ENERGY &
Country Brief – NAMIBIA
September 2018
SUSTAINABILITY
Namibia September 2018
News & Analysis
Public Transport Regulation
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Country Briefing
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Impact on the Environment
Country Brief – NAMIBIA
September 2018
Quick Facts Population size Employment Literacy
2.30 million 62.7%1 89.00%
GDP Growth 2018(P) 1.4% Repo Rate 6.75% Interest rate (Prime) 10.50% Inflation rate 4.40% Budget (Current) N$65.0 Billion2
Geographic size 824,292 km²
Free vector map of Namibia outline - by One Stop Map
Industries Telecom (sophistication) Mobile - cell phones Water Availability / capita3 Electricity Gen. (Local) Electricity Demand (all)
Tourism, Mining, Fishing LTE 2.575 million subscribers 8, 800, 000Litres/capita 484.000 MW 629.000 MW
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Namibia Labour Force Survey (NLFS) of the Namibia Statistics Agency (NSA) http://www.mof.gov.na/documents/27827/506801/Budget+Speech+2018.pdf/3f0b42f6-2c2d-4502-bca8b84f5d6951cc 3 2005 Figures https://www.greenfacts.org/en/water-resources/figtableboxes/aquastat123.htm
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Country Brief – NAMIBIA
September 2018 COVER PAGE IMAGE
http://s6.sinaimg.cn/mw690/598746aat7ccbd530a7e5&69
This report is a FREE Publication and was prepared by RDJ Consulting Services CC based in Windhoek, Namibia. The content is collated from publicly available information and so its accuracy cannot be guaranteed.
Advertising aligned with our objectives of Sustainable Resource usage is welcome. Contact Details; RDJ Consulting Services CC PO Box 23738 Windhoek, NAMIBIA
Editor: David Jarrett Author: RDJ Consulting Interns*
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Country Brief – NAMIBIA
September 2018
Table of Contents Economy at a glance............................................................................................................................... 8 National Economics Fast Facts ........................................................................................................... 9 Namibia’s Economic Projection by Fitch ......................................................................................... 10 Moody's view on Namibia’s rising debts ......................................................................................... 10 Namibia’s Sector Performance ........................................................................................................ 11 Namibia’s Projected Economic Growth ........................................................................................... 11 Cheque Usage Vs Alternative Payment Methods ........................................................................... 12 ATM deposits – a new possibility for Standard Bank ..................................................................... 12 Oil & Gas ............................................................................................................................................... 13 September 2018 Fuel price increase................................................................................................ 14 Ministry Media Statement – 04/Sept/2018 .................................................................................... 14 Oil Demand to increase more than predicted ................................................................................. 15 N$: USD exchange rate impact on domestic Fuel Prices ................................................................ 15 Impact of recent Fuel price increase on northern motorists .......................................................... 15 The fuel storage facility .................................................................................................................... 16 Namcor wants its fuel import bid effected ..................................................................................... 16 Uranium ................................................................................................................................................ 17 Namibia’s capable of providing 10% of world mining output. ....................................................... 18 Electricity .............................................................................................................................................. 20 Tariff Charges explained .................................................................................................................. 21 New approach needed to develop the Energy Sector .................................................................... 22 Progress on SORED ........................................................................................................................... 22 Re-branding NamPower ................................................................................................................... 22 Schlettwein sees Kudu as a no go .................................................................................................... 23 Areas at Oniipa Town get electricity ............................................................................................... 23 SADC Energy Infrastructure ............................................................................................................. 24 Renewable Energy ................................................................................................................................ 25 Solar power in Barber business ....................................................................................................... 26 Namibia and renewable energy strides........................................................................................... 26 Solar power reduces Tsumeb electricity bill ................................................................................... 29
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Water .................................................................................................................................................... 30
Country Brief – NAMIBIA
September 2018
In need of more rural water supply ................................................................................................. 31 Strategic plan for Zambezi River ...................................................................................................... 31 Plans for a desalination plant to fill up Neckartal ........................................................................... 32 Rationing of water at Okakarara ..................................................................................................... 32 Windhoek residents urged to save water ....................................................................................... 33 Noordoewer Dam feasibility studies on .......................................................................................... 33 The Environment and Sustainability.................................................................................................... 35 Telecommunications ............................................................................................................................ 37 Roads and Transport ............................................................................................................................ 40 Progress being made on Efundja access roads construction .......................................................... 41 Half of Dubai taxi fleet to go hybrid in 5 years................................................................................ 42 Electric buses, hybrid taxis and cycling: The increasingly green future of public transport ......... 43 CoW plans to rehabilitate roads ...................................................................................................... 44 Taxi Regulation needed.................................................................................................................... 44 RA re-appoints its CEO ..................................................................................................................... 44 The Fuel Impact of Taxis in Windhoek: Public Lecture and Outcome ............................................ 45 Financing ............................................................................................................................................... 47 Economic Profile of Outapi – An Investment Possibility?............................................................... 48 More prepaid taps to be installed at Kuvukiland............................................................................ 48 Ohangwena aquifer project funded ................................................................................................ 49 Tenders ................................................................................................................................................. 50 Careers .................................................................................................................................................. 54
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EDITORIAL TEAM ............................................................................................................................. 55
Country Brief – NAMIBIA
September 2018
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Country Brief – NAMIBIA
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Country Brief – NAMIBIA
September 2018
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Economy at a glance
Country Brief – NAMIBIA
September 2018
National Economics Fast Facts4
Country:
Namibia
Major
foodstuffs; petroleum products
imports
and fuel, machinery and equipment, chemicals
Major
diamonds, copper, gold, zinc,
exports
lead, uranium; cattle, processed fish, karakul skins
Fiscal year
1 April - 31 March
Monetary Unit
1 Namibian dollar (N$) = 100 cents
“This budget calls on the collective support for all Namibians, and, more than ever before, the contribution of the private sector to the national development objectives.” Hon. Minister of Finance, Calle Schlettwein – Budget Speech: 7 March 2018
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https://www.asycuda.org/dispcountry.asp?name=Namibia
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Country Brief – NAMIBIA
September 2018
Namibia’s Economic Projection by Fitch5
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itch solutions expects Namibia’s gross domestic product (GDP) per capita increase form N$76 481.446 in 2017 to N$161 647.21 in the next 10 years, and at the same time, Real GDP is expected to increase to 5.6 percent in ten years. In addition, Fitch also projects the population to grow by 22 percent to over 3 million. According to the agency, the expected economic growth will materialise if uranium mining takes full swing. Other economic indicators forecasted by the agency are as follows: • 2018 economic growth: expected to fall from 4.5 percent to 2.5 percent due to the limited construction activities in the economy and decreased government spending • Fiscal deficit: forecasted to increase by 5 percent of GDP in 2018 • Annual inflation: anticipated to stand at 5.5 percent and remain constant in 2019 before it decrease to 5.0 percent from 2020 to 2027. The agency further emphasised that the following aspects are the risks the country faces: • country’s small economic size • dependence on agriculture which performs poorly due to weather conditions and • data reliability
Moody's view on Namibia’s rising debts
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he international credit rating agency Moody's Investors Service would likely downgrade Namibia's credit rating if fiscal consolidation were to fail to contain rapid public sector debt accumulation.
In its latest report on Namibia7, Moody’s reports that Namibia's fiscal strength has weakened in recent years and, with this, the agency expects government’s debt to continue rising and reach 50% of Gross Domestic Product (GDP) by 2020. This means that, Namibia's Real GDP Growth will stand at 0.9% in 2018, and 2.1% in 2019 according to Moody’s expectations. The report further noted that “Although government debt to GDP, at slightly more than 40% in the 2017/18 financial year, remains moderate relative to its regional peers, the pace of debt accumulation has been rapid in recent years”.
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https://www.namibiansun.com/news/nams-gdp-per-capita-to-bulge2018-09-07/ 19/19/18 exchange rate: US$1=N$14.85 7 Report titled: “Government of Namibia–Ba1 negative, annual credit analysis”
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Country Brief – NAMIBIA
September 2018
Namibia’s Sector Performance8
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elow is an Economic Performance overview of the various Namibian Economic sectors from 2017 to-date.
Agricultural Sector - expected to normalise in 2018, following high growth in 2017. The Sector is projected to grow by 3.1% and 4.1% in 2018 and 2019, respectively, showing a marked slowdown from a 12.7% growth rate in 2017. Diamond Mining Sector - estimated to maintain a high growth level during 2018 before contracting in 2019 due to the depletion of onshore diamond deposits. The sector's projected growth is 10.9% in 2018, which is reasonably high, despite a slowdown from 12% in 2017. Uranium Mining Sector - projected to moderately grow by 7.5% during 2018 before accelerating by 15.6% in 2019 as output from the Husab mine increases. The moderate growth is due to the stop of production in the uranium producers such as Langer Heinrich. The rate was, however, lower than the 23.4% recorded in 2017. Metal Ores Sector - projected at 7.6% and 5.2% in 2018 and 2019, respectively, which is a slowdown from 9.9% recorded in 2017. Slower growth rates are based on the fact that various sub-sectors such as gold and copper are currently operating around their design capacities, leaving the zinc and lead sub-sector to drive this growth during 2018 and 2019.
Namibia’s Projected Economic Growth9
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he Bank of Namibia's Director for Strategic Communications and Financial Sector Development, stated on July 6th, 2018 that despite the local economy recording a contraction of 0.1% during the first four months of 2018, and a contraction of 0.4% in the last four months of 2017, the local economy is still projected to experience growth of 0.6% in 2018, and a further 1.9% growth in 2019. The expected recovery in 2018 is mainly due to projected improvements in transport and communication, electricity, water and manufacturing, coupled with slower contractions for the construction and wholesale and retail sectors,” she noted. She acknowledged that the mining sector is also set to continue supporting the domestic economy, although it will be less than in the previous years.
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https://www.namibian.com.na/69304/read/Slow-growth-expected-for-primary-industries https://www.namibian.com.na/69244/read/Domestic-economy-predicted-to-grow-by-06pct
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September 2018
Cheque Usage Vs Alternative Payment Methods10
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he First National Bank – FNB’s Executive Officer reported that the growing usage of electronic payment methods, high expenses, inefficient processes and vulnerability to fraud have been key contributors to the global decline in cheques usage over the years. This is because cheques convey a written instruction to one’s bank to pay money from or into their bank account, and due to manual functionality in this process, there are substantial disadvantages that go with this option. In executive officer’s opinion, cheques do not offer users the convenience and relative security provided by digital payment solutions, according to him. Therefore, he urges financial institutions in Namibia to educate customers about alternative payment methods and their added benefits in order for Namibia to quickly move away from cheques. Benefits of using alternative or digital payment methods include the following: • Digital migration • Value-added incentives • Save on fees • Improved safety • Convenience
ATM deposits – a new possibility for Standard Bank11
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fter releasing the bank’s Sustainability Report for 2017, Standard Bank Chief Executive Officer announced in September 2018 that its customers would now be able to deposit money at ATMs by October 2018. This according to records shows that Standard Bank will be the second Namibian bank to offer this sort of service.
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https://www.namibiansun.com/news/namibians-urged-to-pay-attention-to-decline-in-cheques-usage201809-13 11 https://www.namibiansun.com/news/standard-bank-eyes-atm-deposits2018-09-13
September 2018 Namibia has no refinery capacity to-date
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Oil & Gas Page
Country Brief – NAMIBIA
Country Brief – NAMIBIA
September 2018
September 2018 Fuel price increase12
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he Ministry of Mines and Energy has announced that the fuel pump prices increased from September 2018 Prices in Walvis Bay and countrywide are now as follows: ✓ Petrol (95 Octane) - N$ 12.95 /L ✓ Diesel (500 PPM) - N$ 13.28 / L ✓ Diesel (50 PPM) - N$ 13.33 / L
Namibia currently ranks 14th in the Fraser
Ministry Media Statement – 04/Sept/2018
Institute Global Petroleum Survey, 2016 of small reserve
holders, placing Namibia 5 places ahead of South Africa. The Ministry in its statement pointed out that several international and local factors were the reason behind the latest fuel increases facing the Namibian nation. The Ministry via the National Energy Fund (NEF) will pay some N$ 59 Million via the “energy price mechanism” to mitigate the N$0.80 per litre increase, resulting only in a N$0.40 per litre.
www.fraserinstitute.org
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http://www.mme.gov.na
Country Brief – NAMIBIA
September 2018
The full text can be read at http://www.mme.gov.na/files/publications/cf4_Fuel%20Price%20Statement%202018.pdf
Oil Demand to increase more than predicted13
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ccording to the Organisation of the Petroleum Exporting Countries’ (OPEC) secretary-general (SG), the consumption of oil globally is anticipated to reach 100 million barrels per day (bpd) later this year. The OPEC SG also reported at an energy conference in Cape Town, South Africa on the 5th September 2018 that a stable environment was needed to encourage oil industry investment to meet the rising demand. The OPEC with Russia and other producer agreed in 2017 to cut supply to 1.8 million bpd in order to increase prices that fell below US$30 a barrel in 2016 from over US$100 in 2014.
N$: USD exchange rate impact on domestic Fuel Prices14
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conomists believe that the rise in the exchange rate between the Namibia dollar against the U.S dollar is the major contributor to the increasing oil prices in domestic currency terms, albeit international oil prices easing. According to the Economic Association of Namibia's research associate, Klaus Schade, a continuous upward pressure on inflation, because of increasing fuel prices is expected. Following the adjustment of the fuel tax in August, fuel prices were increased by N$ 0.25 per litre. “This could result in further under-recoveries (meaning the actual costs of fuel are higher than the pump price). If not fully or partly absorbed by the National Energy Fund, as in the previous months, under-recoveries will lead to fuel price increases. In addition, the municipality has increased bus fares, which will add further pressure on transportation costs,” Schade stressed.
Impact of recent Fuel price increase on northern motorists15
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he August 2018 fuel price increase has caused many motorists in the northern part of the Country (Oshikango) to fill up their vehicles with fuel imported from neighbouring country - Angola. Motorist in the area say that it has become harder for them to do business since the demolition of the Okatwitwi informal location which is believed to have been their market by the Helao Nafidi Town Council.
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https://www.namibiansun.com/news/oil-demand-to-spike-soon2018-09-07/ https://www.namibian.com.na/70539/read/Dwindling-Namibia-dollar-hiking-domestic-oil-prices 15 https://www.namibiansun.com/news/illegal-fuel-trade-goes-underground2018-08-05/
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September 2018
It is reported that Petrol is sold in five-litre containers costing between N$65 and N$70, which amounts to between N$13 and N$14 per litre while the current price of legal fuel in the area is N$13.14.
The fuel storage facility16
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he Minister of Mines and Energy is of the idea that NAMCOR is the most suitable entity to manage the fuel storage facility in Walvis Bay. He said, “Given that Namcor is our national oil company, it makes perfect sense that Namcor will be the operator of the facility on behalf of the government.” In addition, he said that Namcor would be able to run the facility by recruiting skilled personnel or acquiring a technical partner to assist with the building of technical skills.
Namcor wants its fuel import bid effected17
T
he National Petroleum Corporation of Namibia (Namcor) wants its 50% fuel import mandate be restored by the government. The state oil and gas company lost this mandate after being found to be technically insolvent by the Ministry Mines.
However, Namcor spokesperson said that the bid was getting the necessary attention. “We handed in a formal bid for the restoration of the 50% fuel import mandate to the minister of mines and energy about a month ago” he said and added that they had made similar efforts before they submitted the latter.
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September 2018
Figure 1: image source - https://www.newera.com.na
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Uranium Page
Country Brief – NAMIBIA
Country Brief – NAMIBIA
September 2018
Namibia’s capable of providing 10% of world mining output18. Uranium is one of the six mineral resources that were declared "strategic" by the Namibian government19. The International Atomic Energy Agency (IAEA) is a fervent promoter of uranium use for peaceful purposes and thus the Namibian Government view is internationally supported. The IAEA feels that, Nuclear power can make an important contribution towards reducing greenhouse gas emissions while delivering energy in the increasingly large quantities needed for global economic development20. CLIMATE CHANGE AND NUCLEAR POWER International Atomic Energy Agency 2018
Namibia has two significant uranium mines capable of providing 10% of world mining output. From a purely economic perspective, prices of uranium in the last decade or so have shown the greatest volatility in history — with a peak of US $300/kilogramme in 2007 and a trough of US $41/kilogramme in 201621
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http://www.world-nuclear.org/information-library/country-profiles/countries-g-n/namibia.aspx Kufa, Leon (April 2016). "Boom and Slump. The Mining Industry Has Seen it All". Mining Journal. Supplement to The Namibian. pp. 9–11.
https://www-pub.iaea.org/books/iaeabooks/13395/Climate-Change-and-Nuclear-Power-2018
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https://www.iaea.org/newscenter/news/uram-2018-ebb-and-flow-the-economics-of-uranium-mining
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September 2018
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September 2018
Generation, Transmission and Distribution: Powering the people!
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Electricity Page
Country Brief – NAMIBIA
Country Brief – NAMIBIA
September 2018
Tariff Charges explained22 Charge Type
Service Charge
Capacity Charge Demand Charge Energy Charge ECB Levy
Charge description and use The service charge (traditionally referred to also as basic charge) is a fixed charge that has the purpose of covering all administrative costs of the particular type of power supply point. The charge often designed to recover some of the fixed network costs relating to the type of supply point in question, e.g. the cable costs for house connections or the overhead lines for farm connections. The capacity charge is a fixed charge that has the purpose of covering all fixed costs related to the size of the particular type of power supply for small to medium power users (i.e. related to how much capacity is made available to the customer). The demand charge is a partly variable charge (with a minimum amount based on 70% of the notified demand of the supply point) that has the purpose of covering all fixed costs related to the size of the particular type of power supply for large power users. The energy charge is a variable charge, depending on actual consumption, and has the purpose of covering at least all variable costs in the power supply system attributed towards the particular power supply. This is a levy payable directly to the Electricity Control Board (ECB) of Namibia, which SERVES AS THE Namibian electricity supply industry regulator. The ECB also approves all electricity tariffs applicable in Namibia and licenses electricity distribution & supply. GENERAL At present CENORED is trying to simplify and harmonize tariffs in its license area. This process cannot be completed within a year. For instance, local authority surcharges apply in certain areas and not in others. Also, the various types of charges represent a mix of the above charges. As such CENORED is working with the ECB to harmonise tariffs over a period, typically 3 years. Figure 2: Image credit - https://www.esi-africa.com
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https://www.cenored.com.na/tariffs/tariff-charges-explained/522/
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Country Brief – NAMIBIA
September 2018
New approach needed to develop the Energy Sector23
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he Mines and Energy minister calls on Namibia to develop a new approach in order to address the never ending electricity needs the country faces instead of the ineffective conventional ones.
Talking during the electricity supply industry forum at Swakopmund on 9 August 2018, Alweendo said; “unless rural areas were electrified, urbanisation would increase because that was where electricity was, and businesses are where electricity is, so people will move to urban centres to look for work in those businesses.” According to the Minister, Namibia is in the process of becoming more self-sufficient in terms of electricity production, and that independent power producers play a key role in this. There were currently 18 independent power producers in Namibia who supply 170MW renewable energy, which is about a quarter of Namibia's electricity needs. “Less than 50% of the population is not connected yet, but electricity could maybe come from somewhere else, not just the national grid,” he said. Sadly, no indication was given as to the roll out of additional generation that is to come, especially in light of the uncertainty around the Kudu project.
Progress on SORED24
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he move to have a Southern Regional Electricity Distributor (Sored) which came about as a result of an electricity distribution industry summit in 2014, could finally be a reality before the end of 2018. The Consultations with municipalities in the south, the Electricity Control Board and the ministry of energy seem to be indicative of this move becoming a reality. ECB CEO reported that consultations were continuing, hence the RED is close to reality. Consultations have led to the establishment of a technical committee which has been meeting monthly, and a shareholders' committee to drive the establishment of Sored. According to the CEO of ECB, REDs have been effective at refurbishing and replacing aged assets, as well as managing and reducing network losses, thus makes it advantageous.
Re-branding NamPower25
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fter 22-years without undergoing any significant change, NamPower has recently introduced its new logo which it says is an improvement on the old one, and formed part of a bigger project, the production of a comprehensive Corporate Identity Manual.
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https://www.namibian.com.na/70393/read/New-mindset-will-develop-energy-sector-%E2%80%93Alweendo 24 https://www.namibiansun.com/news/southern-red-to-be-operational-this-year2018-08-07/ 25 https://www.namibiansun.com/news/nampower-happy-with-n235k-rebranding2018-09-14/
Country Brief – NAMIBIA
September 2018
NamPower is reported to be satisfied with the work done to “re-energise” its logo, which has not undergone any significant change in its 22-year history. In the new logo, NamPower's pay-off line “Powering the Nation and Beyond” no longer appears in italic font and there are slight changes to the green and gold corporate colours as well.
Before re-branding
After re-branding Figure 3: NamPower.com.na
Schlettwein sees Kudu as a no go26 Government has effectively closed the curtain on the much-talked about Kudu Gas to Power Project after Finance Minister, Calle Schlettwein, said it should be abandoned. In an interview with the Windhoek Observer on Thursday, Schlettwein said the government is not willing to take on the risk of a project that it considers to be not financially viable. According to Schlettwein, the Kudu Gas to power project is not affordable both from a capital outlay and tariff point of view. He said developing Kudu means the financially-hamstrung government will have to close the door on other potential alternative sources of energy. “We have told NamPower to stop the project,” the finance minister said. “The financial risk is too big so we will not concede with funding it or accept financial risk. The much better option is for us to diversify our basket of the fuel that we use for power and concentrate on alternative sources”. NamPower announced in April that the planned Kudu Power Station would be down-sized from 850 megawatt (MW) to 442.5 MW after off-take agreements with South Africa’s power utility Eskom and Zambia’s Copperbelt Energy Corporation failed to materialize.
Areas at Oniipa Town get electricity27
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https://www.observer.com.na/index.php/national/item/10375-schlettwein-kills-kudu https://neweralive.na/posts/oniipa-town-gets-electricity
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he Oniipa town council serviced an area estimated to have 56 erven at Onethindi Proper with electricity. Electricity was installed at a cost of N$2.4 million, but the area is expected to be fully serviced at a cost of N$40 million.
Country Brief – NAMIBIA
September 2018
SADC Energy Infrastructure28
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he Southern African Development Community (SADC) member countries are believed to produce more electricity than they require at peak demand. However, due to the fact that some member countries are not connected to the regional electricity grid, this excess energy cannot be shared with member states who generate insufficient amounts of energy for their respective populations. Considering the region’s current peak demand and generation capacity reserve margins, the region is estimated to generate excess capacity of 2 616 MW. This, translates to more than 40 percent of installed capacity of the total installed generation capacity in Africa. Meanwhile, during a media briefing in August 2018, the Director for Infrastructure at the SADC Secretariat, said that electricity demand in SADC increased by a weighted average of 6.8 percent, 2.6 percent and 2.9 percent during 2015, 2016 and 2017 respectively. Furthermore, the installed generation capacity in the region is 68 324 MW, which includes installed capacity from Oceanic Member States that stand at 782 MW, 246 MW and 106 MW for Mauritius, Madagascar and Seychelles respectively. The director said SADC’s installed capacity was however still dominated by coal-fired plants, mainly from South Africa and noted that short-term measures including rehabilitation of old plants and building of new power generation projects will add more than 26 108 MW to address the overall generation deficit in order to achieve power supply adequacy by 2022.
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https://neweralive.na/posts/missing-links-persist-in-sadcs-energy-infrastructure
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September 2018
Clean energy for a healthy planet…
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Renewable Energy
Country Brief – NAMIBIA
September 2018
Solar power in Barber business29
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business - Wiye Investment, situated along Julius Nyerere Street in Ongulumbashe informal settlement in Windhoek is powered by a solar panel. Wiye Investment does printing, word processing, photo copying and cell phone charging.
According to the business owner, the 260 watts solar panel, 1000 voltage is connected to two batteries that is connected to the inventor then to the plugs that supplies power to printer, laptops and shaving machines amongst others. Since the settlement does not have electricity he charges the residents who want to charge their phones N$3.00 per charge. The business currently employs two young assistants who the solar-powered barbershop.
Namibia and renewable energy strides30
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he Executive Director of the SADC Centre for Renewable Energy and Energy Efficiency (SACREEE), Kudakwashe Ndhlukula said that Namibia has made great developments in the deployment of Renewable Energy and Renewable Efficiencies.
Speaking at a media engagement at Windhoek during the recently ended Southern African Development Community (SADC) heads of state summit in August 2018, Ndhlukula said the country's adoption of the Renewable Energy Policy in 2017 puts Namibia ahead of other SADC member states. He commended the policy adoption as it provides guidance to the government on how to develop the renewable energy sector. It will also scale up the contribution of power from renewable sources in the country's electricity mix, while aiming to enable access to modern, clean and affordable energy services for all Namibians. He called for innovation in order to include every citizen.
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https://neweralive.na/posts/barber-uses-solar-to-power-business https://www.namibian.com.na/70421/read/Namibia-doing-well-in-renewable-energy-%E2%80%93Ndhlukula
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Solar power reduces Tsumeb electricity bill31 The municipality of Tsumeb has decreased it August electricity tariff by 30 percent. This a benefit made possible by its newly commissioned solar power plant project. The plant which has a power output of 100kVA from three solar panels was set up three years ago at a cost of N$2.5 million to reduce the escalating electricity bill, which emanates from its 24-hour water pump station. Even though it was decommissioned in 2016 as result of glitches and failure to deliver the desired results, it become operational in May, 2018 when it got fitted with improved technology. The municipality had been struggling to cope with the ever-increasing monthly bill where in some instances in a month it could pay an all-high bill of N$1 million to the electricity distributor CENORED. According to the town engineer Pedro Immanuel, the town’s population has grown tremendously hence putting pressure on the use of water. In addition the CEO of Tsumeb, said the situation was a hard for the council as there was no remedy to it despite trying several interventions such as shift pumping, which never worked.
Figure 4: Photo https://neweralive.na/posts/tsumeb-harnesses-solar-power-supply-water
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https://neweralive.na/posts/solar-power-reduces-tsumeb-electricity-bill
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September 2018
Water demand in Namibia is met via surface and artesian sources.
Figure 5: RDJ Photo showing Water tanks at the Amarika Desalination Plant in Northern Namibia
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Water
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September 2018
In need of more rural water supply32
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he residents of Nehale Lya Mpingana in Oshikoto region still struggle to have access to potable water. They mostly rely on wells and boreholes for both animal and human consumption, but due the village’s vastness, many still walk long distances to access water.
It is reported that the situation partly eased in 2017 when two boreholes were drilled at Andoni as well as a water pipeline to Omupupa village, but two of them at Omboto and Omatope have broken down leaving the community with no source of water. Nehale Lya Mpingana councillor, Leevi Reinholdt told New Era that the water problem has persisted and is far from being resolved, although proposals to get four more boreholes drilled at Ohaingete, Onghune, Oshikukutu and Onegolo have already been presented for funding. He hinted on the plans to connect the pipeline from Omupupa to Oshamakaka and Oshana Shepandela and hoped for access to potable water if these plans come into effect.
Strategic plan for Zambezi River33
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he process of developing a strategic plan for the Zambezi River is expected to be completed by the beginning of 2019 and will outline projects aiming at eradicating poverty in the Zambezi River Basin and in southern Africa. According to Zamcom, the basin-wide strategic plan will provide a framework that will facilitate investment. This will address the many development challenges of the riparian states and unlock the enormous development potential of the basin. Zamcom is a major river basin organisation in Africa. It was established in 2014 as an intergovernmental organisation that brings together eight riparian states - Angola, Botswana, Malawi, Mozambique, Namibia, Tanzania, Zambia and Zimbabwe. Some of the foreseen benefits of cooperation in basin-wide planning, in the context of the Zambezi River Basin, include: • • • • • • •
https://neweralive.na/posts/water-a-deferred-dream-for-remote-constituency https://www.namibiansun.com/news/strategic-plan-for-zambezi-river2018-09-04/
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improved energy security improved food security increased regional economic benefits joint investment planning jointly addressing external threats increased employment opportunities and enhanced health environment, leading to improved provision of goods and services
Country Brief – NAMIBIA
September 2018
To date two of the three phases of the development of the strategic plan has been completed. The three phases are as follows. • • •
Phase one: These include the Inception Report and the Situation Analysis Phase two: These include the Basin Development and Infrastructure Inventory and Basin Development Scenarios which have been completed. Phase three: These include the Basin Investment Scenarios, Draft Strategic Plan, the Final Strategic Plan and the On-line Monitoring and Implementation Tool, which are still to be completed. This phase is expected to be completed by the end of 2018 and may be presented to the Council of Ministers for adoption at the February 2019 meeting.
Despite tasks carried out for Phase one and two, “some of the work carried out so far has revealed that the situation on the ground in the Zambezi River Basin has not improved much.” With this, it can be concluded that more investments is required.
Plans for a desalination plant to fill up Neckartal34
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he founding President Sam Nujoma has called for plans to construct a desalination plant that will get water from the sea to fill up the Neckartal Dam near Keetmanshoop.
While acknowledging the benefits the dam will bring to the country, he is concerned that the lack of rainfall in the country will mean that the dam will not be filled up and thus he suggested that a desalination plant be set up to get water from the nearest sea point (which can only be Lüderitz, as it is 300 km away) to feed the dam with water for the planned 5000-hectare irrigation scheme.
Rationing of water at Okakarara35
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he residents of Okakarara Town Council are reported to owe the town council N$4 million in water consumption. This has led has to the introduction of water rationing in the town, although this has cost some people their jobs. In order to cut down the losses the council incurs, the council has started supplying water at certain hours from 06h00 to 10h00, and from 18h00 to 22h00. Despite the effect this action had on businesses and households, the town council’s chief executive officer said the council owes NamWater over N$3 million, and rationing was the only necessary move to contain the increase of the debt. He further said that the water rationing was also a way to control the unaccounted for loss of water through theft or underground pipe leaks.
https://neweralive.na/posts/desalination-plant-could-fill-up-neckartal-nujoma https://www.namibian.com.na/70089/read/Okakarara-rations-water-over-debts
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Country Brief – NAMIBIA
September 2018
Windhoek residents urged to save water36
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n an effort to avoid further decreases in water supply for the city of Windhoek, the City of Windhoek has urged residents to save 10 percent of water as it faces a water scarcity. This comes after an official water scarcity was declared and subsequently called for water restrictions be implemented accordingly. As a result, water saving targets for Windhoek accordingly increased from five percent to 10 percent. A press statement issued by the City said the recent announcement made by NamWater was that the inflow into the dams for the past rainy season amounted to only about 24.9 percent of the average expected inflow. According to the City’s section engineer: mechanical and electrical, Jacobus Theron, the water saving of at least 10 percent will offset against the abstraction from the boreholes. We are trying not to abstract too much water from the aquifer. We are still trying to keep the emergency source for the future. Contingently, they are pumping less water from the aquifer for the long run needs. He added that they are planning to have sources that will sustain the City for the next three seasons if there are no inflows into the dams, which necessitated plans to use some of the emergency sources such as boreholes in Windhoek and other emergency sources that are managed by NamWater.
Noordoewer Dam feasibility studies on37
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he Northern Cape Province’s Economic Development and Tourism Department acting head, Sem Mabilo, revealed during a meeting between the province and the //Karas region held on 14 August 2018 at Keetmanshoop that a feasibility study to determine the viability of a dam construction at Noordoewer/Vioolsdrift is anticipated to be completed in 2019. The dam is situated on the lower Orange River, approximately 6 Km upstream of the Noordoewer and Vioolsdrift border posts. Mabilo said substantial progress with the technical work was achieved for the initially selected dam size of 2.8 billion cubic metres, while environmental aspects such as the Environmental Impact Assessment (EIA) and Scoping still have to be done. He, however, outlined that an alternative dam size of 645 000 cubic metres would also be considered. Thus, site investigations and feasibility designs need to be updated and redone. The official also stated that the dam is needed to regulate the water flow for improved management of the Orange River Mouth Ramsar wetland, and to increase the yield of the Orange River system.
https://neweralive.na/posts/windhoek-residents-urged-to-save-water https://www.namibian.com.na/70481/read/Noordoewer-Dam-feasibility-studies-on
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Country Brief – NAMIBIA
September 2018
New discoveries about the Northern aquifer38
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he Ohangwena aquifer known as KOH II, is now said to hold four times the amount of water than was originally estimated and that it is twice as large. According to the new evidence showed on 06 August, 2018, by Bertman Swartz, the deputy director of geology at the agriculture ministry, the aquifer is indicated to possibly hold 20 billion cubic metres of water while in 2013 it was estimated to hold five billion cubic metres. The aquifer covers 5 170 square kilometres while 2013 parameters indicated it was roughly 2 500 square kilometres big. This, according to Swartz was found when geologists from Germany and Namibia cut a continuous core in the centre of a huge sedimentary fan known as the Cubango megafan which comprises a former gigantic river delta in the north of Namibia. Basically, a megafan is a large base of sediment deposited by a flowing river than fans out from a mountainous area, a core borehole was drilled to a depth of 400m. “The cores obtained from this drilling were the basis for a detailed lithological (rock) description and the analysis of the sediment of the aquifer.� Swartz said that is now known that the actual recharge of the aquifer is 635 000 cubic metres, while this was previously not known. This figure was estimated for the 2011/2012 season, one of the best in recent memory. He Furthermore revealed that the average depth of the aquifer has been identified to be at 235 metres, while it was previously thought to be a little deeper at 250 metres. For every metre the water level in the borehole dropped, yields were between 0.28 and 5.29 cubic metres per hour. The average was calculated at 1.4 cubic metres per hour.
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https://www.namibiansun.com/news/northern-aquifer-probe-raises-stakes2018-08-07/
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Country Brief – NAMIBIA
September 2018
Figure 6: RDJ Photo showing a well preserved environment, transmission lines and a network tower
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The Environment and Sustainability
Country Brief – NAMIBIA
September 2018
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Remember:
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September 2018
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Telecommunications
Country Brief – NAMIBIA
September 2018
Telecommunications and the future Telecommunications is now fundamental to our everyday life. It has like any other technical phenomena, has changed and grown leaps and bounds. The advent from wired to wireless has come at a rate that has left even the telecommunications companies lagging behind. Namibia has not been spared from the evolution. There is no doubt that mobile telecommunications have changed not only the communications landscape but “lives” in general. “It is helping to empower women, create jobs, spur financial independence, improve education, boost agriculture production, and promote better health”. David Nabarro Special Adviser of the United Nations Secretary-General on the 2030 Agenda for Sustainable Development Service Provider Profiles
Provider
Fixed Line Mobile Internet Communications Communications Communications
Telecom Namibia Limited
Yes
TN Moblie (Telecom Namibia Limited)
No
Mobile Telecommunications Limited (MTC)
No
Paratus Telecom Namibia (formerly Internet Technologies Namibia)
No
Africa Online (Namibia) Pty Ltd
No
2G 3G 4G 2G 3G 4G 2G 3G 4G 2G 3G 4G No
Yes
No
No
Yes
Yes
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“Accessing communications or data from some areas of Namibia remains difficult, as many areas including the most remote ones have data-poor systems or no communications systems at all”
Country Brief – NAMIBIA
September 2018
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Advertise your PRODUCT(s) or BUSINESS With Us!!!
Country Brief – NAMIBIA
September 2018
Figure 7: RDJ Photo showing a road in Namibian
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Roads and Transport
Country Brief – NAMIBIA
September 2018
Progress being made on Efundja access roads construction39
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he Roads Authority's (RA) N$112-million flood mitigation project, which aims to build 25 new gravel access roads to 33 flood-prone schools and clinics in the Omusati and Ohangwena regions, is in full swing.
The building of the roads and culverts has been subcontracted to Kettu Investment, Sash Trading, Moza Investment, Eponga and Tangeni and Odjove jv N'olune under the supervision of the RA and WML Consulting Engineers. The RA says it is satisfied with the quality of work done so far, eight months into the 15-month project. “The main objective of this project is to provide access to schools and clinics during flood periods. The project is expected to be completed by March 2019 and so far it is progressing well, and 43% of the work has been completed,” says RA spokesperson Hileni Fillemon. She highlighted that the project is in six construction lot and five of them are currently being worked on. The project which was commissioned by the former works minister in 2017, is part of a climate-change mitigation programme co-funded by the government and the German development bank KfW. The launch of some of the projects such as Okalongo in Omusati, !Naruseb said was in an effort to alleviate the plight of rural communities in Oshana, Ohangwena and Omusati are prone to seasonal flooding that makes roads impassable during the rainy season and leads to minimal access to services.
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https://www.namibiansun.com/news/efundja-access-roads-progressing-well2018-08-09/
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Country Brief – NAMIBIA
September 2018
Half of Dubai taxi fleet to go hybrid in 5 years40 By 2021, half of the cabs on the roads of Dubai will be hybrid cars, the Roads and Transport Authority (RTA) has announced. The move, part of a plan to reduce carbon emissions of the taxi sector by two per cent, is prompted by the deregulation of fuel prices, and the cost-effective hybrid (fuel-electric) vehicles. Unveiling the plan, Mattar Al Tayer, director-general and chairman of the board of executive directors of Roads and Transport Authority (RTA), said that 791 taxis will be added to the fleet of hybrid taxis this year. The hybrid taxi fleet was beefed up last year after 147 hybrid taxis were added to the existing cars.
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https://www.mobility-future.com/757/article-3.aspx
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Country Brief – NAMIBIA
September 2018
Electric buses, hybrid taxis and cycling: The increasingly green future of public transport41
Public transport means different things to different people based on their local context and needs. However, the way we move around is changing, with electric and hybrid vehicles becoming more and more increasingly common. The key change that we see for the public transport vehicles are their shapes (making them aerodynamic, engine modifications or alternatively fuelled. Alternative fuels are being more and more accepted with hybrid taxis and hydrogen buses becoming increasingly common. A good example of this is, “authorities in China announced that the Shenzhen Bus Group had replaced all 5,698 of its buses with electric vehicles”. Sustainability requires more than just alternative energy sources and so our policymakers need to focus on energy efficiency to ensure that maximum benefit is accrued from all energy use. Hybrid vehicles are a first step towards getting energy efficiency. This has been our experience from our current42 RDJ Consulting research which pointed to a 24% saving across Carbon Dioxide emissions and imported fuel per litre of fuel consumed. Further benefits for Namibia (and other cities) will come from car pooling, efficient taxi travel and a switch from cars to buses which will reduce congestion, reduce negative impacts on the environment.
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https://www.cnbc.com/2018/03/22/electric-buses-hybrid-taxis-cycling-green-future-of-publictransport.html 42 June/July 2018
Country Brief – NAMIBIA
September 2018
CoW plans to rehabilitate roads43
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ut of its approximately 820 Km of surfaced roads and streets, the City of Windhoek (CoW) has signed a contract with Tau Pele Namibia Construction that will see more than 32 Km of its roads that are most in need of maintenance being repaired in the coming months. So far, a team of specialised engineers have conducted an annual visual assessments conducted on all the roads to determine the roads in which to work on. In a media statement, the municipality noted that “The contract will mainly focus on the higher order roads and 1.2 kilometres will be in-situ recycled and sealed with a 19mm Cape seal. A further 31.5 kilometres will be resealed by means of a 13mm single seal and blinding layer.” Municipality further noted that 820km network of roads and streets is ageing and many roads “have passed their original design life”. Therefore, in cases where the road has been allowed to fail completely, the only option is to reconstruct it completely.
Taxi Regulation needed44
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he Namibia Transport and Taxi Union (NTTU) will make a down payment to engage lawyers within the month of September 2018 to tackle a number of issues, including lack of regulations protecting taxi drivers and a transportation law they describe as unconstitutional and discriminating against taxi drivers. The Union’s President says that he has withdrawn N$2 000 this week and begun to scout around for lawyers willing to challenge what he deems are unconstitutional clauses in the Road Traffic and Transport Act45, including phrasing that includes terms such as “servant” within the permit regulations. He added that another N$5 500 has been deposited into the NTTU account to pay for legal advice. The union is concerned that the taxi drivers are fined, and not the taxi owners, while the law and permit conditions refer to the “holders of permits”, who are the owners of the taxis. For the mentioned concerns, the Union’s president believes changing the way taxi drivers are legally described would help when negotiating better conditions of employment for taxi drivers.
RA re-appoints its CEO46
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he Roads Authority (RA) board announced on the 5th of September 2018 the reappointment of CEO Conrad Lutombi for another five years as of the 1st of October 2018. According to RA’s board chairperson, Lutombi was re-appointed for the following term again because of his accomplished corporate leadership ability and other qualities.
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https://www.namibiansun.com/news/city-rehabilitates-roads2018-09-13 https://www.namibiansun.com/news/taxi-union-wants-to-challenge-law2018-09-12/ 45 1977 Act 46 https://www.namibiansun.com/news/inkumbi-reappointed-as-dbn-ceo2018-09-06/
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Country Brief – NAMIBIA
September 2018
The Fuel Impact of Taxis in Windhoek: Public Lecture and Outcome
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axis in Windhoek account for more than 35% of trips made per day47. There are approximately 12 92348 taxis currently registered with City of Windhoek to operate within the city. Looking at the environmental and economic impact of the taxis operations, a single taxi emits some 37 kg of đ??śđ?‘‚2 per day49 and there is an overall fuel expenditure of about N$ 304 140.84 per day50 for the whole taxi fleet. This is the subject that interns at RDJ Consulting Services CC. in Windhoek, Namibia researched on and presented at a public lecture in September 2018. Under the theme “the fuel impact of taxis in Windhoekâ€?, RDJ Consulting Services in collaboration with the University of Namibia’s (UNAM) Economics Department held a Public Lecture on 11 September 2018. The Public Lecture was hosted by UNAM’s Department of Economics at the University’s Main Campus Library Auditorium in Windhoek. Which was hosted by the faculty of Economics and Management Sciences on. This event pulled the attention of the local media. After following the presentation, the Namibian Broadcasting Corporation (NBC) requested presenters for an interview immediately after the lecture, 47
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Sustainable Urban Transport Master Plan (SUTMP) of 2013. https://www.google.com/interstitial?url=http://www.movewindhoek.com.na/sites/default/files/sutmp_final_ main_report_2013_v1.pdf 48 Extrapolated by taking the highest number of each code letter found on the surveyed taxis (ranging from 500-600). Please note that letters O, Q, and Z were not represented in the surveyed taxis 49 Calculated by dividing the average km driven in the driver survey by average km/litre of petrol and then multiplying it by 2.26 as per UK’s Calculation of CO2 emissions. https://people.exeter.ac.uk/TWDavies/energy_conversion/Calculation%20of%20CO2%20emissions%20from% 20fuels.htm 50 Authors’ computations based on the daily average fuel expenditure (N$205.00) multiplied with the number of taxis surveyed (1478)
Country Brief – NAMIBIA
September 2018
which was then broadcasted on NBC’s Business Today programme. NBC radio also called RDJ requesting for an interview about the outcome and key points of the presentation. Also. Radio Cosmos felt the need to contact RDJ after coming across the event’s advert. They called before the event to find out and inform the public on what to expect from the Public Lecture. The main objectives of the lecture where to; •
Provide current and relevant information on taxi usage, fuel use implication and the corresponding CO2 impacts. • Educate others of the economic and social challenges that taxi use creates • Encourage discussion on the social and economic outlook for the Taxi industry • Discussions to aid Policy and regulations in the Taxi Industry. • Moot possible fuel and engine technology changes with corresponding emission reductions. • Allow real world experience and interaction for the interns of RDJ Consulting The public lecture was presented by: Mr. Lukas Sizario (Bachelors in Applied Mathematics and statistics (NUST) and a statistics intern at RDJ consulting Services CC), Mr. Fares Shipaxu (Economist intern at RDJ consulting Services CC), and Mr. David A. Jarrett (Managing consultant at RDJ Consulting Services CC).
Namibia Press Agency (NAMPA)
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Namibia University of Science and Technology (www.nust.na)
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The general public
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University of Namibia - both Lecturers/Professors and Students (http://www.unam.edu.na)
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RDJ Consulting (www.rdjconsulting.co.za)
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Despite limited turnouts, stakeholders showed their appreciation for having the public lecture on such an important topic and have contributed by providing updated information on new trends being undertaken to solve the growing issue of The Fuel Impact of Taxis in Windhoek. Stakeholders came from a varied background and included representatives from: • Namibia Broadcasting Corporation (NBC)
September 2018
Figure 8: Image source - http://www.versantlaw.com
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Financing Page
Country Brief – NAMIBIA
Country Brief – NAMIBIA
September 2018
Economic Profile of Outapi – An Investment Possibility? ith a population growth of 9.3% per annum, which is higher than the average growth of 4% per year of all urban areas in the country, Outapi’s local economy is private sector driven. Furthermore, the rapid growth in local infrastructure developments indicate the future growth potential of the town’s economy. This was outlined in a report published by First Capital titled “Economy Profile for Outapi”.
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✓ Agriculture Studies revealed that value-addition in agricultural raw commodities is also low, hence there is potential to grow the local manufacturing capacity. The report further concluded that despite the town’s growing agricultural farming base, access to financing, especially among small and medium farmers, remains a challenge to enhance this potential further. ✓ Role in power supply The report further said the ever-sunny weather of Outapi has proved to be an opportunity to channel the ever-frequent sunlight into the generation of electricity through solar projects. Presently, the town’s electricity demands met through a 5MW solar power plant project was established through a partnership between an international and local investor (Ino Investment). ✓ Power usage Individuals in the northern regions, where Outapi is situated, use 3.5MW hours of electricity per annum (292KWh per month). First Capital estimates the average electricity usage in Outapi to be 3.6MWh, equivalent to 300 kilowatts hour per month. Commercial users of electricity in the Omusati Region use 17MWh in a year, equivalent to 1 417MWh per month.
More prepaid taps to be installed at Kuvukiland51
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he overpopulated informal settlements at Tsumeb will be restored as there are plans to install about 10 000 more prepaid water points for residents of the settlement. The planned water taps will come in handy for the residents that has over the years endured having to walk long distances to the nearest water point. Dundee Precious Metal has availed funding of over N$200 000 for this project to extend the water points to the massively inhabited location. The town’s CEO welcomed the development and said it brings relieve to the town’s people. He therefore urged the municipality to use a water tanker during weekends to distribute water within the location in order to ease the congestion and pressure on the available taps.
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https://neweralive.na/posts/more-prepaid-taps-to-be-installed-at-kuvukiland
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Country Brief – NAMIBIA
September 2018
Ohangwena aquifer project funded52
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he Namibia Water Corporation (NamWater) received a N$6 million German grant on 31 August 2018, to fund the Ohangwena aquifer project. The corporation said at a press conference that the funds had come from the German Federal Institute for Geoscience and Natural Resources, and work on the construction of the plant to remove excess fluoride from the Ohangwena II aquifer will start soon. NamWater had drilled three boreholes at the aquifer by May 2017, which had a high yield of 120 cubic metres per hour abstraction. The aquifer was discovered in 2012. The investigations revealed that the aquifer stretched 75km from the Ondobe constituency towards the east, and about 40 km towards the Angolan border, and holds 20 billion cubic metres of fresh water. The project is aimed at boosting water supplies through the Oshakati-Omakango-Omafo pipeline.
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https://www.namibian.com.na/70985/read/NamWater-gets-N$6m-for-aquifer
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Tenders Page
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September 2018
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Visit https://www.nampower.com.na/Bids.aspx
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Whether you are a small, medium or large business, simply contact us now to request a space for your PRODUCT or BUSINESS Add now.
Country Brief – NAMIBIA
September 2018
Employment creation – a need for Economic Growth Editorial team
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Careers
Country Brief – NAMIBIA
September 2018
EDITORIAL TEAM RESEARCHERS: Fares Shipaxu Chilombo Olga Priscila
WRITER: Fares Shipaxu Chilombo Olga Priscila
LAYOUT: Chilombo Olga Priscila
EDITOR: Chilombo Olga Priscila David Jarrett
REVIEWER Lahja Amaambo
PUBLISHER: RDJ Consulting
CONTACT: RDJ Consulting Services CC PO Box 23738 Windhoek, NAMIBIA Telephone: +264 61 400 171 Email – Briefing@rdjconsulting.co.za RDJ Consulting Services CC is an advisory consultancy to the Energy, Water and Transport Sectors with a focus on sustainable operations and renewable energy.
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Visit our website www.rdjconsulting.co.za for more information.
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September 2018
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Energy & Sustainability In Action