratio, at the same time investing in the number and quality of academics?
Reputation: How is UNAM perceived in the public eye? And is that the correct perspective? Could it be better?
It has been as tough as what the budget can handle. Unfortunately, economic conditions in the country don’t allow for privilege. We have to make do with the little resources that we have for the greatest number of people that we can give good standards of quality to.
We are constantly rated among the top 50 Universities in Africa, what does that tell you? I must add though, that things can always be better. That is a phenomenon that underpins all of human nature. We always want more. I certainly think the University should have more facilities, have more programmes and at the same time improve the quality beyond where we are now so that we are the best in Africa. The world is moving, we as developing countries are behind, and thus need to catch up quickly.
Where do your fears lie with free education and how can it be abated? Has UNAM begun to feel the effects? It is not my place to judge free education and thus I have no real opinion about free education, because it was just recently introduced in both primary and high school.
Students who are going through this free system, are yet to come to higher education. Once they are here in numbers, our researchers will then be able to supply some real opinion about that. Thus, it is important to note that free education comes at a costs (staff salaries, laboratories, classrooms, recreational facilities etc) that government has to meet.
Do you agree that the persistent multiple flaws and inherent weaknesses in the country’s education system is forcing higher institutions like UNAM to bend over backwards to accommodate the most academically ill-prepared students before they go job hunting? There are some areas, especially sciences and mathematics where we see entrants to university perform very poorly at. Like most universities we have bridging or foundation programmes to address some of these inadequacies. I must add that they exist all over the world, they are not unique to Namibia. So it is not true that pupils are academically ill prepared.
What are the inherent challenges with regards to producing knowledgeable, skilled, globally competent and employable study products that will be able to operate in a multi-cultural
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n The School of Medicine, there were those who strongly felt that it was not a good idea, yet here we are - with Namibian trained doctors in hospitals. Today, the School is also considering to accommodate those that are trained at some universities abroad to meet the requirement set by the Health Professions Council of Namibia. n environment such as Namibia? Space. We are a small country, so space for internships and attachments is limited, thereby delaying the practical orientation that students need for their chosen careers.
There seems to be a lax on academics who do not publish enough at UNAM. Student numbers are growing: but is staff recruitment keeping up? Because it seems as if more time is spent on teaching and less time for research. That’s not true. As a young University, our focus for a long time was on teaching.
However, this has since changed. We have transitioned to being research based owing to the implementation of a rigorous staff development programmes.
How are nurturing talent within instead of merely recruiting top international researchers? As stated earlier, UNAM is hitherto the only institution in Namibia with an elaborate and systematic staff development programme through which Namibian staff members are sent or given time off to further their studies or improve their professional skills. However, the nature of academia is such that it requires infusion of international skills to allow cross pollination of ideas and avoid inbreeding which will limit our knowledge and imagination. No nationality is the custodian of knowledge. Therefore, to be a successful University, our staff must reflect a global mind. They cannot all be from Namibia.
Where is the big focus over the next five years? The School of Geosciences in Keetmanshoop. Another focus is the consolidation of programmes as well as strengthening of specialisation in different schools of the Faculty of Health Sciences. So is research and development and the collaboration with the industry.
Where will you outclass NUST? You don’t outclass your younger sister; you help them reach the level you have quickly. The National University of Science and Technology (NUST) is a young university, we look forward to working with them so that we both learn from each other. Namibia as a nation should benefit from its education institutions. NUST is a university in its own right and I see no need to make comparisons of outclassing it at any stage.
What’s better, to compare faculties instead of universities? Comparisons are a fool’s errand. We compete with excellence; the way we see it. Not based on how it may be perceived elsewhere. We learn from those who are better than us and we teach those that are willing to be taught.
Does UNAM have enough black Namibians with PhD’s who want to be lecturers? Indeed, a decade ago UNAM did not have enough black Namibians with PhD’s, but today they are everywhere especially because
of our staff development efforts. Staff with PhD’s are slowly being, accordingly, promoted to Senior Lecturer - or professorship status in accordance with the UNAM academic staff promotion policies. There is also a significant number of black Namibian women in leadership positions who are highly qualified and I must say that their contribution is commendable.
Funding. Where do we go from here? We believe that government support is crucial. It keeps the balance and makes the institution reachable to the poor. Yet, we are not ignorant of global financial challenges in which Namibia is not an exception. Through, research, innovation and consultancy we have begun some serious endeavours to raise money which can only be sustainable with the support of government.
What has been the biggest controversy of your tenure? The School of Medicine, there were those who strongly felt that it was not a good idea, yet here we are - with Namibian trained doctors in hospitals. Today, the School is also considering to accommodate those that are trained at some universities abroad to meet the requirement set by the Health Professions Council of Namibia. It is evident that the School was never a ‘Hangula or Nyarango project’, but a national project funded by the Namibian Government to strengthen the country’s health system.
You have consistently declined to publicly comment on matters of State and Education, unlike some of your peers. Is it fair to suggest you have failed to speak out on higher education policy matters? Or you became the typical diplomatic and realistic crop of VCs? I don’t recall have declined any opportunity to comment on strategic high education matters. I am commenting here, so I think this refutes that claim. I must also clarify that, as a vice chancellor, one cannot have "peers" in the same university!!! My peers i.e. are my counterparts; and such are found only at other universities - not at UNAM!
By 2030, what is the expected number of university students? I can’t predict the future better than anyone else, but I am quite confident that we will have more than the current 24 500 plus that UNAM have.
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UNLIMITED Sam Shivute: Board Chairman, National Housing Enterprises (NHE).
n People must always come first. There will be no results without people. Good people are the greatest assets of any organisation. n
What is the best way to survive as chairman of a board whose brand is battered? In my opinion, the best way for a Chairman to succeed is to focus on delivering on the mandate of the institution and to provide nothing but authentic leadership. One needs to be aware of their fiduciary role, understand the business and the industry in which your institution is operating in, be up to date with the current trends in that industry and be alert to red flags and risks that are likely to affect the institution from achieving its objectives. All in all, one needs to be honest, avoid all situations that may pose conflict of interest and just ensure to serve in the best interest of the institution.
How do you know that you are leading, and leading well? Or rather, how do you know that you are right? I will know that I am leading, and leading well when I am doing the right things in the best interest of the institution and being decisive in carrying out my role. As long as I know that I am performing my functions with care, skill and that I am carrying out my duties diligently with a clear conscience then I am fine.
Whether short-lived or for the long-run, how do you maintain your perspective? What protects you against the inevitable stress? I believe in continuous improvement and I live a balanced life style. I exercise and play football almost every weekend. With such a lifestyle and a sustainable positive attitude, stress will be dead scared to get closer to me.
Who helps you doubt well?
PROFILE:
Sam Shivute is the Director of Banking Services at Bank of Namibia. He was seconded to serve as Commissioner of Inland Revenue Department, Ministry of Finance from April 2013 to October 2014. Sam is a multi-skilled professional with expertise in banking services, currency management, taxation, security management, project management, investigation, legal (law), motivational and public speaking. Sam is Candidate Attorney. Today, he serves in various positions, Chairman of the Board at NHE, Chairman of Unam Council, Deputy President of Professional Speakers Association of Namibia, Trustee of Bank of Namibia Provident Fund, Director: Banking Services at Bank of Namibia and Founder of Sam Shivute Inspiration.
I have various mentors and personal confidantes that I trust very well. At times I may bounce something off them before I make a final decision but the decision will always be mine and I always strive to make an informed and objective decision.
With such positions of influence, do you have clarity and alignment with the management on strategic issues?
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Yes, I have clarity and alignment with management on strategic issues. I am grateful to the Bank of Namibia for providing me an opportunity to get exposure on strategic leadership and management training programmes from some of the best business schools such as Stellenbosch Business School, Wits Business School, London Business School, Saiid Business School (Oxford University) and Bangalore Institute of Management. I am not only passionate about authentic and strategic leadership, I studied it and I have been practicing it in my various working environments.
But how do you address inefficiency? The best way to address inefficiency is to identify inefficiency and cut it out of the process. One can consider using the Business Process Re-Engineering or the Shingo Model which will help one to achieve operational efficiency. One can also consider using the LEAN model to address inefficiency.
Personally what do you look for when a new opportunity presents itself? When a new opportunity presents itself, I assess whether it’s in line with my values. I conduct risk analysis and determine whether I will be able to add value and make an impact which will benefit my country or which have a positive global impact. After having applied my mind, I will then decide whether to grab the opportunity or let it go. I do not only wait for opportunities to present themselves, I am a gogetter with a better understanding for creating and seeking opportunities. I appreciate the fact that in most cases, opportunities do not come by themselves but you have to create them.
You have struck a rich vein of form as a motivational speaker, what motivates you considering your workload? I am motivated to making a positive difference in other people’s lives, especially those that are prepared to listen to my message of hope and inspiration. I want people to know that our destiny is not determined by our current situations or from where we come but by our desire and discipline to achieve greatness and to settle for nothing but the best. I want people to understand that we are unlimited beings limited only by the concept of limitation that we place in our minds. My work load is never an issue, it is not new, that is what I have been used to since my time in the Namibian Police as an officer.
n I will know that I am leading, and leading well when I am doing the right things in the best interest of the institution and being decisive in carrying out my role. As long as I know that I am performing my functions with care, skill and that I am carrying out my duties diligently with a clear conscience then I am fine. n What’s your favourite quote? “It is possible” by Les Brown, and “In moment of choices, choose integrity;” by Ipumbu Shiimi.
Corporate governance is getting better in Namibia. We must remain optimistic. Various players in the governance structures must understand their roles and stick to that. Boards must be led and comprised of experienced, qualified, honest and competent persons whose sole interest must be to fulfil their fiduciary duties and protect the interests of the institution at all costs. Corruption must not be tolerated at all.
But is it results or it’s the people? What comes first? People must always come first. There will be no results without people. Good people are the greatest assets of any organisation. I once learnt from Tate Tom Alweendo that not all people are great assets of the organisation but only good people are the greatest assets of any organisations.
How do leaders destroy their businesses and their own brand? This happens when values are compromised. When one does not deliver on one’s promises and on the expectations of the customers. Leaders also destroy their own brand when they deal in transactions which are unethical and the engaging in corrupt practices.
If there was a skill or a field you could master that you did not learn earlier in your career, what would it be? Singing. I love singing and dancing.
Which event stands out as the most prominent in your list of motivational speeches, and why? The ‘Night of Inspiration’ of 28 May 2016. We promised to deliver one of the most inspiring moments in Namibia and we delivered on our promises. Next year it will be much bigger and even much better. I am sure that it will be sold out once again. Be that as it may, I am never satisfied with any of my past performances because I strongly believe that my best performance is yet to come.
Corporate Governance in Namibia: What is missing with regards to leadership?
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MOVING FRONTIERS Rosalia Martins-Hausiku: Chief Executive Officer, Motor Vehicle Accident (MVA) Fund
n A leader is never a complete package but rather work in progress. Attributes of an effective leader includes: Good listening skills and creating an enabling environment where people can participate and add value to the vision and grow themselves. n PROFILE:
Martins-Hausiku joined the MVA Fund in October 2004 as a Corporate Relations Officer. In October 2006 she was appointed as Manager: Corporate Affairs, a position she held until March 2007 when she was promoted to Chief: Corporate Affairs responsible for Corporate Communications, Public Education and Accident and Injury Prevention. In September 2010, she was appointed as the Chief Operations Officer responsible for core business. Martins-Hausiku holds a Master in Business Leadership from the UNISA School of Business Leadership, South Africa; a Master of Arts degree in Culture, Communication and Media Studies from the University of KwaZulu Natal, Durban, South Africa; a Bachelor’s degree in Media Studies (BAMS) from the University of Namibia (UNAM). She also holds a Certificate in Finance and Accounting from Wits Business School, South Africa, and a certificate in Management Excellence from Rhodes University. She serves as a Director of various Boards including the Namibia Chamber of Commerce and Industry and the University of Namibia Foundation.
You have been applauded for having steadied the ship since taking over. What would you highlight as some of the MVA achievements during the past three years? I must from the onset state that although the Fund has been quite stable during my tenure it is because of deliberate decisions and efforts that started even during the tenure of my predecessor. These efforts coupled with the smooth transition in leadership culminated in little disruption on the foundation and eased the process of the strategy that was launched when I was appointed in 2013. Our achievements and most significant ones are the fact that for the first time since the Fund was started in 2004, we achieved a solvency ratio of 101% from 35% in 2013. Our asset base currently stands at N$ 842 million from N$345 million in 2013. Over 74% of our injured clients managed to achieve their rehabilitation goals and we have modified 48 houses for our seriously injured clients. Our customer satisfaction currently stands at 92% and employee satisfaction at 82% with the Fund being the current holder of the Deloitte Best Company To Work For Award in the small and medium category.
Your achievements are not minor. How did you lead the Fund to this level in such very short times? I agree that these are not minor. The winning formula for the Fund has been primarily teamwork and commitment to the vision. We have a Board that is very committed to deliver to the mandate without compromise. They
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push and challenge us to move frontiers in delivering shareholder expectation. There is good teamwork between the Board and the Executive Officer and the entire leadership team. This teamwork is further cascaded down to the entire team, who understand the vision because it has been cascaded to the very last level. Secondly, the MVA Fund has an embedded high performance culture, with clear targets and deliverables that are measured every quarter at individual, business unit and institutional level.
express myself in my faith. At the Fund we have always been a praying organisation- we pray before our public and staff events, we come together as prayer groups and we pray for our country's leadership, the institutional leadership and staff and we pray for safety on our roads voluntarily. We once had a father from Swakopmund whose daughter was severely injured in a crash and the doctors were in a catch 22 situation,
We are a great team.
You are one corporate leader with strong Christian roots. Tell us about your faith and believes? I was born and raised in a home with strong Christian values. My mother instilled these values in us and ensured that we do not depart from them. But it's only in the past three years that I really took the decision to take my relationship with God to the next level, a more intimate relationship with him.
How do you incorporate these Christian values in your daily leadership? Whilst I look up to earthly mentors, my primary mentor is God. We often say that leaders should lead from the front and not the back or that you can't lead unless you have served. Jesus pioneered this type of leadership, "the servant leadership". I read a lot of leadership books and material and amongst these books is the bible. I always tell my team that most of these leadership principles that we quote on a daily basis are founded in the bible.
When do you pray? Lol - I pray all the time. When I am in my car driving to work or in a flight. When I am in the office, before a board or a staff meeting. But I have a dedicated prayer time at night before I round off the day - that is my time-out time to speak to God. Although this area (of prayer) needs more improvement.
Many leaders are shy/ uncomfortable to talk about their faith, what makes you different? Look, talking about religion and faith may be sensitive at times, the other thing is that Namibia is a secular country and people try to be very careful not to trample over other people's right and preference to religion and I respect that. On the contrary it gives me the freedom to
n Whilst I look up to earthly mentors, my primary mentor is God. We often say that leaders should lead from the front and not the back or that you can’t lead unless you have served. Jesus pioneered this type of leadership, “the servant leadership”. I read a lot of leadership books and material and amongst these books is the bible. n
the daughter needed treatment that was only available in Windhoek, but she was too injured to take a mercy flight. Road transportation was a non-starter in that state of health. So this father was on the other end of the line crying and in despair and my team, on the other side not knowing what to do, begun crying too. The daughter eventually died, sadly. However, the father called me weeks later in amazement of the kind of service he received from the
Fund - he said he has never experienced such heavenly assurance that God’s will was to be served at that time. It was the prayer that comforted him. So we are operating beyond our own limits, but within God’s framework.
What is the greatest thing that has happened to you at MVA since you took over that you will never forget? Being awarded the IPM CEO of the Year Award. It meant a lot to me because although the adjudication was not done by my team, the mere fact that the nomination came someone else watching my leadership ability speaks volumes.
What do you regret most? No regrets, I would relieve the highs and the lows, the mistakes, the achievements - they shaped the person I am today, and where I am today.
What excites you going forward? In the workspace it is the evolving role of the Fund where it is playing more the role of a social backbone for those affected by crashes rather than just administering benefits. It excites me to see the difference we make in people's lives.
But how big is risk in this growth? A claims management area is quite risky - we have a risk strategy to identify and manage the risks of fraud, collusion, over servicing clients, overpayments to service providers, system failure or inadequacy to support business needs to mention just a few. And these risks are identified and presented on a risk metric and they are monitored quarterly up to board level for the strategic ones.
What are the key ingredients to effective leadership and how do you define the role of the CEO? A leader is never a complete package but rather work in progress. Attributes of an effective leader includes: Good listening skills and creating an enabling environment where people can participate and add value to the vision and grow themselves. A leader should inspire her or his team by keeping them motivated and excited. These are lessons I have learnt, a leader should lead by example or from the front and be approachable. Most important, a leader should execute, amidst confusion and challenging times, the organization looks up to the leader, and the leader should rise.
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Collective
David Namwandi: Academic, Entrepreneur & Politician
n Be a good listener and make relevant decisions. Do not be a stooge, you will be rejected at once. Be your own man and you will live to account for your actions without regret. n
PROFILE
David Namwandi served as the Minister of Education from 2013 to 2015. He previously served as Deputy Minister of Education from 2010 to 2013. He is a member of SWAPO, Namibia’s ruling party Central Committee. He holds various professional and academic qualifications from Africa, Europe and Asia including an MBA, a Doctoral Award and a PhD in Business Administration from Asiae-University of Malaysia (AeU). Prior to his appointment as Minister, he served as a chairperson and a board member of more than 12 companies and Institutions, e.g. Trustco Group International Holdings Ltd a listed company on Namibian stock Exchange (NSE) and on Africa board of Johannesburg
Stock Exchange(JSE). Namibia Qualifications Authority (NQA). National Council of Higher Education (NCHE) as a Chairperson of Accreditation and Quality Assurance Committee. Vice Chancellors and Rectors Forum (VCRF) as its first Vice Chairperson. He is the owner and current Group Chairman of Onambambi Holdings (Pty) Ltd Namibia, which has subsidiary companies venturing into transport, properties, investments, fishing, hospitality and farming. He is a recipient of an International Award for outstanding contribution to Education from Central Bank of India, 2012. He is a recipient of an International B-School Leadership in Educational Excellence Award from Le
Matinal, Mauritius, 2011 He was awarded the Education Leadership Award at the World Marketing Summit in 2013, Malaysia. On the 25th July 2015 he was honoured by CIMA with LIFE TIME ACHIEVEMENT AWARD during the World Education Congress in India. He is the founder of the Institute of Higher Education (IHE), the forerunner of IUM first private university in Namibia, the International University of Management (IUM) in Windhoek and with satellite campuses in Ongwediva, Walvis-Bay, Swakopmund and Nkurenkuru. It is fully accredited by Namibia Qualifications Authority (NQA). He serves as its Chairman.
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Having served as a Minister of Education, and with such experience and wisdom, how are you now contributing to the growth of Namibia?
not. This is not to say that they are dull but the opposite is the truth, hence the need to provide technical education from an early age to enable technical oriented pupils to advance themselves.
What challenges did you experience at the time of leaving government going into private business? How tough was the switch?
To start with, I served as Deputy Minister for a two-year term and after the passing on of my dear friend and brother, Dr Abraham Iyambo, may his soul rest in peace, I was appointed as Minister of Education.
What gives satisfaction is that these achievements were undertaken when the current President, His Excellency Dr. Hage Geingob was still Prime Minister. The support was always unanimous hence I am buoyant that going on, my successors will not struggle with implementation, as continuity is now supported by the Harambee (Prosperity Plan).
Tough times never last, but tough people do. Private and public sector leadership have unique challenges but not isolated. I learnt from the start that nothing is permanent. Everything is flux, only change is permanent. In fact, the question should be instead about the lessons learnt during the switch, not necessarily challenges. I learnt never to be rigid when change comes. It is the process of change that turns challenges into lessons.
With my team we contributed immensely to the growth of the country particularly where education was concerned. The introduction of universal primary education was the brainchild of my predecessor but I salute the team that I worked with for its successful implementation. I lived to implement this program to the fullest after Dr Iyambo’s demise. It was from there that I conceived the idea of universal secondary education and credit goes to the support it received from the then President Hifikepunye Pohamba and the entire Cabinet. It was not easy to get the buy-in from some sections since this is and was not part of the constitution. Our constitution only talks about free primary education. We also succeeded in reviewing our national curriculum which now includes the 13 years of schooling Advanced (‘A) Level and by the time I left office, the 1st Phase of the new curriculum had been implemented. I believe the current administration will complete the rest. It is a dynamic curriculum because it includes the introduction of vocational and technical subjects. It has always been my conviction that only 25% of school leavers are academically inclined, the rest 65% are
n My priorities have never shifted. They are still the same. Key to this is ensuring that what we set ourselves to achieve is accomplished. For instance, providing quality education to our nation is a sacred duty that needs to be accomplished whatever the course. n
Today, I still am contributing to the growth of the country. I am an educationist, I dream, walk, eat, sleep and think education. I have been doing some writings (articles) and more research. Most importantly, I was introduced to commercial farming by President Pohamba in 2012 and being out of public life, I am now more fascinated by crop production and animal husbandry.
So what are your key priorities today? My priorities have never shifted. They are still the same. Key to this is ensuring that what we set ourselves to achieve is accomplished. For instance, providing quality education to our nation is a sacred duty that needs to be accomplished whatever the course. No amount of challenges should move us an inch in achieving what we set ourselves to achieve. I believe with an educated population our national resources shall be put to good use and shall in turn be equitably distributed to all our citizens. We have to join hands as economic emancipation shall not come when we are divided, neither does it come on a silver platter.
What are the ingredients to effective leadership and how do you define your new role? Leadership is the art of getting things done through others. This is achieved if one is a good listener and possesses emotional intelligence. Sell an idea to those who follow you, let them buy into it, and they should depict sincerity in one’s eyes, that is what we term effective leadership.
What have been the greatest leadership lessons in Cabinet? Collective leadership. Not a single day did I witness autocracy atmosphere or people working in isolation during our Cabinet sessions. No one was left out of the decision making process.
But what remains of your legacy? Well, I am excited at what we achieved during my tenure in office. Some of the things I briefly mentioned at the start but I draw satisfaction from is turning the National Commission on Research Science and Technology (NCRST) into an independent entity. We also managed to convince Cabinet that all school uniforms be produced locally. Equally we finalised the funding framework for higher education institutions. Hopefully my successor shall ensure its successful implementation.
Talking of the funding framework, NUST Vice Chancellor was one of your critics. Professor Tjama Tjivikua went public about how you delayed the Funding Formula for Public Higher Education Institutions. You were also blamed for sitting on the NUST name change. It became a reality after your departure. Was he and some of your critics justified to point all those armoury towards you on matters. Others even crucified you for your interests in IUM? We live in a free and democratic country where citizens can express themselves without fear of persecution. My critics did not always have all the facts and information to hand. I can vividly recall that in 2008 Hon. Nangolo Mbumba made the first Cabinet submission to convert Polytechnic into a university. So I was appointed Minister in 2013 i.e. four years thereafter. I leave it with you to decide whether that statement is correct or false. Also note that the National Assembly approved Polytechnic bill on name change during my term of office except that National Council could not review same until after my departure, facts to vouch for these are available. With both the funding formula and NUST, I can assure you that all due process was followed. Now, whilst following due process may have appeared as a delay, the fact that we followed all legal
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n To be firm and fair but friendly was tough. When my subordinates were running to the media with fabricated stories and ill intended information, I kept on as if nothing was wrong. I forgave them. n guidelines means we don’t need to go back to correct mistakes that could have taken place if haste was all we had concerned ourselves with. As for my interests in IUM whilst serving as a Deputy Minister and a Minister, I can only remind you again that the Institution was established in 1994 and inaugurated as a full university in 2002. I was appointed Deputy Minister in 2010. I will leave you do the mathematics and follow that up with reading the ACC report on their investigation into the alleged conflict of interest and malpractice, which vindicated me.
What was the toughest decision you ever faced while serving as Minister of Education? And how was it solved? To be firm and fair but friendly was tough. When my subordinates were running to the media with fabricated stories and ill intended information, I kept on as if nothing was wrong. I forgave them. That was not an easy decision to make. I had friends and well wishers but I had a lot of arsenal pointed at me too. However, because I had a good grip of what was around me, I managed to maintain my leadership position without getting emotional.
How have you been following events around education now that the ministry was split into two? To be honest, sometimes I wish I was asked to give my humble advice to both ministries. This now is unsolicited advice. Education is a beast. To my colleagues (Minister of Basic Education Katrina Hanse-Himarwa and Minister of Higher Education, Training and Innovation, Dr Ithah Kandjii-Murangi), do not give up. The challenges in Namibia’s education system are infinite and not unique to Namibia. Take the criticisms to improve
our education. Some of the challenges were inherited since independence, some from your predecessors, but you can never alienate yourself particularly from the bad situations only to embrace the good that you inherited. I am following my successors with keen interest and they are on course. I pray for them to succeed. I believe the President appointed them, because he saw the uniqueness in them and the same uniqueness should make things different from how things were done by previous education ministers, from Honourable Nahas Angula, Honourable John Mutorwa, Honourable Nangolo Mbumba, Honourable Abraham Iyambo to myself. We played our part, they must play theirs to make the difference and they are on course.
Having worked for Government, what do you now consider to be the major contributing factors to being a successful businessman? It is two sides of the same coin. The principles are the same. I have run a ministry, which is a public institution and I have run a private entity. I now use the lessons from either side to come up with good results.
Personally, what is the secret to remaining relevant? As an educator at heart, I know that the process of learning never ends. If one ever declares that they know it all or they are too old to learn new things, it means they have commenced a period of rapid decline. I work with young entrepreneurs all the time. Well these people expect me to know what they are talking about and understand the future that they see. I read a great deal. I spend a lot of time observing and I know that new knowledge can come from the most innocuous of sources. So the secret to remain relevant and not to be come obsolete is to: Be a good listener and make relevant decisions. Do not be a stooge, you will be rejected at once. Be your own man and you will live to account for your actions without regret.
Do you have any regrets? I take the perspective that I can only regret the things I haven’t done. I think carefully about the decisions I make and any actions I take. I am always satisfied that what I am doing is relevant for that occasion. Time will not always allow me to do all the things I dream of doing. My family would have liked more time with me but at the same time they value the importance of serving a nation. So, no regrets at all. I thank my appointing
authority for the opportunity to run the then biggest ministry in the land. I tried to the best of my ability.
Term offices for Ministers. To be or not to be? My view on this topic comes from my opinion that organisations need to be dynamic, flexible and continue to learn. There has got to be a channel for new and relevant ideas to penetrate the engine of any organisation whether public or private. When time is limited and time is something that you value, your use of the time allocated to you will be far more productive. Therefore, I am very much in favour of legislated terms of office for Ministers that give time to implement policy at the very least and give chance for others to serve. Everything reaches saturation point. Nothing is permanent. Of course there are people who say they don’t run out of ideas, but for me 10 years would do. Give others an opportunity thereafter.
What is your advice to other politicians who fear retiring from public offices? Your wisdom and your experience on global political platforms desperately need to be passed down to the next generation. All I am saying is that we are all still relevant; we just need to open our eyes as to how we can serve in different ways. However, I am not aware of politicians that fear retirement but I must say, it’s best out here, you have time with people, particularly your old friends. There is so much peace of mind.
IUM: Where do you want to take it now? How big can it grow? To be honest you are directing the question to the wrong person! I founded the institution and I have returned to it as the Chairperson of Council, but my current role is to guide the very able management team that is in place and to ratify (or otherwise) decisions they make. From my observations, I am satisfied that this current IUM team intends to make the University a leader on the continent through research, publications and innovation. There are many initiatives which are in seedling stages right now but which will firmly place the University as a global player in Higher Education. The reach of the University already goes beyond the borders of Namibia, in terms of IUM programmes being delivered in other countries. This trend is continuing especially with all the work that is being done at the moment to have new and innovative programmes accredited.
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ROADS AUTHORITY OF NAMIBIA THE ROAD NETWORK AND ACHIEVEMENTS The national road network of Namibia totals 46 498.3 kilometres of which 7 568.1 are bitumen standard roads. The RA has made significant strides in expanding the road network in an effort to achieve the sub – vision and goals for Transport Infrastructure as set out in Vision 2030.
SAFE ROADS TO PROSPERITY
T
he Roads Authority (RA) is a State owned Enterprise that was established in terms of Act of Parliament (Act no.17 of 1999).
The RA’s mandate is to manage Namibia’s national road network with a view to achieve a safe and efficient road sector. The management of the proclaimed road network includes planning, designing, construction and maintenance. It also encompasses quality control of materials and supervision of work contracted out and the operation of the Road Management System (RMS). In addition to its core functions, the RA also provides the following services to vehicle owners, operators and drivers as assigned functions from the Ministry of Works and Transport in terms Section 111 of the Road Traffic and Transport Act, 1999 (Act 22 of 1999). •
Vehicle registration, roadworthy testing;
licensing
and
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Driver testing and licensing;
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Vehicles Registering Authorities;
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Regulate National (domestic) and Cross Border Road Transportation.
The provision of safe and efficient roads is an essential part of Namibia’s social-economic development strategy. The entrenched benefits of roads can only be realized if they are well maintained and comply with the needs of all road users. Since the establishment of the RA in April 2000, the organization has continued to play a vital role in the socio-economic development of Namibia, and in particular the advancement of previously neglected areas of our country.
In addition, the organisation has also implemented the Government rural access roads development programme to enhance rural accessibility and connect rural population to the economic belt of our country. Under this programme, several gravel roads were constructed, most especially in the northern regions. We currently have a number gravel roads under construction and more are planned to commence soon. The road network serves the regional development corridors namely, the Walvis BayOshikango-Namibia Development Corridor, Walvis Bay-Botswana-Gauteng-Maputo Development Corridor (Trans Kalahari Highway) and the Walvis Bay-Ndola – Lubumbashi Development Corridor (Trans Zambezi Highway). These corridors are all identified as potential drivers of trade and economic growth, enhancement of regional co-operation and promotion of tourism. The growth of road infrastructure and the expansion of the road network have contributed tremendously to the economic growth of Namibia as well as that of the SADC sub-region as a whole. Namibia is currently accessible by all the SADC member states. Land-locked countries of Zambia, Zimbabwe and the Democratic Republic of Congo now have the access to the Atlantic Ocean via the Port of Walvis Bay because of easy access through a well maintained road network.
PROJECTS We are currently busy with the following capital projects:
The RA places a high premium on sound and transparent corporate governance, with the corporate governance structure comprising of the Board of Directors, The Audit Committee and Office of the Chief Executive Officer.
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Rehabilitation and upgrading to a dual carriageway of the WindhoekOkahandja Road in the Khomas Region.
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Upgrading to bitumen standards of the Rosh Pinah-Oranjemund road in the !Karas Region.
The RA’s Corporate Strategy focuses on key objectives such as the effective management of the road network as a core responsibility, stakeholder relations and effective service delivery, financial sustainability, Governance and strong leadership as well as strategic human capital enablers.
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Upgrading to bitumen standards of the Gobabis-Aranos-Aminius road in the Omaheke and Hardap region.
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Upgrading to bitumen of the OtjineneOkamatapati-Grootfontein road in the Omaheke and Otjozondjupa Regions respectively.
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Upgrading to dual carriageway of Main Road 44 Swakopmund to Walvis Bay Road (behind the dunes road) and Trunk Road 2/1 (coastal road).
Upgrading to bitumen standards of the Swakopmund-Henties Bay-Uis-Kamanjab road in the Erongo and Kunene Regions. Upgrading to a dual carriageway of the Windhoek – Hosea Kutako International Airport Road to dual carriageway
FUTURE PROJECTS •
The upgrading to a dual carriageway of the Omuthiya to Ongwediva road.
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The upgrading of the Karibib-UsakosSwakopmund road to a two plus one cross section road.
SME DEVELOPMENT The RA takes pride in being one of the leading organizations in Namibia in the development of SME Contractors. We have implemented an SME Policy with the sole objective of enhancing capacity in the road construction and maintenance projects. Additionally, our aim is to assist upcoming entrepreneurs to build and operate commercially viable SMEs so that in future they become Main Contractors. Accordingly, this blueprint helps us to achieve our goal in assisting SME’s and contribute to the efforts of the government to create employment opportunities and alleviate poverty. Also, all our labour-based road projects are structured in such a way that SME Contractors and established Civil Engineering Plant Contractors, tender jointly for such projects. As a result, the successful SME tenderers execute the work under the leadership of the Civil Engineering Plant Contractor and are trained and equipped with much needed skills from the Main Contractors.
CONCLUSION The provision of safe and efficient roads is an essential part of Namibia’s socialeconomic development strategy and since the establishment of the Roads Authority in April 2000, the organization has continued to play a vital role in the socio-economic development of Namibia. The RA is committed to keep the state of the road network in a safe and good condition as we continue to build new ones.
NAMIBIA’S TOP CORPORATE GOVERNORS EXECUTIVE NAMIBIA
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