SEPTEMBER, 2019
ENERGY & SUSTAINABILITY News & Analysis
Will Oil Fail Us?
IN THIS MONTH’S ISSUE: Oil and Namibia: A Mismatch or Reality? Saudi Arabia’s Oil Plants Attack Who's Who? Introducing RDJ's New Interns
The NAMIBIA Country Briefing of RDJ Consulting
Namibia Country Briefing of RDJ Consulting Subscribe for FREE, And Never Miss Out Again. Visit : https://issuu.com/rdjbriefing/docs
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C O N T E N T S
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FromTheEditor
Quick Facts
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Economy at Large
Oil & Gas
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Electricity
Renewable Energy
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Water
The Environment and Sustainabilty
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Telecommunications
Roads and Transport
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Financing
Who's Who
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Tenders and Careers
Contributing Authors
SEPTEMBER, 2019
From the editor Will Oil Fail Us? Dear Reader, Once more the turmoil of oil uncertainties and global political changes provide a conundrum for economic forecasters and investors. The “Greta Thunberg” movement is helping or at the least stimulating a constant debate on sustainable living. Well, our interns have once again put together the September Issue to give you insights on some of this hot topic that will continue to inform and keep you abreast on crucial matters that concerns the sustainability of life. Here in Windhoek, Namibia, the United Nations via its UNDP arm, has introduced 2 electric cars into its fleet. We take this opportunity to laud not only the UNDP in its efforts, but Nissan for having developed the Nissan Leaf’s that will form part of this push. Looking forward to providing you a “blow by blow” as the project develops and gives lessons to Namibia’s urban travel as a minimum.
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
Please therefore enjoy this edition, get to know our NEW Interns in the Who’s Who Section, and feel free to reach out to us in anyway. 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: 6.50 % Interest rate (Prime): 10.25% Inflation (CPI): 3.70% 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 www.rdjconsulting.co.za
6 SEPTEMBER, 2019
economy at Large Namibia’s Economic Update
Building of the Central Bank of Namibia Image Source: https://www.bon.com.na
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fter the International Monetary Fund (IMF) released its report on the subduing global economy, Bank of Namibia (BoN) gave an insight on the 14th of August 2019. According to the report, the Namibian economy is expected to contract by 1.7%, which is contrary to the 3.0% economic growth projections the Bank made in April. The lowest was a contraction of 1.6 percent in 1993, henceforth, this contraction is seen to be the worst for Namibia since independence. The perceived economic recession is mainly caused by several factors, including severe drought, a contraction in major sectors such as wholesale, retail, mining and outside factors like the trade wars between the US and China that to some extent impact Namibia’s economy. Comparing the first six months of 2019 to those of 2018, economic activity has significantly slowed down. Some sectors like transport, manufacturing and communication showed positive growth but Mining, construction, electricity, Agriculture, retail and wholesale reflected a slowdown. Thus, BoN projects the economy to remain weak in 2019. Namibia has other non-diamond mining activities which includes copper and uranium that contribute largely to the country’s revenue, and this makes the economy heavily dependent on mining. After diamonds, Uranium is the second largest industry, producing about 5 percent of the worlds’ uranium (ref. BDO Namibia). The trade tensions between the US and China have negatively affected the prices of international commodities, particularly uranium and copper, resulting in persistently low prices.
This according to IMF’s report, is one of the reasons the world economic growth is declining. Namibia is likewise affected by this, being a country that highly contributes to the world uranium output. While drought has caused the agricultural sector to contract further, Wholesale and retail sectors are also among the sectors reflecting a slowdown. At the moment, BoN perceives a possibility of seeing a less flow of taxes into the government’s treasury, as sector performance continue to decline. In fact, VAT is the second-biggest source of revenue for the government after income tax in Namibia. The decline in both wholesale and retail sector will therefore cause a cut in projected revenue collection, but the changes are not substantial to pose as a threat on the fiscal stance of the country. From its slowdown of 7.2% last year, wholesale and retail are expected to contract further by at least 5.7%. Primary and secondary sectors are also expected to contract by 6.7% and 0.8% while the secondary sector is showing signs of survival at 1.8% mainly as a result of growth in non-metallic minerals by 12% from its previous slowdown of 16.6 percent.
Readings: Readings https://www.bbc.com/news/world-middle-east-49703143 https://edition.cnn.com/2019/09/14/business/saudi-oil-outputimpacted-drone-attack/index.html https://www.ft.com/content/2256d01d-cbb6-3bb5-84228e7113bdcae0
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SEPTEMBER, 2019 7
Access document here. www.rdjconsulting.co.za
8 SEPTEMBER, 2019
OIL & GAS Namcor to Supply Fuel and Lubricants to Swakop Uranium
Saudi Arabia’s Oil Plants Attack
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audi Arabia’s oil plants were attacked by a series of drones on the 14th of September. The attack cuts Saudi’s oil output in half and global oil supply by5% from the initial 10% of their total supply. The two major oil facilities attacked were run by a state-owned company Aramco, and according to reports www.ft.com, Saudi production may take months to recover. Crude prices have soared after attacks on Saudi Arabia’s oil infrastructure, leaving the world with questions on what would be next of oil prices once the world market for oil markets reacts. The overall loss made during the attack is equivalent to 5.7 million barrels a day, a major hit to the global oil market and prices are expected to surge as a result
Image Source:https://www.namcor.com.na/
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he National Petroleum Corporation of Namibia (Namcor) and China's CGN Swakop Uranium (who own the Husab mine in Erongo) have recently signed a N$3.2 billion worth deal in fuel supply. The contract, which is 60% of the state energy parastatal annual turnover, includes the supply of fuel and lubricants to Swakop Uranium by Namcor for a period of five years.
Readings: https://www.bbc.com/news/world-middle-east-49703143 https://edition.cnn.com/2019/09/14/business/saudi-oiloutput-impacted-drone-attack/index.html https://www.ft.com/content/2256d01d-cbb6-3bb5-84228e7113bdcae0
According to the chamber of mines, Husab mine has about 16 500 permanent employees and 500 contact workers of which 96% of them are Namibians. Husab mine has a life expectancy predicted to 2036.
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SEPTEMBER, 2019 9
August 2019 Fuel Prices
Ministry of Mines and Energy Fuel Price Update after the recent attack on Saudi Arabia's Oil Reserves Source: http://www.mme.gov.na/directorates/petrol/
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10 SEPTEMBER, 2019
Oil and Namibia: A Mismatch or Reality?
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ollowing our article in the RDJ Briefing of December 2018, we still see Namibia as a frontier region for exploration with evidence of a working petroleum system (www.chariotoilandgas). This continues to be true for more than 40 years after the Kudu gas field were discovered in 1974.
On the local front, any oil found in Namibia will be a welcomed relief to both the prospector and the Government. Namibia through its National Oil Company (Namcor) has a 10% carried interest in 98% of issued exploration licences. The benefits are thus immense locally and the prospect to the Namibian growth trajectory cannot be overlooked. However, even with these glaring benefits, the future does not seem to sit with oil futures but with a more sustainable pathway.
Namibia Fuel Consumption 2012 - 2016(adapted - Namcor)
As is well known, Namibia’s import bills for oil and gas is not a small matter, with “fuel” consumption reaching nearly 1.2 Billion litres in 2016 (latest available figures) and having a retail average value of N$ 12.12 billion based on the average fuel retail price in December 2016 / January 2017. This is no small sum and equates in comparison to 18% of annual budgetary spending by government. Another well-known fact is that fuel accounts for approximately 70% of all energy used in Namibia and that it is mostly consumed in the Transport Sector for mobility of people and goods due to the vast size of the country. This then places Namibia at risk if the oil sector is disrupted but also at an opportunity point where massive savings could accrue from electric mobility thus immediately reducing the recurrent fuel import bill and increasing any future gains from oil finds. The journey continues.
www.rdjconsulting.co.za
Author: David Jarrett, RDJ Consulting (September 2019)
The fact is that fuel accounts for approximately 70% of all energy used in Namibia and that it is mostly consumed in the Transport Sector for mobility of people and goods due to the vast size of the country. David Jarrett
Readings: http://www.chariotoilandgas.com/operation s/namibia/ accessed 7 December 2018 (21h36 RSA Time) http://www.namcor.com.na/upstream/histor y https://www.hartenergy.com/news/eia-usoil-production-slides-below-12-millionbarrels-day-july-183120? https://www.namcor.com.na/media/plg_dow nloads/2017/annual-reports/namcor-annualreport-2017.pdf http://www.mme.gov.na/files/publications/0 8e_Fuel_Media_Release_January_2017.pdf
SEPTEMBER, 2019 11
ELECTRICITY
NORED’s Electrification Projects
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he Northern Regional Electricity Distributor (NORED) brought stakeholders together at Rundu for the Public Infrastructure Funding Conference. Held under the theme, Enhance and sustain socioeconomic development through an accelerated public infrastructure investment intervention that is aligned to the current mantra of, "Namibia is open for Business". Currently, NORED is going through a rough patch, whereby it has limited funds with a high demand for electricity in the region. Over the years, the operations and electrification projects have been funded by revenue from tariffs and profits. With a lot of its customers owing them substantial amounts of money, revenue from tariffs and profits as way of funding has become futile because it is slow and thus leads to project implementation being postponed. About 4 years back, NORED approved a N$10 million annual budget allocation to be invested in electrification projects across its area of operations as part of its corporate investment program, and despite the challenges, thousands of people in rural, peri-urban and growth points now have access to electricity with the help of NORED. Through the offered support, NORED has managed to invest in several electrification projects across its area of operation and a total of 102 188,000 customers have electricity in their houses.
OPE to Electrify Inhabitants Within Area of Operation
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shakati Premier Electric (OPE), a part of the local government that was established in 2000 and became operational in the same year with the purpose of distributing, supplying, maintaining and operating the electrical infrastructure in Oshakati committed itself to electrifying five villages within its area of operation within the next seven years. This programme is part of their strategic plan that aims to achieve a total electrification of all its inhabitants, and it’s expected to cost the company N$25 million. Benefiting nearby villages include Othingo, Onendongo, Emono, Onawa and portions of Oshinyadhila and Okaku Kiipupu.
Apart from the new residents marked for electrification, the company has achieved electrifying Uupindi North and south, evuluko extension 10, 11 and 12, okandjengedi, Ompumbu and other 1000 houses in various informal settlements at Oshakati, with costs amounting to approximately N$ 30.7 million.
http://www.ope.com.na/
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12 SEPTEMBER, 2019
RENEWABLE ENERGY Namibia Focused on Investing more in Solar Power
Agribusdev – Solar Installation in Green Schemes
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gribusdev, the custodian of all the government green schemes countrywide has been awarded so far, 3 solar installation tenders for projects namely: Sikondo, Etunda and Shadikongoro. Solar Systems will be installed and used for irrigation purposes as a means of reducing the high power cost and keeping farms under production. In addition to that, the company will also install a variable speed drive that regulates the speed of the motors at the pumps to run proportionally to the volume of water required for irrigation.
DIS Engineering Solar Projects In the same manner, DIS Engineering, a local engineering firm based in Otjiwarongo, has recently decided to use the sun as the major power for its various agricultural functions. The company, which specializes in different kinds of solar installations, solar power and solar pumps, was founded in 1983 and is well known for providing quality products and excellent after-sales service. Their services and products are accessible and suitable for farms, lodges as well as normal households. Some of their product include the solar drive which enables clients to attach an electrical water pump to a solar system and solar tracker which is more efficient than fixed systems.
Botswana-Namibia Mega-Solar Project Correspondingly, the government of Botswana and Namibia joined hands in exploring alternative means of generating additional energy to aid in reducing power shortage. The two countries have opted into developing a mega-solar project that could produce up to 5000 MW of solar power for the next two decades. The 2019 report of the World Economic Forum (WEF) for
Africa on Fostering Effective Energy Transition, mentioned how the diverse challenges facing the energy system today cannot be tackled by a single industry, sector or government. It rather recommends a broader variety of resources and expertise to bring about effective action. With basis on this, it can therefore be said that the partnership between Namibia and Botswana on this project serves as an approach to achieve an effective energy transition that can meet the growing demands of energy. The report further stated that countries all over the world have large scale installations of mega-solar projects capable of producing hundreds of megawatts of power. This project will be supported by the WEF’s Global Future Council on Energy to facilitate its implementation. In fact, Africa is one of the hottest continents and receives generous amounts of sunlight. The WEF report on Africa (published in September 2019) denotes that Botswana and Namibia have the potential to capture about 10 hours of strong sunlight per day for about 300/365 days. This makes them highly productive in concentrated solar power (CSP) and photovoltaic (PV) installations. Both countries have a very large area of land that’s uninhabited and not used for any productive economic activities. Also, given that there’s active diamond and mining industries in these countries, it’ll be easier for the mega-solar project to come to life since they should both have sufficient foreign currency to facilitate the proceedings.
Readings: https://neweralive.na/posts/tender-to-install-solar-at-greenschemes-awarded https://www.namibian.com.na/82405/read/Partnering-with-thesun-to-power-Namibian-agriculture https://southerntimesafrica.com/site/news/bots-nam-to-constructa-mega-solar-initiative-for-region
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SEPTEMBER, 2019 13
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14 SEPTEMBER, 2019
WATER Water Scarcity Continues in Different Regions of the Country
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rought has become a concern for Namibians as rainfall continues to be insufficient. Communities are faced with frequent water pressure and scarcity leaving people with contaminated or saline water for consumption. The effect of water scarcity has spread across the country, leaving both people and livestock in difficult conditions.
Oshikoto Region
Kavango West Region Other residents affected by water scarcity are those of Katjinakatji village in the Kavango West resulting from the unavailability of funds in the directorate of rural water supply in the Ministry of Agriculture, Water and Forestry. Residents depend on borehole water, which is owned by the directorate, but they are rapidly drying up and cannot be rehabilitated because of funding constraints.
At the moment, people with easier access to adequate water in Oshikoto, have started selling water to the ones in need at unreasonable prices. For instance, a 25 liter bottle of water in these areas sold by residents is reported to stand at N$ 50.00, while the Governments’ Rural and Water Supply department only charges N$ 15.50 per cubic meter of water.
The directorate and NamWater reached an agreement for the directorate to translocate their infrastructure from the boreholes that are now drying up and install it in one of the six boreholes belonging to NamWater. This will be able to provide water security to almost 3500 people residing in the area although there are also issues within the boreholes owned by NamWater.
Meanwhile, the head of Rural Water Supply in Oshikoto reported that some boreholes in the region have dried up to the extent of pumping sand, hence dependency on such sources is out of option at present. Because of this, the directorate is in the process of seeking assistance from NamWater for provision of water tanker trucks to distribute water across the different areas, which include Nehale Lya Mpingana, Okankolo and Eengodi as the most affected.
Khomas Region
Oshana Region Drought continues to take its toll on most parts of the country and Oshana is not excluded from the unfortunate crisis. Some of the areas badly hit by water scarcity are several villages in Oshakati west and Okatana constituency, Oniimwandi, Oshaandja, Otuwala, Oshihenge, Okaku, Emono and Onashiku. People are losing livestock from water shortages and have to travel long distances to find water. The government pumped water from the NamWater water canal which runs from Ruacana to Oshakati into lake M’lunga and lake Uupeke where a lot of cattle posts are found. Additionally, the government has also made efforts of providing the communities with drought relief food.
Residents residing in the informal settlement of Windhoek, Havana have also raised complaints regarding their water systems. The water point that previously supplied water to about 253 households closed down in mid-December 2018, forcing residents with no option but to travel long distances to the next water point. The City of Windhoek is aware of the damaged water point and have already fixed them earlier this in 2019. However, they broke down again within a week of its repair. Other than that, the councillor of Moses GaroĂŤb constituency is also aware and is taking all the necessary proceedings to make sure the water points are repaired and restored.
Readings: https://neweralive.na/posts/oshikoto-residents-buying-n50-waterfrom-privileged-farmers https://www.namibian.com.na/82662/read/Drought-take-toll-atOshana-villages https://www.namibian.com.na/82612/read/Budget-cutscompound-Katjinakatji-water-crisis https://www.namibian.com.na/82497/read/Havana-residentsbemoan-water-scarcity
www.rdjconsulting.co.za
SEPTEMBER, 2019 15
Bethanie and Grunau to Receive Desalination Plants
The Zambezi River in Namibia Credit: RDJ Photo
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he communities at Bethanie and Grunau can finally rejoice as their water needs will soon be attended to by NamWater. The water Utility is set in arranging construction of desalination plants in these areas. The construction of the plants are bound to commence early 2020, and the plants are expected to be in operation by mid-2020. Using Reverse Osmosis (RO), the desalination plants are intended to transform the saline groundwater in these areas into drinking water quality that follows national quality standards. The Adaptation Fund, a US-based funding agency operating under the United Nations Framework Convention on Climate Change, sponsored these desalination plants as pilot projects to test the technology and assess whether similar ones can be installed elsewhere.
In 2007, these communities faced the same water crisis and Bethanie’s monthly water bill averaged to about N$ 60 000. This led NamWater to impose restrictions on water by applying a water rationing system in the area. With the projects now approved to begin, residents were also concerned about possible increments on water tariffs. However, with assistance from the Adaptation Fund in funding these projects, residents were assured that during the construction period, tariffs will not increase beyond the typical water tariff across Namibia. But after mid-2020, NamWater will then work with the Ministry of Agriculture, Water and Forestry to plan tariffs that include a system of subsidies.
www.rdjconsulting.co.za
16 SEPTEMBER, 2019
THE ENVIRONMENT & SUSTAINABILITY Giraffe in one of Namibia's National Parks Credit: RDJ Photo
LAC Expands its Environmental Protection Role in Zambezi
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he Legal Assistance Centre (LAC) has expanded its help from only providing legal representation of one accused of a capital offence and unable to afford counsel, to include taking on the role of environmental protection advocacy with local communities in the Zambezi through workshop visits which are a part of the GIZ-funded “partnership against poaching and illegal wildlife trade”. The visiting project is funded by the Deutsche Gesellschaft für Internationale Zusammenarbeit, with additional support from Woermann & Brock We Care, SPAR Katima Mulilo, NeoPaints Namibia, the Pupkewitz Foundation, SlowTown Coffee, MegaShade Namibia, Sanlam, UNAM Katima Mulilo Campus, EduVentures, and the KonradAdenauer Foundation. The school visits included Mafuta Combined School, Silumbi Combined School, UNAM Katima Mulilo Wildlife Management and Ecotourism department. All these visits done under the supervision of representatives from the Regional Education Directorate, the Katima Mulilo Magistrate Court Public and the Prosecutor General’s wildlife crime unit.
MET Investing in National Parks
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he Ministry of Environment and Tourism (MET) have drafted a preliminary action plan to manage the horses as a rescue plan following the serious threats that faced horses in the Tsau//kheib National park. The action plan contains intervening procedures for minimizing predation by hyenas and the re-zoning of the Garub area where the horses are found, into a multi-use area for more effective solutions.
Having recognized the ecological and tourism value of the horses, it is finally resolved that horses are a state asset. There are currently only 72 horses left (40 stallions, 31 mares and 1 filly) out of the 300 that previously roamed the Garub area. The Ministry, together with the German Minister of Economic Cooperation and Development, also inaugurated the recently constructed N$32 million park management station in the Bwabwata National Park on Saturday, 31 August 2019. The new buffalo park station is a joint development program that aims to improve Namibia’s National Parks, and is currently in its fourth and fifth phase. For past 13 years, investments worth more than N$450 million have been made to more than six National Parks across the country.
It is reported that more schools are yet to be visited from Omega in the west to Impalila in the east, with a focus on wildlife protection. www.rdjconsulting.co.za
SEPTEMBER, 2019 17
The Hepatitis E Returns
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amibia is currently experiencing an outbreak of Hepatitis E, a liver infection caused by a virus known as hepatitis E virus (HEV), leading to the swelling of the liver. The virus spreads through contaminated water. According to Medical News Today, this occurrences are very common in developing countries with poor water quality and control, especially in communities that are highly populated. According to a report by the local newspaper article – The Namibian (dated 2019-08-23), the areas mostly affected by this disease in Windhoek are the informal settlements, such as Goreangab and Havana that have dumpsites and broken sewer pipes, as well as Okahandja Park which is opposite a river of exposed sewage. Residents in these areas find it hard to keep their areas clean due to the lack of adequate waste management system. To deal with the poor sanitation in affected areas the government is using the development blueprint, the Harambee Prosperity Plan (HPP), and other similar initiatives. In as much as the plan is behind target, the Khomas regional governor acknowledged the efforts being made to tackle the issue of hepatitis. Such efforts include the 142/233 toilets made at a cost of N$2 million and distributed to beneficiaries in the region’s informal settlements in March 2019, as well as the $50million provision for potable water and sewer line allocated for the 2019/20 and 2020/21 period.
Readings: https://www.webmd.com/hepatitis/what-is-hepatitis-e https://www.medicalnewstoday.com/articles/324204.php https://www.webmd.com/hepatitis/what-is-hepatitis-e https://www.medicalnewstoday.com/articles/324204.php https://www.namibian.com.na/82327/read/Living-with-waste https://www.namibian.com.na/82302/read/Hepatitis-E-ravagesKhomas
Ban on Previously Harvested Timbers is lifted
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he issuing of forestry permits for all purposes was previously suspended with effect as of 26 November 2018. Since then, all the timber harvesting, transportation and exporting permits were cancelled, and no new ones were issued.
The Ministry of Agriculture, Water and Forestry’s executive director, together with the executive director of the Ministry of Environment and Tourism, announced through a press statement released on the 17th of September that the two Ministries have now authorized the transportation of timber harvested before the suspension of permits in the Kavango East, Kavango West and Zambezi regions, after it was halted for 5 months. However, the note further informs that the moratorium on timber harvesting remains in place, and no harvesting permits will be issued for now until further notice.
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SEPTEMBER, 2019 19
TELECOMMUNICATIONS
CIG Buys Shares in Telecommunications
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t the release of the 2019 reviewed financial statements, the Capricorn Investment Group (CIG) revealed that they have bought a 30% stake in Telecommunications Company, Paratus Africa Group (PAG) for N $252 million. The company’s Financial Statements also show that the group made an after-tax profit of N$1,015 billion from the five sectors in which it operates namely: Banking, microfinance, insurance, asset management and telecommunications. The group also has another steady income growth yielding from lending activities which stood at standing at N$4.7 billion (an increase from N$4.2
billion) and additional income from their deposits, transactions, annual fees and other that stood at N$1.3 billion (an increase from N$1.2 billion recorded in 2018). The investment in PAG is expected to broaden CIG's reach into key sectors including banking, micro-finance, insurance, asset management and telecommunications. CIG's investment portfolio now incorporates 15 companies. Currently, Bank Windhoek, being a member of CIG, contributes with more than 90% of the total income of CIG and represents more than 89% of the group's net asset value.
www.rdjconsulting.co.za
20 SEPTEMBER, 2019
ROADS AND TRANSPORT MoWT Revises the Transport and Oil Acts Road Transport Act and Passenger Transport Act
Oil Act - Ocean Pollution
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study done to determine responsiveness of the Ministry of Works and Transport (MoWT) to the current dynamic needs of the nation, and also to assess the potential that the industry has, considering the Ministry’s regulations. After assessing and reviewing the existing laws and legal framework of the Ministry through this study, it was concluded that the Ministry has laws which are not responsive to the current dynamic needs of the nation and there was also a need to repeal the Passenger Transport Act. This called for a one day workshop on the 12th of September, which primarily aimed at presenting and discussing the Public Transport Policy and the draft of the passenger Transport Act. Even though the Road Transport Act was repealed in 2001, it still failed to support all the efforts to achieve the desired policy goals and as a result, the Ministry developed the Namibian Transport Policy in 2018 and launched it. The policy which aims towards an integrated and inclusive transport system, cognizant of the requirements of Namibia’s international/ regional network connectivity and welfare of its citizens, recommended for the repeal of the Road Transport Act of 1977 and the development of a new road Public Passenger Transport Act and its regulation to ensure a safe, efficient and effective road public passenger that is responsive to the current issues of the nation. The purpose of the above-mentioned acts and regulations is to transform and restructure the road public passenger transport system into a safe, efficient and effective system that enables and propels economic growth. The ministry will therefore be holding stakeholder consultations countrywide with regards to the Road Public Passenger Bill. This is to ensure active participation of all the stakeholders by bringing inputs and innovative ideas into the process of law making.
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o effectively control ocean pollution and manage potential oil spills, the Minister of Works and Transport made amendments to the Prevention and Combating of Pollution of the Sea by Oil Act in the National Assembly on 17th September 2019. The amendments are basically the broadening of the Exclusive Economic Zone (EEZ) forbidden area, increasing penalties for illegal activities within that area and expand the meaning of toxic substances to include any oil-based substance. The last amendment to the act was enacted in 1991, and saw increased fines imposed for certain offenses. The new amendment proposes even stricter fines and prison sentences, with some increasing five-fold. For example, currently, offenses like failure to report the discharge of harmful substances into the ocean or operating within the prohibited area without a pollution safety certificate carry a fine of N$10 000, imprisonment for no longer than six months, or both. However the new bill suggests penalties for the same offense to be increased to N$ 40 000, a jail term of not more than a year, or both. Then, for more serious cases which now have a fine of N$ 200 000, or imprisonment for not more than five years, or both should be increased to N$1 million, imprisonment for not more than two years, or both. Other offences should be increased with this regard as well. In the current act, the most important part that needs urgent attention is the provision surrounding offshore bunkering. While still at sea, the transfer of fuel from one ship to another leads to oil spillage which is a risk to the ocean. As at now, the act only allows a limit of 92.6 kilometers from shore, permitting the maritime industry to do offshore bunkering activities beyond that prohibited area. The proposed amendment extends the prohibited area to a limit of 370.4 kilometres from shore. Bunkering within the prohibited area carries a fine of N$40 000, or imprisonment of up to two years, or both. It is proposed however that this be increased to not more than N$800 000, or maximum imprisonment of 20 years, or both.
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SEPTEMBER, 2019 21
Botswana and Walvis Bay Port to Soon be Connected
Stagnant Vehicles in Namibia to be Disposed Off
alued at N$ 9.5 million, the Trans Kalahari railway project believed to be the link between Botswana and Walvis Bay’s port is well underway with officials from Botswana having recently commissioned the project’s management office. The railway project started in 2010, when Botswana and Namibia signed the Memorandum of Understanding on the development of the Trans-Kalahari project which targets trade growth within the Southern African Development Community (SADC) region. In addition to its road infrastructure, Botswana only has one railway line connecting it to South Africa and Zimbabwe.
ehicles imported for the Namibian market without proper customs clearance will now be disposed off after government approved the disposal of illicit vehicles diverted into the country. This will work in accordance with Government Gazette number 3334 of December 2004, which prohibits the importation of motor vehicles older than five years into Namibia; as well as the Gazette number 5293 of September 2013, which prohibits the importation of second-hand motor vehicles older than eight years into Namibia.
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Transport and Communications Minister in Botswana reported that the railway is vital for the country’s infrastructure growth, noting that “It is an absolute fact that an efficient transport system is the backbone to every country’s economic development and trade enhancement.” In addition, the railway is expected to “facilitate the development of mining, investment, and manufacturing opportunities that have been stunted in Botswana due to lack of components, and exports of ore, products and finished commodities”.
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To date, 763 vehicles have been recorded as illegally diverted in Namibia, and 132 vehicles were abandoned to the state at Walvis Bay Customs Office. All these will be disposed of if the owners fail to settle the customs and excise duties. Public Relations officer of the Ministry of Finance told the media that many of the transit vehicles that were declared at the port of Walvis Bay and destined for neighbouring countries such as Angola, Botswana, Democratic Republic of Congo and Zimbabwe, did not exit Namibia to their countries of destination, while others were sold to Namibian citizens.
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22 SEPTEMBER, 2019
FINANCING
Goodness is the only investment that never fails. Henry David Thoreau
Namibia Receives Assistance for Drought-Affected Communities Namibia Red Cross Society (NRCS)
T
he NRCS is making significant efforts to assist the government in reducing the impact of food shortages in drought-affected communities, and will be providing drought relief food for people in the sibbinda constituency of the Zambezi region from 1 November 2019. NRCS intends on providing 12 tons of maize, three tons of cowpeas, and six tons of groundnuts to the needy communities.
United Arab Emirates (UAE) Embassy The UAE Embassy donated goods worth N$639 974 to the Namibian government through the Ministry of International Relations and Cooperation. The United States also donated U$7.6 million (about N$110 million) in food assistance to Namibians affected by drought.
BSF and GreenTec Bond to Assist SMEs in Namibia
T
he BFS (Business Financial Solutions), a Namibian Investment Management firm based in Germany, along with GreenTec, a long- term investor in African start-ups and SMEs, have entered a partnership to build capacity, create investment and enable fundraising for start-ups and small business in Namibia with the aim of stimulating entrepreneurship. This partnership hopes to mend the existing funding gap faced by young SMEs and start-ups. With this, they will be able to support highpotential start-ups and SMEs with a focus on combining social and environmental impacts with financial success. Selection of SMEs to receive funding will be based on their impact, the value they can add as well as their economic sustainability.
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SEPTEMBER, 2019 23
All projects that include activities within the country. Image source: https://www.greenclimate.fund
EIF Receives GCF Grant
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he Environmental Investment Fund (EIF) in Namibia recently signed a grant agreement worth N$127 million with the Green Climate Fund (GCF). This grant is a form of aid to facilitate the projects in place to maintain and enhance ecosystem integrity in order to support food production. The grant will be implemented through the Ministry of Environment and Tourism (MET) in 13 regions to strengthen the climate resilience of vulnerable rural communities through an ecosystembased adaptation approach. The Green Climate Fund is a fund established within the framework of the UNFCCC as an operating entity of the Financial Mechanism to assist developing countries in adaptation and mitigation practices to cater climate change. In Namibia, the GCF has thus far approved seven projects at a value of 1.2 Billion, with 437.1 million approved funding. The seven projects are shown in the figure (right).
Readings: https://www.namibiansun.com/ news/eif-secures-n127mgrant2019-08-29/ https://www.greenclimate.fund /countries/namibia
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24 SEPTEMBER, 2019
Image source: https://www.afdb.org
AfDB Investments Trajectory in SADC
A
ccording to a speech by its present, the African Development Bank (AfDB) has invested in several projects in the Southern African Development Community (SADC) region up to a sum of US$13 billion thus far. Investments made, and projects to be invested in include: US$5 billion to Eskom power utility in South Africa, which supplies power to South Africa and the SADC region US$114 million to St Louis Power Plant in Mauritius, which now provides 36% of the population with electricity US$500 million to the construction of Kazungula Bridge in Zambia (ongoing), which will link Zambia and Botswana, as well as improve access to Malawi and DRC US$500 million to Nacala corridor in Mozambique, which is expected to enhance regional integration in the SADC region over US$104 million for immediate humanitarian and reconstruction needs in Mozambique, Malawi and Zimbabwe after the devastating floods brought about by Cyclone Idai And other assistance in areas such as Agriculture, pharmaceuticals, mining, disaster risk insurance, expansion of local investment participation, etc.
In Namibia, the bank has also co-financed the expansion of the Walvis Bay port, which provides better access to Zambia, Botswana and Zimbabwe with an amount of US$300 million. The newly refurbished harbour was officially launched on 2 August 2019 by President Hage Geingob, together with representatives from the Namibian Port Authority (Namport) and African Development Bank. The newly commissioned port is an expansion from 355 000 to 1 005 000 Twenty–Foot Equivalent units (TEU). AfDB started its operations in Namibia in 1991 and has about 12 ongoing operations valued at $1,224 million in the country. Since 2017, Namibia became the secondlargest portfolio of the Bank in the Southern Africa region after South Africa. This indicates a good land for investment in the country.
Readings: https://www.namport.com.na/news/434/expansion-of-walvis-bayport-to-boost-namibias-economic-transformation/ https://southerntimesafrica.com/site/news/afdb-investmentsus13bn-in-sadc https://www.internationalrivers.org/resources/grand-ingahydroelectric-project-an-overview-3356
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Introducing Our NEW Interns
WHO'S WHO Ms. Naemi Shoopala
Economics Graduate from UNAM Researcher at RDJ Consulting
RDJ Internship Program "Your Choice For Your future"
An optimist, realist and enthusiast "I am committed to building something larger and putting aside personal gain for the well-being of society and the economy."
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Introducing Our NEW Interns
WHO'S WHO Ms. Misozi Mugala Final Year Economics Student at UNAM Researcher at RDJ Consulting
RDJ Internship Program "Your Choice For Your future"
A student of life After almost giving up on education and myself, I got up and have been pushing myself to the limit. Don’t be afraid to dream for the future belongs to those who believe in the beauty of their dreams, but again if you dream without goals then you are headed for disappointment. No matter how many times you fail, stand up, try again with a new method until you get it right.
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28 SEPTEMBER, 2019
TENDERS South Korean Firm Awarded NamPower Tender
NAMPOWER
A South Korean company, Hyosung Heavy Industry Corporation has won a tender worth N$ 91 million to design, manufacture and deliver electricity transformers for NamPower after being the lowest substantially evaluated responsive bidder among 11 submissions.
Agribusdev Awarded Tenders for Green Schemes’ Solar Installation Agribusdev, the custodian of all the government green schemes countrywide has been awarded so far, 3 solar installation tenders for projects namely: Sikondo, Etunda and Shadikongoro. Solar Systems will be installed and used for irrigation purposes to minimize power cost for irrigation at the schemes.
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Tender Name/Description: Procurement of an independent Power Producer for the development of a 20 MW Solar Photovoltaic (PV) Power Plant at Khan Substation on a BuildOwn-Operate (BOO) Basis. Location: Windhoek Closing Date: 17 January 2020 Tender Name/Description: Supply and delivery of Mechanical Water Meters on an annual contract basis Location: Windhoek Closing Date: 22 October 2019
MINISTRY OF LAND REFORM Tender Name/Description: Rehabilitation, Drilling and Test Pumping of Boreholes Location: Omaheke and Otjozondjupa Regions Closing Date: 04 November 2019
careers
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Update
SEPTEMBER, 2019 29
CONTRIBUTING AUTHORS
David Jarrett (Managing Consultant) RDJ Consulting Services CC Priscila Chilombo Olga (Economist) RDJ Consulting Services CC Naemi Shoopala (Research Intern) RDJ Consulting Services CC Misozi Mugala (Research Intern) RDJ Consulting Services CC Kina Indongo (Marketing & Communication Intern) RDJ Consulting Services CC Selma Taapopi (Marketing & Communication Intern) RDJ Consulting Services CC Peter N. Haufiku (Statistics Intern) RDJ Consulting Services CC
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