JUNE, 2020
The Namibia
ENERGY & SUSTAINABILITY News & Analysis
Embracing the “New Normal”
IN THIS MONTH’S ISSUE: The 2020/21 National Budget
SORED To be Operational Before August 2020
Gover nment Provides N$9.4 Million to University's E-Learning During Covid-19 Era
Bank Windhoek Launches New Service App Women In Industry Youth In Action
The NAMIBIA Country Briefing of RDJ Consulting
C O N T E N T S
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From The Editor
Quick Facts
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Economy at Large
Oil & Gas
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Electricity
Renewable Energy
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Water
Roads and Transport
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Telecommunications
Financing
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"Women in Industry"
Tenders and Careers
33 Contributing Authors
JUNE, 2020
From the Editor Embracing the “New Normal” Dear Reader,
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
When RDJ Consulting started in 2010, we knew we wanted to make a real difference. Now that we face the Covid-19 challenges to our economy and environment, the “new normal” way of life is slowly allowing businesses to move to recovery stages. Therefore, this month’s RDJ Briefing allows us to continue to take you through the changes that are being implemented by Government and in our covered sectors. Various strategies called for or arranged by both the State and Private actors, have started to come center stage. All the major national impacting sectors except tourism and hospitality, have cause for upbeat feelings with the current actions and initiatives covered in this month’s edition such as: FINANCE - The National Budget released after being delayed for months ELECTRICITY - SORED Operational by August 2020 EDUCATION - Government providing N$9.4 Million funding for University's E-Learning COMMS / BANKING - Bank Windhoek Launching a New Service App We also stay true to our philosophy through our “Youth In Action” Section, where we feature an upcoming, vibrant young lady that is shining through her firm Power Six Investments cc, which is focused on sustainability through using old oil barrels to make sustainable and comfortable household assets. All these and other initiatives indicate that the world is learning to adapt and embrace the new normal way of life and carry on with life in a safe manner. 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 . 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, #Stay Safe and Comments are welcome….
(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 (2019): -1.1% Repo Rate: 4.00% Interest rate (Prime): 7.75% Inflation (CPI): 2.10% 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
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JUNE, 2020
THE ECONOMY AT LARGE The 2020/21 National Budget
Image showing Namibia's Parliament building - CREDIT: www.namibian.com.na
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he Minister of Finance, Iipumbu Shiimi has tabled the National Budget for the 2020/21 financial year on 27 May 2020. The budget totalled N$72.8 billion,
emergency budget of N$727 million to the health sector, which the MHSS is making progress in executing.
which is an increase of 9.47% from the N$66.5 billion budgeted for the 2019/20 financial year. In the budget statement, the Minister reported that the single-year budget reflects the commensurate urgency of addressing the elevated once-off needs arising from the impact of COVID-19 pandemic.
Given the weak revenue outlook, the budget deficit for the financial year 2020/21 is estimated at 12.5% of Gross Domestic Product (GDP), which is a once-off rise in the budget deficit, as government seeks to adequately respond to the challenges posed by Covid-19 on the economy and social strata. This budget deficit will be financed through a combination of own savings, as well as domestic and external borrowing. The country’s debt stock is further estimated to rise to N$117.5 billion, corresponding to 68.7% of GDP, from 54.8% estimated in the previous budget speech. The Minister however plans on adjusting expenditures to the bare minimum in order to consider external factors such as Covid-19 so as to stabilize growth in public debt.
The 2020/21 budget accords 49.5% of the N$64.2 billion non-interest expenditure to social sectors. The Ministry of Health and Social Services (MHSS) was allocated N$7.95 billion, while the Ministry of Basic Education, Arts and Culture receives N$14.2 billion. Jointly, a total of N$14.2 billion was allocated to the Economic and Infrastructure sectors, while a total of N$14.2 billion was allocated to the Economic and Infrastructure sectors. The Public Safety Sector takes up the third largest share of the budget allocations, totalling N$13.1 billion, while the Administrative Sector receives the least allocation of N$4.5 billion. The Minister has further front-loaded an
Readings https://mof.gov.na/budget https://economist.com.na/53208/markets/n72-8-billion-budgetfor-2020-21-financial-year-announced/
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Innovative or Status Quo?
Click HERE To Acess PDF
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JUNE, 2020
Trade Deficit Recorded in April 2020
Figure showing Namibia's 2020 import and export data representation – sourced from NSA
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he Trade Balance, also known as the Balance of Trade (BOT), is the calculation of a country's exports minus its imports. A Trade Balance can
either be in Surplus (when exports are greater than imports – positive Trade Balance) or Deficit (when imports are greater than exports – negative Trade Balance). In April 2020, Namibia registered a trade deficit of N$826 million after it posted a revised surplus of N$1 731 million in March 2020. Namibia’s trade deficit persisted since May 2019 to February 2020. During the same period, the value of exports weakened, falling by 43 percent from its level of N$9 036 million in March 2020. The value of imports followed a similar trend, falling by 18.1 percent and 36.7 percent compared to March 2020 and April 2019 respectively. The simultaneous decline in both exports and imports affected total merchandize trade. This
observed a decline of 39.1 percent compared to March 2020, or 42.4 percent decline when compared to April 2019. Namibia’s trade composition by partner remain skewed towards a few common countries. China emerged as Namibia’s largest export market while for the first time Zambia claimed South Africa’s position as the number one source of imports for Namibia. The composition of goods in terms of exports remained the same comprising mainly of minerals such as non-ferrous metals, non-monetary gold, metalliferous ores and metal scrap with the exception of fish and live animals, the only non-mineral products among the top five list of exports.
Readings https://nsa.org.na/ https://d3rp5jatom3eyn.cloudfront.net/cms/assets/documents/MO NTHLY_TRADE_STATISTICS_BULLETIN_APRIL.pdf
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JUNE, 2020
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Namibia Records Lowest Inflation Rates in 10 Years
CREDIT: RDJ Photo
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he Namibian Statistical Agency (NSA) has completed the Namibian Consumer Price Index (NCPI) for the month of April despite some price
The lockdown resulted in demand shocks and oil prices dropping, leading to a disinflationary effect on prices in Namibia during April.
collection challenges experienced as a result of the ongoing Covid-19. The National lockdown which was imposed on 27 March 2020 until 04 May 2020 impacted the routine compilation of NCPI, Particularly, the collection of prices which became increasingly difficult due to the increased numbers of missing items in sampled outlets, the temporary closure of retail outlets, as well as the restrictions on movement. The Agency however, used imputation techniques for the prices of goods and services which could not be collected to provide a reliable estimate of price change.
On a monthly basis, inflation has dropped to -3.0% from a monthly rate of 0.1%. The slowdown in the annual inflation rate between April 2019 and April 2020 emanated mainly from Housing, water, electricity, gas, and other fuels, which accounts for 28.4 percent of the overall basket of NCPI. Categorically, Alcoholic beverages and tobacco declined (from 7.5percent to 0.4 percent); Housing, water, electricity, gas, and other fuels category (from 2.2 percent to -0.5 percent); and transport (from 7.1 percent to -0.1 percent).
The computed NCPI shows a record low of 1.6% in April 2020, the lowest record in 10 years. The lowest inflation rate is said to be a result of the lockdown imposed in the month of April as a catalyst to fight Covid-19.
Readings https://nsa.org.na/
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JUNE, 2020
OIL AND GAS June Fuel Prices Shows Market Self Adjustment
CREDIT: RDJ Photo
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he Ministry of Mines and Energy (MME) has committed to keep countrywide fuel pump prices unchanged for the month of June 2020 thus,
considering the need to ensure the arranged importation of fuel products into the country. This means that the price of 95-octane petrol remained at N$10.35 per litre whereas the price of diesel 50ppm remaind at N$11.13 per litre. The MME aims to keep prices stagnant to enhance stability in the market thus, the decision was influenced by the National Energy Fund's current solid financial position, that absorbed the under-recovery on petrol and shielded consumers. In May, the price of both petrol and diesel was cut by N$1 a litre, which would have been greater. Nevertheless, a bigger cut would have plunged retailers and distributors into severe losses on top of the effect of the national lockdown. Low global prices were the main reason for a steeper cut then, but it was also matched with a currency depreciation, which diminished some of the benefits that would have been shared by consumers, distributors, and retailers.
as a response to falling oil demand thus, with the purpose to breathe life into the oil market after a heavy blow from Covid-19. The production cuts are projected to aid the recovery of oil prices and crude prices on the supply side of the crude oil business equation. Saudi Arabia, who is the biggest oil producer in OPEC has announced a cut in its oil production by one million barrels per day in June. Furthermore, a rise on demand is projected from midJune onwards, which is likely to boost fuel prices. In addition, as more countries continue to ease their lockdown restrictions, the demand side of the refined products business equation are also expected to increase. The market is slowly rebalancing as major producers cut excess supply, and consumption recovers after a historic collapse in demand caused by Covid-19. Although oil is still down to more than 50% this year, the market sentiment has turned cautiously constructive since the end of April 2020, and is expected to remain as such unless major setbacks in terms of infection rates arise.
Readings:
Globally, the alliance between the Organization of the Petroleum Exporting Countries (OPEC) and independent oil producers reached an agreement in April to cut oil production by 10 million barrels per day in May and June
June 2020 Fuel Prices
https://economist.com.na/53294/mining-energy/fuel-price-to-remainunchanged-this-month/ https://www.namibian.com.na/91486/read/Fuel-prices-unchanged-for-June https://www.nbc.na/news/fuel-prices-will-remain-unchanged-june.31578 https://businesstech.co.za/news/trending/398293/here-is-the-expectedpetrol-price-for-june-2/
N$ 10.35
N$ 11.13
per litre
per litre
95 Octane Unleaded Petrol
Diesel 50ppm
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JUNE, 2020
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ReconAfrica Experiences a Setback due to Covid 19
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ovid-19 has delayed Reconnaissance Energy Africa’s (ReconAfrica) oil exploration in the Kavango region. The Company is a junior oil andÂ
gas company engaged in the exploration and development of oil and gas in Namibia. It owns 90% of interest in petroleum exploration licence in the northeast of Namibia, in an area that covers the entire Kavango sedimentary basin which is known to offer large scale conventional and non-conventional play types. According to Yusneurys Perez Martinez, ReconAfrica's Deputy General Manager in Namibia, oil and gas exploration was set to take course in June 2020, but unfortunately due to Covid-19, it has now been postponed to later in the year. The first of the three drilling locations was set to take place in June 2020 before postponement, putting the drilling process on hold. The company received its licence for exploration in January 2015, which covers an area of approximately 25 341.33 square km which is equivalent to 6.3 million acres. A survey and analysis were carried out and confirmed that
the Kavango Basin could reach depths of up to 9144 metres (30 000 feet), and is also anticipated to hold an active petroleum system. ReconAfrica plans on drilling a 3.6km exploration well. The company has been analysing all geological and geophysical data ever since it got their licence in hopes of finding a meaningful amount of iron carbons within the area. The cost of renewing the first period of the exploration licence is projected to be around N$143 million. Meanwhile, fhe company is already bringing fortunes to the areas around their exploration borders. For instance, approximately 100 families at Kawe village in the Rundu Rural constituency of the Kavango East Region were helped with a N$75 000 worth of food parcels to assist those in need, given the current state.
Readings: https://reconafrica.com/operations/ https://www.namibiansun.com/news/covid-19-delays-oil-exploration-inkavango2020-05-22/
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JUNE, 2020
ELECTRICITY SORED to be Operational Before August 2020
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amibia currently has three Regional Electricity Distributors (REDs) in existence, namely Northern Regional Electricity Distributor (NORED), Central
North Regional Electricity Distributor (CENORED) and Erongo Regional Electricity Distributor (Erongo RED). These bodies are responsible for the distribution of electricity to residents in their specific regions. The Electricity Control Board (ECB) of Namibia is actively working on plans to set up a Southern Regional Electricity Distributor (SORED) before August 2020. The plans for a RED in the south have been ongoing and its operation was firstly dated for 2018 which did not materialize. Now, the Southern RED's rollout is set to be operational by July 2020, or even earlier, depending on its final approval. The Southern RED's business plan, shareholder agreement and asset transfer agreement had been endorsed by its shareholders' committee. Once the necessary approvals are obtained, the process to operationalize the Southern RED will start and residents of towns and villages in the south, contracted to the southern RED will buy electricity directly from the distributor. The need for the REDS has been in focus for a long time now. A Restructuring Study completed by the Ministry of Mines & Energy (MME) in 1998 recommended that Namibia be divided into five areas and that a single electricity distributor be established for each area solely responsible for electricity distribution in that area. All the existing distributors in such area then join the RED (“no islands” allowed). The Namibian Cabinet had approved the establishment of REDs in Namibia in 2000.
The rationale for REDs is primarily to improve operating efficiencies, ensure good customer services, unify tariff structures and levels, and promote continued electrification, through the establishment of asset-based REDs. REDs own and operate all distribution assets and provide electricity supply services to all customers within their distribution area. The REDs are private companies established in terms of the Namibian Companies Act, 1973. Their owners (shareholders) are the participants – these are mainly the LAs, Regional Councils (RCs) and NamPower who transfer their assets and customers to the REDs in exchange for shares. This is expected to lead to a win-win situation for all stakeholders in a particular region. The process of creating REDs began with the establishment of NORED in 2002, followed by Central RED (CENORED) in 2003, which became operational in 2005 with the aim of serving the areas around the town of Otjiwarongo. Later in the same year, ErongoRed was established. The remaining REDs to be established & operationalised are SORED (southern Namibia) & Central RED (central Namibia). According to Foibe Namene, the CEO of ECB, the Central RED is foreseen to be established during the first quarter of 2021.
Readings: https://www.namibiansun.com/news/southern-electricitydistributor-in-the-works2020-02-07/ https://www.ecb.org.na/images/docs/REDs/REDs%20Article%201Overview.pdf https://www.ecb.org.na/images/docs/REDs/REDs%20Article%202History.pdf https://www.ecb.org.na/images/docs/REDs/Progress%20Report%2 0regarding%20Establishment%20&%20Operationalisation%20of% 20REDs%20in%20Namibia%202004.pdf
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JUNE, 2020
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Ruacana Power Station Boosts Local Energy
Figure shows Namibia's Electricity Sources Subsectors. Data source - NSA Electricity Sectoral Report (March 2020)
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mibia’s local electricity production has reached 260 000 Megawatts per hour (MWh) for the second time in six years. During February 2020, the country
produced 260 165 MWh, the highest electricity generation since April 2018 (260 294 MWh), and during March 2020, Namibia continued to increase production, thus produced about 268 742 MWh of electricity. This was revealed in the Electricity Sectoral Report by the Namibia Statistics Agency for March 2020. The own generation sub-index recorded 243.2 basis points in March 2020 compared to 235.5 and 146.2 basis points recorded for February 2020 and March 2019 respectively. The annual increase of 97 basis points (March 2019 to March 2020) recorded in the generation of electricity was mainly caused by the positively increased production incurred by the Independent Power Producers (IPPs) Camelthorn Business Venture Solar Plant and Innosun
Osona Solar Power Station, respectively. While, on the monthly basis, the rise in the electricity generation was motivated by the increased records from Ruacana and Momentous One Solar Power Stations. The import sub-index increased from 33.9 basis points to 72.1 basis points in February 2020, while in March 2020, it stood at 106.0 basis points. The increase in basis points registered on a monthly basis came as an increase in electricity imported mainly from the Zimbabwe Power Company (ZPC).
Readings https://www.namibian.com.na/91210/read/Second-landmark-inelectricity-production https://nsa.org.na/page/publications/ https://d3rp5jatom3eyn.cloudfront.net/cms/assets/documents/Ele ctricity_SECTORAL_REPORT_MARCH_2020.pdf
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JUNE, 2020
RENEWABLE ENERGY MME Anticipates a Positive Outlook for Renewable Energy
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he Ministry of Mines and Energy (MME) is positive about the future of the Renewable Energy Sector along with the growing presence of international
oil companies in the hydrocarbons sector. Renewable energy offers dependable power supplies and fuel diversification, which enhance energy security and reduces the need for imported fuel. According to the Minister of Mines and Energy, there are positive and encouraging signs in the country's hydrocarbons and Renewable Energy Sector. The Ministry introduced the new reforms for the renewable energy sector that has made it possible for Independent Power Producers (IPPs) to come into the sector and produce clean energy. The most recommended forms of energy to produce are solar and wind energy. Apart from incorporation of IPPs in the Energy Sector, other Major projects that may be the result of the positive outlook in the Namibian energy sector include:
Kudu Gas Project: An update on Kudu Gas Project is now under review, following up on its business model. The hope is that the new model is sustainably developed further for possible implementations. Baynes Hydro Project: The Angola-Namibia cross border Baynes Hydroelectric Dam is currently undergoing feasibility studies which are expected to commence with construction in June 2020. The dam will provide 600MW output of which will be split into 300MW for Angola and 300MW for Namibia. The optimism of improving Namibia's energy sector through expanding the energy mix are high. Hence, using renewable energy instead of fossil fuels helps decrease the current levels of greenhouse gas emissions, and this would have a positive environmental impact.
Readings: https://www.namibiansun.com/news/alweendo-optimistic-aboutrenewable-energy-prospects2020-05-18/ https://www.namibian.com.na/91149/read/Plans-to-boost-energy-security
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JUNE, 2020
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Namibia’s Biomass Finds New Home in Hamburg
CREDIT: RDJ photo
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he German City of Hamburg is on a mission to explore the option of using Namibia’s Biomass from encroacher bush with a motive to partially
replace fossil fuels in the generation of energy. This was created by an impelling force of creativity by the German government, Science Institutions and Non-Governmental Organizations (NGOs). The dialogue regarding this began around September 2019 between the state of Hamburg and local stakeholders when delegates from Namibia visited the north German port. Biomass can be defined as an organic material that comes from plants and animals, and is a renewable source of energy. It is estimated that more than 30 million hectares of rangeland are considered to be bush encroached in Namibia but currently, only 1.36 million tonnes per year of bush biomass are utilised. Bush biomass has a potential to play a role in the biomass import sector as the country has both the competitive advantage and sustainability of production and supply. In a press statement availed to Nampa in May 2020, the Chief Executive Officer of the Namibian Biomass Industry Group, Progress Kashandula said that studies will be done to explore the reliability and long-term supply chain from
the purchase of biomass and if it could be built up. The studies are further expected to determine if the project can be turned into a valuable and climate friendly export product and how it could benefit everyone involved. Kashandula also added that a larger part of the added value will take place in Namibia and the participation of large parts of the population will be ensured. The State Councillor of the Hamburg Authority for Environment and Energy, Michael Pollmann emphasised that Energy from Namibian biomass could help phase-out coal faster for district heating and can only be done with a insurance of a social and ecological balance across the entire supply chain. Pollmann added that much added value as possible should remain in Namibia in order to benefit as many people as possible.
Readings: https://www.eia.gov/energyexplained/biomass/ https://www.namibian.com.na/193644/archive-read/Germany-eyes-localbiomass-sector https://energycentral.com/news/hamburg-explore-utilisation-namibiasbiomass https://economist.com.na/53186/agriculture/hamburg-exploressustainable-use-of-biomass-from-local-encroacher-bush/
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JUNE, 2020
WATER May 2020 Dam Levels
Most of Namibia’s dams have maintained significant quantities of water from past rainfalls. The graph above shows major dam water levels as percentage of their full capacity for the month of May ,2020 – Adopted from NamWater's weekly dam bulletins
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JUNE, 2020
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EDA Gives Water to the People of Erongo
Erongo Desalination Plant (EDA) SOURCE: www.erongo.com.na
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he Erongo Desalination Plant (EDA) was built in 2010 by Orano, represented by its subsidiary Orano Resources Namibia (previously called AREVA) for
continued drop in uranium prices which made mining operations unviable.
the and purpose of supplying water to Uranium mine TrekKopje. In doing so, the company has been a vital contributor to the provision of portable water to Erongo region. The plant has supplied the region with over 55 625 172 cubic meters (m³) of potable water from the time of existence until now. Its current infrastructure has a capacity of 20 million cubic meters per year which can be increased to 26 million cubic meters per year, and in extreme cases where demand increases, its supply can further be pushed to 45 million cubic meters of water supplied per year.
In May 2020. Orano donated about 200 million litres of desalinated water from EDA at the cost of N$6 million to the coastal community. The donation is meant to complement the supply of clean water to Henties Bay, Swakopmund, Walvis Bay and Arandis and was be distributed through NamWater from the Erongo Desalination Plant. This cause is beneficial communities which are already struggling to pay their water bills in this challenging time.
The plant was constructed at a cost of N$2.5 billion and is the largest reverse osmosis seawater desalination plant in Southern Africa, situated in the Namib Desert, 35 kilometres near Wlotzkasbaken north of Swakopmund and is under the management of NamWater and the operation of Nafasi, a South African owned company. Uranium mine TrekKopje is currently in care and maintenance due to the
https://www.erongo.com.na/news/erongo-desalination-plantcelebrates-ten-year-milestone2020-06-03 https://economist.com.na/53372/environment/erongodesalination-plant-provides-55-million-cubic-meters-potablewater-to-the-region-during-10-year-operation-period/ https://nafasiwater.com/projects/ https://www.namibian.com.na/91143/read/Orano-gives-Erongodesalinated-water
Reading:
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JUNE, 2020
CREDIT: RDJ Photo
EDA Gives Water to the People of Erongo
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he Erongo Desalination Plant (EDA) was built in 2010 by Orano, represented by its subsidiary Orano Resources Namibia (previously called AREVA) forÂ
the and purpose of supplying water to Uranium mine TrekKopje. In doing so, the company has been a vital contributor to the provision of portable water to Erongo region. The plant has supplied the region with over 55 625 172 cubic meters (mÂł) of potable water from the time of existence until now. Its current infrastructure has a capacity of 20 million cubic meters per year which can be increased to 26 million cubic meters per year, and in extreme cases where demand increases, its supply can further be pushed to 45 million cubic meters of water supplied per year. The plant was constructed at a cost of N$2.5 billion and is the largest reverse osmosis seawater desalination plant in Southern Africa, situated in the Namib Desert, 35 kilometres near Wlotzkasbaken north of Swakopmund and is under the management of NamWater and the operation of Nafasi, a South African owned company. Uranium mine TrekKopje is currently in care and maintenance due to the continued drop in uranium prices which made mining operations unviable. In May 2020. Orano donated about 200 million litres of desalinated water from EDA at the cost of N$6 million to the coastal community. The donation is meant to complement the supply of clean water to Henties Bay, Swakopmund, Walvis Bay and Arandis and was be distributed through NamWater from the Erongo Desalination Plant. This cause is beneficial communities which are already struggling to pay their water bills in this challenging time.
Reading: https://www.erongo.com.na/news/erongo-desalination-plantcelebrates-ten-year-milestone2020-06-03 https://economist.com.na/53372/environment/erongo-desalinationplant-provides-55-million-cubic-meters-potable-water-to-theregion-during-10-year-operation-period/ https://nafasiwater.com/projects/ https://www.namibian.com.na/91143/read/Orano-gives-Erongodesalinated-water
NRCS Distributes Water Containers in Khorixas
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ight volunteers from the local branch of the Namibian Red Cross Society (NRCS) at Khorixas have distributed water containers and health packs
to people living in the area in order to support the community during the Covid-19 pandemic. The number of health packs and water containers distributed were quite limited, hence priority was given to locals living with disability, child-headed households, people living with HIV, disaster survivors as well as tuberculosis patients. So far, it is reported that twenty (20) health packs have been distributed. The packs include a washable cloth mask, gloves, soap, and hand sanitiser. The volunteers have also installed tippy taps for hand washing hands and handed out containers to store water in households without taps.
Readings: https://www.namibian.com.na/91169/read/Red-Cross-donates-healthpacks-water-containers
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JUNE, 2020
ROADS AND TRANSPORT Total cargo indices by mode of transport for Jan - Mar 2020
NSA Data Representation of Namibia Cargo Index – sourced from NSA (Transport) sectoral report for March 2020.
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JUNE, 2020
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TELECOMMUNICATIONS Government Provides N$9.4 Million to University's E-Learning During Covid-19 Era
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he Namibia University of Science and Technology (NUST) and the University of Namibia (UNAM) were issued a total of N$9.4 million by the Namibian
government to distribute amongst themselves in order to provide necessary services in this trying time. According to the Ministry of Higher Education, Training and Innovation, a sum of N$2.4 million was issued to NUST, whilst UNAM received N$7 million. The money is not only meant for internet connectivity at the respective institutions, but also to take care of server upgrades. UNAM received a higher amount, because they do not only need to upgrade their server, but also improve their storage facility. According to Minister Itah KandjiiMurangi, other institutions of learning are welcome to make use of UNAM once upgraded for e-learning purposes. She further added that this contribution was issued in relevance to the new education policies that have been implemented due to the coronavirus pandemic. The funds were put in place to help combat challenges such as those of unavailable technology facilities e.g. computers and data. Deployment of the necessary resources to support the sector from negative effects of the pandemic has been one of the ministry’s aggregate approach along with making sure that electronic learning occurs at the different institutions of higher education. More than 32 000 underprivileged students at the mentioned institutions of higher education are set to be supplied with a laptop and portable internet devices with 10 Gigabytes of data per month for one respective year to
make use of e-learning. For a student to qualify from this development, they must be underprivileged and has been adversely affected by the virus for the past three to four months. Kennedy Kandume who is NSFAF’s acting chief executive officer mentioned that the devices set to be issued out by the government will consist of a discount for up to 50% and students can top up the balance. He further mentioned that both NSFAF and non-NSFAF students can sign a contract with the institution to positively gain from the initiative.
Covid-19 WhatsApp Number Now Available for People With Hearing Loss
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elecom Namibia Limited, one of Namibia’s national telecommunications operators has identified the struggle of people living with disabilities such as
hearing impairment, also known accessing the currently available number and has made another accessible for individuals with these
as hearing loss in coronavirus toll-free alternative solution disabilities.
The company introduced a WhatsApp number in order to help promote inclusivity. The number which is 0851 100 100 is set in place to help combat challenges that these specific disabled people face. According to Telecom, the initiative has made it possible for individuals living with hearing loss to participate in the talk about any distress concerning the coronavirus pandemic by simply sending out a text message to the national response number mentioned. Image Credit: sriranjanshylesh.blogspot.com
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JUNE, 2020
MTC Launches "Multiple Aweh"
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wo months after launching the Taamba Product Range, Mobile Telecommunications Company (MTC) has launched yet another product, “Multiple Aweh”.
The much-anticipated solution will now enable customers to subscribe to up to three Aweh subscriptions at the same time. Aweh is a subscription that gives customers a 7day package of data, minutes, and SMSs. The amount of the afore mentioned depends on the type of Aweh the customer subscribes to, which also differs in pricing. With multiple Aweh, customers with any active Aweh Subscription may additionally subscribe to Aweh Prime or Aweh Super. Each Aweh subscription will have a 7-day validity and shall expire on day 7, independent of the other Aweh’s expiry date, except for Aweh Oka which will
expire on day 3. Customers may however not have more than three Aweh subscriptions at a time. Additionally, Free units as set out on the qualifying product will only be FREE for local usage; and not when the customer is roaming internationally. The applicable tariff plan rates for any other local data, voice or SMS usage shall apply once free units are depleted. MTC currently has 6 types of Aweh which are outlined in the table below.
Readings: hhttps://www.namibian.com.na/91205/read/MTC-launches-newproduct https://www.mtc.com.na/prepaid/awehproduct/2
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CoW’s Fibre Optic License Application Approved
www.namibian.com.na
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he Communications Regulatory Authority of Namibia (CRAN) has approved an application by the City of Windhoek for a Class Network Facilities Service
by the city of Windhoek for 2017-2022. The smart city plan was approved by council in 2019.
Licence in March 2020. The Network Facilities Licence, which the city initially applied for, enables the holder to construct, maintain, own and make available one or more network elements, infrastructure or other facilities that facilitate the provision of telecommunications services, broadcasting services, electronic communications services or application services.
The municipality's optic fibre plan is aimed at upgrading and expanding the existing network infrastructure to address concerns such as insufficient bandwidth, increase network speed and upgrade old infrastructure, among others. Once the existing network infrastructure is upgraded, the municipality will be able to roll out its smart city services such as “smart water and electricity metering”. with the implementation of its optic fibre monetisation project, the municipality further hopes to be able to monitor traffic flow in real time, improve emergency prevention and response, and to roll out Wi-Fi to the public.
The Windhoek municipality was awarded a Class Comprehensive Electronic Communication Network Services and Electronic Communications Services License which will enable the municipality to implement its part of the Optic Fiber Monetization Project and "smart city" solutions including 5G internet connection. The move is part of the municipality's plan to make money from its network infrastructure which also aims to turn the city into a “smart city” by 2022, a strategic plan that was launched
Readings https://www.namibian.com.na/91192/read/City-gets-fibre-opticlicence https://www.nbc.na/news/windhoek-plans-be-smart-and-caringcity-2022.7919
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JUNE, 2020
FINANCING Nedbank Fund to Assist in the Reduction of the National Carbon Footprint
CREDIT: RDJ Photo
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n association between Nedbank and a green investment promoter for climate-friendly projects has been presented through a new funding progra-
-mme which is described as “Sustainable and Green Projects”. The funds are provided by Nedbank, and have already given their clients the green light to apply for assistance to projects such as renewable energy, energy efficiency, sustainable agriculture, or sustainable tourism projects.
Additionally, the green credit line offers various investments funding across the whole lifespan of a green project; starting from project identification and conceptualisation to the selection of technologies and the calculation of financial and environmental benefits.
Readings https://economist.com.na/51401/environment/green-bank-launchesgreen-financing-for-projects-that-will-help-reduce-the-nationalcarbon-footprint/
Nedbank, in collaboration with Sunref Namibia joined hands to promote sustainability. Funds from Agence Francaise de Development to the Sunref Namibia Technical Assistance Facility made it possible for them to offer technical assistance without cost. Mr. Andrew Hoy from Sunref emphasised on how making use of the green finance assistance will decrease a company’s carbon footprint. “Transitioning to renewable energy is one of the most powerful ways for a country to help reduce the global as well as its own ecological footprint” he said.
CREDIT: www.co2living.com
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Bank Windhoek Launches New Service App
CREDIT: www.bankwindhoek.com.na
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ank Windhoek launched on 16 April 2020 its new Rider Service, which is an add-on service to the Banks’s “Hey Jude” App. This application helps
Bank Windhoek customers connect to their very own Personal Assistant available 24 hours a day, seven days a week. With the new Hey Jude Rider Service, Bank Windhoek customers can now shop in the comfort of their homes which also allows delivery of groceries and other essentials on their doorsteps free of charge. Previously, the service was only used to assist customers with different tasks such as finding cost-friendly plumbers or sourcing quotes for hard to find items. Now, with the new update to its, the service includes a free essentials shopping and delivery service to assist customers. The service has been introduced to support Bank Windhoek customers to adhere to the social distancing guidelines during the COVID-19 pandemic. Strict health procedures have been adopted to ensure the health and safety of customers while providing services. One of these strict measures is the “leave at door” delivery policy, to ensure that the Rider has no physical
contact with customers. Additionally, the Rider Service vehicle is also disinfected at regular intervals to guarantee that all deliveries are as disinfected. Furthermore, the delivering Rider is also supplied with gloves, masks, hand sanitiser, and wipes to safeguard when carrying out shopping trips on behalf of Bank Windhoek customers. In order to access Hey Jude, customers have to download Bank Windhoek’s Hey Jude App from their respective App stores. Payments for the goods purchased can be made through various channels such as the Bank Windhoek EasyWallet service, cash or by Electronic Funds Transfer (EFT). The delivery service is currently available in Windhoek only, while the Hey Jude App and services of its personal assistants are available to Bank Windhoek customers nationwide for only N$99.00 per month, 50 percent off the Normal Retail Price of N$199.00.
Readings https://www.observer24.com.na/bank-windhoek-launches-heyjude-rider-service/ https://www.namibiansun.com/news/bank-windhoek-launchesfree-essentials-delivery-service-during-lockdown-2020-04-23/
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JUNE, 2020
Performance of Financial Markets in the Face of Covid-19
CREDIT: www.tirereview.com
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he Coronavirus pandemic is having a major effect on public health and other sectors, including the Namibian financial markets. Despite domesticÂ
economic conditions, the non-banking financial institutions in Namibia are expected to absorb market risks associated with the Covid-19 pandemic, given their high demand for capital, as it is mandatory. The risk related to the Covid-19 pandemic to financial stability in Namibia may be more severe than anticipated. Risks to Namibia’s financial stability have increased significantly since 2018 as a result of the economic contraction experienced in 2019, coupled with the impact of COVID-19 going forward. All risks to financial stability in Namibia emanated from the banking sector, payment and settlement system, as well as the Non-Banking Financial Institutions (NBFIs) sector, which increased in 2019, when compared to 2018, and was further worsened by the outbreak of Covid-19 earlier this year (2020). Now, the relief measures put in place by the Ministry of Finance and the Bank of Namibia is expected to help in softening this impact to some degree in order to manage the risk.
Other than that, the pension funds industry remained financially sound during 2019, with funding levels above the prudential required limit of 100% despite the persistent recessionary economic conditions in 2019. The pension fund assets grew to N$173.4 billion (9.4% growth), which was caused by positive performance in the financial markets during 2019. The industry accounted for 54.8% of total non-banking financial institutions assets at the end of 2019. The severe losses on the global financial markets are expected to affect the NBFI’s asset position with possible negative ripple effects on the Banking Sector, through the wholesale funding channel. Meanwhile, Covid-19 might lead to lower funding levels for the pension fund industry if the prevailing downturn in financial market performance persists. The impact of the Covid-19 pandemic on the global and domestic economy, as well as financial stability, will be a key factor. In conclusion, observing the current market events surrounding the novel coronavirus crises, market stability, systemic risk, and modern monetary theory, can help manage the impact. Nonetheless, the performance of the non-banking financial institutions might be affected by the outbreak of the Covid-19 pandemic adversely.
Despite the current worsening economic conditions caused especially by Covid-19, the NBFIs sector remained stable and continued to grow its assets in 2019. Its total assets are reported to have significantly increased to N$316.3 billion (9% increase) due to the improved performance in equity markets, particularly during the fourth quarter of 2019.
Also, the long-term effects of the Covid-19 pandemic upon the global economy is hard to forecast at present due to the ever-changing conditions, however in the short-term, the global economic growth is expected to severely decline.
On the other hand, the insurance industry is likely to be unfavourably affected by Covid-19, because it depends on the specific classes of business underwritten by an insurer as well as the implications of the policies implemented.
Readings: https://www.namibiansun.com/news/nbfis-to-absorb-marketrisk2020-05-14 https://www.bon.com.na/CMSTemplates/Bon/Files/bon.com.na/5e /5e33c01a-2d05-4f1f-af6f-80ab47ce7bd9.pdf
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JUNE, 2020
WOMEN IN INDUSTRY Women In Leadership positions Interview with Ms Foibe L Namene Interviewed by Ms. Kina Indongo (Communications Specialist - RDJ Consulting)
Be unapologetic about your ambition and deliver your best. Ms Foibe L Namene
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n this month’s “Women In Inustry section of the RDJ Briefing, we had the honour of speaking to Ms Foibe Louise Namene, whose extraordinary show of leadership serves as an inspirational representation to women of all walks of life.
Personal Journey Ms Namene is a trained Lawyer and admitted Attorney of the High Court of Namibia, She holds a Masters of Economic Law Degree from the University of Namibia and is currently pursuing a Doctorate in Law. Ms Namene is also a trained Senior and Executive Business Manager.
Her impressive experience includes her work for the Legal Assistance Centre as a Centre Coordinator for the Ongwediva Office In 1990. She then later joined the Ministry of Justice, Office of the Government Attorney, and further in her career she joined the National power utility company (NamPower) in 1996 as a Chief Legal Officer and worked there in different capacities until May 31 ,2014 when she joined the Electricity Control Board (ECB).
Professional Journey Ms Namene was appointed as Chief Executive Officer of the ECB on the 1st of June 2014. www.rdjconsulting.co.za
Although this was her first time at the helm of an institution this was not her first senior position. Her leadership experience started at NamPower where she worked as head of several Business Units including the country’s first ever Energy Trading Unit for several years. “I joined a young and vibrant team of professionals, who are very committed and driven. they challenge me and kept me on my toes which was good” Ms Namene, muses this as an advantage because in her position as a Regulator she aims not to look at things from a personal perspective but from an industry perspective, “what better way than being in the company of these young vibrant teams
JUNE, 2020 that helps you to see the bigger picture , this clearly demonstrates that young people do not only have concerns and complaints but they have solutions and suggestions.” Ms Namene adds. She further explains how she has learned from them in the same way, she hopes her team is also learning from her. Additionally, She has watched the industry reforming and transforming itself, “the changes have been massive and like a lot of things over the past three decades they have all been driven by the development in the technological space”, and “I have also seen the increasing need of our people and the hunger for access to energy and a better life.” Explains Ms Namene. When speaking of her contributions and changes to the ECB, Ms Namene says “Contributions and changes are not an individual achievement and, in any institution, remains a team effort.” Because a Regulator cannot be a single person but rather it has to be an institution with clearly defined roles and support from all stakeholders in order for it to be able to drive the changes that are needed for the industry of the future . “I was lucky to come into an institution that had a solid foundation laid by my predecessor the late Siseho Simasiku.”the changes Ms Namene has taken part in are part of the concept of “we rise together as a team”. Her team has seen new policies coming into effect with the review of the White Paper on Energy Policy and the country’s first Renewable Energy Policy, the Independent Power Producers (IPP) Policy and Investment Framework are some of the changes that her team has spearheaded or were involved in. Ms Namene expresses pride in the Namibian Renewable Energy Feed in Tariff (REFIT) Program that has been initiated by the ECB. This particular program has led to a number of renewable energy IPPs being able to be involved in the industry and contributing to the country’s energy portfolio.
This is considered an achievement coming from a couple of years ago when the country had only one Independent Power Producer. The ECB was instrumental in the development and establishing the Net Metering Rules that paved the way for individuals to install solar panels on their roofs and get credit from the service providers. The ECB is also proud of the two Mechanisms established to address affordability and access, The National Electricity and Electrification Support Mechanisms respectively, but their pride and joy is the Modified Single Buyer Market Framework (MSB) which became effective 1st September 2019 which allow the Eligible Sellers and Contestable Customers to be able to directly transact with each other.
Challenges Ms Namene has had her fair shares of ups and downs but she says that “ I do not allow that to hold me back, I look at myself as a person who is extremely focused and driven, with a bullish passion for energy and for what I do.”Ms Namene explains that it is well known that in the work environment women face many challenges, some being the demand on their time, energy and resources and at times gender discrimination in business. She expresses that in her career “I had to overcome many obstacles placed in my way by some of my superiors either because your principles differ or simply because they had certain expectations and views of how women should behave” Ms Namene boldy adds “as unacceptable as some of those challenges and behavior might have been I embraced them , I viewed them as bricks needed to build a strong foundation, part of character building and part of moulding who I am.” She believes that Namibia has policies and legislation as a country that are supportive of recognizing the capabilities and value of women.
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She believes that women are being judged on their capabilities and expertise and on what they bring to the table and not based on their gender. “It is still tough out there and women executives are still in the minority. I am also lucky to find a lot of support and mentoring in men and women both in and outside the industry.” Ms Namene adds.
The Future of Namibia's Electricity Namibia has a well-developed Electricity Supply Industry (ESI) that has many features common with the best practices around the world .We have some of the leading practices and regulations in the region and we have to be proud of that. We will see IPPs strengthening their presence in the country as is already evident, this will enable us to reduce our dependencey on imports. Renewable Energy is becoming an important part of our generation portfolio. The implementation of the MSB will also lead to increased competition. Electrification of rural and peri urban communities through mini grids and home systems will gain popularity.”
Conclusion Ms Namene’s advice to women who would like to follow in her footsteps is “Do not limit yourself become involved in the collective. Learn, explore and challenge yourself. Work harder to strengthen ties with women in the sector from different parts of the world. If you make mistakes, learn from them and move on.” She goes on to explain the time has come for women to rise to the occasion and work alongside their male counterparts. “Be unapologetic about it and deliver your best. It is not going to be easy but if mountains were smooth nobody would have been able to climb them.”
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JUNE, 2020
YOUTH IN ACTION Power Six Investments cc An Interview with Ms Paulina Alfeus
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Interviewed by Ms. Kina Indongo (Communications Specialist - RDJ Consulting)
n this month's “Youth In Action” section of the June Briefing, we had the privilege of speaking to Ms Paulina Afleus, who’s extraordinary drive and resilience as a young person has allowed her to pursue her dreams, despite the high youth unemployment rates, financial constraints and gender discrimination. She now stands as an example for youth in Namibia.
Personal journey Paulina Alfeus completed her matric at Hans Daniel Namuhuja Secondary School in 2010, where she was the best overall performer. She then enrolled into the Namibian Institute of Mining and Technology (NIMT) where she acquired her Diploma in Engineering Trade in Boilermaker (metal fabrication and welding) in 2016. True to her nature she graduated as the Top female performer. Despite her impressive academic performance, Paulina found it difficult to find gainful employment in her trade. Instead of allowing these circumstances to hinder her progress, she took this as an opportunity to create her own employment, which led to the creation of Power Six Investment cc. Power six is a company that manufactures and sells steel furniture made out of recycled oil barrels .
Professional Journey Power Six is an initiative by 6 NIMT graduates. The team of 6 is led by Paulina as the Managing Director,
"choose something you enjoy and to remember the reasons why you had started the journey. Paulina Alfeus
and it employs 3 other members on a full time basis, namely, Paulus Hilaria (who is also a Co-founder and our Sales and Marketing Manager), Ashipembe Julius (Cofounder and our workshop technician) and Neliwa Leonard (Cofounder and the Standards Inspector). Power Six was founded and registered in February 2017, and started operations later the same year. Initially the company was based in Swakopmund, but later moved to Ondangwa where they are currently based. The decision to embark on a journey that was both environmentally sustainable and economically gainful came after the took time in enumerating significant challenges www.rdjconsulting.co.za
the country faced at that time. The use of wood in furniture was a significant challenge. The team therefore aims at bringing an end to the use of wood in furniture in Namibia, by using recycled steel in furniture manufacturing. They decided to use abandoned steel barrels from the oil industry, as a source of steel and a way of cleaning the environment. The barrels proved a good choice “as the oil barrels were a lighter material and they are in a good shape that fit well with furniture design.” Paulina explains. So far they have impressively produced a range of furniture such as sitting rooms couch sets, outdoor chairs and tables, braai stands, cupboards, book shelves and toolboxes.
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“I'm doing this because I want to restore Namibia's lost forestry, I want to prove that we can still have beautiful sitting places without a tree having to be cut down.” Paulina Alfeus
Challenges As a young Entrepreneur with no savings and no collateral required to acquire business loans from the bank, funding a startup was near impossible. Rental prices in the industrial areas are quite high therefore, coming up with the capital needed to start her business was a great challenge Paulina and her team faced at the beginning. Additionally, as a young woman in a male dominated industry, people have tried taking advantage by engaging in unscrupulous business practices such as demanding unrealistic discounts. Finally, one of the common challenges for young entrepreneurs are the operational fees, since businesses need to be registered with the Business and Intellectual Property Authority (BIPA) under the Ministry of Industrialization, Trade
and SME Development (MITSMED), which charges monthly fees to businesses, irrespective of their opetrational status. Additional fees are curated by having to be registered with the Social Security Commission, in order to qualify as an employer.
on Research Science and Technology (NCRST). Their international participation has led lioness Africa Magazine publish a corporate profile piece of Power Six in one of their Publications. This act has enabled Power Six to extend its reach further, internationally.
Victories
Conclusion
Despite their challenges Power six has benefited from their resilience and has received international recognition. In 2019, Power Six participated in a National Business Creative Cup and qualified to represent Namibia at the Global Creative Cup in Denmark. They were also invited to be part of the “One Planet one home event” hosted by the IKEA store in Kraatz, Germany where they won 3rd place.
Paulina’s advice to other youth looking forward to embarking on their own entrepreneurial journey is to “be patient with this journey, be hard working and diligently market yourself and your business”. She further advises that it is best to choose something you enjoy doing, and always remember the reasons why you started the journey. “I'm doing this because I want to restore Namibia's lost forestry, I want to prove that we can still have beautiful sitting places without a tree having to be cut down.” concluded Paulina Alfeus .
Finally, they participated in the 2019 National Innovation Challenge for Women by the National Commission www.rdjconsulting.co.za
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JUNE, 2020
TENDERS NAMCOR Bid Submission deadline: 03 July 2020 @12 PM Namibian time (P.s; Due date is for all the above-mentioned bids) 1. Bid number: w/onb/nc-01/2020 Description: the construction of the fuel station forecourt works for Namcor in Karasburg, Namibia 2. Bid number: w/onb/nc-02/2020 Description: the construction of a fuel forecourt & canopy for Namcor in Mariental, Hardap region, Namibia 3. Bid number: ncs/onb/nc-03/2020 Discription: the provisioning of physical security services for Namcor for a period of 3 years 4. Bid number: ncs/onb/nc-04/2020 description: maintenance of fire detection, fire surpression, burglary alarm and cctv security systems at Namcor head quarters for a period of 3 years
NAMPOWER 1. Description: Repairs to existing Security fence: Tamarisk substation Bid Closing Date: 26 Jun 2020 at 11:00 Namibian Time 1. Description: Repairs to existing Security fence: Tamarisk substation Bid closing date: 03 Jul 2020 at 11:00 Namibian Time
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CAREERS OSHAKATI PREMIER ELECTRIC (OPE) Position: ENGINEER: TECHNICAL SUPPORT Closing date:Â 28 June 2019
APRIL, 2020
CONTRIBUTING AUTHORS
David Jarrett (Managing Consultant) RDJ Consulting Services CC Chilombo Olga Priscila (Operations Manager) RDJ Consulting Services CC Naemi Shoopala (Head - Research) RDJ Consulting Services CC Misozi Mugala (Research Intern) RDJ Consulting Services CC Haikali Ndafimana Malakia (Research Intern) RDJ Consulting Services CC Kina Indongo (Communications Specialist) RDJ Consulting Services CC Lydia Kalilo Namutenya (Research intern) RDJ Consulting Services CC
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