Cuito Cuanavale remembered

March 24, 2020, 3:00 pm

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RODOLFO BENÍTEZ VERSON

Monday, 23 March, marked the 32nd anniversary of the Battle of Cuito Cuanavale.

That remote town in Angola became a symbol of resistance and courage after the victory of Angolan, Namibian, South African and Cuban combatants, against the army of the apartheid regime.

It was the largest military confrontation on African territory since the World War II battles between the Allies and the Axis powers in North Africa. The recent history of southern Africa is marked before and after the battle of Cuito Cuanavale.

It led to major strategic realignments with huge consequences for the whole region, leading to the complete withdrawal of South Africa from Angola, the independence of Namibia, and the eventual dismantling of apartheid.

Racist SA's Waterloo

Cuito Cuanavale, said ANC leader Oliver Tambo, was racist South Africa's Waterloo. Nelson Mandela would say about Cuba's participation in the battle: “Your presence and the reinforcement of your forces in the battle of Cuito Cuanavale was of truly historic significance.

“The crushing defeat of the racist army at Cuito Cuanavale was a victory for the whole of Africa.

“The overwhelming defeat of the racist army at Cuito Cuanavale provided the possibility for Angola to enjoy peace and consolidate its own sovereignty. The defeat of the racist army allowed the struggling people of Namibia to finally win their independence.

“The decisive defeat of the apartheid aggressors broke the myth of the invincibility of the white oppressors.

“The defeat of the apartheid army was an inspiration to the struggling people inside South Africa. Without the defeat of Cuito Cuanavale, our organisations would not have been unbanned.

“The defeat of the racist army at Cuito Cuanavale has made it possible for me to be here today.

“Cuito Cuanavale was a milestone in the history of the struggle for southern African liberation. Cuito Cuanavale has been a turning point in the struggle to free the continent and our country from the scourge of apartheid.”

10 000 Combatants

By November 1987, the South African Defence Force had encircled 10 000 combatants of the best Angolan units in Cuito Cuanavale and was preparing to annihilate them. The fall of Cuito Cuanavale was imminent, which would mean a devastating blow to Angola and the consolidation of the apartheid regime.

The Angolan government requested urgent Cuban support. On 15 November, the top leadership of the Cuban government, headed by commander-in-chief Fidel Castro Ruz, met in Havana and in a few hours, it was decided to send significant forces and means from Cuba to tackle the situation. It was a brave decision, since Cuba was under serious threat from the government of US president Ronald Reagan, which strongly supported the South African offensive.

But once again, Cuba prioritised internationalist solidarity before any other consideration. Cuba's strategic plan was not only to defend Cuito, but to change the balance of forces, to expel the South African racist army from Angola once and for all, and to deliver a blow to the South African apartheid regime so forcefully that it never recovered, forcing it to sit at the negotiating table.

Extraordinary magnitude

Castro described his strategy to the leader of the South African communist party, Joe Slovo.

He explained that Cuba would stop the South African onslaught in Cuito and then attack in another direction, “like the boxer who keeps the opponent busy with the left hand, and hits him with the right”.

The operation was of extraordinary magnitude: 29 Cuban ships were operated, transporting a total volume of 57 253 tons of combat materials, including hundreds of tanks, artillery pieces, anti-aircraft groups, and combat aviation squadrons, and in 140 airplane flights, thousands of combatants were transported, bringing to 55 000 the number of Cuban internationalist fighters in Angola.

In the more than five months of fierce fighting, the SADF attempted several times to capture Cuito Cuanavale, but was successfully repelled. On 23 March 1988, the South Africans launched their last major assault against Cuito, but they were stopped by the revolutionary forces.

Counter-Offensive

In parallel, the Cuban, Angolan and Namibian allied forces, supported by uMkhonto we Sizwe combatants, with air superiority by the Cuban MiG23s, launched a counter-offensive to the west, advancing towards Namibia, forcing the SADF to withdraw definitively from Angola. Our soldiers returned to our homeland with their heads held high, taking with them only the friendship of the African peoples, the satisfaction of duty accomplished and the glorious remains of our fallen comrades.

Recalling today the events of the battle of Cuito Cuanavale is also a way of paying tribute to those who paid the supreme sacrifice combating in this continent for our belief in anti-apartheid, freedom and justice. The blood spilled on Cuito Cuanavale was not in vain.

We will never regret having written one of the most beautiful pages in the history of solidarity among peoples and among revolutionaries.

- Cape Times

Rodolfo Benitez Verson is the ambassador of Cuba to South Africa, Eswatini and Lesotho.

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Avoid shebeens, churches – Nampol

March 24, 2020, 3:00 pm

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Avoid shebeens, churches – Nampol OGONE TLHAGE

WINDHOEK

The police are urging people not to gather in large numbers at churches, shebeens or other public places during the coronavirus state of emergency.

The inspector-general of Nampol said people continue to crowd places such as churches, restaurants, bars and shebeens, even where there is limited space.

“They are ignoring the potential risks involved,” police chief Sebastian Ndeitunga said.

Dispersing crowds

“In light of the above, Nampol will not hesitate to introduce coercive measures to enforce the dispersal of crowds at overcrowded places,” he added.

Ndeitunga pointed out that during the state of emergency, no groups of more than 50 people are allowed anywhere.

“Should the need for gathering arise, this must be done within the limits of the required space and a number of not more than 50 people at a given time.

“Also, the provision of sanitation, social distancing and other relevant measures must be observed at all times,” he said.

Get take-aways

Owners of restaurants, bars and shebeens were told to encourage their patrons to take their beverages and food home with them.

Ndeitunga said no prison visits would be allowed for now.

“It is important to note that no contact with inmates would be permitted and that any items brought for inmates will be subjected to a thorough search and identification of the bearer,” he said.

Ndeitunga also urged that items brought for inmates be properly sanitised and marked with the inmate’s name before being handed over to members of the force.

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Increased access to water and sanitation

March 24, 2020, 3:00 pm

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Increased access to water and sanitation ELLANIE SMIT

A total of 7 684 boreholes have been drilled and fitted since independence and 51 water supply schemes have been initiated, covering a distance of 12 375 kilometres.

Furthermore, 3 243 water points have been rehabilitated and 23 515 private offtakes constructed.

This is according to agriculture ministry executive director, Percy Misika, who provided an update on the progress made in the development of the agriculture, water and forestry sectors from 1990 to 2020.

According to Misika, 256 earthen dams were excavated and rehabilitated while three desalination plants have been constructed.

These include the large Areva desalination plant at the coast, two smaller desalination plants at Uutsathima and Amarika, and nine water purification plants.

Misika said these developments mean that 90% of rural households and 98.6% of urban households now have access to safe drinking water.

Sanitation

With regard to sanitation, Misika said that 4 015 improved sanitation facilities have been constructed since independence and 13 villages have been declared free from open defecation.

“Before independence, 17% of rural households had access to improved sanitation.” This figure has increased to 35%.

He said before independence, 49% of urban households had access to improved sanitation, and this figure has improved to 82%.

According to him, the national average for sanitation stands at 46%.

Forestry

With regard to forestry, Misika said 43 community forests totalling more than 8.1 million hectares have been established since independence.

Three community wood centres have also been established. These are located at Oshikuku in the Omusati Region, Okahao in the Omusati Region and Keetmanshoop in the //Karas Region.

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Helicopter crashes at Tsumeb

March 24, 2020, 3:00 pm

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Helicopter crashes at TsumebUnesco the pinnacle of his career A Bell 205 helicopter worth N$12.2 million crashed at Tsumeb yesterday.

OGONE TLHAGE

TSUMEB

The pilot of a privately registered helicopter was lucky to escape uninjured when it crashed at Tsumeb yesterday morning.

The helicopter, a Bell 205, belonged to Tsumeb businessman Renier Arangies, Namibian Sun established. Arangies said the helicopter was worth N$12.2 million.

The acting director of aircraft investigations in the ministry of transport Theo Shilongo said the helicopter crashed at 10:05 yesterday.

“The helicopter that crashed was a Bell 205 with the registration V5 HOZ,” Shilongo said.

According to him, the helicopter started experiencing problems when it came in for landing.

Lucky escape

The pilot, Frans Henning, was the only occupant and was uninjured, Shilongo said.

Schalk Nel, who witnessed the crash, also confirmed that the pilot escaped without injuries. “The pilot was not injured, he is fine,” Nel said.

More information about the accident will be released once the directorate of aircraft investigations completes its investigation, Shilongo said.

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For the love of tax

March 24, 2020, 3:00 pm

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For the love of taxEarning your seat at the table As Covid-19 spreads around the world, it is time to consider the global trade dependency and its impact on businesses, says Memory Mbai, senior manager at PwC Namibia. She talks to Business7 about her profession. This is a time where you have to consider the impact of your actions on everyone else.

B7: Describe yourself in a nutshell: Your roots, background and your professional responsibilities currently.

MM: I’m your typical farm girl, raised in the communal areas of Grootfontein, relocated to Omaruru and fortunate enough to have obtained both my honours degrees in accounting and tax at the University of Bloemfontein in the Free State, South Africa.

My background is in the tax consulting space. I have a keen interest in tax law and have been fortunate enough to have worked for three of the Big Four audit firms, finally settling my roots at PwC as from January to hopefully grow and establish myself as a specialist in the indirect tax space.

My professional responsibilities mostly pertain to indirect tax consulting, offering technical advice to clients on structuring, product development, mergers and acquisition and Inland Revenue liaison on technical matters to name a few. I also assist clients with VAT reviews encompassing health checks and assessments on input recoveries.

B7: Namibia already suffers from recession fatigue. How could Covid-19 impact the economy, business and the consumer?

MM: Namibia has a high reliance on the tourism industry, and although it is early days, we can feel the impact of the travel bans. Tourism is averaged to contribute N$104 million to our revenue pool which may significantly be impacted by the travel bans.

In addition, Namibia is a member of the Southern African Customs Union (SACU) which contributes an average of N$19 billion to our revenue pool. With the closure of the borders and the quarantine, global trade may be impacted as production is stalled. This may impact imports and consequently Namibia’s share of the SACU pool.

Businesses should consider the impact of their reliance on global trade from an import perspective, as well as placing a greater focus on cash flow management.

From a consumer perspective, the value of the dollar remains of importance. Any disruptions on the supply chain creates a direct impact on the price consumers must pay. With an added 15% VAT cost to that price, consumers should bear in mind the impact of panic buying on the “viscous” cycle of supply and demand.

B7: What is your advice to businesses right now?

MM: To consider the global trade dependency and its impact on their businesses.

Promoting local collaboration in their strategy would be beneficial to the economy in the sense that less revenue would be exported from the economy. With more revenue being employed locally, this could assist with better infrastructure and employment creation which could decrease the dependency on government and in turn reduce government’s dependency on foreign funding to sustain the local economy.

From an operations perspective, optimising their investment in technology by embracing the virtual meeting platforms.

B7: Is the tax space within an audit firm still mostly a man's world? What does it require from a woman - who often has a spectrum of personal responsibilities too - to be successful?

MM: Surprisingly, the tax space in Namibia can be considered as a “women’s world”, especially from a senior leadership perspective in the Big Four environment. The only challenge however, due to the personal responsibilities, is retention.

Generally speaking, women juggle multiple roles in a day. This is something I learned from my mother, ranging from a professional, a wife, a mother, a friend and a daughter. This can pose a challenge when you work the same 8 to 12-hour day as your male counterparts and still have expectations thereafter of having to step into one or most of the aforementioned roles that are expected of you as a woman.

Luckily, this is where support has been instrumental to the success of females in what is considered to be a “man’s” world in many professions.

I owe most of my success this far to the support I have received from my parents and my family. Growing up, my dad was always on the farm while my mom was some 100km away for 5 days a week, which is not your usual set up. Whenever I asked how they made it work, the message was always consistent that with the right support, anything is possible.

B7: What is your advice to young women entering the profession?

MM: Earn your seat at the table. Do not be hastily or demanding thereof; ideally, your knowledge, your skill, your passion should earn you that seat without you having to say a word. Once you are there, proof that you belong there, and again, let your contribution speak for itself.

Be humble, be kind and bear in mind the support required to be successful with the many hats we wear as women.

Lastly, have a mentor; someone who is impartial, who is honest and who genuinely is invested in your success. You will need this.

B7: What is your personal message to Namibians in these trying times?

MM: It is merely to re-iterate the global message at this point which is to not panic, as panic makes us susceptible to actions such panic buying not bearing in mind the consequences thereof that include those briefly outlined above.

Lastly, is for us to be compassionate to one another.

This is a time where you have to consider the impact of your actions on everyone else and to adhere to any calls for social distancing, self-quarantine so as to not put anyone in harm’s way.

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VAT in the time of Covid

March 24, 2020, 3:00 pm

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VAT in the time of Covid Memory Mbai - 11 March 2020 marked the announcement of the Covid-19 outbreak as a global pandemic by the World Health Organisation.

Countries around the world initiated lockdowns and mass quarantines in the hopes of slowing down the spread of the virus.

This article aims to highlight the value-added tax (VAT) considerations arising from potential impact of the lockdown on the supply chain and the import VAT paid and consequently the potential impact of quarantine on the demand of consumer goods which inherently impacts the VAT paid thereon.

It can be said that global trade has contributed to the success of businesses around the world; so much so that world trade agreements are negotiated to lower tariffs and other barriers that may prohibit trade between nations.

Exposures are created where businesses have a dependency on their international suppliers, whether it be raw materials used in production or finished goods that are not readily available locally; it is inherent that any lockdowns will have an impact on the supply chain.

The value of an import for VAT purposes is the greater of the market value or the sum of the free-on-board value uplifted with 10%. This value is known as the consideration, i.e. the price the importer pays for the goods on which import VAT at the rate of 15% is further paid.

Additional fees

It can be argued that the price paid on the importation of goods increases where it becomes more difficult to acquire those goods.

This price by the importer may be increased as a result of additional fees, duties or levies that may be charged for having to consider alternate sources should their usual supplier initiate a lockdown on their borders in addition to the cost of alternate routes to bring the goods into Namibia.

An example of global dependency is on China due to their competitive pricing which is attributable to the low cost of production; where businesses must consider alternate sources for their products, the price they will pay is likely to be more; bearing in mind that an added 15% VAT also becomes payable on that already increased price.

Any increased cost that must be borne by the business is likely to be passed down to the consumer to ensure profit margins are maintained. Notwithstanding this, the panic around the virus, in addition to the quarantine measures that were put in place, have seen recent media reports show an increase in “panic buying”.

Panic buying

It is important to note that panic buying creates a shortage in the availability of goods, this in turn impacts the supply chain and the cost thereof as businesses are faced with having to meet this increased demand which directly impacts the consumer prices, further increased by a 15% VAT thereon.

It is also important to bear in mind the cash flow impact of the current situation on businesses.

VAT is accounted for on the earlier of invoice or payment, meaning that businesses often must carry the VAT costs while waiting for their debtors to settle.

The VAT implications arising from debtors and their payment terms become an important consideration, especially bearing in mind the viability of businesses in these trying times.

A further consideration when planning cash flows is the uncertainty around when refunds will be paid by Inland Revenue and the VAT audits being put on hold that further strain the burden on businesses.

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Pests threaten harvests

March 24, 2020, 3:00 pm

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Pests threaten harvests

ILENI NANDJATO

OSHAKATI

Despite having received good rains, farmers are worried about their harvests because of outbreaks of pests and plant diseases in some parts of the country.

The ministry of agriculture said it is aware of the situation.

Subsistence farmers in the central north are calling on the government to consider mass pest control to save their crops from caterpillars, locusts and birds.

Eufemia Kondjeni, a mahangu and maize farmer at Epembe in the Ohangwena Region, said they were thankful for the rain and hoped for a bumper harvest, but their crops are being attacked by insects and birds.

She said it is difficult to control the pests because they attack entire mahangu fields.

“This year started off so well for us with good rainfall and we decided to put in extra energy to cultivate our mahangu fields to maximise our harvests. Crops were looking good and getting ready for harvest but all of a sudden they were attacked by pests and birds,” Kondjeni said.

“As it looks, this might be another year of disaster. We might not get any harvest unless we are assisted with pesticides to control them. We can't do anything ourselves because they are attacking the entire fields.”

Kondjeni said people with larger fields of more than 20 hectares find it impossible to fight off the pests.

Early birds

Gideon Kashimbode, a mahangu farmer at Omauni, said his crops are ripening and getting ready for harvest but birds are getting to the grain first. He said methods they are trying to chase away the birds seem to be ineffective.

“The birds get into the field as early as possible and by the time we wake up, they are already in the fields feeding themselves. We tried many methods to scare them away, but we failed. We cannot kill them otherwise we will get in trouble with nature conservation,” Kashimbode said.

Agriculture ministry executive director Percy Misika said the ministry was aware of the situation farmers are in, but he could not say whether the ministry could help them.

“Farmers are experiencing outbreaks of plant pests and diseases after a prolonged dry spell across the country. Upon receiving good rainfall, it prompted the emergence of many different pests of economic importance,” Misika said.

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Agri development grows since 1990

March 24, 2020, 3:00 pm

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Agri development grows since 1990• More than 4.7 million cattle slaughtered Agriculture executive director Percy Misika gave feedback on the progress made in the Namibian agriculture, water and forestry industries since 1990.

ELLANIE SMIT

Windhoek

Namibia is currently able to export its beef to 22 countries, while the value of meat and livestock products from export abattoirs in 2019 stood at N$1.279 billion.

This is according to agriculture executive director Percy Misika who provided feedback on the progress made in the development of the agriculture, water and forestry sectors from 1990 to 2020.

He said more than 4.7 million cattle have been slaughtered at approved abattoirs from 1990 to date while 12.7 million sheep have been slaughtered. The latest figures indicate that year-on-year, a 4,78 % increase was witnessed in the total marketing of cattle during 2019 compared to 2018. Marketing increased from 441 559 cattle in 2018 to 462 646 in 2019.

A total of 740 481 sheep were marketed in 2019 compared to 820 786 in 2018.

According to Misika, since 2002, a total of 426 237 tonnes of beef carcasses or meat cuts have been exported, 42 925 tonnes of offal and 517 581 tonnes of corned beef.

Furthermore, 154 017 tonnes of lamb carcasses or meat cuts have been exported, 25 284 tonnes of offal and 7 345 tonnes of hides and skins.

Growth in sector

Misika said agriculture development, like any other socio-economic development, booms when there is a conducive enabling environment that encompasses peace, harmony and stability.

He said since independence, the total size of irrigated land has been expanded from 4 434 hectares to 11 000 hectares. This includes 5 512 hectares of government land and 5 488 hectares of private land.

Furthermore, green schemes have increased from four schemes before independence to 11.

The number of grain storage facilities in Namibia, first established in 2010, has increased to five with a capacity of 22 900 metric tonnes.

Grain storage

According to Misika, the 73 000 metric tonnes of grains that have been stored in these silos since 2010 have an estimated monetary value of N$328.5 million.

Of this, 63 000 metric tonnes have been used for government food relief programmes and 10 000 metric tonnes have been sold to private millers.

Misika said that this has enhanced food availability during emergencies caused by natural disasters, stimulated growth production and marketing of surplus from subsistence farmers and green schemes.

Grapes and dates

He further said grape production in Namibia has increased to six million 4.5kg boxes per year, valued at N$597 million, while 350 000 tonnes of dates are exported per year. This is valued at N$70.9 million.

Also, a total of 18 937 tons of vegetables are exported per year, valued at N$111 million.

According to Misika, Namibia now produces 47% of its national demand for vegetables per year, while the Promotion of Horticulture Market Share has increased from 5% before independence to 47% currently.

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Oshikoto terminates Aids committee jobs

March 24, 2020, 3:00 pm

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Oshikoto terminates Aids committee jobs

ILENI NANDJATO

OSHAKATI

As from next month, 11 Constituency Aids Coordinating Committee (CACOC) members in the Oshikoto Region will join thousands of other unemployed Namibians on the streets after the regional council terminated their employment contracts.

On 27 February, the regional council took a resolution to terminate CACOC jobs.

The regional council has one CACOC member at each of the 11 constituency offices.

Their job is to coordinate the HIV/Aids activities of counselling, testing and ARV medication in the constituency and report to the Regional Aids Coordinating Committee (RACOC).

One of their key roles was the establishment of HIV/Aids support groups in communities, which are networks of HIV/Aids patients fighting the disease together.

Not within legal framework

In a letter to the CACOC members, chief regional officer Frans Enkali said these positions were not within the legal framework of the regional council.

“It is with much regret that I inform you that the service of CACOC members in the region are coming to an end on 31 March this year.

Therefore, you are kindly informed that your contract of service will be terminated with effect from 1 April this year,” Enkali wrote. “The decision to discontinue CACOC services was taken by the council to enable it comply with the legislative frameworks. Your immense contribution towards the achievement of the HIV and Aids reduction in the region in particular, and the nation in general, is highly valued and appreciated.”

Doing away

When contacted for comment, Enkali said the decision was based on advice from the Public Service Commission.

“These positions do not exist with the establishment of the regional council. They do not exist at other regional councils and that is why it was necessary for us to do away with them,” he said.

He said the regional council would create two positions for community liaison officers in the HIV/Aids section to take over the duties of the committee. He urged the committee members to apply if they meet the requirements.

The chairperson of the Oshikoto regional council, Samwel Shivute, said he did not know how the CACOC positions ended up within the structure of the regional council.

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Trust in government wanes

March 24, 2020, 3:00 pm

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Trust in government wanes• Only 54% trust ECN Namibians' trust in government has decreased dramatically, a recent Afrobarometer survey has found.

JEMIMA BEUKES

WINDHOEK

Namibians' trust in political institutions like the office of the president, the army, the justice system and the police is in sharp decline, a new study has shown.

According to these findings, the proportion of Namibians who say they trust the president “somewhat” or “a lot” dropped by 21% between 2014 and 2019, from 81% to 60%.

President Hage Geingob was elected by an overwhelming margin on 28 November 2014.

Electoral Commission

of Namibia

The latest Afrobarometer survey found that this is also true for the Electoral Commission of Namibia (ECN), which is trusted by just one of five people.

Just a slim majority of 54% of Namibians say they trust the ECN, a decrease from 74% in 2014. Only 21% of respondents say they trust the ECN 'a lot',” the study said.

Meanwhile, commission CEO Theo Mujoro said while he has not yet seen the findings of the survey, people should look at the Supreme Court judgement of 5 February and see what it says about the ECN.

“We have successfully conducted two by-elections recently using manual ballot papers. “We are now focusing on the 2020 regional council and local authority elections and the election programme is firmly on course,” he said.

National Assembly

Furthermore, the study found that citizens' trust in the National Assembly has also plunged dramatically since 2014, reaching its lowest level of 45% since the first Afrobarometer survey in 1999 when it stood at 74%. Social commentator Frederico Links said these findings show how Namibians feel about their government's ability to deliver services. According to him, this dissatisfaction with government performance is coloured by mismanagement and corruption.

“We see this gradual slide in people's perception of the government. It is concerning, because if people lose trust in government institutions, then they will withdraw from engaging these institutions. It would lead to a loss of legitimacy,” he said.

Links added that the symptoms of this dissatisfaction are the increasing protests in the country against government's failure to deliver services.

Peaceful protests

The country has seen in increase in peaceful protests by unemployed university graduates as well as young activists against the legitimacy of the justice system as well as that of the ECN.

Last month, groups of dissatisfied Namibians protested in some parts of the country, demanding that Geingob step down as head of state or that the election is re-run.

This followed the Supreme Court ruling that the use of electronic voting machines during the 2019 presidential elections, which Geingob and Swapo won, was unconstitutional.

The Supreme Court, however, did not set aside the election results.

jemima@namibiansun.com

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Coronavirus infects small business

March 24, 2020, 3:00 pm

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Coronavirus infects small businessTaxis, vendors hurt In the less than two weeks since the first cases of Covid-19 were confirmed in Namibia, the incomes of small businesses in the country have plummeted. Most of the time I would be driving around alone. – Neels Links, Taxi driver

Small businesses in Namibia, especially bus and taxi drivers, as well as vendors, have been hit by a slash in demand as people fear the spread of Covid-19.

Bus and taxi drivers are complaining of less and less clients due to coronavirus.

Drivers this week said that they have so far already lost over 80% of their regular clients.

Namibia’s fourth Covid-19 case was confirmed on Monday.

One driver, Emil Immanuel, said though he fears for his health, he has no choice but to continue working as he has to make ends meet. At home he is the only breadwinner to a family of nine.

"It is so sad to know that the job I loved so much can now be risky for my health. We drivers are at high risk of contracting and spreading the deadly virus," Immanuel said.

It’s his only way of making money, he said, adding that he has already lost a lot of clients due to the closure of schools and some work places.

"As schools were forced to close for one month, and with some companies demanding that people work from home, we taxi drivers have lost a lot of money. For now we are really struggling. Many of my clients have also decided to drive with their colleagues to work, because they fear taking public transport," Immanuel said.

‘Difficult to make ends meet’

Another taxi driver, Neels Links, said his daily income has dropped by more than 77%.

"Many entertainment venues are now closed. It is true that people in Namibia now don't travel as much they used to. Most of the time I would be driving around alone. For us making ends meet is difficult now," Links said.

Some drivers have started implementing new sanitation protocols while contending with reduced commuters as fears of Covid-19 persist.

The secretary-general of the Namibia Bus and Taxi Association (Nabta), Pendapala Nakathingo, has urged taxi and bus drivers to wear masks and gloves to not only protect themselves, but also their customers.

One former client, Benjamin Plaatjies, said he stopped taking public transport because it is a gathering, something the health officials and president Hage Geingob has already warned against.

"When it comes to my health I am not taking any chances. I have bought my own car last week. For me prevention is better than cure," Plaatjies said.

The spokesperson of the City of Windhoek (CoW), Lydia Amutenya, said the municipality is currently busy discussing the necessary precautions to mitigate the spread of Covid-19.

"However for now, registered buses and taxis should be disinfected daily and drivers will be offered masks and gloves. City bus drivers are also required to disinfect all busses before and after transporting passengers," Amutenya said.

Sales stall

The coronavirus outbreak has dealt a blow to Namibian businesses and informal traders.

Selma Hakko, an informal trader, sold ready-made food at an open market in Windhoek.

The once prosperous business has been heavily hit by the pandemic, as more and more people avoid buying ready meals because of fear of infection, the food peddler said.

"Since the government confirmed the two cases of Covid-19 [on 14 March], fewer people frequent the open market. They are not keen on visiting the market to avoid contact with many people. Income has declined drastically," said Hakko.

In just days, her business lost nearly N$1 500.

According to the 2018 Namibian Labour Force Survey, more than half of the country's population worked in the informal sector.

Open markets

Another informal trader, Hilde Jesaya, used to sell her products, including some traditional gadgets, at an open market in Oshakati every Monday and Friday.

"Before Covid-19, people could come and sell their products, and I generated adequate income to support my family. Now that business activities have stalled, I have to seek other means, which will be difficult since I depend on the huge public turnout to trade," Jesaya said.

Katarina Kamari, the public relations officer of the Oshakati Town Council, said local authorities had to temporarily suspend such trade amid the rapid spread of the virus.

The beauty sector is also impacted by the pandemic.

For Windhoek-based hairdresser Maria Shilongo, clients fear contact with people in public spaces, and thus barely visit barbershops.

"Ordinarily, I would make N$750 on a good day. But now, that is the equivalent total I made since Sunday. I don't know how I will make ends meet if the trend persists," Shilongo said.

Tourism

The minister of environment, tourism and forestry, Pohamba Shifeta, said the tourism and hospitality industry, one of the major contributors to the country's economy, is also negatively affected. Namibia attracted more than 1.5 million tourists in 2018.

"The tourism and hospitality industry is facing a nose-diving trend now. No tourists are coming. Most events, conference and activities are cancelled," he said.

Shifeta said that job losses are inevitable due to income losses.

"At the moment, we are working on mitigation measures to counter the anticipated impacts. However, we are optimistic that things will pick up with the end of the spread of coronavirus," he said.

Meanwhile, key partners jointly with the Hospitality Association of Namibia (HAN) have turned to social media in a campaign to help the industry cope with the challenge.

"Don't cancel your travel. Change the dates - save tourism," read one of the social media posts.

The trade ministry has consulted businesses in the country to assess the economic impact of Covid-19 on the country, the former minister of industrialisation, trade and SME development, Tjekero Tweya, said.

Tweya also called on financial institutions to relax policies in light of anticipated economic hard times. – Nampa/Xinhua

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NMH papers re-commit to coronavirus fight

March 24, 2020, 3:00 pm

≫ Next: These are extraordinary times

≪ Previous: Coronavirus infects small business

NMH papers re-commit to coronavirus fightPilot unharmed A Bell 205 helicopter worth N$12.2 million crashed at Tsumeb yesterday.

STAFF REPORTER

WINDHOEK

Namibia Media Holdings (NMH) is committed to continue sharing information on a daily basis to inform the Namibian public on the status of the coronavirus worldwide.

'We are utilising all our media platforms to perform this very important function. The virus can only be defeated if citizens are well informed.' group CEO Albe Botha said.

'To this end, we are using our daily newspapers Republikein, Namibian Sun and Allgemeine Zeitung, as well as social media platforms, websites, special editions, newsletters, daily social media shows, infographics, video stories, WhatsApp and SMS lines to inform the public of the status of the coronavirus.'

Stay informed

NMH has also opened all its online platforms free of charge to the public until 19 April to ensure the message gets to the public.

The daily newspaper editions will be available online and on social media every day at 08:00.

'We have coronavirus information updates on all our social media platforms at 17:00 daily. We reach over 500 000 people on a daily basis. Please rest assured that we take the challenge of managing constructive information seriously in these difficult times and we will continue to stay open.'

'We are committed to continue embodying our core value of sharing information to empower our communities with knowledge.

Together, we will defeat the fear of the coronavirus.'

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These are extraordinary times

March 24, 2020, 3:00 pm

≫ Next: Competition Commission warns pharmacies

≪ Previous: NMH papers re-commit to coronavirus fight

These are extraordinary times Namibia, like the rest of the world, is in a panic mode. The country’s streets, especially in the capital Windhoek, are reminiscent of Kolmanskop, a deserted ghost town near Lüderitz.

Police yesterday warned bar and restaurant owners to ensure their clients do takeaways instead of congregating at such establishments.

The cause of all this – the coronavirus – has the country fearing not only for the worst, but for its very own existence.

Fears hit new heights on Monday evening when it was announced at a hastily convened press conference that a 19-year-old Namibian man has contracted the virus.

This was the first local case involving a Namibian national.

Our resolve as a nation is now on a litmus test. This is not the time for sloganeering and political correctness.

What must be done must be done. There will be casualties in the shape of business closures, income losses and retrenchments.

But when lives are saved, communities and the country at large are afforded another crack at the opportunities the future holds.

Namibia must outlive all of us. The country is bigger than all those who live in it and saving it must prevail above all priorities.

We must be bold and ready for the perils that come with fighting off this killer virus. We must live to fight another day.

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Competition Commission warns pharmacies

March 24, 2020, 3:00 pm

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Competition Commission warns pharmacies Hand sanitiser, mask prices surge The Namibia Competition Commission has warned pharmacies against unjustified price increases during the coronavirus outbreak.

STAFF REPORTER

WINDHOEK

The Namibia Competition Commission has warned retailers selling hand sanitisers, immune boosters and face masks that it will impose penalties for unjustified price increases amid the coronavirus pandemic.

Fines for excessive pricing and collusive behaviour could be as much as 10% of the retailer’s earnings, it warned.

Clean hands

A study undertaken by the commission established that there have been significant price increases on surgical masks, hand sanitisers and immune boosters.

The prices of immune boosters range from N$104 to N$200 at different pharmacies, it found.

A 100-millilitre container of hand sanitiser used to cost around N$20 before the first coronavirus cases were reported in Namibia.

“However, that price has since increased to a minimum of N$44 at most pharmacies, subject to the brand and demand at this point in time. In some instances, sanitisers of a similar size are retailing for as much as N$75.”

Masks

The commission discovered that before the coronavirus outbreak, three-ply surgical masks cost around N$10 each and N95 respirators sold for N$100.

“Today, however, retailers are selling the masks at N$75 (three-ply) and N$230 (N95).”

Taking action

The commission said it was in contact with the ministry of trade and would be working with them closely to protect consumers against continued price exploitation.

“The commission is further in discussion with the government to ensure that competition law enforcement does not impede necessary cooperation between businesses to deal with the current crisis and ensure security of supplies of essential products and services to the citizenry.”

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Sharing information to empower communities

March 24, 2020, 3:00 pm

≫ Next: PwC: 23rd Annual Global CEO Survey

≪ Previous: Competition Commission warns pharmacies

Sharing information to empower communities STAFF REPORTER

WINDHOEK

Namibia Media Holdings (NMH) is committed to continue sharing information on a daily basis to inform the Namibian public on the status of the coronavirus worldwide.

We are utilising all our media platforms to perform this very important function. The virus can only be defeated if citizens are well informed.

To this end, we are using our daily newspapers Republikein, Namibian Sun and Allgemeine Zeitung, as well as social media platforms, websites, special editions, newsletters, daily social media shows, infographics, video stories, WhatsApp and SMS lines to inform the public of the status of the coronavirus.

Stay informed

We have also opened all our online platforms free of charge to the public until 19 April to ensure the message gets to the public.

The daily newspaper editions will be available online and on social media every day at 08:00.

We have coronavirus information updates on all our social media platforms at 17:00 daily. We reach over 500 000 people on a daily basis.

Please rest assured that we take the challenge of managing constructive information seriously in these difficult times and we will continue to stay open.

We are committed to continue embodying our core value of sharing information to empower our communities with knowledge.

Together, we will defeat the fear of the coronavirus.

↧

PwC: 23rd Annual Global CEO Survey

March 24, 2020, 3:00 pm

≫ Next: Namibia at crossroads

≪ Previous: Sharing information to empower communities

PwC: 23rd Annual Global CEO SurveyKey findings PwC’s 23rd Annual Global CEO Survey involved 1 581 chief executives in 83 territories. Only 27% of CEOs are ‘very confident’ in their prospects for revenue growth in 2020, a low level not seen since 2009. - PwC

Nangula Uaandja - What a difference two years can make.

In 2018, PwC’s Annual Global CEO Survey revealed a record level of optimism regarding worldwide economic growth.

This year, as CEOs look ahead to 2020, we see a record level of pessimism.

For the first time, more than half of the CEOs we surveyed believe the rate of global GDP growth will decline.

This caution has translated into CEOs’ low confidence in their own organisation’s outlook. Only 27% of CEOs are “very confident” in their prospects for revenue growth in 2020, a low level not seen since 2009.

What is clouding the view from the top?

In a word, uncertainty.

Conducted in September and October of 2019, PwC’s 23rd Annual Global CEO Survey, which involved 1 581 chief executives in 83 territories, explores the sources and manifestations of uncertainty and how CEOs are taking action to address it.

Four key themes emerged:

Growth

Uncertainty undermines outlook: In every region, CEOs report increased pessimism in global economic growth. And in almost every region, they show significantly diminished confidence in their own organisation’s 12-month revenue growth prospects.

Technology regulation

Setting up guard rails in cyberspace: A majority of CEOs surveyed foresee increasing legislation around online content, data privacy and dominant tech platforms. As a result, it is likely that the internet will become more fractured.

Upskilling

To upskill or not to upskill is no longer the question: Only 18% of CEOs believe their organisation has made “significant progress” in establishing an upskilling programme. However, those who have embraced upskilling are realising better returns and are more confident in their growth prospects.

Climate change

An opportunity cloaked in crisis: Compared with ten years ago, CEOs today are far more likely to see the benefits of going ‘green,’ such as reputational advantage, new product and service opportunities, and government or financial incentives.

To access the full report, go to the following link https://www.pwc.com/ceosurvey.

Stay up to date with PwC’s insights and publications, by subscribing to our newsletters today. www.pwc.com/na/en/about-us/subscriptions.html

· Nangula Uaandja is PwC Namibia’s country senior partner. Contact her as nangula.uaandja@pwc.com

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Namibia at crossroads

March 24, 2020, 3:00 pm

≫ Next: Nudo affirms Muinjangue's loyalty

≪ Previous: PwC: 23rd Annual Global CEO Survey

Namibia at crossroadsLockdowns declared for Khomas, Erongo The country is on tenterhooks as reported cases of the coronavirus infections jump to seven, with all borders now shut down.

JEMIMA BEUKES

WINDHOEK

Three Namibians have been diagnosed with the coronavirus, as infections of the disease that has killed 17 234 people worldwide so far shifts from just foreign nationals visiting the country.

Prior to Monday, when the first Namibian was confirmed to be infected, all three cases recorded in the country at the time involved foreigners only – a Romanian couple and a German national.

But yesterday, government announced the number has jumped to seven, with three confirmed to be Namibians. Government, at a press conference at State House yesterday, confirmed six cases – but news of the seventh confirmed infection came while the proceedings of the conference were still underway.

Details

The three cases involving Namibians include a student at Wits University in Johannesburg, South Africa, a 19-year-old man who recently returned from London and a local person who has not travelled abroad. The latter confirms the country’s first incident of local transmission of the virus.

Details were still sketchy as to the nationality of the seventh confirmed case.

Locked down

President Hage Geingob yesterday announced a lockdown of the country’s leading commercial regions of Khomas and Erongo – considered the main entry points of visitors from outside the country.

Also announced yesterday was the closure of all the country’s borders – with no foreigners allowed to enter the country for 30 days.

Namibian travellers would be allowed to cross the borders in special cases.

These measures come into place from midnight this Friday, government announced.

“The government fully understands that these are extraordinary measures. They are adopted with the sole purpose of protecting the health, security and safety of the Namibian people,” Geingob told journalists.

“During this difficult period, I call on all Namibians to cooperate with the authorities and to remain calm in order to ensure that public order is not compromised. Allow the authorities to work unhindered.”

All bars and cuca shops must close at 18h00 daily, government announced as part of precautions against the coronavirus.

South Africa on Monday announced a nationwide lockdown which will stretch for 21 days.

"From midnight on Thursday, 26 March, until midnight on Thursday, 16 April, all South Africans will have to stay at home," president Cyril Ramaphosa said late on Monday in a televised address to the nation.

As of yesterday, the number of confirmed cases in South Africa leapt to 554 – an astronomical jump from just 62 cases over a week ago.

The surge has raised alarms that a wider outbreak would put the country's already strained healthcare system under serious stress in one of the world's most unequal societies.

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Nudo affirms Muinjangue's loyalty

March 24, 2020, 3:00 pm

≫ Next: Playing chess against Covid-19

≪ Previous: Namibia at crossroads

Nudo affirms Muinjangue's loyalty

JEMIMA BEUKES

WINDHOEK

The leadership of the National Unity Democratic Organisation (Nudo) has welcomed the appointment of party president Ester Utjiua Muinjangue as deputy health minister.

Muinjangue, who made history when she was elected as the historically male-dominated party's first female president, is the only member of the opposition appointed to a ministerial position in the current government.

During a media briefing yesterday, Nudo secretary-general Joseph Kauandenge said Muinjangue would remain committed to the fight for reparations and land reform.

“Why would a person of her calibre betray her party just for a few dollars? If there was a time when she could be bought, then it should have been by the Germans because she actively advocated for reparations in Germany.

“Surely, they have more money than the Namibian government, and by the way, how much money does a deputy minister earn for her loyalty to be questioned,” he said.

Steadfast

The party's national chairperson Elia Kandjii also emphasised that their leader would remain steadfast.

He said the appointment would allow Muinjangue to incorporate some of her party's strategies on health into government policies.

The party insisted that their president would not change her political affiliation or abandon her loyalty to her political supporters.

Woman of substance

“Nothing in her character points to the fact that she can be bought with money to abandon her party agenda and principles; that is not in her DNA.

“We have full confidence in her ability to know when she is driven into a corner and when she is forced to betray her principles and her party agenda, that she will simply say no to whoever is trying to force her into submission,” Kandjii said.

He added that the party had full confidence in Muinjangue's ability to deliver and to reform the health ministry while at the same time remaining true to her party and its principles.

“We remain hopeful that Namibians will embrace her achievements for having paved the way for other women still to come, and that alone should be enough to respect her for what she truly is: a woman of substance.”

jemima@namibiansun.com

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Playing chess against Covid-19

March 24, 2020, 3:00 pm

≫ Next: Handwashing in Africa seen as trigger for change

≪ Previous: Nudo affirms Muinjangue's loyalty

Playing chess against Covid-19Namibia’s move Since the first case was reported in Wuhan, China in December, Covid-19 has been wiping pieces off chessboards worldwide. Namibia will have to be very smart not to be outmaneuvered. A slow-drip stimulus will achieve very little. – Rowland Brown, EAN/Cirrus

Jo-Maré Duddy – Namibia will need a substantial intervention to survive the Covid-19 onslaught and this will need the collaboration of government, the private sector and ordinary citizens.

“The corona shock is a six-sigma+ event and the economic impact is going to be large,” the Economic Association of Namibia (EAN) said yesterday in an impact study of Covid-19 on the economy which was compiled with Cirrus Capital.

“However, the shock will last a finite amount of time if well managed,” the report added.

EAN/Cirrus proposed a number of interventions, emphasising that “no single party or group of parties can carry the cost of the virus alone”.

Without drastic action, Namibia is likely to see businesses collapsing, mass retrenchments, households suffering and the economy in a deep contraction, the report warns.

“Normal fiscal ‘rules’ is off the table,” says economist Rowland Brown, compiler of the report.

A deficit of 3% of gross domestic product (GDP) is no longer the standard; the world will run deficits of 10% of GDP this year, Brown forecasts.

Without suitable stimulus, Namibia’s economy will collapse, he says. “A slow-drip stimulus will achieve very little.”

If the cost of the business interruptions presented by the virus are carried by the employer alone, mass retrenchments can be expected, Brown warns.

“In Namibia, an unemployment rate north of 50% is probable if nothing is done, and this could exceed 70% if the business interruptions continue for an extended period of time, without any fiscal support.”

Jobs will haemorrhage because the revenue of many businesses are already pressure. While most have some reserves, few have sufficient reserves to weather an extended storm, Brown maintains.

War chest

Government has a few options to pump money into the economy, the report states.

It has a deposit account with Bank of Namibia (BoN) which comprises of three sub accounts: the two sinking funds – one in US dollar (estimated at US$400 million) and the other one in rand (estimated at R2.3 billion) - as well as an operational account.

At yesterday’s exchange rate the aggregate sinking fund balance was R9.3 billion, Brown said.

The BoN Act allows the central bank to grant loans to the government which has to be repaid within six months. Under the applicable terms and conditions, this short-term funding is approximately N$2.882 billion, according to Brown.

In addition, various global support packages currently exist, he says.

“Most immediately relevant and ready to utilise is a U$14.5 million package for health support from the World Bank. These facilities, as well as support from the International Monetary Fund and others, need to be utilised as soon as possible,” Brown advises.

Household support

To avoid retrenchments and to ensure that household incomes are not lost completely if company revenues collapse, flexibility in employment conditions is required, EAN proposes.

“During periods of severe disruption, it is recommended that employers and employees are able to temporarily negotiate an up to 50% reduction in wages, rather than retrenching. Thus, household incomes remain somewhat protected, and incomes should recover quickly when the threat is passed, as opposed to creating long-term unemployment.”

EAN/Cirrus further proposes that income tax for those earning below the 28% bracket should be suspended for the current tax year to cushion the blow from reduced wages for lower income earners.

“Thus, while incomes may drop as a result of temporary lower wages, the blow will be cushioned by increased take-home pay as a percent of gross income. Higher income earners would still be expected to pay tax as normal.”

Brown says this is a “very low-friction, simple to implement intervention”.

Rent and mortgage payments should also be arrested.

“However, the provision of housing/loans for housing is not free, and thus a suitable manner of carrying this burden is required,” he says.

The BoN should subsidises the “mid-point between (absolute) interest expense and interest income of the commercial banks during this period”.

Cash-flow relief

To provide cash-flow relief to consumers, the acceptance of municipal arrears without charging interest or stopping service is critical, Brown says.

“A government guaranteed (off-balance sheet) facility should be provided by the commercial banks to these municipalities and utilities.”

To ensure that informal workers, including but not limited to domestic workers, are not retrenched should they not be able to attend work during major interruptions, a direct or employer subsidy is recommended, EAN/Cirrus proposes.

“Using the records of the Social Security Commission, but paid for by government, a subsidy of 50% of an employee’s income, capped at N$1 500 per month, is suggested.”

EAN says it is “unconscionable that low-income employees should carry the cost of a shut-down through retrenchment or non-payment while such persons are unable to be present at their place of work”.

Employer support

Ensuring that businesses do not close and that the economy can recover quickly when the shock is over is of upmost importance, EAN says.

“For many businesses, sustaining sufficient working capital to manage expenses while revenue is down (or gone entirely) is critical to survival. This is particularly important for small and medium enterprises, without large buffers.”

A subsidised overdraft facility, subsidised by the BoN and administered through commercial banks, is highly advisable, EAN proposes.

“For a two-year period, it is advised that these overdraft facilities are made available to MSMEs at the repo rate, both to reduce closures through badly interrupted periods, and to scale up thereafter,” Brown says.

Most Namibian companies are going to experience revenue declines, however expenses for most will not decline precipitously, he says.

“As a result, cash-flow issues will likely ensue, causing many businesses to close, and the velocity of circulation of money to drop. It is thus critical that VAT refunds are expedited, and that the backlog of refunds is settled.”

The corporate tax rate should also be revised.

Investment

Following the current shock, there will exist a great need to rebuild the Namibian economy, recover the fiscal position and protect the currency peg, Brown says.

“The efforts to achieve this need to start now.”

EAN suggests a join task-force of credible private and public sector entities to evaluate the impediments to investing in Namibia, and such impediments should be resolved in the next 18 months.

Namibia’s investment policies and environment have to be “materially re-assessed”.

“It requires that we set aside out nationalistic, state-interventionist, increased regulatory focus, and turn towards a more free and open business environment.

If this is not done, Namibia’s economy will not recover from this corona shock, our public finance situation will become a debt trap within a few years, the currency peg will be lost and household incomes will not recover. The good development work of the last three decades will be rapidly undone, and Namibia’s potential will not be realised in many of our lifetimes,” Brown says.

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Handwashing in Africa seen as trigger for change

March 24, 2020, 3:00 pm

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Handwashing in Africa seen as trigger for changeWater security Water shortages caused by drought and poor infrastructure have left governments concerned about the expected spread of Covid-19. How can people follow health and hand-washing advice during droughts and water shortages? - Sara Almer, Director: ActionAid.

Kim Harrisberg and Nellie Peyton - People globally are being told to wash their hands to fight the spread of coronavirus but in Africa many can't, experts said, urging states to use the pandemic as a reason to finally push for improvements to water supplies.

Aid workers and advisors said countries should seize the moment ahead of World Water Day recently to reinforce water security on a continent hit by frequent droughts and where many people do not have access to a sink.

"In the water sector we always say 'Don't waste a good crisis'," said Inga Jacobs-Mata, the South African representative from non-profit research group the International Water Management Institute (IWMI).

"Coronavirus has already highlighted that safe water and sanitation is essential to protecting human life during all infectious disease outbreaks," she said in a phone interview.

Africa has been less severely hit by Covid-19, the respiratory disease caused by the new coronavirus, with more than 1 600 cases on the continent by Monday, compared to nearly 64 000 in Italy alone.

Challenges

But densely populated slums, limited healthcare facilities, high rates of HIV and tuberculosis (TB) and water shortages caused by drought and poor infrastructure have left governments concerned about the expected spread.

Over the past year, much of the central and western parts of Southern Africa have experienced their lowest rainfall since 1981, according to the United Nations.

Still recovering from deadly cyclone Idai that hit about one year ago, Mozambicans wonder how they will fight the virus.

"Severe drought in Mozambique, means women are walking all day to find water ... How can people follow health and hand-washing advice during droughts and water shortages?" asked Sara Almer, humanitarian director at international charity ActionAid.

In West and Central Africa, more than a third of all people still do not have access to clean water, according to UNICEF.

"Now is the moment to reflect on what additional actions will be needed to reinforce water security everywhere," said Abdoulaye Sene, executive secretary of the World Water Forum and long-time advisor to the Senegalese government on hydraulics.

‘Opportunity’

Water cuts in Senegal's capital Dakar are frequent, with government responding in the past by bringing in water in fire trucks. Hand sanitiser is already starting to sell out.

In Kenya - where only 14% of people have hand-washing facilities at home, according to UN data - the government has called on water companies to not shutdown supply to citizens if payments are overdue and plans on supplying free sanitisers.

The South African government is looking into supplying water tankers, sourcing groundwater and drilling additional boreholes for vulnerable communities, said a spokesman for the Department of Water and Sanitation, Sputnik Ratau.

"I think this is an opportunity," said Mariame Dem, West Africa regional director for WaterAid.

"It has shaken the decision-makers, it has shaken individuals, and I think the actors now can build from it for a more sustained approach and plan."– Nampa/Reuters/AFP

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