FEBRUARY, 2020
The Namibia
ENERGY & SUSTAINABILITY News & Analysis
Namibia and the International Markets Are We At Risk?
IN THIS MONTH’S ISSUE: Arandis Power Eyes South African Power Market
The Coronavirus: A threat to Oil Markets and the Global Economy?
Namibia and China Trade Ties outlook and the Outbreak of Coronavirus
Women In Industry Youth In Action (NEW Sections of the Briefing)
The NAMIBIA Country Briefing of RDJ Consulting
PUBLIC INVITE
RDJ 2020 Career Day Are you a university student or unemplyed youth seeking inspirations to enhance your skills and put them into practice? RDJ consulting invites you to its 2020 Graduation ceremony of the RDJ Internship Programme. This is an opportunity to interact with RDJ and and similar institutions offering internships/training programmes. Friday 13th March NIPAM Executive conference room 09:30 am
www.rdjconsulting.co.za
C O N T E N T S 4
5
FromTheEditor
Quick Facts
6
10
Economy at Large
Oil & Gas
14
15
Electricity
Renewable Energy
16
18
Water
The Environment and Sustainabilty
20
20
Tlecommunications
Financing
24
25
"Women in Industry"
"Youth in Action"
26
28
Tenders and Careers
UpNext
29 Contributing Authors
FEBRUARY, 2020
From the Editor Namibia and the International Markets Are We At Risk? RDJ Consulting Services CC is an advisory consultancy to the Energy, Water and Transport Sectors with a focus on sustainable operations and renewable energy.
PO Box 23738 Windhoek, NAMIBIA Telephone +264 61 400 171 EMAIL briefing@rdjconsulting.co.za WEBSITE www.rdjconsulting.co.za
Dear Reader, As the world continues striving for globalization, countries need to promote trade in the different resources to ensure that even with competitive advantage, we share everything the planet can offer. However, despite ongoing conversations on possible free-trade agreements between nations, this will always come at a cost! The cost can be monetary or in otherwise. The latest "cost" has been health, with reference to the fast spread of the Coronavirus across parts of the globe, which has led to limitation of imports from China and the other affected nations. This RDJ Briefing takes a look at whether the Namibian market and its integration into the global market has a chance for growth or will it decline. Namibia is a country that relies heavily on imports from countries like China, South Africa and others while its' exports of certain resources follow a similar pattern. With the outbreak of the current Coronavirus (COVID-19), as well as the instability of the South African Rand from our local key partner that is on par with the Namibian Dollar being aligned through the Common Monetary Area (CMA), is the local market at risk? To find out more, please enjoy reading this Publication which was carefully prepared for you by our interns and do join our conversations on Twitter and Wordpress along with our newly created sections namely “Women in industry” and “Youth in Action”. Further, if you are new to the RDJ Briefing, subscribe to this FREE Publication at briefing@rdjconsulting.co.za and freely share the link with others that will benefit from its contents. Enjoy….
(David A. Jarrett) Editor
Authors RDJ Interns*
This report is a FREE Publication and was prepared by RDJ Consulting Services CC based in Windhoek, Namibia. The content is collected from publicly available information and so its accuracy cannot be guaranteed.
quick facts Population size: 2.3 Million Employment: 66.6% Literacy rate: 89.0% GDP Growth (2018): -0.1% Repo Rate: 6.25% Interest rate (Prime): 10.00% Inflation (CPI): 2.1% Industries: Tourism, Mining, Fishing Telecom (sophistication): LTE Mobile - cell phones: 2.575 million Subscribers Water availability: 8 800 000 cubic litres/capita Electricity Gen. (Local): 484.000 MW Electricity Demand (all): 629.000 MW
6
FEBRUARY, 2020
THE ECONOMY AT LARGE Past, Present and Future of Namibia’s CPI and Repo Rate Trend In the event of inflation, central banks increase repo rate as this acts as a disincentive for banks to borrow from the central bank. This ultimately reduces the money supply in the economy and thus helps in reducing inflation.
AUTHORS Ms. Naemi Shoopala Researcher @ RDJ Consulting
Ms. Priscila Olga C. Economist @ RDJ Consulting
EDITOR: Mr. David Jarrett Managing Consultant @ RDJ Consulting
A
Therefore, these two rates, are essential tools to help control monetary value and business functioning in an economy. In Namibia, it is noticed that both the Repo rate and Consumer Price Index (CPI) have been decreasing gradually. What significance does this have on the economy?
Namibia CPI
Introduction
ccording to The Economic Times (ET - India), A Repo rate is the rate at which the central bank of a country lends money to commercial banks in the event of any shortfall of funds. The Repo rate is used by monetary authorities to control inflation.
The Namibian Consumer Price Index (CPI) which shows the rate of inflation has been on a gradual downward trajectory since March 2019. Inflation for January 2020 has slowed to 2.1% compared to the same period back in 2019 which recorded 4.7%, a decrease of 2.6% over the term, with a slowdown in the sectors depicted in the graph where the primary cause of the overall decrease in the country’s annual inflation rate over time are clear.
Author's representation of a comparison between 2019 and 2020 inflation of different economic sector.
www.rdjconsulting.co.za
FEBRUARY, 2020
Repo Rate On the 18th of February 2020, the Bank of Namibia’s (BoN) Monetary Policy Committee (MPC) has announced its decision to cut the repo rate by 25 basis points again, making it 6.25%, in order to maintain the one-on-one link between the Namibian Dollar and South African Rand, as well as to support domestic economic activities. Although inflation has been decreasing gradually and is still expected to continue decreasing in 2020 as forecasted by head of sales and Research at IJG Holdings, Erick Van Zyl, economic activities contracted in 2019 and there is not much growth forecasted for the year 2020. The country is currently continuing in an economic depression, and fiscal consolidation has not been able to clampdown on the upward trajectory of the debt to GDP ratio. The government is operating on a budget deficit thus, government spending alone cannot stimulate the economy at this particular juncture.
7
Therefore, expectations are directed to the private sector to meet the government halfway in improving the slowgrowing economy.
Conclusion When both the repo rate and CPI keep decreasing, this means that commercial banks can borrow money at lower rates, increasing the circulation of money in the economy, and also goods and services become more affordable for consumers. The discussion continues … office@rdjconsulting.co.za
Readings: www.bon.com.na http://www.oag.gov.na/ministry-of-finance https://m.economictimes.com/definition/repo-rate/amp https://d3rp5jatom3eyn.cloudfront.net/cms/assets/documents/NCPI -Jan_2020.pdf
ADVERTISE WITH US! E: briefing@rdjconsulting.co.za IF YOU ARE READING THIS, YOUR POTENTIAL CLIENTS ARE READING TOO. TAKE THIS CHANCE TO INFORM THEM ABOUT YOUR FIRM OR PRODUCTS.
www.rdjconsulting.co.za
8
FEBRUARY, 2020
Census: A Catalyst for Economic Development The main speaker of the conference was Dr. Pali Lehohla, the former Statistician-General of South Africa, and former head of Statistics South Africa from 2000 –2017. In his well-articulated speech, he covered the history of census, its origin and current status in African countries. He also discussed pertinent matters around it such as its contribution to the economic growth of a country. He said census is a catalyst for development, because it allows government to distribute a country’s resources amongst the people accordingly. In addition, he said that for some countries, 60% of their GDP is sourced from household expenditure, hence, it is necessary that the government knows its population size and distribution to properly distribute resources. According to Dr. Kefiloe Masiteng, the deputy directorgeneral for population and social statistics at Statistics South Africa, a census is not only vital to government but also important to civil society, businesses, students and academics, with the latter primarily focusing on research. In the Picture (left to right): Ms. Naemi Shoopala (Author: Researcher), Dr . Pali Lehohla (former Statistician-General of South Africa) and Ms.Misozi Mugala (Co-Author: Researcher) Editor: Ms. Chilombo Olga Priscila - Economist @ RDJ Consulting
C
Introduction
ensus is defined by Oxford dictionary as an official count or survey, especially of a population. Namibia had its first census in 1991 shortly after the country gained its independence in 1990. The upcoming Population and Housing census that will be held in 2021 is going to be the fourth national Census to be conducted in Namibia. The Namibia Statistics Agency (NSA), is responsible for carrying out census, and in its quest to inform the public about the importance of census, they held a Public Lecture under the heading: “Census as a Catalyst for Socio-Economic Transformation and Evidence Based Planning”. The event took place on the fourth of February 2020, at Protea Hotel in Windhoek. While the pilot for the census mapping was set to start from 22 to 26 July 2019, the actual mapping had been scheduled to run from 2 September to 6 December 2019, and 20 January to 27 April 2020. Statistician general and CEO of NSA, Mr Alex Shimuafeni was present at the Public Lecture and in his welcoming speech, he mentioned that NSA is moving along with the digital world and is going to conduct a digital census in 2021, in which a computerassisted personal interviewer (CAPI) using tablets will be employed.
Census information can also be used in product development, including the forecasting of demand for products and services, and it may also be used by individuals for personal decisions such as buying a house, relocating for a job or starting a small business. Census information is important for measuring social change and progress, as well as isolating development gaps across time. Census enables international organisations to see a country’s progression and make out its current situation. This is the kind of information that attracts investments.
"Census is a catalyst for development, because it allows government to distribute a country’s resources amongst the people accordingly." Dr . Pali Lehohla Speech at EAN Public Lecture - February 2020
Readings: https://nsa.org.na/post/census-mapping-on-the-move-in-zambezi https://www.namibian.com.na/189689/archive-read/Censusmapping-to-kick-off-in-September https://mg.co.za/article/2011-10-07-census-benefits-more-thanjust-government/
www.rdjconsulting.co.za
FEBRUARY, 2020
9
Namibia and China Trade Ties outlook and the Outbreak of Coronavirus Syndrome (MERS-CoV) and Severe Acute Respiratory Syndrome (SARS-CoV). The COVID-19 virus was first detected in December 2019 and has thus led to distortion in many aspects of life, including trade in China, with China and other parts of the world as China works towards containing the virus from spreading further. This has created fear for the Namibian people regarding trade ties and China’s contribution to the country’s total revenue. AUTHOR: Ms. Naemi Shoopala Researcher @ RDJ Consulting
EDITOR: Mr. David Jarrett Managing Consultant @ RDJ Consulting
C
hina, officially the People's Republic of China, has continued to earn the spot as Namibia’s biggest export market after absorbing 39% of the total exports in the third quarter of 2019. China and Namibia established diplomatic relations on March 22, 1990, just one day after the founding of the Republic of Namibia. Before the national independence, China provided political, moral and material support to the Namibian people in their struggle for national independence since early 1960s. Bilateral relations have been developing since the establishment of these relations, and cooperation in the fields of politics, economy, trade, culture education, science and technology, public health and information exchanges have been successful. Trade between Namibia and China has been growing. Namibia’s major imports from China include mechanical and electrical equipment, clothes, shoes, hardware, tourist products and other daily necessities while exports include among other things, mineral and marine products, hides, live ostriches and relevant products.
As a measure to curb the transmission of the virus, China has restricted travels within the country and while countries like the US have banned travels to China, tighter travel restrictions including quarantines have spread to most countries including Namibia who become the first Southern African Development Community (SADC) country to stop granting visas to Chinese nationals as a precautionary measure due to the COVID-19 outbreak. The impact of COVID-19 is already being felt in Namibia as many Chinese nationals travel here either for business or leisure. The Namibian Ports Authority (Namport) has revealed through their acting CEO Victor Ashikoto that Namport is expected to be negatively impacted by the outbreak. The health clearance of all vessels entering the ports in Namibia is now a lengthy process and one that is slowly affecting trade between the two countries. Business with China has slowed in Namibia. China town, a marketplace occupied mostly by Chinese have seen shops not open since the holidays as some of the Chinese owners were unable to return to Namibia to resume with their businesses. Despite all the known impacts that COVID-19 can have on the Namibian economy, it is not yet known how bad the impacts will be or what percentage of exports/import will be lost in the process. The discussion continues … office@rdjconsulting.co.za
In the first quarter of 2018, the trade statistics bulletin released by the Namibian Statistical Agency (NSA) revealed that China surpassed South Africa as Namibia’s biggest export destination, making up 18% of total exports. Reaching March 28, 2019 Namibia made history by becoming the first African country to export beef to China. This, increased the country's trade to China because by the third quarter of 2019, the same bulletin revealed that China had absorbed 39% of Namibia's total exports which is equivalent to about N$14.7 billion. China has since experienced an outbreak of a Coronavirus (COVID-19), which is part of a large family of viruses that cause similar illnesses ranging from the common cold, to more severe diseases such as Middle East Respiratory
Readings: https://d3rp5jatom3eyn.cloudfront.net/cms/assets/documents/Q32019_TSBBullentin_November-Dec-Final.pdf http://na.china-embassy.org/eng/zngx/t144075.htm https://cms2.my.na/assets/documents/Annual_trade_statistics_bulleti n_2018_DQA_12_March_2019_2.pdf https://neweralive.na/posts/namibia-makes-history-becomes-the-firstafrican-country-to-export-beef-to-china https://cms2.my.na/assets/documents/Q32019_TSBBullentin_November-Dec-Final.pdf https://www.who.int/health-topics/coronavirus https://neweralive.na/posts/namibia-suspends-visas-for-chinesenationals https://www.namibian.com.na/87781/read/Coronavirus-slowsbusiness-in-Chinatown
www.rdjconsulting.co.za
10 FEBRUARY, 2020
OIL AND GAS Fuel and its Hidden Costs
Vehicles and a tanker heading to a fuel station for refill and supply, repectivly in the city of Windhoek, Namibia. - Credit:RDJ Photo
F
uel prices in Namibia have been stable for the past 8 months and are still unchanged for the month of February 2020, this is; 95 Octane unleaded petrol N$13.05/l and N$13.63/l for Diesel 50ppm. However, the unchanged prices do not mean there are no changes in the cost of fuel. The National Energy Fund (NEF) whose main service is also to equalize the fuel price (i.e. to pay for the cumulative industry slate under-recovery to the suppliers of petroleum products and receive the cumulative industry slate over-recovery from the suppliers of petroleum products.) has been absorbing any under recoveries for the past months. Under recoveries indicate that suppliers have traded below the full cost of supply. The cost to the NEF for the under recoveries is currently estimated to be close to N$20 million. Fuel is traded using United States Dollars (USDs) throughout the international market, and this requires net importers of oil like Namibia to convert their currency in USDs to enable them to import fuel products. When the Namibian Dollar (N$ or NAD) depreciates against the USD,
February 2020 Fuel Prices
it becomes more costly to import the same type of goods, especially now that the exchange rate is currently trading at N$15.0249 per USD (18 Feb 2020). For the past six months (22 August 2019 to 16 February 2020), the exchange rate between the NAD and USD recorded a lowest of 14.009 NAD (on 04 Jan 2020) and a highest of 15.371 NAD (on 28 Aug 2019). This means that is now more expensive to buy foreign currency than it was six months ago, despite it not being reflected directly in cost fuel locally. The Ministry of Mines and Energy has conducted a Margin Dealer Survey which investigated the activities of fuel stations. The results obtained conclude that on average, fuel dealers are struggling to operate their business profitably due to inflation and other cost factors, while fuel suppliers are still trading below the cost of supply.
Readings: Â http://www.mme.gov.na/energy/nef/ http://www.mme.gov.na/publications/?designation=pa www.bon.com.na
N$ 13.05
N$ 13.63
per litre
per litre
95 Octane Unleaded Petrol
Diesel 50ppm
www.rdjconsulting.co.za
FEBRUARY, 2020
11
ReconAfrica Renews its License for Oil Exploration in Kavango
R
in 29 January 2024 or if need arises for extension, until 29 January 2026.
Based on commercial success, ReconAfrica’s Namibian subsidiary can obtain a 25-year production license and will be required to pay a 35% corporate income tax and a 5% royalty, as per the Namibia Tax Reference and Rate Card of 2019. According to ReconAfrica, the license’s period comprises of three phases, of which the last ends
Readings:
econnaissance Energy Africa Limited (ReconAfrica) is a Londondon-based Oil and Gas Company engaged in the exploration and development of oil and gas in Namibia. The company has started its exploration activities in Namibia in 2018 when it was granted a license in the Kavango sedimentary basin, covering an area of approximately 25 341.33 square kilometers (sq. Km). It currently owns 90% of the exploration license, while NAMCOR owns the remaining 10%.
The Kavango Basin deepens to the east and ReconAfrica expects to identify thicker thermally mature marine permian shales. The company’s objectives for the next twelve months starting February 2020, are to complete an environmental impact assessment and permits for the drilling of multiple wells, selection of final drilling location for three wells, procure the services of a drilling contractor to conduct exploration drilling operations as well as commencing with drilling operations.
https://reconafrica.com/operations/ Namibia Tax Reference and Rate card – 2019 (www.pwc.com.na)
ADVERTISE WITH US! E: briefing@rdjconsulting.co.za IF YOU ARE READING THIS, YOUR POTENTIAL CLIENTS ARE READING TOO. TAKE THIS CHANCE TO INFORM THEM ABOUT YOUR FIRM OR PRODUCTS.
www.rdjconsulting.co.za
12 FEBRUARY, 2020
The Coronavirus: A threat to Oil Markets and the Global Economy?
AUTHOR: Mr Gawie Kanjemba
I
nstinctively, when an “apocalypse-like-virus” pops up every other year, people become scared, they stock up on food & water, and they stop moving! With multiple cities in mainland China quarantined, global flight bans, and panic growing as the virus spreads across the world, travel (and with it, demand for oil) declines as fewer people take to the roads, tracks or sky. The Oil Market is beginning to crawl back up since Wednesday after reports of a possible coronavirus treatment breakthrough. Amid a deadly virus threatening to scorch the planet, the issue of Oil and Energy might seem to deserve a place on the back banner. While this is true, it is also the responsible thing to foresee and mitigate the secondary effects of a situation like this, especially in a market like Oil because it is the lifeblood of our economy. Financial markets have been spooked by the virus, causing investors to rush their investments into Gold, which has traditionally been the safe haven in times of trouble and uncertainty. China, the world’s second-largest economy and a key driver of Oil demand, resorted to unprecedented measures to slow the outbreak, including extending the Lunar New Year holiday, a lock-down in the country’s major cities and provinces, and shutting down all public transportation in the province where the outbreak is centred. The Chinese government has ordered all businesses remain closed, with about two-thirds of China’s economy staying shut, and residents being told not to return to work or school to avoid congregating in public places.
China is also the second-largest consumer of oil, accounting to about 13% of global oil consumption. Unipec, the trading arm of Chinese refiner Sinopec, is reported to have stopped buying cargoes of crude from West Africa and is looking resell some Angolan crude that it was preparing to import into China in March. If the outbreak is severe enough, we could see a recession that will take on its own life. Last week, the World Health Organisation declared the Coronavirus a global emergency, but calmed the markets by opposing travel restrictions. It also said Chinese actions so far will “reverse the tide” of the spread and that it declared the emergency to help those countries with weak health systems. The move has stoked optimism that there may be light at the end of the tunnel. This is because the declaration should pave the way for a coordinated international response to control the global spread of the disease. Can any big oil producer cut enough oil production to keep the price of the commodity from dropping? If there is any country that could do this, it’s Saudi Arabia. The country could ramp up production by at least 2 million barrels or to cut production significantly on very short notice. Another big producer is the USA, but it cannot decrease production so easily for two reasons: 1) oil production is the business of many firms so there is no centralized control to coordinate a joint production cut and such collusion would be an illegal antitrust violation in any case, and 2) the U.S. shale firms also need to keep pumping to pay their bills and loans and to appease their investors.
www.rdjconsulting.co.za
FEBRUARY, 2020
OPEC (Organization of Petroleum Exporting Countries) and OPEC+ members are considering holding an emergency meeting next week with the hope of cushioning the declining demand from the world’s largest consumer of oil. If measures are not taken to slush further production, the disappointment among traders could push prices even lower. OPEC already unveiled deeper production cuts over a month ago, and as these are put into effect, Saudi Arabia (which has borne the greatest burden in reducing supply) has slashed output to the lowest since 2014. If prices in the Oil Market continue to drop, the USA Shale industry could be hard hit. Some shale producers need to see WTI prices at least around $50 for their operations to be profitable. At the time of writing WTI prices are at $50 (4th February 2020) having fallen from $63 on the 6th of January 2020. We could see a return of the problems faced in 2015 and 2016, when several shale firms collapsed because of low oil prices. Another problem for the greater oil industry would be that with less revenue, we would see less investment in exploration. Even the big international oil companies in Namibian would be forced to reconsider investments in the future. Any prolonged period of lower prices could see more cuts to exploration. This could result in a drop in available reserves in the decades to come.
13
If oil prices stay low, you could see a positive effect on your wallet when you are filling up your car at the petrol station. Petrol prices do not generally drop immediately just because the price of oil drops for a short while. If the economic impacts of the Coronavirus are long-term and we see long-term lower oil prices, you might be celebrating the Petrol prices while Oil economies suffer to fund their national budgets. The authorities remain positive that this situation will pass. Markets have bounced back before during SARS and other similar outbreaks. The actual impact of the Coronavirus on Oil Markets and the Global Economy will depend on how quickly and effectively we control the spread of the virus to other regions. The fast aggressive and strategic response from China and the WHO has installed confidence from the market. With today’s technology and preparedness, we expect the full impact to be modest and short-lived. With demand generally low, Oil Inventories or stockpiles will slightly increase which will further cushion the effects… but this will also be short-lived as the market adjusts itself.
More About the Author Gawie Kanjemba is an Energy Specialist who holds a B. Juris, LLB (Hons) from the University of Namibia, and an MA/MSc. in International Energy (Project Management & Emerging Economies) from Sciences Po Paris. He completed this with exchanges at Stanford University in the USA and Peking University in China.
www.rdjconsulting.co.za
14 FEBRUARY, 2020
ELECTRICITY Arandis Power Eyes South African Power Market
Arandis Power Project. Image Source: https://www.linkedin.com/company/arandis-power
N
amibia’s independent power producer, Arandis Power, is eyeing the South African power market by offering the South African utility Eskom a 120MW of flexible power generation capacity within the framework of the Request for Information (RFI) that was issued on 13 December 2019 by the South African Department of Mineral Resources and Energy in respect of the design of a Risk Mitigation Power Procurement Programme.
developing since 2008 a 120MW Heavy Fuel Oil (HFO) thermal power generation project for the sale of electricity to the national utility company, NamPower.
According to South Africa’s Department of Energy, the Integrated Resource Plan (IRP) indicates that there is a short–term supply gap of approximately 2 000 MW, which has recently been updated by Eskom to about 3 000 MWs. Therefore, the Risk Mitigation Power Procurement Programme in the country is looking at alleviating current supply constraints within the South African grid in the short- and medium-term by evaluating options to generate between 2000M and 3000MW capacity (updated by Eskom from the previous 2000MW) that can be connected to the grid in the shortest possible time and at minimum cost.
The company is now offering the same 120MW supply to Eskom. According to Arandis Power, the project is already fully developed and ready for implementation. Groundbreaking for the project could take place within four months of signing a Power Purchase Agreement with Eskom or any other off–taker in the Southern African Power Pool region.
Arandis Power is the special purpose Independent Power Producer (IPP) company in Namibia that has been actively
The company had had talks to sell electricity to NamPower throughout the year 2017, but on the 19 of October 2017, NamPower wrote a letter to the company in which they resolved to cease any further engagement with Arandis Power on the 120MW power project.
Readings: http://www.energy.gov.za/ http://www.arandispower.com/ https://teitimes.com/post/namibia-s-arandis-power-offers-eskom120mw https://www.observer.com.na/index.php/national/item/9047arandis-power-in-the-dark
www.rdjconsulting.co.za
FEBRUARY, 2020
15
RENEWABLE ENERGY Climate Change Adaptation and Disaster Risk Management in the Kunene Region
RDJ Photo
M
any people in the Kunene region depend on livestock, conservancy related and the use of biodiversity products for their daily livelihoods. These natural resource-based livelihoods are vulnerable to climate change. The region has in previous years been affected by long periods of drought that have made it difficult for the communities to adapt to the effects of climate change and to diversify their livelihoods. The Environmental Investment Fund (EIF) undertook a study on underground water, natural springs and perennial rivers which were found to have a major influence on agricultural production and tourism in the region. According to EIF’s Chief Executive Officer (CEO), Kunene is the driest region in the country, characterised by irregular rain patterns which makes it unreliable for crop production. After the study and its findings which were released in September 2011, the EIF identified an opportunity to harvest water before it evaporates, as an initiative to assist farmers to increase their agricultural productivity and incomes, adapt and build resilience to climate change, and reduce carbon pollution through crop production. The Fund has been constantly working towards climate change adaptation and disaster risk management in the Kunene Region, where it has implemented a number of projects. The Funded Activity Agreement with the Green Climate Fund is one of the projects carried out in the region at a cost of N$140 million in Dec 2018. In July 2019, the EIF also availed another N$158 million to conservancies in the region to support various conservancies at Kunene Region towards
coping with the impact of climate change. As a result of the Funds effort to better the region, the Government of the Republic of Namibia joined hands and launched an agricultural project in Warmquelle in June 2019, and the latest accomplishment is the newly inaugurated 150-killowatt solar plant in the Soris Soris conservancy. The new plant was built at a cost of N$5.2 million, courtesy of the EIF together with the Ministry of Environment and Tourism. The plant is seen as the EIF’s contribution to Namibia’s attainment of renewable energy and energy efficiency targets as it will not only save the region from the adverse effects of climate change but will also inevitably serve as a conduit for achieving national climate resilience objectives.
Readings: http://www.iecn-namibia.com/-content/Kunene%20toolkit.pdf https://www.namibian.com.na/189794/archive-read/Less-rainfalldependent-crop-schemes-for-Kunene http://www.iecn-namibia.com/-content/Kunene%20toolkit.pdf https://economist.com.na/40525/environment/n140-millionearmarked-for-climate-change-action-in-kunene-region/ https://www.nbc.na/news/eif-avails-n158-million-conservancieskunene.21405 https://neweralive.na/posts/govt-launches-agricultural-project-inwarmquelle http://www.iecn-namibia.com/-content/Kunene%20toolkit.pdf https://www.namibiansun.com/news/sorris-sorris-gets-solarpower2020-02-03/
www.rdjconsulting.co.za
16 FEBRUARY, 2020
WATER Rainfall Update – January 2020
Author's representation of Namibia's Rainfall quantities received over the month of January, 2020 (NMS Data).
R
ainfall is an important part of the water cycle and plays an even more significant role in the agriculture and water (demand) sector of Namibia. For the month of January 2020, higher rainfalls were recorded in the Karas, Oshana, Okavango and Otjozondjupa regions. As per Namibia Meteorological Service (NMS), these areas reported rainfall above normal for specific stations in the regions. The Zambezi Region in January 2020 recorded slightly more than the normal total rainfall while the central and southern parts of the country received little to no rain as from the second week of January 2020. Although some areas recorded above-average rainfall for the season (October 2019 to January 2020), large parts of the country experienced below-average rainfall. According to the Namibia Rainfall Bulletin dated January 2020, Koes, Khorixas and surrounding areas received well above average rainfall for the season however, a greater
part of this rain fell for a day only, while Ondangwa, Mukwe and Steinhausen received good rains consistently from the onset of the season. However, most of the country remains below average or slighted into the belowaverage rainfall category, with Keetmanshoop receiving the lowest rainfall totaling to 26 mm for January 2020. In summary, rainfall recorded in Namibia during the January 2020 month, show a depiction of mixed rainfall, with northern and eastern parts of the country having received above-average quantities of rain over the past four months, while north-eastern, central and southern areas experienced below-average rainfall.
Readings: Â Namibia Meteorological Service: www.meteona.com Namibia Rainfall Bulletin - Jan 2020
www.rdjconsulting.co.za
FEBRUARY, 2020
17
Image of the the dam wall of Goreangab Dam in Windhoek, with water levels below the dam's capacity. Credit: RDJ Photo
D
Water Shortage in the Country – Way Forward?
espite the government’s efforts in providing boreholes, aquifers and reclamation plants, Namibia continues to suffer from water shortages due to the poor past and present rainfall. A way forward is the next priority.
Coastal and Central Regions of Namibia Currently, the government has secured funds to carry out a feasibility study which will investigate the quantities of water water needed in the most affected coastal and central areas of Namibia, as well as the possibility of supplying them with desalinated water from the Atlantic Ocean.
//Kharas Region The Office of the Prime Minister has given N$23 million to the //Kharas region to improve water supply in the region.
According to //Kharas Chief Regional Officer Mr. Beatus Kasete who was speaking at the //Kharas Regional Council opening in January: Seventy-four (74) locations where listed for the installation and drilling of boreholes; Thirteen contractors (13) have started the work; Four (4) boreholes have been completed; A total of forty (40) were estimated to be completed by end of February 2020.
Readings: https://www.namibian.com.na/87615/read/Govt-acts-on-coastalcentral-region-water-woes https://www.namibian.com.na/87564/read/Kharas-gets-N$23m-forwater-infrastructure
18 FEBRUARY, 2020
ENVIRONMENT & SUSTAINABILITY A Review of Namibia’s Wild Horse Population
T
he Ministry of Environment (MET) and Tourism has achieved another milestone after the wild horse’s management plan proved successful. The plan which was launched in 2019, has succeeded in boosting the growth of the previously threatened feral horse population. The horses are currently recorded at 86, an increase from the 73 horses recorded in 2019 and 15 foals. The herd is a combination of 40 stallions and 31 mares. The MET minister, Pohamba Shifeta also addressed the rhino and elephant poaching saying in 2016, 101 elephants and 61 rhinos fell to poachers. He added that the elephant poaching is now on a steady decline, recording 50 poached elephants in 2017, 27 in 2018 and 12 in 2019, while rhino poaching has been variable, recording 61 in 2016, 55 in 2017, 74 in 2018 and 45 in 2019.
Author's representation of Namibia's Rainfall quantities received over the month of January, 2020 (NMS Data).
Image showing wild horses in Namibia. Image Credit: https://economist.com.na
www.rdjconsulting.co.za
20 FEBRUARY, 2020
TELECOMMUNICATIONS MTC Plans Services
for
Mobile
Money
M
obile Telecommunications Company, MTC Namibia is planning to offer mobile money services. Mobile money is a technology that allows individuals to receive, store and spend money using a mobile phone. This is a service that stores funds in a secure electronic account, linked to a mobile phone and is often provided by the same companies that run the country's mobile phone services available to both pre-pay and contract customers. The service can be used anywhere where there is mobile phone signal. According to WorldRemit, an online money transfer service that provides international remittance services, benefits of this service include Multi-faceted, Direct, Fast, Convenient, Secure and Low cost. MTC has also created a new package deal called taamba (Gift) that will allow customers to buy data bundles for all active Pre-paid and Post-Paid customers. With over two million subscribers connected to its network, MTC seeks to diversify its income streams which are currently dominated by data and voice services.
PowerCom Commences its Project of Erecting Network Towers in the Country
P
owerCom (Pty) an auxiliary of Telecom Namibia’s Information and Technology (ICT) infrastructure and equipment provider, began with the erection of network towers, just as announced in 2019. The aim of this project is not only to improve internet connectivity but also increase the company’s footprint and asset base to best service ICT stakeholders and offer better connectivity in the regions. According to PowerCom's Chief Executive Officer, the company intends to erect 19 towers at an estimated cost of N$24 million, of which the first set has already been started at Walvis Bay and is to be completed by 20th March, 2020 at a cost over N$5.6 million. Specifically, the towers will be erected countrywide as follows: one in Omusati; two each in Hardap, Oshikoto, Otjozondjupa and Kunene; three in Kharas; five in Khomas and eleven in Erongo region.
Readings: https://www.worldremit.com/en/mobile-money https://www.observer.com.na/index.php/business/item/11671-mtceyes-mobile-money
A New SMS Service to Enable Swakopmund Residents Sort Their Municipal Accounts
A
new Short Message Services (SMS) notification service was launched in January 2020 by the Municipality of Swakopmund. According to Nehemia Salomon the Mayor of Swakopmund who was speaking at the opening of town council meeting, the new service will enable customers to receive information regarding their municipal accounts. Customers are requested to update their accounts at the municipality so that they will no longer need to queue up for simple details like outstanding balances as they can now receive notifications through SMS.
Image showing a network tower in Namibia. Image Credit: RDJ Photo
Readings: https://www.powercom.na/ https://www.namibian.com.na/87961/read/PowerCom-startserecting-towers-at-the-coast
22 FEBRUARY, 2020
FINANCING GIPF Invests in Blueberries Plantation at Mashare Irrigation Scheme
T
B2Gold Donates Gold in Support of Black Rhino Conservation
he Government Institutions Pension Fund (GIPF) has invested N$90 million in a blueberry farming project through a local private investment
company, Konigstein Capital which has a 25-year lease agreement to operate from the scheme located in the Kavango East region. The funding is done through GIPF’s unlisted investments portfolio at the Mashare Irrigation Scheme. The fruit will be stocked on local shelves, but the existing infrastructure would help export the fruit in order to bring in foreign currency.
Readings: https://www.namibian.com.na/87875/read/GIPF-invests-N$90m-inblueberry-project https://www.gipf.com.na/unlisted-investments
Image showing Gold Processing at B2Gold Namibia. Image Credit: www.b2gold.com
T
he minister of Environment and Tourism announced in Windhoek at celebratory launch event in January 2020 that B2Gold Namibia donated 1 000 ounces of gold, valued at about N$25 million towards the conservation of Rhinos. According to the President of B2Gold, the donation represents the first time that gold, a natural resource from the ground, is being used to provide sustainable funding to community-backed initiatives for the protection of the iconic black rhino. On the date of sale, B2Gold will produce 1 000 limited edition Gold Rhino bars which will be sold to investors at the spot price with an addition of 15% conservation premium.
Image showing crop farming/plantation. Image Credit: RDJ Photo
The Managing Director of B2Gold added explaining that the funds will be used in two ways: The first part will be invested to provide long-term sustainable financing for black rhino conservation, while the second part of funding will be applied immediately to conservation actions in the field, including support for patrols, intelligence activities, and to rural communities for whom the protection of rhinos is a duty.
www.rdjconsulting.co.za
24 FEBRUARY, 2020
WOMEN IN INDUSTRY
Women’s Participation in the Cabinet of Namibia
17% The President, Vice President, and all Ministers
35% 55% All Deputy Ministers
Total Cabinet members
33% All Executive Directors
Share Your www.rdjconsulting.co.za Story With Us Today. E: office@rdjconsulting.co.za / T:+264 61 400 171
FEBRUARY, 2020
25
YOUTH IN ACTION
RDJ invites the youth across all sectors to share their inspiring stories with us and the world via office@rdjconsulting.co.za or even have a chat with us at +264 61 400 171. WhatsApp calls and interviews can be arranged also on request.
T
DBN Opens Financing Opportunity for Young Entrepreneurs
he Development Bank of Namibia’s (DBN) mission is to significantly impact on sustainable socio-economic development and transformation in Namibia. The bank opened up a skills-based loan facility program in December 2019 to target and assist the young people in need of venturing into business. So far, DBN has received 37 applications (amounting to over N$17 million) from artisans and university graduates seeking to start their businesses. The government has invested N$30 million for this project, of which artisans, have
been allocated 60% of the available funds while 40% is to be reserved for university graduates. This project aims to reduce youth unemployment and stimulate the depressed real sector. The bank also helps young entrepreneurs to develop business projects, while ensuring that their business concepts are clear, and that risks mitigated are adequately understood by both parties (the borrower and the bank). DBN therefore encourages the youth to approach the bank for advice and guidance before submitting their www.rdjconsulting.co.za
loan application. Additionally, the government has provided N$98 million as a guarantee for collateral needed by small and medium enterprises, as well as the youth to acquire loans in order to begin their businesses. Readings & Notes https://neweralive.na/posts/collaborative -sme-youth-financing-strategy-unveiled https://www.namibian.com.na/88225/rea d/Youth-graduates-apply-for-N$17million-in-DBN-loans https://www.dbn.com.na/productsservices/artisan
26 FEBRUARY, 2020
TENDERS
NAMCOR Tender Name/Description: invitation to tender for the reconditioning and on-site management of hydraulic cylinders Closing Date: Friday 6th of March 2020
ECB Tender Name/Description: Assistance with the establishment and operationalisation of central regional electricity distributor (Central RED) Closing Date: 12 February 2020
Tender Name/Description 3: MTC10/20/20: Supply, delivery, installation and commissioning of a layer 7 load balancer Closing Date: 6th March 2020 Â
MINISTRY OF LAND REFORM Tender Name/Description: training of trainers for the training of traditional authorities on the communal land reform act no 05 of 2002 with emphasis on communal land right registration procedure and records management Closing Date: 09 April 2020 Â
ROSSING URANIUM
MTC NAMIBIA Tender Name/Description 1: MTC08/20/20: Supply, Delivery, Installation and Commissioning of a voice mail (Call completion) system. Tender Name/Description 2: MTC09/20/20: Structural definition and design of the look and feel for retail shops
Tender Name/Description 1: Supply Scaffolding services Tender Name/Description 2: Supply electrical maintenance services Tender Name/Description 3: Supply crusher maintenance services
SUBSCRIBE FOR MORE UPDATES www.rdjconsulting.co.za
UpNext 2020 Research Camp Date: 6 to 7 March 2020 Venue: Namibia university of Science and Technology - NUST Who shoiuld register to attend: Students preparing for their research Projects, asd well as young people interested in conducting research in various areas.
RDJ Career Day Date: 13 March 2020 Venue: NIPAM Executive Conference Hall The event will see: RDJ Interns' Graduation, Motivational Speeches and Career Exhibitions
RDJ Team Retreat Date: 28 March 2020
FEBRUARY, 2020
CONTRIBUTING AUTHORS
David Jarrett (Managing Consultant) RDJ Consulting Services CC Priscila Chilombo Olga (Economist) RDJ Consulting Services CC Naemi Shoopala (Researcher) RDJ Consulting Services CC Misozi Mugala (Research Intern) RDJ Consulting Services CC Haikali Ndafimana Malakia (Research Intern) RDJ Consulting Services CC
www.rdjconsulting.co.za
29
To Advertise Contact marketingcomm@rdjconsulting.co.za +264 61 400 171
Find Us Kolbe Street, Pioneers Park Windhoek, Namibia
Social Media
www.rdjconsulting.co.za