Country Brief – NAMIBIA June / July 2017
Quick Facts Population size Employment Literacy
2.30 million 66.00% 89.00%
Real GDP Growth 2016 1.00% Repo Rate 7.00% NCPI (Apr 2017) 6.10% Interest rate (Prime) 10.75% Budget (Current) N$62.54 Billion
Geographic size 824,292 km²
Free vector map of Namibia outline - by One Stop Map
Industries Telecom (sophistication) Mobile - cell phones
Tourism, Mining, Fishing
Water Availability / capita
154,000 Litres/capita
Electricity Gen. (Local) Electricity Demand (all)
LTE 2.575 million subscribers
484.000 MW 629.000 MW
Table of Contents Indicator Impactors.......................................................................................................................................... 3 Oil & Gas .......................................................................................................................................................... 3 Electricity ......................................................................................................................................................... 4 Renewable Energy ........................................................................................................................................... 5 Water ............................................................................................................................................................... 6 The Environment ............................................................................................................................................. 6
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Tenders ............................................................................................................................................................ 8
Energy & Sustainability News & Analysis
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Country Brief – NAMIBIA June / July 2017 Indicator Impactors Namibia's credit rating unchanged at BBB-. Fitch rating left unchanged1
Fitch affirmed Namibia's long-term and local currency issuer default ratings at BBB- with a negative outlook. Fitch said that the BBB- rating reflects Namibia's strong growth potential and record of political stability, balanced by high fiscal and external deficits
Oil & Gas Liquid Fuels The Ministry of Mines and Energy announced that that the prices of petrol and diesel pumps for July2 remained unchanged: Petrol (95 Octane) - N$ 10.50 /L Diesel (500 PPM) - N$ 10.33 / L Diesel (50 PPM) - N$ 10.38 / L Namibia has no refinery capacity to-date Namibia currently ranks 14th in the Fraser Institute Global Petroleum Survey, 2016 of small reserve holders, placing Namibia 5 places ahead of South Africa. www.fraserinstitute.org
Increase in easier fuel payment accessibility Bank Windhoek has introduced GoPay3, which is the bank’s unique mobile payment solution for fuel. With this, customers can pay for fuel with their mobile phones without using cash or card. Bank Windhoek as of June 2017, registered its 94th merchant participant4, increasing its customers’ easy access to fuel around the country.
Shell to start drilling activities5 Shell has formally asked the Ministry of Environment and Tourism through its local advisor SLR Consulting for permission to start drilling oil off the Namibian cost as from 2018 up until 2020. It is expected that drilling will begin at a rate of two months per well, done possibly to a depth of 3 000 metres below the seafloor. Although Shell has indicated its intention to drill by 2018, a final decision would still need to be made according to Shell’s country manager for Namibia, Dennis Zekveld.
1
https://www.namibiansun.com/news/fitch-rating-left-unchanged/ Walvis Bay tariffs 3 http://www.bankwindhoek.com.na/Pages/GoPay.aspx 4 https://www.newera.com.na/2017/06/15/gopay-signs-up-94th-fuel-merchant/ 5 https://www.namibiansun.com/news/shell-begins-eia-process-for-drilling/
Energy & Sustainability News & Analysis
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Country Brief – NAMIBIA June / July 2017 Electricity Electricity Investment Overtakes Oil, Gas for First Time Ever In 20166 International Energy Agency (IEA) reported on July 11 that investments in electricity exceeded those in oil and gas for the first time ever in 2016 on a spending splurge on renewable energy and power grids due to continued drop in upstream oil and gas spending. • •
0.7% of the Namibian labour force was employed by the electricity industry in 2016. This is an increase from 0.4% in 2014. NamPower plans to build three plants to boost electricity security – 40MW biomass power plant at Otjiwarongo 20MW power plant at Otavi 1500MW CSP power plant at Arandis
Scoping for biomass begins7 NamPower has begun a scoping study to establish the viability of a 20-megawatt (MW) biomass plant while the environmental process for the construction of the first ever biomass plant is envisaged to be completed in November 2017 so that it is operational by 2020. The power utility identified six sites namely, the Gerus and Ohorongo substations near Otjiwarongo, the Auas substation near Windhoek, the Osona substation near Okahandja, the Otjikoto substation near Tsumeb and the Omaere substation near Gobabis.
Generation
Installed Capacity
Current Operational Generation:
347 MW
Van Eck
120 MW
Paratus
24 MW
Anixas Omburu
Anixas 4%
Omburu 1%
Otjiwarongo 1%
Paratus 4%
22.5 MW 4.5 MW
Osona
5 MW
Otjiwarongo
5 MW
Grootfontein
5 MW
Karibib
5 MW
Karibib 1%
Van Eck 22%
Osona 1%
Grootfontein 1% Ruacana 65%
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https://www.iea.org/newsroom/news/2017/july/global-energy-investment-fell-for-a-second-year-in-2016-as-oiland-gas-spending-c.html 7 https://www.namibiansun.com/news/scoping-for-biomass-begins/
Energy & Sustainability News & Analysis
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Ruacana
Installed Capacity
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Plant Name
Country Brief – NAMIBIA June / July 2017 Generation Imports
80 MW
200 MW
39 MW
• Apart from the above shown imports, Namibia is looking for additional MW’s to be sought from Zimbabwe to meet more of its energy demands. The outlook is for an additional 50 MW added to the current 80 MW. This is a move which will further the utilisation of N$ 50 million8 of subsidisation received by NamPower towards meeting energy import costs.
Distribution
Keetmanshoop Electricity9 ECB confirmed on 4 July 2017 that the handover of electricity supply services at Keetmanshoop has been effected. Now, Keetmanshoop Municipality has taken over this task as the SELCO contract is now terminated based on the original contract expiring.
Renewable Energy
N$120 million solar plant commissioned in Karibib10
Ministerial budget allocation 2017 / 2018 https://www.ecb.org.na/index.php/documents/licensing/32-uncategorised 10 https://www.newera.com.na/2017/06/12/n120-million-solar-plant-commissioned-in-karibib/ 9
Energy & Sustainability News & Analysis
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A 5 MW solar power plant worth N$120 million was launched at Karibib in the Erongo Region by the Deputy Minister of Mines and Energy, Kornelia Shilunga on 9th June 2017. Mr Jonathan Matheson from Metdecci said that 19 000 solar panels are being used to generate the 5MW which will provide electricity to about 3 800 households in Karibib.
Country Brief – NAMIBIA June / July 2017 Water
Water demand in Namibia is met via surface and artesian sources. There has been more water availability in the country during the past few months, especially in the northern part of the country due to the April rains and floods received. The overall Dam capacities had been recorded at 414.041 million cubic metres (Mm3) May 2017. However, such levels are still declining, down to 397.987 Mm3 during July 2017.
Plans to buy a new desalination plant for Erongo 11 President Hage Geingob's Harambee Prosperity Plan has plans to build a desalination plant with a capacity of producing 25 million cubic metre per year capacity by the end of 2019. The Erongo governor Cleophas Mutjavikua said the regional council through the Erongo water forum wants to acquire the existing Erongo desalination plant, or erect another plant due to increasing demand for water in the region due brought about by rapid industrialisation and population growth to ensure stability.
NamWater has been approved an increase of 13% in water delivery which became effective as of the 1st of June 2017.
The Environment
11 12
http://www.namibian.com.na/56108/read/Erongo-council-interested-in-buying-desalination-plant http://www.namibian.com.na/55515/read/New-law-to-tackle-human-wildlife-conflict
Energy & Sustainability News & Analysis
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President Geingob has signed the new Nature Conservation Amendment Act12 into law at state house on the 9th June 2017. This was done to help manage human-wildlife conflict which is once again becoming more prevalent, such as that which has seen up to six lions killed over the past few months in northern Namibia, and also increase environmental sustainability.
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Country Brief – NAMIBIA June / July 2017
Energy & Sustainability News & Analysis
COPYRIGHT © 2017 RDJ Consulting office@rdjconsulting.co.za www.rdjconsulting.co.za
Country Brief – NAMIBIA June / July 2017 Tenders
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http://www.namibian.com.na/54053/read/N$35m-cap-on-tenders
Energy & Sustainability News & Analysis
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ALL government tenders of more than N$35 million will be awarded by the Central Procurement Board13