Pakistan eye long-awaited test series win over SA

February 2, 2021, 2:00 pm

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Pakistan eye long-awaited test series win over SA NAMPA-AFP



New-look Pakistan will look to end a 17-year wait for a series win against South Africa and leapfrog the Proteas in the rankings in the second test starting tomorrow.

Victory would be poignant for Pakistan, who are hosting their biggest test series since the deadly 2009 militant attack on Sri Lanka's team halted international tours.

Pakistan, whose lone series win over South Africa was at home in 2003, start as favourites in Rawalpindi after last week's thumping seven-wicket win in Karachi.

They stand to rise two places to fifth in the rankings with a series victory, while defeat would push South Africa down from fifth to sixth.

Karachi heroes

Debutant Nauman Ali and fellow spinner Yasir Shah were the heroes in Karachi with seven wickets each, along with Fawad Alam whose first-innings century set up the win.

Babar Azam, who captained Pakistan for the first time, said the win was much needed after they went down heavily in both tests away to New Zealand in December and January.

"This win was very necessary for our group," Azam said. "The last series in New Zealand didn't go very well.

"Yes, these are home conditions but South Africa is a top test side and beating them was morale-boosting."

He added: "We have been telling the players to be confident. I don't want them to take pressure. Learn from mistakes and do your best".

However, Rawalpindi will provide a different challenge for both teams as fast bowlers tend to dominate.

When Pakistan beat Bangladesh there by an innings and 44 runs a year ago, 20 of the 30 wickets went to fast bowlers.

With that in mind, Pakistan are expected to drop Nauman, despite his wickets in Karachi, and give a test debut to paceman Haris Rauf.

Struggle

South Africa have long struggled in the subcontinent, with Karachi their eighth defeat in a row in India, Sri Lanka and Pakistan.

They lost their last eight wickets for 112 and 60 in the two innings in Karachi, falling for 220 and 245 all out.

"I know that our record in the subcontinent is not the greatest," captain Quinton de Kock said.

Experienced opener Dean Elgar is expected to be fit to play after being hit on the hand in Karachi.

The tourists are likely to drop spinner George Linde to bring in one of their fast-bowling all-rounders, Wiaan Mulder or Dwaine Pretorius.

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Netball play-offs postponed

February 2, 2021, 2:00 pm

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Netball play-offs postponed Activities on hold The coronavirus pandemic continues to disturb sport events in Namibia. NAMPA







WINDHOEK

The Netball Namibia (NN) Premier League play-offs that were initially slated for this month will no longer take place due to the increase in the number of Covid-19 cases in the country.

NN received a three-year sponsorship worth N$4.2 million from telecommunications giant MTC in July 2020 to assist with the establishment of a premier league and the development of the sport countrywide.

In an interview with Nampa on Monday, NN secretary-general Imelda Nerongo said they have had to put all activities on hold as people’s lives are at risk due to the pandemic.

“On 6 February, we were supposed to launch the league and then start with the play-offs with teams from 11 regions for the Netball Premier League, but that is now on hold as we are waiting for the next board meeting, which takes place this month, to decide what is possible before deciding on the hosting of national and international games,” she said.

She added that the scheduling of events has become more difficult as there are a lot of restrictions in place.

Keeping busy

“Seeing as only 50 people are allowed to gather at one place, that will make it more difficult to host games. However, although most of our activities are on hold, we have been busy with visits to the regions for the hosting of our annual general meeting. We are fixing the structures of the different regions so that their administration is up to standard,” she said.

The Premier League, which will consist of 12 netball clubs from the 14 regions in Namibia, was anticipated to start by March.

Six teams will be from the Khomas, Otjozondjupa and Erongo regions, with two teams each that have automatically qualified to form part of the new netball premiership, while the remaining six places will be up for grabs between the remaining 11 regions at the zonal play-offs.

I will address Fishrot innuendos at right time

February 2, 2021, 2:00 pm

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I will address Fishrot innuendos at right time Dr Hage Geingob



To suggest that the year 2020 was challenging would be an understatement. When we commenced our work as Cabinet at the beginning of last year, none of us anticipated what lay ahead for us.

Over the course of a challenging six-year period, this administration successfully staved off the negative effects of unprecedented headwinds, brought about by a global economic downturn, and an extended period of severe drought.

Having adopted a policy of fiscal consolidation while deploying economic intervention measures aimed at stimulating the economy, we were optimistic about rebounding, but alas, the arrival of Covid-19 put all of our plans into disarray.

Covid-19 has brought untold destruction to Namibia. Lives have been lost prematurely, many Namibians are in hospital and have had their health compromised, our economy has suffered adverse effects and we have been forced to adapt our lives in ways that have affected us physically, psychologically and spiritually. Despite the gloomy circumstances, government, in conjunction with our development partners, the private sector and citizens of Namibia, have worked tirelessly over the past several months to fight the war against the invisible enemy, Covid-19.

Ministers who worked

I wish to thank the minister of health for the sterling job done under very difficult circumstances. Together with his team, he has led from the front, tirelessly and with unwavering commitment to preserve Namibian lives.

I also commend the right honourable prime minister [Saara Kuugongelwa-Amadhila], the minister of justice [Yvonne Dausab] and attorney-general [Festus Mbandeka], the ministers of finance [Iipumbu Shiimi], education [Anna Nghipondoka], safety and security [Frans Kapofi], defence [Peter Vilho] and information [Peya Mushelenga] - alongside all other ministers who have played an instrumental role in coordinating our national response to Covid-19.

We are aware that we are faced with a difficult balancing act; protecting Namibian lives while ensuring our economy is not compromised. It is a precarious situation and one that can only be overcome through ingenuity, collaboration and hard work.

To this extent, we are doing the utmost to surmount the resultant economic crisis. In 2020, government, as a matter of urgency, delivered measures of relief through the N$8 billion stimulus package, N$1 billion health response and N$500 million small- and medium-sized enterprise financing intervention.

Furthermore, this year I will be launching the Harambee Prosperity Plan II, which will contain a detailed economic recovery component, outlining specific measures to encourage investment and provide greater certainty in the business environment, as well as detailing key projects that will be implemented as catalytic interventions to stimulate economic activity, recovery and growth.

Year of Resilience

You may recall that in my New Year’s message for 2021, I christened this year as the Year of Resilience. In coming up with this theme, I am not merely alluding to the difficult year we had, but more so, I am expressing the inspiration I have received from Namibians from all walks of life. In his book ‘Life, the Truth and Being Free’, motivational speaker Steve Maraboli states: “Life doesn’t get easier or more forgiving; we get stronger and more resilient”.

Indeed, living under the scourge of Covid-19 has not been easy and the effects of the virus have been unforgiving. However, I believe that as a people, as a nation, while we have lost much, we have also gained new strength and resilience. I am confident this renewed strength and resilience - which draws inspiration from the sons and daughters whose sacrifice liberated Namibia - will help us rebuild our lives, families, society and economy so that we will stand stronger than ever.

Psychologists have identified some factors that augment resilience such as a positive attitude, optimism, conviction, the ability to regulate emotions, and the ability to see failure as a form of helpful feedback. An American author, Napoleon Hill, once said: “Every adversity, every failure and every heartache carries with it the seed of an equivalent or greater benefit”. Therefore, when we said to the people of Namibia “we have heard you”, this was in response to the feedback we received when the citizens of this country exercised their democratic rights by participating in the 2019 presidential and national assembly elections as well as the 2020 local authority and regional council elections. As government, we are mindful that our economic, social and environmental future rests on our ability to place people at the centre of decision-making. Therefore, effective governance, responsive institutions and an engaged citizenry are the bedrock of democracy and sustainable development.

Optimistic recovery prospects

We remain optimistic about our prospects to recover from the devastation of 2020 and, together with the people of Namibia, there is no doubt this country can return to a path of sustainable and inclusive growth and development. Namibians have proven that they possess the ability to endure, adapt and overcome. In the face of unprecedented difficulties and changes, Namibians have become the principal agents for preventing and controlling the spread of this virus.

The projections we had received for the worst-case scenario were startling, but to date, we have, to the best of our ability, kept the situation under control. The integrity of our health sector remains intact and Cabinet has begun working in earnest to ensure the most vulnerable citizens will soon get access to much needed and sought-after vaccines.

In this regard, rest assured that all avenues will be exhausted when it comes to safeguarding the health of Namibians. As the constitutional body responsible for the determination of policy, and for directing, coordinating and supervising the activities of various offices, ministries and agencies, we have a huge task ahead of us.

Let me stress, therefore, that if we do not adopt a progressive approach to executing our duties, then we will not overcome the big challenges that are with us. Failure is not an option. The people, who are the ultimate sovereigns, are looking to us for leadership and we should be able to articulate effective and implementable strategies to get Namibia back on course. To this extent, each one of you should get out of the comfort zone of your offices and avail yourselves to meet with community leaders, ordinary citizens, the media and members of the business community.

The path towards recovery is a collective effort. It is pertinent, therefore, that the prime minister, deputy prime minister and cabinet ministers regularly engage with traditional authorities, faith-based organisations, large and small businesses, academia, the media and the youth, amongst others, to engage in constructive discourse to identify effective solutions to implement projects and programmes. This should be an ongoing process, because as we address existing issues, new problems may arise.

The Year of Resilience must be defined by a collective approach to nation-building and the challenges we face. For that reason, the channels of communication between government and the people must be enhanced so that every citizen can participate in shaping the policies that affect his/her life.

A privilege to lead

As president, I have made it explicitly clear that I view the public’s trust as sacrosanct. Leading the people of this great nation is the ultimate privilege. My ultimate priority and commitment are to advance the interests of all Namibians.

All of you present here today must share the same sentiment and remain committed to ensuring that our processes, systems and institutions are characterised by greater transparency and accountability.

As we work towards safeguarding the Namibian population against Covid-19 and restarting our economy, we should take cognisance of the fact that many Namibians faced untold loss and made tremendous sacrifices.

We cannot ask others to make sacrifices without making sacrifices ourselves. It is, therefore, crucial that as government, we continue to spend wisely and cut costs, wherever possible. Furthermore, I wish to reiterate a very important point I made during last year’s landmark Cabinet retreat: Delivery and execution is the key. Ministers should not delay implementation of crucial projects through procrastination and indecision. I am aware that the aversion towards taking decisive action on the implementation of projects could stem from the fear of being perceived as corrupt, but I have always said that if one is not corrupt, then you have nothing to hide or fear. Do your job with a clear conscience and to the best of your ability.

Corruption not systemic

I have stated on several occasions that I believe that corruption is not systemic in Namibia, but perceptions have been created that Namibia is a corrupt society.

Although corruption is not systemic in Namibia, we recognise that some corrupt officials have tainted the name of our country. It is, therefore, important for all citizens to emphasise that corruption in any form, eg kickbacks or percentage commission for the amount of a contract, is unacceptable. Corruption and perceptions thereof erode public trust in institutions. We should, therefore, intensify the fight against corruption in order to ensure that each and every cent earmarked for development reaches the intended beneficiaries.

An Afrobarometer survey released on 26 January 2021 revealed that out of 18 African countries surveyed, Namibia and Cabo Verde emerged as the top two countries where citizens don’t have to pay a bribe to access public services. In other sections of the report, where Afrobarometer asked the opinions of respondents, the results were different due to the fact that the opinions are based on perceptions.

For example, where respondents were asked do you think corruption has increased, many responded yes. However, in this particular instance, respondents were asked whether they have paid a bribe to government personnel responsible for issuing identity documents, etc.

In terms of reporting corruption, let us take a cue from a local transport company, which recently reported attempts of bribery to the relevant authorities. This is the level of vigilance required from all of us in order to deal with the scourge of corruption decisively.

It is a welcome development because I have said many times that citizens are often afraid to report corruption out of fear of losing their jobs, licences, etc. However, we must appreciate that Namibians paid the ultimate sacrifice for our independence; therefore, if we are intent on destroying corruption, we must be willing to make great sacrifices as well.

Fishcor allegations

With regard to the allegations pertaining to Fishcor, I will maintain the same position I have shared with the Namibian public. The case concerned has now reached a sensitive stage as the prosecutor-general has taken a decision, and the case will soon proceed to trial. I will not seek to jeopardise or influence the administration of justice through public statements induced by the media.

When trial-related rules and ethics allow and at an appropriate time, I will extensively address the unfortunate insinuations, conjecture and mischievous interpretations, with a view to demonstrating their falsity.

Dr Hage Geingob is President of Namibia. This is an abridged version of his address to Cabinet yesterday in Windhoek.

Elephant sale allegations ‘nonsense’

February 2, 2021, 2:00 pm

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Elephant sale allegations ‘nonsense’ ELLANIE SMIT



WINDHOEK

The environment ministry said reports and concerns raised regarding the sale of 170 Namibian elephants from international media institutions, animal right groups, individuals and conservationists are baseless, misleading and devoid of any truth.

This is according to a statement issued by the ministry’s executive director, Teofilus Nghitila.

At the beginning of December 2020, the ministry advertised a tender putting 170 elephants up for sale in response to the drought and the increase in animal numbers coupled with human-elephant conflict incidences.

These elephants are from the Omatjetje (30), Grootfontein-Kavango Cattle Ranch (60) and Grootfontein-Tsumkwe (30) areas, as well as the Kamanjab commercial farming area (50).

Since then, online petitions have opposed the sale, while the latest international media reports have alleged that the sale is linked to corrupt activities and that Namibia is covering up its true elephant populations figures.

“These reports are mostly driven by individuals who unfortunately in the name of conservation have ulterior motives.”

Elephants cause problems

According to Nghitila, the reports insinuate that the sale of the elephants is devastating for elephant conservation and elephant populations in neighbouring countries.

He said the current elephant population in Namibia stands at just over 24 000, while in 2004 it stood at about 16 000.

He stressed that there have been problems caused by elephants to the extent that the animals have become an intolerable burden on communities and a threat to human lives.

In 2020, elephants killed two cattle, chased thousands of livestock from drinking water, damaged 3 346 hectares of crops, caused damages to several grain storages and houses and repeatedly damaged water infrastructure and fences, while one person was also injured and is now disabled.

Nghitila further said the value that can be generated from trade in ivory is currently severely compromised by the actions of animal rights groups, who have influenced decisions at the Convention of International Trade in Endangered Species.

Major stockpiles

Namibia has major stockpiles of valuable wildlife products, including ivory, which it can produce sustainably and regulate properly, he said.

“If traded internationally, it could support our elephant conservation and management for decades.”

He said critics suggest that Namibia should overlook the plight of communities at the expense of tourists and the wishes of arm-chair conservationists thousands of kilometres away.

“It is a pity to see that some people still think Namibians and Africans in general cannot run their own affairs and therefore should be subjected to their ideologies that have no regard for our people.”

Nghitila said the removal of 170 elephants would amount to less than 1% of the elephant population in Namibia, which grows at 5% per year.

Absolute ‘rubbish’

“It is absolutely rubbish to say that elephants from the four hotspot conflict areas are transboundary animals and do not belong to Namibia alone. How do animals in the Omatjete and Kamanjab areas in north western Namibia move to other countries? These are resident elephants.”

He further said allegations that Swapo is trying to win votes and that the sale of the elephants is linked to the oil drilling project in the Kavango Region are totally unfounded.

“This is actually nonsense, like the rest of it.”

The tender for the elephant sale closed on 29 January; however, the ministry has not opened the tender box with the bids yet.

Kandorozu wants new funding model for regions

February 2, 2021, 2:00 pm

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Kandorozu wants new funding model for regionsGovt accused of refusing to roll out decentralisation policy “Why should regions get money from the urban and rural development ministry instead of having a direct vote at finance so that money funds are appropriated directly without any intermediaries?” he asked. MATHIAS HAUFIJKU







WINDHOEK

Former Okakarara constituency councillor Vetaruhe Kandorozu has proposed that regional councils should receive money directly from the finance ministry instead of it being channelled through the urban and rural development ministry.

He made the remarks last night on the Namibia Media Holdings’ Evening Review show.

While the enabling Act was passed in 2000, regional governments continue to be at the mercy of the central government as far as budgets and development programmes are concerned.

“Why should regions get money from the urban and rural development ministry instead of having a direct vote at finance so that money funds are appropriated directly without any intermediaries? This is a realistic move because and regional councils are in a position to account.

“Currently, the auditor-general directly audits the books of the regional council and the report is submitted to parliament. So why then is there need for [the urban] ministry to be involved? If that is the case, then we should be accountable to the ministry,” he said.

Deliberate refusal

Kandozoru accused central government of deliberately refusing to roll out the decentralisation policy, a move which he said is aimed at consolidating the ruling party’s grip on rural communities and creating a dependency syndrome.

During the last regional council and local authority elections, the majority of Swapo’s votes came from rural areas.

Kandorozu also questioned the arrangement where offices tasked to deal with rural development affairs are based in urban areas.

“Our communities are ignored. Imagine, the rural electrification directorate is based in Windhoek instead of having it at the regional councils. So, if I need money to electrify certain villages, I need to submit a request to Windhoek. It does not make sense,” he said.

Some of the biggest challenges affecting rural communities include electrification, access to roads, telecommunication services as well as the provision of adequate healthcare and education, he added.

“Everything is still decided in Windhoek - despite them not knowing what the situation on the ground is - simply because they do not want to devolve the decision-making powers. Even when our communities need boreholes, we must wait for central government to act and sometimes they even change our plans,” Kandorozu lamented.

Save money

Ministries must deal with policy issues as proposed by the regions, he said.

He also wants the rural electrification functions to be delegated to regional electricity distributors (REDs).

“Regional councils are shareholders in the REDs, so this will be better as far as identifying the needs is concerned. Now we are expected to submit village names to the ministry for approval, then they send consultants to come and assess the situation before deciding how much to disburse,” he said.

Such a move, Kandorozu said, will save government money because there will be no need to make use of consultants who charge millions since the REDs have officials within their structures to execute such functions.

Performance issues

Kandorozu also touched on public concerns around the alleged poor performance of regional councillors, which he attributed to councillors not understanding their mandates and intra-party political limitations.

“Some councillors are not allowed to criticise their party. Like in Swapo, councillors cannot go against ministers because of the power hierarchies that they must respect. Some fear they might be removed,” he said.

He added that many councillors fail because they cannot challenge the system as they fear victimisation.

He further touched on debates around the need for regional councillors in urban areas.

“I think there is a need for regional councillors in towns because they can tackle social and government issues which are beyond the powers of local authority councillors. You must also remember that local authority councillors are only part-time.”

The two need to find ways to complement each other, he said.

COMPANY NEWS IN BRIEF

February 2, 2021, 2:00 pm

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COMPANY NEWS IN BRIEF SA's Denel reports US$130 mln loss

South African state-owned defence company Denel made a 1.96 billion-rand (US$130 million) loss in the year to the end of March 2020, it said on Monday, releasing delayed financial results.

The Johannesburg bourse had threatened to suspend the listing of Denel's bonds if the arms manufacturer did not publish its results by the end of January.

The latest loss compares to a revised loss of 1.47 billion rand in the 2018/19 financial year, underlining its continued fragility.

Interim CEO Talib Sadik attributed the larger loss in 2019/20 to "a delay in sales, an inefficient cost structure and poor programme execution”. Denel makes military equipment including missiles, ammunition and armoured vehicles for South Africa's armed forces and export customers.

The pandemic has caused a liquidity crisis for the firm, which has struggled to pay salaries. It said on Monday that it had an order book of 15 billion rand. A number of offers from potential strategic equity partners are being explored, it said. - Nampa/Reuters

BP sells 20% stake in Oman gas development

Oil major BP Plc agreed on Monday to sell a 20% stake in Oman's Block 61 to Thailand's state-owned energy firm PTT Exploration and Production for US$2.6 billion.

The London-listed firm said it would continue as an operator of the block, which contains a large tight-gas development in the Middle East, with a 40% interest. The deal is another step towards BP's goal to sell US$25 billion of assets by 2025 in order to reduce debt and prepare for its shift towards renewables.

"We are committed to BP's business in Oman as this agreement allows us to remain at the heart of this world-class development while also making important progress in our global divestment programme," said BP's Chief Executive Bernard Looney.

PTTEP said the purchase fits with its strategy to focus on prolific areas in the Middle East and to partner with large oil and gas companies.

"This investment will fit well with our strategy to increase gas portfolio, in order to minimize the impact from oil price fluctuation and to venture into LNG value chain strategy," PTTEP said in a statement. - Nampa/REuters

Exxon unveils carbon-removal tech venture

Exxon Mobil Corp has created a division to commercialize its technology that helps reduce carbon emissions, as the US oil major looks to step up efforts against climate change amid rising pressure from investors and activists.

The move comes as Exxon looks to burnish its environmental credentials as it engages in a proxy fight with hedge fund Engine No. 1, which is attempting to appoint candidates on the oil company's board and push toward a more renewables-focused future.

The oil major said it would invest US$3 billion on lower-emission solutions through 2025, by which time it plans to reduce the intensity of its oilfield greenhouse gas emissions by 15%-20% from 2016 levels.

"We have the expertise that can help bring technologies to market and make a meaningful difference," said Exxon Chief Executive Darren Woods.

Exxon said its Low Carbon Solutions would initially focus on carbon capture, adding that it was looking at storing carbon dioxide in underground caverns along the US Gulf Coast and in depleted North Sea offshore gas fields among other options. -Nampa/Reuters

Novavax submits vaccine for authorization

Novavax Inc has submitted its Covid-19 vaccine candidate to the Canadian health regulator for emergency-use authorization after the pharmaceutical company said last week its vaccine was 89% effective in a UK trial.

The vaccine candidate will be reviewed in real-time once the Canadian government accepts the application, which was submitted by the company on Friday, according to a notice on Health Canada's website.

Real-time reviews could speed up the process of approving a successful vaccine by allowing researchers to submit findings in real-time, even before the final trial data is ready.

Novavax has an agreement with the Government of Canada to supply up to 76 million doses of its vaccine. A large late-stage trial in the United States and Mexico that began in December is also underway.

Last week, Novavax said its vaccine was 89.3% effective in preventing Covid-19 in a trial conducted in the United Kingdom, and was nearly as effective in protecting against the more highly contagious variant first discovered in the island nation. - Nampa/Reuters

Japan Airlines forecasts record loss

Japan Airlines (JAL) on Monday cut its full-year forecast to a record operating loss of 420 billion yen (US$4 billion) as a fresh surge in coronavirus infections dampened expectations for a recovery in domestic travel.

The new forecast compares with a loss of between 330 billion yen and 380 billion yen it predicted three months ago. That was worse than an average 338.8-billion-yen loss forecast based on estimates from eight analysts, Refinitiv data shows.

Like bigger local rival ANA Holdings, JAL saw a demand recovery on domestic routes towards the end of last year helped by government subsidies for air tickets and hotels. A resurgence in coronavirus cases, however, forced authorities to halt that tourism campaign and reinstate lockdowns in major cities.

Passenger numbers on domestic flights recovered to around half of the previous year's level in the second half of 2020.

On Monday, however, the carrier said it expects demand on domestic flights to drop this month to around 20% of levels seen a year ago, or less than a third of what it had predicted before the latest wave of coronavirus infections. - Nampa/Reuters

Organic agri to combat climate change

February 2, 2021, 2:00 pm

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Organic agri to combat climate changeProject aims to increase volume of organic food produced Introducing organic agriculture practices to Namibia’s agricultural system will help the country combat climate change, rejuvenate agricultural soils, reduce agricultural water usage and produce nutrient-dense food, Aufderheide-Voigts said. ELLANIE SMIT







WINDHOEK

The Namibian Organic Association (NOA) and the Namibia Nature Foundation (NNF) recently launched a programme to boost organic agriculture in Namibia.

Country activities will be delivered through the Knowledge Hub for Organic Agriculture in Southern Africa (KH SA) that aims to promote the adoption and scaling-up of organic agriculture in the region.

The Namibian project manager, Mareike Aufderheide-Voigts, said introducing organic agriculture practices to Namibia’s agricultural system will help the country combat climate change, rejuvenate agricultural soils, reduce agricultural water usage and produce nutrient-dense food.

KH SA is a collaborative country-led partnership funded by the German Federal Ministry of Economic Cooperation and Development and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit.

It is one of five Knowledge Hubs for Organic Agriculture, under the Knowledge Centre for Organic Agriculture in Africa programme, pursuing the goal of disseminating knowledge and shaping a network on national, regional and continental levels.

Closing the knowledge gap

KH SA aims to close the knowledge gaps that limits the sharing of organic agriculture production methods in southern Africa. Namibian project activities aim to increase the number of organic growers and volume of organic food produced in the country. The project will further be supported by the development of an online platform to disseminate context-specific knowledge about organic farming in Africa.

“Organic agriculture in the Namibian context refers to an inclusive approach to certified and non-certified organic agriculture production systems such as conservation agriculture, regenerative, biodynamic, biological and ecological farming, permaculture, agro-ecology and agro-forestry systems, as well as climate-smart and climate-resilient production systems,” NOA chairperson Eckhart Foertsch said.

Strategic

Organic food production is increasingly viewed by international organisations such as the United Nations as a strategic way to address challenges of rural poverty, malnutrition and biodiversity loss, particularly in a time of climate change.

Organic agriculture can be a pathway to addressing not only hunger and malnutrition, but also other challenges including poverty, water use, climate change and unsustainable production and consumption.

“Organic agriculture is knowledge-intensive, and putting it into practice requires an in-depth understanding of soil fertility, natural cycles and interactions between soil, microorganisms, plants and livestock,” Aufderheide-Voigts said.

The KH SA project will help by gathering and sharing information with Namibian farmers to allow them to benefit from practices that are environmentally friendly and sustainable.

More productive landscapes

NNF executive director Angus Middleton said what they aim to do is strive for more productive landscapes that produce food and natural resources and, at the same time, maximise on the ecosystem services that benefit wider society.

“The Namibian agricultural landscape continues to develop at an amazing rate and an initiative like this - that equips farmers with the skills to practice more sustainable agriculture - is of utmost importance.”

The next step in the project is to engage stakeholders and ensure that their recommendations are considered in project implementation.

Geingob in denial of corruption – PDM

February 2, 2021, 2:00 pm

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Geingob in denial of corruption – PDMOpposition disagrees with president’s assessment of graft The official opposition disagrees with the head of state’s umpteenth assertion that corruption is not systemic in Namibia. JEMIMA BEUKES







WINDHOEK

Corruption in Namibia has long exceeded systemic levels and is now pandemic.

This according to Popular Democratic Movement (PDM) treasurer Nico Smit, who was responding to President Hage Geingob’s umpteenth denial that the increasing levels of corruption have become systemic.

“I have stated on several occasions that I believe that corruption is not systemic in Namibia, but perceptions have been created that Namibia is a corrupt society,” Geingob said.

Can of worms

Smit yesterday said Geingob lives in denial and is completely out of touch with the realities in the country.

According to the PDM treasurer, Geingob’s government is dragging its feet with the implementation of the Whistle-blowers’ Act because of the levels of corruption.

“They know that it will open a can of worms, that is why it is not yet in operation. There is basically not a single ministry or government entity where corruption has not been reported. Look at the education ministry and the number of ghost teachers they are paying salaries. That is just one example,” Smit said.

In denial

Political analyst Graham Hopwood yesterday said systemic corruption is on the rise in Namibia and must be recognised for what it is.

According to him, Fishrot is an example of systemic corruption because of how the non-transparent and non-accountable system of allocating rights and quotas enabled the scandal to take place.

“Similarly, the systematic governance failures at the SME Bank allowed hundreds of millions of dollars to be siphoned into private pockets. This happened because the SME Bank board were either complicit or irresponsible in the way they ran the bank. So, while corruption might not be endemic - present throughout society from top to bottom - in Namibia, it is systemic in that the way the government operates at the top level has allowed corruption to take place,” Hopwood said.

Broken record

Meanwhile, activist lawyer Eben de Klerk responded that Namibians have in recent years witnessed widespread corruption which has now escalated to State Capture.

“To the point where laws are amended to enable grand corruption, committed on a massive scale, and all indications are that those right at the top are complicit in this grand corruption,” he said.

According to De Klerk, the fact that Geingob insists that corruption is a perception proves that there is no inclination to effectively deal with the dilemma.

jemima@namibiansun.com

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Foreigners will qualify for Nam vaccines

February 2, 2021, 2:00 pm

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Foreigners will qualify for Nam vaccines JEMIMA BEUKES



WINDHOEK

Foreigners who fall in the categories prioritised for the Covid-19 vaccine roll-out will also be vaccinated in Namibia, health minister Dr Kalumbi Shangula confirmed yesterday.

Shangula’s remarks come days after neighbouring South Africa announced that their vaccine roll-out will be limited to South African citizens.

“We have a lot of foreigners in our healthcare such as nurses and doctors who are helping our people and providing service to our people. So, we cannot say people cannot be vaccinated because they are foreigners. They will be vaccinated,” Shangula said.

US embassy sources vaccines

Meanwhile, the American embassy in Namibia is said to be in the process of acquiring vaccine doses for its staff members.

Sources privy to the workings at the embassy said the process is at an advanced stage.

The embassy’s public affairs officer Walter Parrs told Namibian Sun that it remains their top priority to protect and promote the health, safety and security of their workforce to carry out their mission on behalf of the American people.

“Due to operational sensitivity, the department is not publicly sharing specific details of the timing or logistics of the deployment of the Covid-19 vaccine for the department of state’s workforce at this time,” Parrs said.

MTN donation

During an official address on Monday evening, South African president Cyril Ramaphosa said neighbouring countries - including Namibia - will be beneficiaries of Covid-19 vaccines worth over R375 million donated by telecommunications giant MTN.

“MTN, which is one of our companies that operates across a number of countries on the African continent, has made a donation of $25 million to procure seven million vaccines, which will be made available to countries on the African continent within a matter of weeks.

“I would like to applaud MTN for this generous donation and I call upon private sector companies to follow the example of MTN,” Ramaphosa said.

It is important that citizens of the neighbouring countries benefit from the donation because they interact with South African citizens, he said, adding that the arrival of the vaccine in South Africa was a milestone.

No force

The South African president then assured that no individual would be forced to take the vaccine or be deprived the right to travel in and out of South Africa or admission to universities and other institutions for refusing to be vaccinated.

Ramaphosa said the vaccines will not be administered in dark corners.

He also said South Africa will receive an allocation of vaccine doses through the African Union (AU), which has been negotiating with manufacturers to secure vaccines for the entire continent on a pooled basis.

Through the African Vaccine Acquisition Task Team, the AU has secured one billion vaccine doses for the continent.

Seven hundred million of these will come from the global Covax facility and 300 million have been facilitated by the task team.

- jemima@namibiansun.com

ReconAfrica accused of ‘piecemealing’ EIA

February 2, 2021, 2:00 pm

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ReconAfrica accused of ‘piecemealing’ EIA ELLANIE SMIT



WINDHOEK

A public meeting in Windhoek about ReconAfrica’s oil and drill exploration plans in the Kavango Region turned heated quite quickly yesterday when representatives of the company were questioned about their defensive tone.

While experts, conservationists and members of the public wanted clarity about whether the company will embark on any fracking, ReconAfrica representatives seemingly sent mixed messages.

Matt Toten, a former exploration operation geologist for BP, said he had serious concerns about ReconAfrica’s plans, adding that it is clear that the company was initially planning to use unconventional oil resource play.

The company has very little data available to support their shift to conventional oil as all the data previously gained was in support of unconventional oil, he said.

“Now you are telling Namibians it is only conventional oil you are interested in.”

Claire Preece - in charge of environmental, social, and corporate governance as well as corporate communications at ReconAfrica - insisted that the presentation makes it clear they are targeting conventional oil and that no fracking will be done.

Toten, however, said ReconAfrica changed its entire proposed oil play before drilling was done and yet still has the same rock samples as before.

“You are piecemealing the Environmental Impact Assessment (EIA),” he said.

‘Super defensive’

“You two are being super defensive when questions are asked. You are doing nothing to alleviate the concerns of fracking.

“You have changed the story of fracking and people have questions. Namibians are proud of the environment and want answers,” another attendee - who has been in the oil and gas exploration industry for 42 years - said.

Meanwhile, when questioned about information included in the draft scoping Environmental Impact Study to support the Environmental Clearance Certificate (ECC), Preece said the meeting was not an information-sharing session, but a regulatory consultation about its proposed 450km 2D seismic operations.

The seismic EIA is now in progress and being conducted by Dr Sindila Mwiya of Risk Based Solutions.

A ways away

Mwiya explained that an exploration programme is implemented in order to validate a developed theoretical hydrocarbon model and generate enough high-quality data that can de-risk the financial exposure to the investors funding the project.

Several steps are involved, of which each requires separate processes inclusive of stakeholder consultations to get ECCs, he said.

If oil or gas is discovered, appraisal well drilling operations may be undertaken to test the size and economics of the field, he explained.

“It is during the EIA for the commercially discovered oil or gas that possible production from either a conventional reservoir or unconventional reservoir that fracking may be discussed - if applicable.”

We need direction on corruption

February 2, 2021, 2:00 pm

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We need direction on corruption We do not know what President Hage Geingob’s definition of ‘systemic corruption’ is, but whatever it is, denying that it exists in this country either displays ignorance on his part or he is playing public relation politics with a serious issue.

A desktop definition of systemic corruption (also known as endemic corruption) says “it is corruption which is primarily due to the weaknesses of an organisation or process. It can be contrasted with individual officials or agents who act corruptly within the system”.

It would be shocking if President Geingob genuinely does not believe weaknesses within organisations - such as Fishcor where N$75 million was stolen by his former ministers - have helped oil the corruption machinery.

If the head of state doesn’t believe systemic corruption is prevalent in this country, how does he justify the fact that he had to demand resignations of “individual officials” in the form of those two ministers whom he even recalled from parliament?

We are gravely concerned that every time the president talks about corruption, he comes across very softly, apologetic and without authority.

For example, in his Cabinet address yesterday, Geingob said “corruption is unacceptable”. No bold measures or radical policy shift were announced to combat this scourge. Even the corrupt know that “corruption is unacceptable”, so why can’t Geingob tell the nation something new instead?

One Economy Foundation award best business idea

February 2, 2021, 2:00 pm

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One Economy Foundation award best business idea The One Economy Foundation (ONE) continues to keep its fingers on the pulse of entrepreneurs by investing in the growth of youth businesses.

ONE sponsored N$10 000 to Johaness Shiwombolo, who won the pitching competition for the best business idea at the Entrepreneurship Masterclass hosted by ML Foundation.

Shiwombolo is a chemist by profession and started his detergent company last year after he was following his retrenchment. His business, SG Cleaning Chemicals, manufactures cleaning detergents such as dishwashing liquid. The One Economy and ML Foundation will provide business growth support and mentoring to SG Cleaning for three months.

The Masterclass, which was attended by 50 entrepreneurs, took place on Saturday in Windhoek. The attendees benefited from business skills development sessions, including conducting market research, business registration process, complying with statutory requirements, networking, and partnership development.

Opportunities

The entrepreneurs also received information on how they can leverage opportunities through the recently launched Africa Continental Free Trade Area (AfCFTA).

The CEO of One Economy Foundation Sem Mandela Uutoni underscored that "we prioritize supporting grassroots and small and medium-sized businesses as they are key to job creation, stimulating local economic development, and improving livelihoods. Therefore, we initiate, strengthen and support initiatives which improve the resilience, capacity, and capital of entrepreneurs.”

Beneficiaries of the One Nation Fund, a collateral-free lending scheme by the One Economy Foundation, also attended the Masterclass. MYM Trading is the manufacturer of Mutete Hibuscus Juice, and they sponsored Mutete Juice for all the Masterclass attendees.

The event ended on a high note, with most participants noting that the platform provided them with relevant information on how to harness value chains in the different sectors they operate, leverage international trade opportunities, and create partnerships to strengthen and sustain their businesses.

Botswana to raise VAT to boost revenue

February 2, 2021, 2:00 pm

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Botswana to raise VAT to boost revenue Maximising revenue, minimising social welfare Botswana has one of the lowest VAT rates in the world and even at 14% it is still low by regional standards. We are introducing measure to restore fiscal sustainability after many years of recurring deficits. Thapelo Matsheka, Minister of Fianance: Botswana Botswana will increase its value-added tax for the first time in 10 years to boost revenue after the Covid-19 pandemic hurt its key mining and tourism sectors, Finance Minister Thapelo Matsheka said on Monday.

Presenting the April 2021 to March 2022 budget to parliament, Matsheka said VAT would increase to 14% from 12% in April, while a tax on sugar-sweetened beverages would also be introduced. VAT was last increased in 2010.

"We are introducing measure to restore fiscal sustainability after many years of recurring deficits. Botswana has one of the lowest VAT rates in the world and even at 14% it is still low by regional standards," Matsheka said.

Outlook

The economy is projected to have contracted by 7.7% in 2020.

"We however expect a robust recovery in 2021 to a growth of economy as well as successful implementation of the policies we have put in place," Matsheka said.

Botswana's budget deficit for 2020 is estimated to have widened to 11.6% of gross domestic product from an earlier forecast of 7.98% of GDP.

The deficit is seen narrowing to 2.87% of GDP this year as diamond sales are expected to recover, while expenditure will also be contained.

Matsheka said minerals revenue in the diamond producing nation fell by 67% to 6.56 billion pula (US$596.96 million) in 2020. The mining sector provides a fifth of the country's GDP and 80% of foreign exchange earnings. - Nampa/Reuters

FIC faces questions over N$10b Fishrot transactions

February 2, 2021, 2:00 pm

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FIC faces questions over N$10b Fishrot transactions OGONE TLHAGE



WINDHOEK

The Bank of Namibia insists its Financial Intelligence Centre (FIC) has complied with all of its fiduciary duties and informed law enforcement agencies of any Fishrot-linked transaction it came across.

The FIC had last year during an annual review said it had flagged over N$10 billion in questionable transfers forming part of the now infamous Fishrot scandal.

Questions have since been asked as to how all these transactions went unnoticed by the country’s reserve bank and its intelligence arm.

A lawyer yesterday remarked that the FIC should not be allowed to pass the buck after flagging dubious money transfers, but should investigate any possible incidences of money laundering.

Eben de Klerk was commenting on the role the centre should play when coming across large money transfers.

Actionable intelligence

“The FIC’s focus remains the issuance of actionable intelligence which has the ability to disrupt crime and/or enable income generation for the State and or return of proceeds of crime to victims of financial crime,” FIC director Leonie Dunn said.

Further commenting on the role of the centre, she said it flagged transactions that led to active investigations.

“As such, all intelligence disclosures to competent authorities made by the FIC result in active investigations and evidence collection for purposes of prosecutions and/or civil asset restraint and/or preservation and forfeiture,” she added.

Extensive powers

Meanwhile, De Klerk said the FIC’s founding Act actually provides it with greater powers than the Namibian police and the Anti-Corruption Commission, which enables it to proceed with investigations.

“The FIC has extensive investigative powers under sections 9 and 61 of the Financial Intelligence Act, even more than the Namibian Police. Penalties for obstructing FIC investigators are enormous, which again provides the FIC far greater protection to conduct investigations than the police enjoy,” De Klerk said.

While last year the FIC said it had analysed billions in transactions linked to Fishrot, central bank governor Johannes !Gawaxab clarified that it was not say those all transactions stemmed from dubious payments.

“In this specific case, they [the FIC] looked at the total number of transactions with a money value of N$10 billion. It does not say there is fraud of N$10 billion,” !Gawaxab said.

VP office loses N$1m in curtain deal

February 2, 2021, 2:00 pm

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VP office loses N$1m in curtain dealBankrupt supplier offers to repay N$1k monthly The Office of the Vice-President was left licking its wounds by a supplier who was paid N$1 million before delivering the required items. JANA-MARI SMITH







WINDHOEK

Government lost N$1 million in a failed procurement deal for the Office of Vice-President after the supplier failed to deliver decorative goods for the second-highest office in the land.

The matter is currently in court with government trying to retrieve the N$1 037 440.45 paid to Karseboom, a struggling curtain supplier and maker, which has since closed shop.

In their defence, Karseboom said despite numerous pleadings for officials to select fittings and fabrics for the project, they didn’t receive cooperation and this resulted in their inability to deliver before the company went bust.

The civil case was launched in August 2018, the same month Karseboom, a 60-year family business that specialised in the sale of school uniforms, collapsed amidst severe financial turmoil.

Government has been relentless in its efforts to recover the money that was meant to buy curtains, scatter cushions and wallpaper for a decorative overhaul of the vice-president’s office and residence at the old state house.

Passing the buck

The civil suit stems from an October 2017 invitation to bid for the supply of soft-furnishings for the Office of the Vice President of Namibia, including private bedrooms, guest rooms, a library, entertainment lounge and dining room.

Former owner of Karseboom, Yolande Catherine Ciolek, argued that Karseboom was merely sub-contracted by a company called Cherry Tree Trading to assist with the tender, adding that her company never tendered for the job nor did she have any direct dealing with the vice president’s office.

Brendan Andrew Buchter, a former manager at Karseboom, is the majority owner of Cherry Tree Trading.

In affidavits submitted to court since then, Ciolek and Buchter hinted that the closing of the business was partly the fault of the tender and the subsequent failure of officials to assist in finalising the work.

Inaction

“Throughout the duration of the tender, the members of B Karseboom CC and Cherry Tree Trading CC worked hand-in-hand to assist state house in every way possible to complete the tender. This was to the ultimate demise of the two businesses,” Ciolek’s affidavit, submitted in October 2020, read.

She argued there was no “visible effort” from government officials to “even commence, let alone conclude, the basics of the tender.

“Without the choice of fabrics, nothing could be done.”

"Due to the financial resources being exhausted, caused by the lack of turnover from being on standby for seven months, the business was forced to close,"

Buchter wrote in an affidavit dated August 2019.

Government denies that the choosing of fabrics was to blame for the failure to deliver, arguing that the tender had set out the particular fabrics and no further discussion or decisions were necessary.

Trail of loss

Government lawyers say the money that was paid to Karseboom before the work commenced and the goods were installed was used by Ciolek to pay off her debts, including a home loan and outstanding taxes.

In her affidavit, Ciolek admits “the funds from state house had slowly been used to cover running costs whilst waiting for someone from state house to make a selection of fabrics.”

She confirmed that her company received the payment, and claims she “advised them [government] of the error of the payment, which should have been made to Cherry Tree CC”.

In email correspondence submitted to the court by the state, Ciolek offered to pay back the money with N$1 000 monthly instalments. The offer was declined.

“I have lost everything I worked for in my entire life. My only source of income is a state pension of N$1 300 per month.”

Orchestrated misrepresentations

Government accused Buchter of having orchestrated the misrepresentations made during the bidding and the payment processing phases.

“The bidding document under his signature created the impression that Cherry Tree Trading CC and Karseboom are one and the same entity. It states that Cherry Tree Trading CC is trading at Karseboom and further that Cherry Tree Trading is the holding company of Karseboom,” court papers read.

Buchter has argued he was only responsible for the day-to-day running of the business, and had no role in the finances of Karseboom. He further said since the loss of his job, he has no authority to represent Karseboom or speak on its behalf.

Government argued that Buchter and Ciolek “grossly abused” the juristic personality of their company names to win the bid.

The case was before High Court judge Marlene Tommasi in late January for a status update. Thus far, no new date for the case has been announced.

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First lady pursues Angula over N$864 000

February 2, 2021, 2:00 pm

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First lady pursues Angula over N$864 000 OGONE TLHAGE



WINDHOEK

The former deputy executive director in the finance ministry, Ally Angula, will have to cough up over N$800 000 to pay back First Lady Monica Geingos.

The two businesswomen are close allies.

This stems from a loan of N$250 000 extended to Angula by Geingos on 29 November 2016. The initial loan accrued N$100 172.95 in interest, of which no payments had been made to reduce the principal loan amount.

A second loan of N$417 000 was incurred by Angula on 29 May 2017, accruing interest of N$96 876.98, bringing the total owed to N$864 049.93.

Monthly instalments

“The debtor will reimburse the creditor in an amount of N$864 049.93. The aforementioned amount is to be paid in monthly instalments of N$ 5 000 commencing from the end of December 2020 until the full amount has been paid,” an agreement signed by the two stated.

In the event Angula is unable to pay Geingos, the entire amount would need to be settled, the agreement read.

“The creditor shall be entitled to a writ of execution without the need to re-issue summons on the entire amount in the event where the debtor fails to pay the monthly amount,” the agreement said.

Angula is currently the managing partner in CFO Namibia, a chartered accountancy and financial advisory firm.

During her tenure with the finance ministry, some of her tasks included managing the state account and national budgeting.

GIPF suspends Biometrics Verification

February 2, 2021, 2:00 pm

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GIPF suspends Biometrics Verification The Government Institutions Pension Fund (GIPF) wishes to inform all members who receive monthly benefits from the Fund, of the temporary suspension of the Biometric Verification process due to Covid-19 regulations.

GIPF urged members not be alarmed, the suspension will not affect payments of their benefits. This include pensioners, children beneficiaries and spousal annuitants.

“With the new strain of Covid-19 looming and the alarming increase in cases, the GIPF has taken the decision to protect all members, especially our vulnerable stakeholders such as our pensioners” stated Ignatius Manyando, Manager for Annuities. The biometrics verification system identifies a person by comparing a person's thumbprint to information stored on a database. Since the verification process is touch based, the decision was taken in the interest of the health and safety of the GIPF staff and that of its members.

“It is imperative that GIPF adheres to regulations put in place to curb the spread of Covid-19. We apologies for any inconvenience caused and encourage members with enquiries to contact their nearest GIPF office”, concluded Manyando.

Uranium production cuts to support higher prices

February 2, 2021, 2:00 pm

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Uranium production cuts to support higher pricesNegative correlation between output and prices Namibia has several ongoing uranium exploration projects, which could start producing when the long-term uranium price increases above US$50/lb. PHILLEPUS UUSIKU

There exists a negative relationship between uranium production output and prices. This implies that when uranium output increases, prices fall and when output fall, prices rise.

According to PSG, the uranium spot price seems to have stabilised at around US$30/lb (pound), after floundering between US$17/lb and US$29/lb for the past four years.

This period of depressed uranium prices collapsed what was supposed to be a boom in Namibian uranium exports after the completion of the Husab mine, the biggest open-pit uranium mine in Africa in 2016.

The push to US$30/lb is mainly thanks to major producers Cameco and Kazatomprom cutting production to boost prices as well as temporary coronavirus-induced mine closures.

However, there are also signs of an improvement in uranium market sentiment, which could translate into significantly higher prices and the fruition of domestic mine start-ups and mine reopening.

Currently there are only two operational uranium mines in Namibia, namely Husab and Rössing, both in the Erongo region near Swakopmund, PSG pointed out.

Two more mines are under care and maintenance, namely Langer Heinrich and Trekkopje. The former has completed a US$81m restart plan and awaits an improved price environment to secure offtake partners. Namibia also has several ongoing uranium exploration projects, which could start producing when the long-term uranium price increases above US$50/lb.

Projections

Analysts and traders are confident that prolonged mine closures and production cuts by the major producers Cameco and Kazatomprom will soon push the global uranium into a deficit that will support higher prices.

Furthermore, the uranium bulls believe that policymakers are regaining interest in nuclear technologies as the Paris Agreement on climate change comes into focus.

Several of the world’s leading economies have recognised that nuclear energy has to be a key part of their future energy mix in order to meet ambitious aims of becoming ‘carbon neutral’ by the second half of this century, PSG said.

In this regard, the new US President Joe Biden has recommitted his country to the Paris Agreement and his administration is expected to support the lifetime of US nuclear power plants to replace the baseload ageing coal plants.

The US is also expected to continue to support the development of the nascent small modular reactors (SMR) industry, while Biden’s support for the muted US strategic uranium stockpile is more tenuous, PSG added.

Creating wealth for clients

February 2, 2021, 2:00 pm

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Creating wealth for clientsAllan Gray Namibia It has been a volatile time in the markets, following a five-year period of disappointing equity returns. At times like these, it is understandable for investors to question both their investments and their investment manager. Allan Gray Namibia’s head of retail business, Etienne le Roux, discusses key considerations when evaluating... We take the responsibility of looking after our clients’ hard-earned savings very seriously. B7: What is Allan Gray Namibia’s approach to investment management?

ELR: Investment management is a business of people. Having the right people, providing them with the infrastructure to accumulate insights, and putting them in the right positions to make independently considered decisions are crucial for the effective implementation of an investment philosophy and process.

At Allan Gray, we are on our sixth generation of senior investment professionals. Our ability to train new generations of investment decision-makers and effectively manage succession has played a significant role in our ability to replicate our performance track record.

Another key element of trust is alignment of interests. We think clients should ask whether the investment manager itself is structured to prioritise client outcomes and interests. Investors often focus their evaluations exclusively on the investment process, but we believe a company’s structure and ownership are also critical.

We all know that self-interest is an inherent survival mechanism. It is therefore important that an investment manager’s organisational structure is designed to ensure real alignment between its interests and those of its clients.

B7: What does Allan Gray consider to be its purpose as an investment management firm?

ELR: For the past 47 years our purpose is creating wealth for our clients. We take the responsibility of looking after our clients’ hard-earned savings very seriously.

B7: What factors should investors consider when looking for a trustworthy asset manager?

ELR: Often investors tend to look at performance first, by considering the past performance of an asset manager and whether they can potentially expect similar returns going forward. There are other considerations though that are important, such as the asset manager’s approach to investing.

B7: What is Allan Gray’s approach to investing in order to fulfil its purpose?

ELR: It is quite simple: we buy shares that we think is undervalued and sell them when we think they have reached their worth. We do this regardless of popular opinion as we are mindful that it is hard to outperform if you simply follow the herd.

One of the factors you should evaluate is whether we have a track record of staying committed to our philosophy through various cycles and delivering alpha over long periods of time, notwithstanding shorter-term periods when this may not be achieved.

B7: What sets Allan Gray’s approach apart from other investment managers?

ELR: Our approach might seem simple and is probably not unique, but we apply this approach regardless of popular opinion as we are mindful that it is hard to outperform if you simply follow the herd. Our proven ability to apply it consistently and free from short-term pressures is something we believe sets us apart.

B7: Can investors trust Allan Gray to deliver on our purpose?

ELR: Again, we do not take lightly the trust clients have placed in us to grow their savings. While periods of underperformance can be testing, we hope that our consistent approach and long-term track record will provide the necessary conviction and “proof” points that we can weather the short-term storms and our clients can enjoy the full benefits of what we believe our approach can deliver.

B7: What do investors trust their asset managers to do?

ELR: Once you have established your personal goals and objectives, before committing to any new investment, you should ensure you are clear on what you expect from both your chosen manager and your fund. Your expectations of your fund should be directly informed by the stated objectives of the fund.

Every fund has a minimum disclosure document or fund factsheet. This document contains key information about the fund, including its mandate and objective. Typically, this objective will detail the fund’s benchmark, time horizon and risk positioning.

Let’s take the Allan Gray Namibia Balanced Fund as an example. The following information from its objective will help you to identify what to expect.

Fund return expectations

Actively managed funds aim to deliver better returns, net of relevant fees, than their selected benchmarks. The Balanced Fund aims to perform better than the average performance of similar funds in Namibia.

When a fund outperforms its benchmark, we call this positive difference in performance “alpha”. Over the last 21 years, the Balanced Fund returned nearly 3% per annum more than the average fund in the Balanced Fund’s sector. Absolute and relative returns in the future may not be as good as in the past, but this is a useful starting reference point for your return expectations.

Risk measures

Return expectations are closely linked to risk considerations. You will typically need to take on more risk in pursuit of higher returns. At Allan Gray, we think the most important measure of risk is the risk of permanent capital loss.

As a prospective investor, we therefore believe it is important to view the maximum drawdown (the maximum loss from peak to trough) a fund has experienced, or the lowest annual return. These measures should be considered alongside the time it has taken to recover.

The lowest annual return of the Balanced Fund, for example, was -5%(for the 12 months ending April 2009 ), which compares to the market of -19% (for the 12 months ending February 2009). Ideally, a fund should experience a lower average drawdown than the market and recover more quickly. The factsheet will also include measures like volatility, which is the monthly variance in return relative to the average.

Time horizon

This is the minimum amount of time that an investor should remain invested in a fund, and should be seen as a reasonable period over which to assess whether the fund has delivered on its objective. The Balanced Fund aims to deliver returns in excess of its benchmark with lower risk of loss over periods of more than three years.

This doesn’t mean that the Balanced Fund will beat its benchmark over its time horizon every single month. Many successful funds will have periods when they underperform significantly. The key is to make your assessment over sufficiently long and representative periods.

B7: How do you know if you can trust your manager to deliver?

ELR: Let’s say your favourite sporting team won the title in 2019. No matter how much you wish and hope they replicate this result in 2020, you have no guarantee that they will.

However, there are certain inputs they can replicate which they know have been successful in the past: selection, training, nutrition, and so on. So even though they can’t guarantee the result, they can be consistent in their previously successful inputs and trust that they will deliver the best possible outcome, as they have in the past.

Likewise, we at Allan Gray lean heavily on our experience of investing on behalf of clients since 1974. In investments, performance is the outcome. For this reason, rather than evaluating performance on its own, there is merit in evaluating our commitment to the inputs – the “engine” – that produce this performance, specifically our philosophy, investment processes and people. Our investment philosophy and process have remained the same since 1974 and we shall continue to apply it to the benefit of our clients.

Agripreneurs in climate change fight

February 2, 2021, 2:00 pm

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Agripreneurs in climate change fight‘Adaptation on steroids’ Africa's youth need investment, not 'empowerment', to realise the continent's potential and support food security, says the head of the African Development Bank. Anybody going to get rich in Africa is not going to get rich out of oil and gas - they are going to get rich out of agriculture. - Akinwumi Adesina, President: AfDB Megan Rowling - The African Development Bank (AfDB) plans to deploy billions of US dollars to help young people build a new digitally-driven model of agriculture that can feed the continent's people and boost prosperity even as the planet heats up, its president said.

At a global summit recently, the bank and the Global Centre on Adaptation announced an initiative to strengthen African efforts to become more resilient to extreme weather and rising seas, threats worsened by fast-accelerating climate change.

The AfDB plans to put half of its climate finance towards the initiative - US$12.5 billion between now and 2025 - and raise an equal amount from donor governments, the private sector and international climate funds.

Akinwumi Adesina, a former Nigerian agriculture minister who leads the bank, told the Thomson Reuters Foundation that Africa is struggling on two fronts - with the economic and health fallout from the Covid-19 pandemic, as well as climate shocks.

Drought, floods, creeping deserts and climate-fuelled locust attacks are forcing down crop yields and driving up hunger and migration on the continent, he said.

"It's a double disaster," the bow-tie-wearing official said in a video interview. "We've got to change this and give Africa what it needs to be able to adapt well to climate change."

‘MOST VULNERABLE’

Patrick Verkooijen, CEO of the Netherlands-based Global Centre on Adaptation, which has a regional office in Abidjan, said Africa was the continent most vulnerable to climate change, despite producing only 5% of global planet-heating emissions.

The new programme is an opportunity "to put adaptation on steroids", by focusing on improved food production, climate-resilient infrastructure, youth entrepreneurship and better access to finance, he said in an online interview.

African countries are putting more of their financial resources towards adapting to climate change, he noted, even as their budgets are stretched by the pandemic.

"But there is still a massive gap. That gap needs to be filled, and it needs to be filled urgently," he added.

INVESTMENT NOT 'EMPOWERMENT'

Two goals of the new Africa Adaptation Acceleration Programme are increasing farmers' access to digital services to help them cope with erratic weather and providing finance to young entrepreneurs to set up agricultural businesses, Adesina said.

The bank plans to use its capital to leverage US$3 billion more to support about 10 000 new youth-led companies in areas such as food logistics, distribution and green technology, and to educate 1 million young people on adaptation, its chief said.

It will reduce the risks for commercial banks to lend to young people and provide youths with training and skills to become so-called "agripreneurs".

Adesina, a winner of the World Food Prize, said the number of African youth - now about 250 million - would exceed 840 million by 2050, and they needed to be part of the solution to climate change, even though it was a problem they did not cause.

"What we do with them today will determine the future of Africa," he said.

Creating more green jobs was a must to prevent many leaving the continent to seek a better life elsewhere, he added.

"I don't buy [youth] 'empowerment' language ... what we need is youth investment," he said.

TECHNOLOGY

The adaptation programme plans to mobilise US$2 billion to expand climate-smart technology to improve agriculture and food security, including access to digital services, which are only available to about 13% of African farmers today, Adesina noted.

Climate advisory services will be provided to 300 million farmers by 2030 under the programme.

Expanding insurance coverage for crops and livestock, to protect farmers from climate disasters, will be key, as well as improving weather forecasts and financial services provided on smartphones and other digital devices, he said.

The bank is already getting drought- and heat-tolerant varieties of crops such as maize and wheat to farmers in east and Southern Africa, boosting yields, and testing more ecological ways of farming, such as zero-tillage, in places like Ghana.

It has also pledged to raise US$6.5 billion to drive forward Africa's Great Green Wall project to plant and restore trees, grassland and vegetation on the Sahara's southern edge to keep the desert at bay and help farmers stay on their land.

‘TIRED OF SMALL-SCALE STUFF’

Adesina said the new programme aims to expand tried-and-tested ways of helping Africans adapt to climate change.

"We know what works - we are just all tired of small-scale stuff. We want to do big things," he said.

African agriculture needs to become more competitive, efficient and dynamic to feed a growing population and turn farming into a thriving business instead of a "way of life", he added.

The size of Africa's food and agriculture market is expected to exceed US$1 trillion by 2030, which would represent a tripling in two decades, offering far bigger business opportunities than investing in outdated forms of dirty energy, he noted.

"Anybody going to get rich in Africa is not going to get rich out of oil and gas - they are going to get rich out of agriculture," he said. – Nampa/Reuters