Bumper cereal harvest

September 1, 2020, 3:00 pm

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Bumper cereal harvest• Crop production 270% higher than last season Maize production in the commercial farming areas showed a considerable improvement of 55 800 tonnes, which is 94% higher than last season's harvest of 28 800 tonnes and 29% above the average production of 43 200 tonnes. ELLANIE SMIT

WINDHOEK



Revised crop estimates for the 2019/2020 season indicate a considerable improvement in the country's cereal production.

After favourable conditions experienced during the 2019/2020 cropping season, the aggregate cereal estimates show that the country has produced about 174 900 tonnes of crops.

This is 270% higher than last season's poor harvest of 47 300 tonnes and 41% above the average production of 124 000 tonnes.

This is according to the Post-Harvest Crop and Household Food Security Monitoring Assessments conducted by the agriculture ministry in the seven northern communal crop-producing regions from 26 May to 22 June 2020.

The report released last week added that all the crop-producing regions recorded a bumper harvest, which enhanced household food security.

Armyworm

Maize production in the communal areas, which includes the Zambezi, Kavango East and Kavango West regions, showed a massive improvement of 8 300 tonnes, which is about 525% higher than last season's poor harvest of 1 300 tonnes and 24% above the average production of 6 600 tonnes.

Much of this improvement was from the Zambezi Region which recorded 8 1 50 tonnes, an increase of 59% above the average production and 540% over last season's poor harvest.

In the Kavango East and Kavango West regions, maize production was estimated at 107 tonnes, an improvement of 128% on last season's harvest, but only 91% of the average production.

The report noted that farmers attributed the below-average maize production to outbreaks of fall armyworm and less maize than usual being planted this season.



Commercial maize

Maize production in the commercial farming area showed a considerable improvement of 55 800 tonnes, which is 94% higher than last season's harvest of 28 800 tonnes and 29% above the average production of 43 200 tonnes.

According to the report, this improvement was because of a recovery in dryland maize production.

“It is important to note that about 52% (33 456 tonnes) of the total maize production (64 039 tonnes) came from rain-fed production, while 48% (30 583 tonnes) came from irrigation schemes,” the report added.

Furthermore, pearl millet production was estimated at 95 100 tonnes, which is about 926% higher than last season's poor harvest of 9 300 tonnes, and 65% above the average production of 57 500 tonnes.

A total of 3 400 tonnes of sorghum was harvested, which is about 788% more than last season's poor harvest of 0.4 tonnes, but 51% below the average production of 7 100 tonnes.

The below-average production was attributed to seed shortages.

Wheat is a winter crop which is only produced commercially.

This year's wheat harvest is estimated at 12 300 tonnes, which is 63% above last season's harvest of 7 500 tonnes and 29% above the average production of 6 900 tonnes.

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Grazing improves across most of Namibia

September 1, 2020, 3:00 pm

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Grazing improves across most of Namibia ELLANIE SMIT

WINDHOEK



Grazing and water supply have improved significantly in most parts of the country after good rainfall in the 2019/2020 season.

In most regions, grazing ranges between fair and very good, with plenty of rainwater available in the catchment areas.

In the //Karas, Hardap and Erongo regions, grazing remains poor due to late and poor rainfall.

This is according to the Crop Prospects and Food Security Situation Report for July, released by the agriculture ministry last week.



Abundant water

It said in the north-eastern Zambezi, Kavango East and Kavango West regions, grazing ranges between good and very good in the floodplains, along rivers and in the inland areas.

“Water for livestock and human use is abundantly available with rivers, streams, boreholes, pipelines and ponds being the main sources.”

Good grazing conditions were also reported in the north-central regions of Oshikoto, Oshana, Ohangwena and Omusati, as well as in the central and eastern Otjozondjupa, Omaheke and Khomas regions.

Grazing is still poor in the Erongo Region, specifically in areas such as Uis, Omatjete, Tsubusis, Spitzkoppe and Okombahe.



Critical situation

In the southern and western part of the Kunene Region the grazing situation is critical, while the eastern part of the region has plenty of grazing.

“The current state of grazing conditions in the Hardap Region is very worrisome apart from Gibeon, Gochas and Hoachanas, where there is a little bit of grazing, though not sufficient to last until the next rainy season. Elsewhere in the region the situation is extremely critical.” This is similar to //Karas where grazing is poor to critical in most areas.



Fat cattle

Livestock body conditions range between good and very good in most parts of the country where good rainfall was received.

This is mainly in the northeast (Zambezi, Kavango East, Kavango West), central north (Oshikoto, Oshana, Ohangwena, Omusati) and central parts of the country (Khomas, Otjozondjupa, Omaheke).

But livestock body conditions in southern Khomas is poor to fair. In Otjozondjupa and most parts of Omaheke, livestock are in a very good condition. In the //Karas and Hardap regions, livestock body condition ranges between poor and fair.

Zimbabwe offers white farmers land

September 1, 2020, 3:00 pm

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Zimbabwe offers white farmers landControversial land reforms Then president Robert Mugabe forcibly took more than 4 000 farms from the country's 4 500 white large-scale commercial farmers. Government will grant their application where circumstances presently obtaining on the ground permit the restoration of their land to them. Mthuli Ncube, finance minister: Zimbwabwe Zimbabwe offered to give back land to former white farmers whose properties were seized during the controversial land reforms two decades ago.

A month ago, the government signed a US$3.5 billion compensation agreement with the white farmers for the land lost 20 years ago to sometimes violent land grabs.

Then president Robert Mugabe forcibly took more than 4 000 farms from the country's 4 500 white large-scale commercial farmers.

On Monday the government said Zimbabwean or foreign citizens who lost their farms can apply "for restoration of title to the piece of agricultural land that was compulsorily acquired from them for resettlement".

The offer was announced in a statement issued jointly by finance minister Mthuli Ncube and his counterpart in the land’s ministry, Anxious Masuka.

"Government will grant their application where circumstances presently obtaining on the ground permit the restoration of their land to them".

To allow the former owners "to regain possession" of land, the ministers said, government will revoke offers made to black farmers currently occupying the farms and "offer them alternative land elsewhere".

The government said "where a former farm owner regains possession of the land that was previously acquired from them or accepts a government offer of land restitution, this shall be the full and final settlement".

Zimbabwe launched land reforms in 2000 seizing land from white commercial farmers in what Mugabe said was a reversal of historical land ownership imbalances which favoured the minority whites.

Both Mugabe, who died in September last year, and his successor Emmerson Mnangagwa who came to power at the back of a military coup vowed never to reverse the land reforms.

Zimbabwe is buffeted by its worst economic crisis in over a decade, including scarcity of basics such as cornmeal. - Nampa/AFP

Okahandja eviction battle heats up

September 1, 2020, 3:00 pm

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Okahandja eviction battle heats upActivist accuses government of trampling on its people A community activist says he has submitted two boxes full of evidence of corrupt land deals at Okahandja to the ACC. JEMIMA BEUKES

WINDHOEK



Okahandja land activist Johannes /Gerub Gaseb, imprisoned for ten days for illegal land occupation, is one of the community leaders gearing up to fight a High Court order authorising evictions from municipal land.

This court order, which covers the Five Rand, Ekunde Proper, Eekunde Extension 5 and Veddersdal Extension informal settlements, was granted after the minister of urban and rural development filed an urgent application.

Ironically, the court order follows Otjozondjupa governor James Unomasa Uerikua's promise that illegal settlers at Five Rand Camp in Okahandja would be granted title deeds under the flexible land tenure system. Gaseb, who speaks on behalf of the Promised Land Movement (PLARA) residents' association defending the rights of the landless and homeless in Okahandja, accused the government of trampling on its people.

“The unscrupulously insensitive municipality of Okahandja has tuned up its warfare against the hapless and vulnerable Okahandja residents with what can only be described as probably the most draconian action ever to be meted out by a local authority against its residents,” he said.



Evidence of corruption

Gaseb, who says he is running for public office “to protect the community from corrupt officials”, said they have collected two boxes full of evidence of corrupt land deals by the Okahandja councillors, which has been submitted to the Anti-Corruption Commission (ACC). He added that their main aim is to deliver land through honest negotiations with the municipality and its council. “We have records that the town council employees have been selling the land. We have all the evidence. I went as a land owner and ratepayer and opened a case against these corrupt town council officials selling the land while there was a land moratorium in place. “We have submitted this evidence to the ACC and we gave them one week to give us feedback. If they are not going to investigate the council then you will see, next week Friday (11 September) we will be marching from Okahandja to ACC,” he said.

Last month, Uerikua urged local landless settlers to submit applications for land to the Okahandja municipality, emphasising that this process would start with one general title deed being issued to settlers, and eventually plots would be demarcated and individual deeds issued. ACC director-general Paulus Noa confirmed that this matter was reported to his office.



Case registered

“We registered the complaint and we will contact him. It is now on the case management system and it is now up to us to allocate it to an investigator,” Noa said.

The chief executive officer of the Okahandja municipality, Martha Mutilifa, referred queries to Linus Garoeb, the ministerial representative at the town.

According to Garoeb, the eviction notice will in no way affect the flexible land tenure system.

“These people who are most probably going to be evicted, maybe some of them have applied and will get their piece of land. We do not want political exploitation; we know it is election time and we want to assure people that the municipality is in the process to deliver land,” he said.

jemima@namibiansun.com

Brazen robbers on the run with N$300k pension cash

September 1, 2020, 3:00 pm

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Brazen robbers on the run with N$300k pension cash ELLANIE SMIT

WINDHOEK

Police are in pursuit of robbers who broke into the post office at Fransfontein in the Kunene Region on Monday night and are appealing for information from the public.

The suspects assaulted the postmaster, who had received N$300 000 meant for pension pay-outs earlier in the day, at his house to obtain the keys to the post office.

According to the spokesperson of the police, Deputy Commissioner Kauna Shikwambi, a security guard on duty nearby saw two people suspiciously running from the post office.

He immediately contacted the police, who responded.

Shikwambi said upon arrival at the post office the police discovered that all doors, including the security gate and the safe, were wide open.

Postmaster tied up

“The local police then drove to the residence of the postmaster, who is well known in the town, with the aim of informing him. Surprisingly, upon arrival at his house, he was found seriously assaulted and tied with electrical cables and lying on the floor covered with blood.”

He was rushed to the clinic and has been admitted to the Khorixas State Hospital.

Shikwambi said the postmaster told the police that he was assaulted by three unknown men, two of whose faces were covered with balaclavas. The men allegedly assaulted him and demanded the keys to the post office, which he eventually gave them.

Trail goes cold

The police followed the robbers’ trail for about five kilometres, where it disappeared. It is suspected that the suspects boarded a vehicle at this point.

None of the suspects have been arrested yet.

“This type of criminal incident is deemed to be collaborated; thus the police investigation is continuing and with the assistance of public information we will bring everyone involved to book,” said Shikwambi.

Anyone with information, especially those in the Fransfontein area who might have seen or heard anything, should contact Deputy Commissioner Kanyetu on 081 129 8238.

Bleak picture for tourism as industry reopens

September 1, 2020, 3:00 pm

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Bleak picture for tourism as industry reopens ELLANIE SMIT

WINDHOEK



As Namibia yesterday reopened its borders for international tourists, the latest room occupancy statistics for accommodation establishments in the country painted a bleak picture.

The CEO of the Hospitality Association of Namibia, Gitta Paetzold, said the room occupancy rates for July stood at 7.34%.

She explained that July is usually the first month of Namibia's tourism high season and last year there was a 60% occupancy rate.

“July 2020, however, shows a little ray of hope, as it was a slight increase on the 7.18% room occupancy recorded in June, and the 5.91% achieved in May, when the hospitality sector was allowed to resume trade here in Namibia.” Paetzold added that these occupancy rates of below 8% are nowhere near the break-even margin of 40-45%. It is therefore a clear sign that despite being operational, Namibian tourism accommodation establishments are currently all running at a loss and are eager to see the opening of national borders and the resumption of the normal tourism flow.

Tourism minister Pohamba Shifeta last week announced that Namibia would reopen Hosea Kutako International Airport to international tourists on 1 September.

He said that was a targeted initiative for leisure travellers that would be reviewed bi-weekly and amended as necessary.

All incoming tourists are required to test negative for coronavirus no more than 72 hours before travelling.

They must then spend a minimum of seven days at their first destination.



Flights resume

Ethiopian Airlines has announced that it will resume commercial and cargo flights to Namibia on 11 September and encouraged customers to book in advance to adhere to coronavirus regulations.

But Air Namibia said this week that it will extend its suspension of domestic flights until local travel will be allowed. That followed the government's announcement of a new lockdown of the Khomas Region.

“Additionally, the suspension of regional and international flights has been extended until further notice, depending on market demand and reopening of international borders of countries where the airline operates to,” Air Namibia said.

Old Mutual holds off on dividend after loss

September 1, 2020, 3:00 pm

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Old Mutual holds off on dividend after lossVirus hits insurer Old Mutual’s adjusted headline earnings per share fell 66% in its half-yeat to the end of June. What that looks like I think we'll have to wait and see. – Iain Williamson, CE: Old Mutual JOHANNESBURG - South Africa's Old Mutual yesterday put its interim dividend on hold, withdrew financial targets and warned of a drop in full-year profit after posting a loss for the first half.

The 175-year-old insurer posted a basic loss per share of 128.5 cents in the six months to June 30. It had already flagged a loss of between 128.5 and 154.2 cents because of the coronavirus crisis.

Iain Williamson, who was appointed as chief executive in July after leading the company on an acting basis for more than a year, said it could make up for the suspended half-year pay-out at its annual results, depending on how the economy performs.

"I would expect in most scenarios we would be recommending to the board that we do pay a dividend at the end of the year," he told Reuters.

"What that looks like I think we'll have to wait and see."

Targets

Old Mutual, which in recent years broke up an international conglomerate structure to refocus on African markets, said it had withdrawn its medium-term financial targets, replacing them with new ones more appropriate to the coronavirus crisis and focused on solvency and liquidity.

The Covid-19 pandemic resulted in hefty charges and provisions. That included impairments of about R9.8 billion on goodwill, other intangible assets and property, plant and equipment and associated undertakings, namely its more than 20% stake in South African lender Nedbank.

Its adjusted headline earnings per share fell 66% to 37.3 cents. Headline earnings per share (HEPS) is the main profit measure in South Africa, but strips out certain once off items that affected Old Mutual's performance.

Africa Briefs

September 1, 2020, 3:00 pm

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Africa Briefs SA state firms seek billions in bailouts

South African state companies the Post Office and broadcaster SABC have requested billions of rand in financial support, the National Treasury said in a presentation to parliament yesterday.

The Treasury said the Post Office had requested R4.9 billion in support and SABC was seeking R1.5 billion because of the impact of the Covid-19 pandemic.

It added that state agricultural lender Land Bank, which defaulted earlier this year, had resumed interest payments to lenders from Aug. 11. – Nampa/Reuters

Zim tobacco sales down 23.5%

Sales of Zimbabwe's tobacco, the second largest foreign currency earner, fell 23.52% to 178.7 million kilogrammes this year, official data showed on Monday, after production was affected by lower rainfall.

The tobacco auction season, which ended on Friday, traditionally leads to improved foreign exchange inflows in the Southern African nation as buyers bring in US dollars to purchase the crop.

The Tobacco Industry and Marketing Board said farmers delivered 178.7 million kg at the close of auctions compared to 233.6 million kg during the same period last year.

Although this year's crop was smaller, firmer prices helped farmers earn US$460.7 million, more than the US$447 million they got year.

Tobacco is the second single biggest foreign currency earner after mining. Demand from China, the world's biggest smoking nation, and funding from private tobacco companies have helped drive output, which had plunged to its lowest in 2008. – Nampa/Reuters

Ghana reopens international airport

Ghana reopened its international airport yesterday but with new regulations in place to curb the spread of the coronavirus, the president announced.

Kotoka International Airport, located outside the capital Accra, was closed in March along with other border points in a bid to contain the virus in the west African country.

Land borders would remain closed.

Any passenger arriving in Ghana must be in possession of a negative Covid-19 PCR test result from an accredited laboratory in the country of origin. The test should have been done not more than 72 hours before their departure.

All airlines are to ensure compliance with the directive for passengers wishing to travel to Ghana.

In addition, arriving passengers must undergo a Covid-19 test at the airport terminal at their own cost, though children under five will be exempt. – Nampa/AFP

Nigeria sets capital rules for mobile money licences

Nigeria's central bank said it will grant more licences for payment service banks but set a minimum capital base of US$13 million, which could deter telecoms firms and some other potential new entrants to the digital financial services sector.

The central bank in a circular seen by Reuters on Monday said that telecom firms, banking agents, retail chains and postal services could apply for licences to become payment banks. To do so they must set up a separate company for it with a minimum capital of 5 billion naira (US$13 million) and run it as an independent entity from their existing operations.

The bank has granted three licences so far to 9PSB, a unit of local telecom firm, 9mobile, and two others. – Nampa/Reuters

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Income tax in the mining sector

September 1, 2020, 3:00 pm

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Income tax in the mining sector Riana Esterhuyse - The mining sector is one of Namibia’s leading industries, marked as a major contributor to the country’s economy.

Given the considerable footprint of the mining industry within Namibia, it is important for mining enterprises to be well acquainted with income tax legislation.

The terms “mining operations” and “mining” are defined in Section 1 of the Namibian Income Tax Act and includes every method or process by which any mineral (excluding petroleum) is won from the soil or from any substance or constituent thereof.

The mining for natural oil along with oil and gas extraction is dealt with under the Petroleum Taxation Act 3 of 1991, to which a different income tax rate applies (currently 35%).

For taxable income derived from mining (other than diamonds), income tax is levied at 37.5%. Taxable income from services rendered in connection with such mining, on behalf of any person licensed to conduct such mining operations will also be levied at 37.5%.

Taxable income derived from the mining of diamonds or from services rendered by any company in connection with the mining of diamonds on behalf of any person licensed to conduct such mining operations, is subject to an income tax rate of 50% plus a surcharge equal to 10% of that amount, resulting in an overall tax rate of 55%.

It is important to note that service providers to the mining industry may therefore be subject to a tax rate of 37.5% / 55%.

Deductibility of costs incurred

Section 36 of the Act requires a split of mining operations between exploration and development, to determine the timing of deductions for tax purposes.

All expenditure incurred in terms of exploration operations, such as seismic surveys or feasibility studies, must be deferred until the year of assessment in which the mine commences production. All exploration expenses incurred up to that date will be deductible in that year of assessment.

For development operations, such as the sinking of shafts and installation of mining operation machinery, all expenditure incurred must be deferred until the year of assessments in which the mine commences production for the first time. One third of all development expenses incurred before then are deductible in that year and the other two thirds shall be deductible over the following two years in equal instalments.

Other considerations

In December 2015, paragraph (o) was inserted into the definition of “Gross Income” under Section 1 of the Act.

Any amount received or accrued for the sale, donation, expropriation, cession, grant or other alienation or transfer of ownership of a mineral license or right to mine minerals in Namibia would be subject to income tax.

It furthermore applies to the sale of shares/member’s interest in a company that owns a mineral licence or right whether directly or indirectly. Acquisition costs of the mineral license or right may be deducted from the amount received, however this deduction may not create a loss. This can lead to profits on the disposal of a mining licence being taxable.

Investors need to be aware of the possible tax implications. Careful consideration should be made in terms of initial investment into Namibia and also from exiting Namibia.

Conclusion

From the above, it is evident that income tax may become a complex topic when dealing with mining activities.

Other factors such as the change in ownership of mining property, stripping activities and share-based payments carry their own income tax implications.

When in doubt, it is always recommended to reach out to a tax specialist in ensuring the correct interpretation of tax laws and provisions.

Riana Esterhuyse is the associate director: tax at PwC Namibia. Contact her at riana.esterhuyse@pwc.com

World Bank halts Doing Business rankings

September 1, 2020, 3:00 pm

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World Bank halts Doing Business rankingsProbes data irregularities The Doing Business reports, which includes Namibia, has long been controversial. The changes in the data were inconsistent with the Doing Business methodology. – World Bank David Lawder - The World Bank is pausing publication of its "Doing Business" report to probe data collection irregularities in the closely watched annual ranking of countries' business and investment climates.

The World Bank said in a statement that it would conduct a systematic review of data changes in the last five Doing Business reports, and independent auditors will probe data collection and review processes.

The reports that will be reviewed are those for 2016 to 2020. In the 2020 report, released last year, Namibia was ranked 104 out of 190 countries. Its score was 61.4 out of a possible 100.

Namibia’s performance in the other four affected reports were: 2019 (107/190, score 60.53); 2018 (106/190, score 59.94); 2017 (108/190, score 58.82) and 2016 (101/189, score 60.17).

"The publication of the Doing Business report will be paused as we conduct our assessment," the bank said.

Under fire

The Doing Business report has long been controversial because it ranks countries based on indicators of how their government bureaucracies and regulations affect - and often limit - their attractiveness as destinations for business investment.

It came under fire in early 2018 when the World Bank's then-chief economist, Paul Romer, said methodological changes to the report may have been biased against Chile's socialist president at the time, Michelle Bachelet. The report published in 2017 dropped Chile to 55th from 34th in 2014, when Bachelet took office.

Romer resigned over the controversy, in which he said in a Wall Street Journal interview that the report "conveyed the wrong impression" about Chile's business environment under Bachelet.

The World Bank said last week there were "a number of irregularities" reported regarding data changes to the reports published in 2017 and 2019, but did not identify them.

‘Inconsistent’

"The changes in the data were inconsistent with the Doing Business methodology," the bank said, adding that it would "correct the data of countries that were most affected by the irregularities."

The most recent Doing Business report published in October 2019, showed that Middle East countries sharply improved their rankings, with Saudi Arabia climbing 30 places to rank 62nd and Jordan jumping 29 places to 75th.

New Zealand was ranked highest for the fourth year in a row, followed by perennial high-rankers Singapore and Hong Kong.

Latin American countries lagged in the latest Doing Business report, with debt-plagued Argentina falling seven places to 126th and Mexico falling six spots to 60th. Chile was ranked 59th, while the United States ranked sixth, just behind South Korea. – Own report and Nampa/Reuters

A mental check

September 1, 2020, 3:00 pm

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A mental check Largely forgotten and underreported, amid the ongoing Covid-19 pandemic, is the fear, worry and stress that people are going through.

Added to the fear of contracting the virus are the significant changes to our daily lives, as our movements are restricted in support of efforts to contain and slow down its spread.

Faced with the new realities of working from home, temporary unemployment, home-schooling, and lack of physical contact with other family members, friends and colleagues, it is even more critical during this time to look after our mental, as well as our physical well-being.

Studies have found that stress and anxiety fuel poor sleep, creating a vicious cycle, while many feel isolated and alone.

As early as April, the United Nations called for immediate global action to combat the increasing violence against women and girls during the pandemic.

While older people have greater health risks from Covid-19, it seems younger people are struggling emotionally. Even before the outbreak of the virus in Namibia, there has generally been a lack of focus on mental health and how it impacts our daily lives. Social stigma and discrimination can make mental health problems worse and stop a person from getting the help they need. We should all avoid stigmatising or labelling those who are battling. Let us create environments in which those who need assistance feel they can reach out and find the solace and comfort they desperately require during these times.

Son back in court for mom's murder

September 1, 2020, 3:00 pm

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Son back in court for mom's murder• Charged with kicking his mother to death Kandjimi Katjotjo Haingura has not yet obtained the services of a lawyer in his murder case. KENYA KAMBOWE

RUNDU



A 23-year-old man, accused of kicking his mother to death at Gcigco village in the Kavango West Region in June this year, made his second court appearance before the Rundu Magistrate's Court this week.

Kandjimi Katjotjo Haingura appeared before Magistrate Hellen Olaiya, who postponed the matter to 16 November so that he can obtain legal representation. Godfrey Shivolo is the State prosecutor.

Haingura was arrested on 12 June, on the day that he allegedly murdered his mother, Behetta Nipembe (57), after a quarrel.

It is alleged that Haingura, who was apparently under the influence of alcohol and marijuana, kicked and stomped on his mother while wearing heavy construction boots.



Fought over a donkey

The victim's husband, Hilarius Hausiku (63), told Namibian Sun at the time that the assault emanated from a quarrel over a donkey. He said his wife had told her son to unbridle the donkey he had been riding so that it could graze.

Haingura refused, so his mother unbridled the donkey herself, upon which he grabbed the bridle and started beating her with it.

Hausiku said he stood by helplessly as his stepson assaulted his wife, but then ran away because he feared for his own life.

After the assault, Haingura allegedly placed his mother's limp body in the room where Hausiku was sleeping.

Hausiku said when he woke up, he found that his wife had died.

Factories shaking off Covid-19 gloom

September 1, 2020, 3:00 pm

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Factories shaking off Covid-19 gloom Outlook still shaky Surveys showing an expansion in manufacturing activity may reduce pressure on policymakers to take bolder steps to avert a deeper recession. Jonathan Cable and Leika Kihara - Factories across Europe and Asia continued to shake off the coronavirus gloom in August as the global economy gradually emerges from a downturn triggered by the health crisis, thanks in part to massive fiscal and monetary stimulus programmes.

Surveys showing an expansion in manufacturing activity may reduce pressure on policymakers to take bolder steps to avert a deeper recession. Many analysts expect recovery to be feeble, however, as renewed waves of infections curb business activity and prevent some nations from fully reopening their economies.

Fears of a resurgence in infections in some economies may discourage firms from boosting capital expenditure and delay a sustained rebound, some analysts say.

"In most major economies, except for China, factories are still running well below pre-pandemic capacity levels," said Ryutaro Kono, chief Japan economist at BNP Paribas.

"The recent recovery is largely due to pent-up demand after lockdown measures were lifted, which will dwindle ahead."

Euro zone

Euro zone manufacturing activity remained on a recovery path last month but factory managers were wary about investing and hiring workers as the pandemic rages on.

Manufacturing output, which didn't suffer quite as sharp a decline as the services industry during coronavirus lockdowns, increased for a second straight month.

IHS Markit's final Manufacturing Purchasing Managers' Index (PMI) dipped to 51.7 in August from July's 51.8, in line with an earlier flash reading and comfortably ahead of the 50 mark separating growth from contraction.

Unemployment in the 19-country euro zone only nudged up to 7.9% in July, official data showed, but consumer prices fell in August, against market expectations of a small increase.

German manufacturers' recovery from lockdown measures continued last month, but in France activity slipped back into contractionary territory as the second-biggest euro zone economy grappled with hits to business caused by the pandemic.

British factory output recovered some ground lost as output rose at the fastest pace in more than six years.

Strong China

Manufacturing activity in China expanded at the fastest clip in nearly a decade in August, as factories ramped up output to meet rebounding demand, a private survey showed. New export orders rose for the first time this year.

The upbeat findings contrasted with an official survey on Monday, which showed China's factory activity grew at a slightly slower pace in August.

China's Caixin/Markit PMI rose to 53.1 in August from July's 52.8, marking the biggest rate of expansion since January 2011.

Japan and South Korea both saw factory output contract at the slowest pace in six months, reinforcing expectations the region's export powerhouses are past the worst from a collapse in demand after Covid-19 struck.

The spill-over to other parts of Asia, however, remains patchy. While manufacturing activity rose in Taiwan and Indonesia, it slid in the Philippines, Vietnam and Malaysia.

India's factory output grew in August for the first time in five months as the easing of lockdown restrictions spurred demand. But analysts do not expect a quick turnaround in the economy, which contracted at its steepest pace on record last quarter. – Nampa/Reuters

Remdesivir is safe for corona treatment - Shangula

September 1, 2020, 3:00 pm

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Remdesivir is safe for corona treatment - Shangula JEMIMA BEUKES

WINDHOEK



Health minister Kalumbi Shangula has allayed Namibians' fears over the antiviral drug Remdesivir that government has acquired for the treatment of Covid-19 patients.

The country representative of the Africa Centres for Disease Control, Dr Eric Dziuban, also said Remdesivir is one of the very few drugs which has been shown to be effective for people with severe Covid-19. Some people were worried about a label on the drug stating that it is not for distribution in the United States, Canada or European Union.





Dr Shangula said the labelling was merely for marketing purposes.

“Especially now because the demand for Remdesivir is high, manufacturers are labelling the batches for the segments of the world to allow better and focused distribution routes and destinations.

“It is also connected to pricing. Medicines that are sold in the developing world at reduced prices should not find their way into Europe, where the same products are sold at a higher price,” Shangula said.

He added that the antiviral medicine has been shown to shorten the recovery time of Covid-19 patients.

It has been distributed to Namibian hospitals and will be prescribed by doctors according to indications.

Proven efficacy

Dziuban too, has dispelled concerns over the use of the drug and said Namibia was fortunate to have acted early and acquired it for the country's hospitals.

“Remdesivir was developed by a pharmaceutical company that can only make a limited supply. Because of this, they gave a voluntary licence to other manufacturers to produce the drug for dozens of other countries. Remdesivir does get used in the US, EU, and Canada as well, just from a different manufacturer than the product available in Namibia,” he said.

According to media reports in June 2020, the United States had bought nearly all the available Remdesivir supplies in the world for the next three months.

Al Jazeera reported at the time that the manufacturing company Gilead said it would price Remdesivir at US$2 340 per patient in the US and other rich nations. In 127 poor or middle-income countries, Gilead is allowing generic makers to supply the drug.

The Washington Post also reported that Gilead would charge US hospitals US$3 120 for a typical patient with private insurance, while other developed countries would pay 25% less than the US, to make the drug as widely available as possible throughout the world.

Health deputy executive director Petronella Masabane said: “We are buying the generic version from Jubilant, a company in India, which got a licence from Gilead to manufacture the generic version for a specific zone.

“We paid about N$1 000 per vial and a patient will typically need six vials, but in severe cases up to 12 vials over a ten-day period. The cost you quoted is the branded medicine (Remdesivir), which is only sold in three countries.”

jemima@namibiansun.com

Former MP fears Covid jail death

September 1, 2020, 3:00 pm

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Former MP fears Covid jail death JEMIMA BEUKES

WINDHOEK



Former parliamentarian Geoffrey Mwilima, who is serving an 18-year prison term after being convicted of high treason and other charges connected to the failed Caprivi uprising in 1999, is in a dire condition in prison, and fears contracting Covid-19.

Last week it was reported that about 100 prisoners in the Windhoek Correctional Facility had contracted Covid-19, and fears are mounting that the infection will spiral out of control in the overcrowded prison.

According to sources who spoke to Namibian Sun this week, Mwilima, who has high blood pressure, diabetes and kidney disease, is being held with 19 other inmates, two of whom have already contracted Covid-19.

Mwilima, who is 64 years old, goes for weekly dialysis, treatment which will be cut short should he be infected with Covid-19.





Calls for pardon

There are now renewed calls for President Hage Geingob to grant him a presidential pardon.

“It will be a disaster if he cannot go for dialysis. One week without it and he will be gone,” the source said. Another concern is that inmates are transported for hospital visits in vehicles that have not been sanitised.

“He is currently housed with 19 people, which makes exposure to Covid-19 inevitable. His latest doctor's evaluation shows that his heart is getting weaker and he has been referred to a specialist for treatment. All these are conditions that expose him to be a likely victim of death in the event that Covid attacks him.

“Three doctors who have been treating him have recommended that he should be released on medical grounds so that he can receive better treatment outside prison, yet the Namibia Correctional Service refuses to let go even after specialist physicians have written submissions to that effect,” the source said.



Government reaction

The commissioner-general of the Namibian Correctional Service, Raphael Hamunyela, said he was unaware of the concerns raised about Mwilima's living conditions. He could also not confirm whether Mwilima shares a cell with 19 other inmates of whom two have tested positive for the coronavirus. Presidential press secretary Alfredo Hengari referred queries to the minister of home affairs, immigration, safety and security, Frans Kapofi.

Kapofi said there are legal hurdles that make it difficult to pardon prisoners on health grounds.

He said there are many other people who face the same kind of medical challenges but they do not qualify for parole on medical grounds. “The president has expressed his desire to address the matter,” he said.

jemima@namibiansun.com

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Floodgates open for quota 'middlemen'

September 1, 2020, 3:00 pm

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Floodgates open for quota 'middlemen'• successful bidders FREE to resell fishing rights Speculators who successfully secured the government's so-called “development objectives” quotas during a recent auction, which netted the state about N$630 million, are now free to profit from on-selling to interested parties. OGONE TLHAGE

WINDHOEK



The government has confirmed there is nothing holding back the winning bidders of its “governmental objectives” quotas from profiting by reselling the hake, horse mackerel and monk fishing rights.

Finance minister Iipumbu Shiimi announced last week that the government had raised about N$630 million from the controversial auction, which had been criticised by community groups and fishing stakeholders.

The quotas had previously been dished out to state entity Fishcor, which is currently at the centre of the Fishrot bribery scandal.

On offer, via an auction that concluded recently, was 11 000 metric tonnes of hake, 72 000 metric tonnes of horse mackerel and 392 metric tonnes of monk. Successful bidders had until Monday to cough up.





Of the quotas up for grabs, 40% had been reserved wholly for local companies, while 60% was open for bids from local and international companies.

Reflecting on the auction, fisheries minister Albert Kawana said yesterday once bidders had paid, they were free to sell the quotas if they wanted.

He made the comment when asked whether the government had taken steps to prevent speculative onwards selling of fishing quotas.

“From a legal perspective, let me put it this way, if there are cars that were auctioned and you pay for it, it becomes yours. Legally once you get it, it's yours, the law protects you,” he said. The minister admitted that more money could have been raised had the auction been open-ended, but added that it was being done to finance the government's coronavirus response.



Much ado about nothing

Kawana dismissed the notion that the government was short-sighted in auctioning off the rights.

“As you know there was much hullabaloo. The decision was to see what is the value that government owns. We wanted to establish the market and test the market,” said Kawana. According to Kawana, it was a justified response by the government, more so because 40% of the total quota was reserved for Namibians while 60% was open to international and local bidders.

This was also based on discussions with the fishing industry, he said. “It was a demand or request that was justified in my view to allocate some portion of the government quota to Namibians. To us this was a genuine request,” he said. Kawana criticised those opposing the auction, asking where else the government was supposed to raise money at short notice.

“Where will government get the money to finance the response? You want to go to the International Monetary Fund? No. Do you want to go to China? No,” Kawana said.



Checks and balances

Kawana said only Namibian-flagged vessels would be allowed to catch.

“One of the conditions is that the vessel must be licensed in Namibia. We will never allow foreign vessels to come in, [there will] absolutely no way for foreign vessels to come in,” Kawana said.

He said vessels would also be required to record what they catch, with the process being observed by fisheries inspectors.

“You cannot go out without an observer. Those vessels, there must be an observer, every day there must be a record … even the by-catch must be recorded,” Kawana said.

National housing data system planned

September 1, 2020, 3:00 pm

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National housing data system plannedMarch 2021 target date The new system will serve as a planning tool for housing development and policy formulation in the country. The benefits of this system are many and should serve us well. - Alex Shimuafeni, SG: NSA The Namibia Statistics Agency (NSA) and the ministry of urban and rural development (MURD) have embarked on a process to develop a national housing information system to support various ministries' functions using the updated data.

MURD executive director Daniel Nghidinua and NSA statistician-general Alex Shimuafeni issued a joint media statement regarding the project.

Shimuafeni said the NSA will be collecting data during the census mapping and give it to MURD to help facilitate the capturing of data, management, sharing and dissemination in support of effective spatial planning and socio-economic development. He said the system will be updated with data as collected and generated by all institutions and stakeholders involved in the updating of housing data in Namibia including the NSA. The housing information system will provide important information on the housing sector that will contribute to housing in Namibia's economic growth through information and statistics gathered.

“It will have a centralised housing information system where all housing-related data in the country are compiled, processed, stored and disseminated for various purposes and guide decision-making.

“The housing information system will additionally provide an accessible resource of all houses constructed through various government-funded housing programmes or initiatives through a single, centrally managed platform as well as compile housing needs information per localities,” said Shimuafeni.



Planning tool

He added that the new innovation will also serve as a planning tool for housing development and policy formulation in the country as well as for monitoring, evaluation and reporting on national and international development plans and agendas.

“As you can imagine, the benefits of this system are many and should serve us well. Examples of these are an online data processing and analysis platform for various uses such as researchers, investment decisions, monitoring, evaluation and improved reporting of housing in Namibia as well as keeping data updated,” explained Shimuafeni. He said the system will be released in mid-March 2021 and support national efforts towards addressing housing challenges in the country. Although various projections on the current housing backlog and need in the country are available, it has been observed that there is no consistency in the data reported and this has created a statistics vacuum, Nghidinua said. Despite government efforts to alleviate the problem, Namibia is still faced with a huge housing deficit which is more visible through the rapid proliferation of informal settlement areas, specifically in urban areas, he said.

- Nampa

Battered budget hits safety

September 1, 2020, 3:00 pm

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Battered budget hits safetyPolice stations axed While one out of every four women in Namibia is a victim of gender-based violence, more police stations and money for safe houses are not a priority in government’s development budgets. Jo-Maré Duddy – Knowledge of a police presence in the Epako settlement at Gobabis in March last year might have prevented a boy of 19 alleging beating a woman unconscious before raping her.

In 2017/18, government decided to erect a police station in the Epako area to serve the “disadvantaged” community, according to development budgets.

The project, at a total cost of N$138 million, saw a mere spending of N$2.5 million by 2018. In the 2019/20 budget, N$5 million was set aside for the police station at Epako in the current fiscal year.

But in the 2020/21 development budget the Epako project, like four other planned police stations, have been hacked. They are Brakwater in Windhoek, Aminius in Omaheke, Greenwell Matongo in Katima Mulilo and a police command and control centre in Windhoek East.

Unlike the other chopped projects, which have been on government’s books since 2014 and 2015, Epako only appeared on the budget radar three years ago before being slashed.

Violence is no stranger in the settlement. In April 2014 a father killed his two boys, aged four and seven, at Epako. One was stabbed four times in the head and once in the neck, while the 4-year old was stabbed once in the neck, once in the head and once in the back.

The father then sent the mother a text message saying: “I have finally killed your children, come and get your children.”

In 2015, a man stabbed his wife of nine years several times and thereafter hacked her to death with an axe at Epako, nearly severing her head from her body.

Spending priorities

According to the 2019/20 development budget, N$33 million was supposed to have been allocated to the five scrapped police station projects this year.

Yet, the taxpayer will have to spend nearly N$47.8 million for upgrades, extensions and rehabilitation at prisons countrywide in 2020/21, the latest development budget shows.

Six police station projects remain in the current development budget. (See table on p.2.) Work on all these stations were supposed to have started in 2014 and 2015.

The total costs of these projects, most of them scheduled for completion by 31 March 2021, are about N$637.3 million. However, by 2018/19, only about N$15.7 million or about 2.5% of the budget was actually spent.

The 2020/21 development budget shows that, out of the six prisons that need to be finished by March 2021 and March 2022, construction on five will only start in the current fiscal year.

Hacked

A proper police station for Brakwater at the total cost of N$44 million has been in the development budget since April 2015 and should have been completed by next March.

“One more disadvantaged area will gain the benefit of the needed police services within their area,” government motivated the project.

However, nothing was spent on this plan by 2019/20.

According to the development budget of 2019/20, N$2 million was earmarked for 2020/21. The tender was supposed to be awarded and construction of the police station should have started.

The project, however, has disappeared from the current development budget.

The “disadvantaged” area of Aminius has been looking forward to a police station since 2014, when government included a facility of nearly N$83.7 million in total in its development budget.

The police station should have been completed by March 2021.

Only N$1 million was spent on the project by 2017/18, after which it came to a standstill. In the 2019/20 development budget, N$15 million was envisaged for 2020/21, which included the awarding of the tender and the beginning of construction.

The Aminius police station is omitted in the current development budget.

A police command and control centre at a total cost of N$210 million planned for the Windhoek East in 2015 hasn’t seen a cent since then.

“The objective of the project is to construct a proper modern command control centre with essential facilities” to a “disadvantaged area”, government motivated its decision at the time. The completion date for the project was 2021.

N$6 million was earmarked for the centre for 2020/21 in last year’s development budget, but the project isn’t mentioned in the current budget.

‘Essential facilities’

“To provide proper [a] police station with essential facilities to the community of Greenwell Matongo area” in the Katima Mulilo constituency, government started budgeting for a facility of N$130 million in total in 2015. By 2017/18 only N$2.5 million was spent on the project.

The project purse has since been empty. In 2019/20, however, government resumed its plans for the police station and made provision for N$5 million this year.

There is no trace of the project in the current development budget.

Lights out

Government seemingly has also abandoned plans to provide generators to all police stations in the //Kharas region.

The N$35-million project kicked off in 2014 and by 2017/18 a total of N$8 million was spent on installing generators to supply electricity and to serve as back-up in case of power failures.

No more money has been flowing since. The current fiscal year was supposed to provide N$5 million, but project blacked-out in the 2020/21 development budget.

Shelters

In April 2018, government embarked on a N$40-million project to construct and renovate homes of safety, as well as shelters.

“The project aims to construct and maintain homes of safety and shelter for orphans and vulnerable children, as well as for men and women from abusive homes that are in need of care and protection,” the motivation stated.

Targeted constituencies are Keetmanshoop Urban, Katima Mulilo Urban, Swakopmund, Ndiyona, Khorixas and Eenhana.

In 2018/19 actual spent on this was N$1.002 million. Estimated spent in 2019/20 was only N$1 million and this year N$1.064 million was budgeted for this purpose.

The latest data of the United Nations indicates that 26.7% of women in Namibia suffers lifetime physical and/or sexual intimate partner violence. About 20% said they were victims of physical and /or sexual intimate partner violence in the last 12 months.

Nampa, the state-owned news agency, has reported 40 cases of alleged rape since the beginning of the year. Of this, 40% were children of 16 or younger.

Namibian film coming to Netflix soon

September 2, 2020, 4:56 am

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Namibian film coming to Netflix soon Windhoek • yandi@myzone.com.na

The short film Baxu and the Giants will soon be the first Namibian film to air on Netflix.
The film was released last September and received international acclaim, including best foreign language story by the San Francisco Independent Short Film Festival and best cinematography by the Canadian and European Cinematography Awards.
According to the man who wrote the screenplay and sat in the director's chair, Florian Schott, this played a huge part in the film's debut on Netflix.
“We travelled to various film festivals around the world with the film where we met various directors, distributors and agents. At the Rapid Lion International Film Festival in Johannesburg, my path crossed with that of a South African agent. When they heard Netflix would like to expand their content to short films, they suggested Baxu and the Giants.
“Netflix immediately showed interest in our film,” Schott said from Germany. “However, these things take time and we first had to negotiate. There are also many technical requirements that a movie must meet for Netflix's standards.”
According to Schott, this is a wonderful opportunity, not only for film-makers, but also for the local film community. “The fact that a Namibian film is appearing on Netflix means that we now have the potential to distribute more local films on an international level. We no longer only make films for local audiences, but possibly for audiences around the world.”

Impact of poaching
The story focuses on the social change brought about in a rural Namibian community by rhino poaching, as told from the point of view of a nine-year-old girl. With this narrative, Baxu and the Giants aims to create awareness among young audiences, especially children and teenagers, about environmental issues such as rhino poaching, and to keep the conversation going. “We hope many young people will look at it and learn more respect for nature and the environment from it,” Schott said.
The exact date for the film’s Netflix premiere is not yet know, but “it will definitely be in the next few weeks,” he said.
He expressed his gratitude to all the individuals and institutions who made the film a reality. “Thank you to everyone who was part of this beautiful journey. Everyone who shared their passion and talent. We would not be here without you.”

Venus, Clijsters fall as seeds march on at US Open

September 2, 2020, 3:00 pm

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Venus, Clijsters fall as seeds march on at US Open NAMPA/AFP



Venus Williams and Kim Clijsters bowed out of the US Open at the first hurdle on Tuesday as seeded players dominated the women's draw for a second straight day.

Hours after younger sister Serena had battled into the second round, 40-year-old Venus was back in the spotlight in what was an incredible 22nd US Open appearance.

But Venus, who reached the final of the US Open on her debut at the tournament in 1997, was beaten in the first round for the first time in her glittering career by Karolina Muchova of the Czech Republic.

Muchova, the 20th seed, had too much poise for Venus en-route to a 6-3, 7-5 win.



Time's running out

While Venus knows that time is running out on her career at the top level - she has not gone further than the third round at a Slam event since 2017 - she insisted afterwards that she plans to continue playing, starting with this month's French Open at Roland Garros.

“I love this game,” she said. “I'm good at what I do. It's easy to stay motivated and excited about doing something so amazing. Not many people get to do this.

“But I look forward to a few days off. It's been a lot of work. Looking forward to just having a little bit of a rest before the clay courts.”