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Majority of CEOs predict a return to growth

March 23, 2021, 3:00 pm
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Majority of CEOs predict a return to growthMajority of CEOs predict a return to growthOptimism in 2021 A PwC survey of more than 5 000 CEOs globally reveals record levels of optimism. CEOs will need to think differently and constantly evaluate their decisions and actions against broader societal impacts. - PwC Staff Reporter - One year after Covid-19 was declared a pandemic, CEOs are voicing record levels of optimism in the global economic recovery, with 76% of global business leaders predicting that economic growth will improve in 2021.

The figures come from PwC’s 24th Annual Global CEO Survey, which this year polled 5 050 CEOs in 100 countries and territories over January and February 2021.

The percentage of CEOs expressing confidence in growth is up from 22% in 2020 and 42% in 2019, representing the highest level of optimism since the survey started asking this question in 2012.

Optimism among CEOs over global economic growth is particularly strong in North America and Western Europe, with 86% and 76% of CEOs, respectively, from these regions predicting improved global growth in the year ahead.

“After a year of human tragedy and extensive economic hardship, it is encouraging to see that the people responsible for making investment decisions and hiring staff are feeling cautiously optimistic about the year ahead. CEOs have faith that growth will return, boosted by the rapid development of vaccines and their rollout in many parts of the world,” said Bob Moritz, chairman of the PwC Network.

“During the tumultuous past year, CEOs have had to rethink and reconfigure what they do and how they do it, while dealing with stretched balance sheets and supporting employees who have been forced to navigate these extraordinary circumstances.

“CEOs now face two fundamental challenges: first, how to build trust with a broad range of stakeholders, whose expectations of business are higher than ever before; and second, how to adapt their businesses and deliver sustained outcomes in a rapidly changing external environment. Organisations that get this right will be best placed to come out of the pandemic as strong, resilient and productive businesses, able to withstand future shocks.”

REVENUE GROWTH

CEOs are more optimistic about the outlook for their businesses. Some 36% of those polled said they are “very confident” about their organisation’s prospects for revenue growth over the next 12 months, up from 27% of CEOs in 2020.

While global confidence is up, there is wide variation across industries, reflecting the varying degrees to which consumer behaviour has been impacted by the pandemic.

CEOs in the technology and telecommunications sectors show the highest levels of confidence at 45% and 43%, respectively. Meanwhile, CEOs in the transportation and logistics (29%) and hospitality and leisure (27%) sectors are among the least confident about their ability to grow revenues over the next 12 months.

The survey findings show that the US has extended its lead as the number one market that CEOs are looking to for growth over the next 12 months at 35%, seven percentage points ahead of China at 28%. In 2020, the US was only one percentage point ahead of China.

New political developments and existing tensions have had an impact on the views of US CEOs. They are reducing their emphasis on China as a growth driver and increasing their focus on Canada and Mexico; compared to 2020, US CEOs’ interest in the latter two countries rose by 78%. Meanwhile, China CEOs report growing interest in large economies such as the US, Germany and Japan — prime destinations for exports.

At 17%, Germany holds on to its number three spot on the list of growth destinations, while the UK, post-Brexit, moves up to number four (11%), surpassing India (8%). Japan also rises up the ranking to become the sixth most attractive growth destination, overtaking Australia which held that position last year.

CLIMATE CHANGE

The percentage of CEOs expressing concerns about climate change has risen from 24% in 2020 to 30% in 2021. This represents only a marginal increase in the context of COP26, which is being held this year in Glasgow, UK. The finding also comes in the context of rising anxiety about nearly all types of threats.

Climate change still only ranks ninth among CEOs’ perceived threats to growth. Furthermore, another 27% of CEOs report being “not concerned at all” or “not very concerned” about climate change. This may be because climate change is not seen as an immediate threat to growth compared to other issues such as the pandemic, over-regulation and cyber threats.

Meanwhile, 39% of the CEOs polled believe their organisation needs to do more to ‘measure’ their environmental impact. And 43% believe their organisation needs to do more to ‘report’ on it, a greater share than any other disclosure area. This is encouraging as more and better corporate information on environmental impact is key to driving the change needed to get to a net zero economy.

However, 60% of CEOs have not yet factored climate risks into their strategic risk management activities, which is concerning as climate change poses increasing physical and transitional risk for business. At a country level, CEOs in countries with high exposure to natural hazards such as India and China are some of the least prepared for climate change risk.

While 23% of CEOs plan to significantly increase investments in sustainability initiatives as a result of Covid-19, almost one third of CEOs are planning no change at all.

Bob Moritz said: “To address the biggest challenges facing our world today, we need to change the incentives that drive decision-making. This requires the financial markets taking a broader view of value, beyond solely financial return and short-term value, so capital will flow to the right places. Better and comparable non-financial corporate reporting is crucial too, so stakeholders can see how companies are creating value for society and our planet, as well as meeting their financial objectives. Companies that get this right will enhance their brand and build trust with their stakeholders.”

THREATS

Not surprisingly, pandemics and health crises top the list of threats to growth prospects, overtaking the fear of over-regulation, which has been the perennial number one concern for CEOs globally since 2014.

Rising digitisation is increasing the risks posed by cyber threats. This, coupled with the significant increase in cybersecurity incidents in 2020 including ransomware attacks, has resulted in cyber threats leaping up the list to become the number two concern, cited by 47% of CEOs compared to 33% in 2020.

Also rising rapidly up the list of CEO concerns is the spread of misinformation (28%, up from 16% in 2020), which has had an impact on elections, reputation, and public health – further contributing to a decline in trust across society.

In 2020, tax policy uncertainty ranked outside the top ten concerns for CEOs, with only 19% of CEOs concerned. This year, it has increased rapidly in importance, leaping up to seventh place (31%), with CEOs undoubtedly watching government debts accumulate and realising that business taxes will likely need to rise.

DIGITAL INVESTMENTS

Asked about their spending on digital transformation, nearly half of CEOs (49%) project increases of 10% or more.

Despite the rising level of concern CEOs are voicing about cyberattacks, this has not translated into definitive actions. Less than half of the CEOs planning for heightened digital investment are also planning to boost their spending on cybersecurity and data privacy by 10% or more.

At the same time, a growing number of CEOs – 36% – plan to use automation and technology to make their workforce more competitive, more than double the share of CEOs who said the same in 2016.

Bob Moritz added: “At the pandemic’s one-year mark, we're at an inflection point as vaccination begins to ramp up around the world. Although the shape of the recovery remains unknown, it is clear that we cannot simply go back to the way things were before.

“To achieve the kind of change that’s needed, CEOs will need to think differently and constantly evaluate their decisions and actions against broader societal impacts. In doing so, they’ll set a course that builds trust and delivers sustained outcomes for shareholders, society and our planet."
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EDITORIAL

March 23, 2021, 3:00 pm
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EDITORIALEDITORIAL“Every morning we actually had to defrost Prince Phillip in the microwave.”

This fake quote attributed by the naughty boys of the internet to Prince Harry after his interview with talk show superstar Oprah recently was a bad joke, but still had many people in stitches.

All in all, the post pointed to the tight grip of gerontocracy - with many nations around the globe being led by the old guard who suffer from chronic memory loss, among other frailties associated with their age.

Former deputy prime minister Libertine Amadhila, who retired gracefully 10 years ago, is quoted in the press today urging old people to make way for fresh blood in leadership positions.

Paving the way will not only support the rise of younger people in elected offices; it also rids the system of dementia of the grumpy old men and women occupying different roles of leadership in the republic.

In an era of inclusion, the snowflake efforts to include women in leadership structures of both our government and politics should be stretched further to infuse young blood.

Cognitive decline is inevitable with age. And wisdom, which is weaponised as reason to stick with the old, is not the exclusive turf of the aged.

It would be prejudicial, if not illegal, to drive the oldies out of their jobs for simply being a certain age. But until there’s a balanced blend of age groups, there will always be scorn.
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Experts cautiously optimistic about budget

March 23, 2021, 3:00 pm
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Experts cautiously optimistic about budgetExperts cautiously optimistic about budgetConsultation was the driving force Total debt is estimated at 68.8%, moderately lower than the budget. There is evidence of discipline from the Ministry of Finance in actual expenditure. Karl-Stefan Altmann, Executive for CIB and Treasury: Nedbank STAFF REPORTER

Giving their initial analysis and reaction to the N$67.9 billion budget for the 2021/22 financial year, in a panel discussion organised by Nedbank Namibia and Simonis Storm Securities, experts seemed cautiously optimistic about Namibia's recovery, highlighting as noteworthy the consultations by Minister Iipumbu Shiimi throughout the budgeting process.

During his budget speech, Shiimi focused on increasing resilience and recovery. He emphasized that, via interventions in sectors such as agriculture and the green-and-blue economies, the economic recovery plan is expected to usher the country into sustainable growth and systemic economic transformation.

Elwis Katuwo, an economist at Simonis Storm Securities, was delighted with the return of the consultatory approach of the pre-Covid-19 era, noting that “consultation was the driving force” behind this budget and hailed the minister for also engaging on social media, and asking for submissions as the budget affects everyone”.

The minister’s discussions with the youth resulted in interventions for scaled-up funding for small and medium enterprises (SME) and youth entrepreneurs, for employment and wealth creation. Consultation with the business fraternity through the Namibia Chamber of Commerce and Industry (NCCI) resulted in a conscious decision not to increase the general tax rates, especially at this point when economic recovery is a primary objective.

Further public considerations were evidenced in the provision that the supply of sanitary pads will be VAT zero-rated to enhance affordability. He urged suppliers and retailers to pass on this relief to consumers once it is enacted.

The new budget reflects requests made by the Namibia Savings and Investment Association (NaSIA) about tax deductibility on pension fund and educational policies contributions. As previously announced, this amount will be increased from the current N$40 000 to a maximum of N$150 000 in order to encourage savings for retirement purposes.

Namra

Pierre Knoetze, Executive Director of PKF Financial Consulting Services expressed appreciation that the Minister comes over as approachable. “Hopefully, this will filter down to the Namibia Revenue Agency (Namra),” he said. “There has been a feeling that Inland Revenue is not approachable.”

Karl-Stefan Altmann, Nedbank's Executive: CIB and Treasury, concurred. “There is evidence of discipline from the Ministry of Finance in actual expenditure,” he says. “One of the cornerstones of economic recovery is trust. You get trust and buy-in when there's consultation.”

Knoetze further maintained that he is happy with the general tone of the budget and that there seems to be control in the expenditure. “There's no panic. We need to recover. We know where we are, but there's a way going forward. People want to hear that there is fairness and that the administration of the fiscus is being taken seriously,” he said.

Shiimi reassured the Namibian public that, “the tax policy and tax administration reforms will aim to strengthen the fairness and equity principles of the tax system and to achieve greater compliance through effective tax administration.”

Reforms

Among the reforms, the minister announced his intention to introduce a 10% withholding tax on dividends paid to Namibians, similar to the withholding tax provision for foreign shareholders for equity consideration. This is to be done in a manner that ensures that dividends are not taxed more than once. He will also introduce a 15% value-added tax (VAT) on management fees for listed asset managers, similar to that for unlisted asset managers.

The panel, facilitated by Bruce Hansen, the Managing Director of Simonis Storm Securities, were positive about the envisaged changes in the tax regime and the prospective launch of Namra, scheduled for 7 April.

Altmann remarked, “If everything works out from a Namra perspective we can widen the net, and be more efficient with the people from whom tax is due.” He cautioned, however, that there must be more diligence, and called for turnaround times for VAT refunds to be minimised. “That money can be turned back into the market and stimulate the economy,” he said.

The experts, however, are concerned about public debt and the deficit, estimated at about 9.7% of GDP which is lower than the budgeted deficit of 12.5% due to better year-to-date outturn on Gross Domestic Product (GDP) and revenue. They agree that revenue collection should be widened and improved.

Total debt is estimated at 68.8%, moderately lower than the budget.

Debt servicing is estimated at N$7.7 billion or 14% of revenue, reflecting the hitherto elevated cost of borrowing; and contingency liabilities are estimated at 7.3% of GDP in relation to the 10% threshold.

In this budget N$8.5 billion is earmarked for interest payments, which is 16.3% of revenue.
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Health clears Vahekeni, finance unimpressed

March 23, 2021, 3:00 pm
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Health clears Vahekeni, finance unimpressedHealth clears Vahekeni, finance unimpressed JEMIMA BEUKES



WINDHOEK

The health ministry says an internal probe exonerated one of its senior officials, Fabiola Vahekeni, who stood accused of using her position to help her friends land a medical tender to import unlicensed medicine worth N$7 million in 2018.

The probe came after a container carrying medicine imported by NM Medicals was seized by customs authorities due to an expired import licence.

The company’s application to have the medicine registered in 2018 had also been unsuccessful, as the manufacturer did not have a goods manufacturing practices certificate as required by law.

Following an investigation by the procurement unit in the finance ministry, it was recommended that the health ministry charge Vahekeni, a senior pharmacist and head of procurement at the Central Medical Store (CMS), for misconduct.

NM Medicals is owned by Vahekeni’s friends and former business partners.

Health ministry executive director Ben Nangombe last week said the CMS had exonerated Vahekeni.

“Before we can discipline a person, we must find out against what basis. We asked the director of the CMS to investigate and their outcome was that nothing pointed towards misconduct. There is no reason to discipline her and she remains in that position,” he said.

Baffling

Officials in the finance ministry questioned the outcome.

“The evidence is so clear, so it baffles us how the health ministry can say they found nothing wrong. Something is amiss and it seems as if Nangombe is shielding his officials,” a source who chose to speak anonymously said.

The then acting finance ministry executive director, Phineas Nsundano, told Nangombe in a letter that the Procurement Policy Unit was instructed to investigate the health ministry to establish whether the procurement process for the medicine, Co-Trimoxazole, was in compliance with the Act.

Subsequent laboratory results found that the medicine was unsuitable for distribution. A test for impurities could not be done as the manufacturer had not developed test methods as required by the World Health Organisation.

It was also found that NM Medicals was awarded the contract using a South African-listed manufacturer, although the tender specified only manufacturers or dealers in pharmaceuticals who are legally registered and have a valid manufacturing or trading licence in Namibia, or otherwise legally authorised in the country of exportation.

‘Shortage’

“When it was time to deliver, NM Medicals notified the CMS that they experienced shortages with their South African manufacturer and asked whether they could provide an alternative coming from another manufacturer. The new manufacturer was a Chinese company by the name of ReYOung Pharmaceuticals.

“The CMS allowed this variation without verifying whether the new Chinese manufacturer and the medicines coming from this new manufacturer complied with tender specifications,” the letter read.

Vahekeni was the person responsible for this transaction and authorised amendments to the contracts awarded without review of the procurement committee and without the accounting officer’s approval.

“It has been discovered that Fabiola Vahekeni may have indirect interest in the matter that NM Medicals is owned by very close friends, being Naamob Taimo Amakutuwa and Meameno Kamea Nghikembua, all pharmacists who studied together,” he wrote.

Nsundano further said: “The probability that Fabiola Vahekeni could have used her office to indirectly gain from this or cause anyone else to gain from this is quite high.

“There is no logical explanation as to why Fabiola would allow NM Medicals to engage the Chinese supplier without verifying that they complied with the tender specifications.”

According to Nsundano, this procurement was carried out under ‘emergency procurement’, but no alternative arrangement was made by the CMS when it learnt of the shortages experienced by NM Medicals.

Collusion

He also added that it would appear that Vahekeni and her friends at NM Medicals were colluding.

“The fact that NM Medicals sought to bring in unregistered medicines after having their application to have it registered declined by the Namibia Medicines Regulatory Council in July 2018 is quite serious.

“Counterfeit medication is quite a serious issue as it threatens the lives of people,” he said.

jemima@namibiansun.com
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MTC share sale to finance debt

March 23, 2021, 3:00 pm
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MTC share sale to finance debtMTC share sale to finance debt OGONE TLHAGE



WINDHOEK

Government is aiming to raise N$3 billion by selling shares in MTC in efforts to pay debt close to maturity, economic advisor to the President, James Mynupe, said recently.

He made the remarks during the launch of the second phase of President Hage Geingob’s Harambee Prosperity Plan.

“Some of the key uses obviously is to retire some expensive debt [and] to potentially restructure our debt maturity profile as well. You don’t want to put pressure on government to repay debt that is retiring very quickly,” he said.

Mynupe also raised the possibility that government would use some of the proceeds to fund a yet-to-be-established sovereign wealth fund.

“We will also have deep deliberations about whether some of that money can be used to fund a sovereign wealth fund or potentially to fund the capital preparation fund.”

A series of discussions would be held to discuss how best to use the funds, he added.

‘Rigorous analysis’

“All of these discussions would be subjected to rigorous analysis to minimise our cost of capital or to maximise the rate of potential returns,” Mynupe said.

The listing of MTC on the Namibia Stock Exchange (NSX) is being earmarked for the fourth quarter of the year. The policy and attendant strategy are expected to be completed during the second quarter of the 2021/22 financial year.

Namibia’s US$500 million (N$7.3 billion) Eurobond matures this year.

The country’s debt for the 2021/22 financial year N$126.5 billion. Over the Medium-Term Expenditure Framework, the total debt is expected to climb to N$158.8 billion.

Government has not specified how much it plans to list on the NSX.
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TransNamib, Cabinet clash over hotel stake

March 23, 2021, 3:00 pm
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TransNamib, Cabinet clash over hotel stakeTransNamib, Cabinet clash over hotel stakeRail parastatal refuses to sell shareholding for peanuts Cabinet and the TransNamib board are a country mile apart on a court ruling that the company should sell its stake in a Swakopmund hotel for N$5 million. MATHIAS HAUFIKU







WINDHOEK

TransNamib Holdings has ignored a directive from Cabinet, which sought to stop the rail agency from appealing a September 2020 court ruling that ordered the company to sell its 50% shares in Swakopmund Hotel and Entertainment Centre to its partner for N$5 million.

The hotel is valued at N$350 million.

TransNamib and Stocks and Stocks Leisure Namibia are equal shareholders in the joint venture, which has liabilities to the tune of N$111 million and an asset base totalling N$65 million.

TransNamib’s CEO Johny Smit on Sunday confirmed that an appeal was filed last month.

While Stocks and Stocks is accusing TransNamib of failing to honour its financial obligations towards the business, the rail agency said its partner has not managed the business soundly, further claiming that it has not received dividends since the establishment of the hotel 26 years ago.

Official correspondence between public enterprises minister Leon Jooste and TransNamib’s board chairperson, advocate Sigrid Tjijorokisa, shows that the minister went as far as lobbying Cabinet for support to block any appeal plans. This is despite the board being of the view that not appealing “is not in the best interest of the company”.

Impasse

On 23 November 2020, Jooste wrote to Tjijorokisa that TransNamib should not appeal the court ruling and that it should abide by the outcome.

“A solution to this matter has been unduly delayed for an unacceptable prolonged period and these delays have compromised the ability of the entity to operate optimally while the livelihoods of the employees over recent months have also been negatively impacted due to the impasse,” he wrote.

The board, through Tjijorokisa, responded six days later that the outcome should be appealed because “the judgment was prejudicial”.

The board also said internal remedies such as arbitration were not exhausted and that there were issues that had not been not dealt with during the urgent application.

Cabinet intervention

After the board refused to bow to his directives, Jooste elevated the matter and managed to successfully lobby the Cabinet Committee on Overall Policy and Priorities (CCOPP) to intervene. The committee is chaired by President Hage Geingob.

“The CCOPP directs the minister of public enterprise to instruct TransNamib to abide to the High Court ruling and abandon the appeal to the court order, in favor of Stocks and Stocks,” Jooste wrote in another letter to the board dated 11 December 2020.

According to that letter, the CCOPP also authorised the minister to direct Stocks and Stocks to re-employ the hotel’s 178 employees as a matter of urgency and to settle outstanding salaries backdated from March 2020.

On 23 December 2020, the board responded that despite the Cabinet directive, the company would not abandon the appeal process because “failing to lodge an appeal in relation to this matter would amount to a breach of our fiduciary responsibilities”.

‘Serious anomalies’

“We believe there are serious anomalies that need to be addressed. We believe this is an asset that should yield profits or that alternatively should be disposed of at a market-related price once a full valuation has taken place and a quantification into the true amount of the indebtedness to Stocks and Stocks has taken place,” Tjijorokisa wrote.

“The structural issues we are dealing with did not arise overnight.”

Jooste said the matter should be finalised in the interest of the workers, but the board, however, does not buy into his sudden change of heart, she wrote.

“It is surprising that they now seek to use the issue of staff as an aggravating factor, this whilst staff employed directly by them receive more favourable benefits and continue to be paid,” Tjijorokisa said.

“The above reasons are supported by the board. It is our submission to your honourable office to support TransNamib to appeal.”

After this prolonged tit for tat, the minister yesterday said he discussed the matter with the board to gain an understanding of their position.

“Following the consultations, I returned to Cabinet to request permission for us to seek an alternative solution and we are currently conceptualising that,” he said.
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Nedbank Namibia losses N$ 212.7 million in profit

March 23, 2021, 3:00 pm
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Nedbank Namibia losses N$ 212.7 million in profit Nedbank Namibia losses N$ 212.7 million in profit Consumers struggling to pay their debt Impairments increased significantly to N$ 246.5 million, an increase of 126.3% to N$ 246.5 million from N$108.9 million registered the previous year. A total of 1564 clients requested for repayment holiday, restructuring and overdraft assistance, amounting to N$2.1 billion. Martha Murorua, Managing Director: Nedbnak Namibia PHILLEPUS UUSIKU

Nedbank Namibia lost about N$ 212.7 million in profit after tax for the year ended 31 December 2020, registering a negative growth of 64.37% to N$117.1 million, when compared to N$ 330.4 million recorded the previous year, according to the bank’s annual financial statements.

Similarly, net interest income and impairments were negatively affected as a result of the reduction in the repo rate to make borrowing attractive.

N$116.7 million was lost in net interest income, registering a negative growth of 13.6% to N$740.4 million, compared to N$857.1 million recorded the previous year.

Impairments of advances increased by N$137.5 million, an increase of 126.3% to N$ 246.5 million from N$108.9 million registered the previous year.

According to Martha Murorua, Managing Director at Nedbank Namibia, the significant increase in impairments is due to the widespread effect of the Namibia economy in recession, impacting the ability of consumers and businesses to repay existing debt.

Also, contributing to the increase in impairments is the weak outlook for the Namibian economy for the foreseeable future, compounded by the Covid-19 pandemic, extending the expected economic recovery to beyond what was initially projected in 2019.

The slow economy and the outbreak of Covid-19 have impacted the banking industry negatively as 2020 represented lower level of consumer appetite for credit, particularly for home loans and vehicle financing.

Murorua notes that the lower demand for credit by consumers is in line with the decline in private sector credit extension. Nedbank’s gross loans and advances grew by 2.58% to N$12.7 billion, when compared to N$12.4 billion recorded in the previous period.

Weak growth in loans and advances remain a challenge due to the persistent unfavourable economic environment.

RELIEF

A total of 1564 Nedbank clients requested for repayment holiday, restructuring and overdraft assistance, amounting to N$2.1 billion to ease the burden on clients created by the Covid-19 pandemic.

In addition, Nedbank contributed a total amount of N$2.5 million on Covid-19 Corporate Social Investment (CSI) projects, while N$7.7 million was spent on spent on personal protective equipment and staff support, Murorua pointed out.

Furthermore, due the 275-basis point cut in the repo rate leading to a historic low rate of 3.75%, Nedbank’s net interest income decreased by 13.61% to N$740.4 million. This implies that the bank was unable to generate sufficient income through interest payment because the cost borrowing was low.

OUTLOOK

Murorua notes that the chances of a double-dip global recession have, however, been reduced by adjustments to the new ways of working, while the rollout of vaccines has increased the likelihood of a stronger recovery as economic activity normalises. The pace of rebound will depend on the efficacy of the vaccines and the speed of the rollout.

The Namibian growth outlook has been boosted by the global recovery and firmer commodity prices. Although the domestic environment remains fragile, favourable rainfall is supporting the revival of agricultural output, despite some parts of the country being impacted by flooding.

Power shortages continue to constrain industrial activity, while the weak state of government finances will inhibit its capacity to boost its spending significantly.

Overall, the Namibian economy is expected to recover during 2021, snapping the severe downturn that started in 2016. The Bank of Namibia’s Monetary Policy Committee (MPC) is expected to maintain its repo rate at 3.75% throughout the year, in line with Nedbank’s expectation of a flat repo rate in South Africa, she pointed out.
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Nedbank Namibia 'loses' millions in profit

March 23, 2021, 3:00 pm
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Nedbank Namibia 'loses' millions in profitNedbank Namibia 'loses' millions in profitConsumers struggling to pay their debt Impairments increased significantly to N$246.5 million, an increase of 126.3% to N$246.5 million from N$108.9 million registered the previous year. A total of 1 564 clients requested for repayment holiday, restructuring and overdraft assistance, amounting to N$2.1 billion. Martha Murorua, MD: Nedbank Namibia Nedbank Namibia lost nearly N$212.7 million in profit after tax for the year ended 31 December 2020, registering a negative growth of 64.37% to N$117.1 million, compared to N$330.4 million recorded the previous year.

According to the bank's annual financial statements, net interest income and impairments similarly were negatively affected as a result of the reduction in the repo rate to make borrowing attractive.

N$116.7 million was lost in net interest income, registering a negative growth of 13.6% to N$740.4 million, compared to N$857.1 million recorded the previous year.

Impairments of advances increased by N$137.5 million, an increase of 126.3% to N$246.5 million from N$108.9 million registered the previous year.

According to Martha Murorua, the managing director of Nedbank Namibia, the significant increase in impairments is due to the widespread effect of the Namibian economy in recession, impacting the ability of consumers and businesses to repay existing debt.

Also, contributing to the increase in impairments is the weak outlook for the Namibian economy for the foreseeable future, compounded by the Covid-19 pandemic, extending the expected economic recovery to beyond what was initially projected in 2019.

The slow economy and the outbreak of Covid-19 have impacted the banking industry negatively as 2020 represented a lower level of consumer appetite for credit, particularly for home loans and vehicle financing.

Murorua notes that the lower demand for credit by consumers is in line with the decline in private sector credit extension. Nedbank Namibia's gross loans and advances grew by 2.58% to N$12.7 billion, compared to N$12.4 billion recorded in the previous period.

Weak growth in loans and advances remain a challenge due to the persistent unfavourable economic environment.



Relief

A total of 1 564 Nedbank Namibia clients requested repayment holidays, restructuring and overdraft assistance, amounting to N$2.1 billion to ease the burden on clients created by the Covid-19 pandemic.

In addition, Nedbank Namibia contributed a total amount of N$2.5 million to Covid-19 corporate social investment (CSI) projects, while N$7.7 million was spent on personal protective equipment and staff support, Murorua pointed out.

Furthermore, due the 275-basis point cut in the repo rate leading to a historic low rate of 3.75%, Nedbank Namibia's net interest income decreased by 13.61% to N$740.4 million. This implies that the bank was unable to generate sufficient income through interest payment because the cost borrowing was low.



Outlook

Murorua notes that the chances of a double-dip global recession have, however, been reduced by adjustments to the new ways of working, while the rollout of vaccines has increased the likelihood of a stronger recovery as economic activity normalises. The pace of rebound will depend on the efficacy of the vaccines and the speed of the rollout.

The Namibian growth outlook has been boosted by the global recovery and firmer commodity prices. Although the domestic environment remains fragile, favourable rainfall is supporting the revival of agricultural output, despite some parts of the country being impacted by flooding.

Power shortages continue to constrain industrial activity, while the weak state of government finances will inhibit its capacity to boost its spending significantly.

Overall, the Namibian economy is expected to recover during 2021, snapping the severe downturn that started in 2016. The Bank of Namibia's Monetary Policy Committee (MPC) is expected to maintain its repo rate at 3.75% throughout the year, in line with Nedbank's expectation of a flat repo rate in South Africa, she pointed out.
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Pension peril

March 23, 2021, 3:00 pm
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Pension perilPension perilSavings targeted to fund deficit Analysts warn that the reliance on the domestic market to fund the budget deficit has eroded the stability of this savings pool as more and more of the assets in the pool are tied to government’s ability to repay its debts. This savings pool can only be relied upon for so long before it is compromised to a point where it will never recover. – IJG Securities Jo-Maré Duddy – To fund Namibia’s average annual deficit of N$14 billion over the next three fiscal years, government is likely to force asset managers to invest a much bigger chunk of pensions in its debt instruments, analysts agree.

Finance minister Iipumbu Shiimi’s new fiscal strategy shows that 52.5% of government’s total debt in 2021/22 will be from domestic sources.

The figure is set to increase to 57.8% in 2022/23 and to 60.3% in 2023/24. In 2019/20 it was a mere 35.6%.

In Namibian dollar terms, it means that domestic debt will nearly double from 2019/20 to 2023/24 – from about N$63.7 billion to an estimated N$124.2 billion.

“Simply put, this quantum of funding is not available in the country,” Cirrus Securities says. “Government will likely lean heavily on the pension savings of the Namibian people,” the analysts add.

IJG Securities also believes government will target Namibians’ retirement nest egg and warned: “This savings pool can only be relied upon for so long before it is compromised to a point where it will never recover … We are not at that point but moving towards it.”

DEFICIT

A drop of some N$3 billion in revenue from the Southern African Customs Union (Sacu) compared to 2020/21 left government with a budget deficit of nearly N$15.9 billion in 2021/22, which, according to Cirrus, remains “abnormally high”.

IJG says 2021/22 marks the eighth year in which the budget deficit will top N$8 billion, “necessitating the use of large amounts of debt to fund a very consumptive budget”.

The deficit is projected to remain the same in 2022/23 before falling to nearly N$11.4 billion in 2023/24. The 2020/21 deficit is estimated at nearly N$16.7 billion, “the largest in Namibian history by a large margin”, IJG points out.

Cirrus notes that Namibia also suffered a Sacu revenue shock in 2015/16, and that this was the main reason for the liquidity problems the country experienced in that fiscal year.

“While it seems that history is preparing to repeat itself, this time Namibia finds herself in a much weaker position after years of economic decline, erosion of reserves to withstand such a shock, and narrowing funding options,” the analysts say.

“Government is stuck between the proverbial rock and a hard place. Well-intended efforts to consolidate expenditure have resulted in a feedback loop of a shrinking economy resulting in faster revenue declines,” Cirrus say.

DEBT

Total debt stock is expected to grow 18.8% in the current financial year, from N$109.5 billion to N$130.0 billion, which includes the redemption of the first Eurobond and the GC21. The redemption of the Eurobond is likely to be underwritten by local institutional investors in exchange for bonds denominated in Namibian dollar.

Debt will continue to increase over the next two years to reach N$159 billion or 77.3% of gross domestic product (GDP) in 2023/24.

IJG has warned in various publications over the last five years that debt sustainability is likely to come into question in the future.

“With debt levels reaching 68.8% of GDP in 2020/21 we are rapidly seeing this scenario play out. Too little of this funding has found its way into increasing the productive capacity of the country, let alone improving education outcomes or healthcare standards,” IJG says.

The forecasts indicate that government will need to raise funding of N$26.8 billion in 2021/22, followed by N$21.2 billion in 2022/23 and N$15.4 billion in 2023/24. “This is N$63.4 billion in just three years,” Cirrus says.

According to the analysts: “With the increased funding requirement looming over the domestic market, the cost of funding is expected to rise for government, which will increase the interest expense cost, widening the overall deficit even further from current levels. As a result, the government frankly needs to get its house in order as Namibia’s hourglass is starting to run out.”

Cirrus continues: “Namibia is finding itself in a vicious cycle of increasing debt stock to finance its ever-growing deficits, without stimulating growth in the Namibian economy. This will prove very consequential to Namibia in the coming years.”

PENSION FUNDS

Namibia's government at present is not planning any net foreign debt issuance to fund its vast deficits and as a result, pension fund members’ assets are likely to be called upon, Cirrus believes.

“Without this, the Sacu shortfall could close to halve the country’s hard currency reserve levels in just two years, thereby raising concerns around the currency peg,” Cirrus says.

The analysts expect increases in local asset requirements for pension funds over the next three years, bringing more of the assets of these savers back into the country.

“This increases the concentration risk of these assets and exposes an ever-larger portion thereof to the local macroeconomic environment and the ever less creditworthy sovereign,” Cirrus says.

According to Cirrus, the borrowing requirement for the next three years constitutes close to 25% of the assets of the pension funds at present.

IJG points out that financial stability has always been high in Namibia with a very large regulated savings pool providing options that countries without such savings would not have.

“This asset has effectively enabled the ‘pro-growth fiscal consolidation’ stance taken by government over the last five years and the large deficits that have accompanied this balance between maintaining expenditure ceilings while revenues have stagnated. This asset has resulted in cheaper funding than would have been the case without it and enabled government to continue funding its operations without implementing structural reforms,” IJG says.

However, the analysts point out: “This process has eroded the stability of this savings pool as more and more of the assets in the pool are tied to government’s ability to repay its debts.”

Higher domestic asset requirements expected by IJG, as well as debt service costs which are approaching “debt trap levels” will further compromise this pool of assets as it increases exposure to a consumptive government on a potentially unsustainable debt trajectory, the analysts warn.

IJG says it should now be a national priority to implement structural reforms which would reduce the reliance on savers to fund inefficient government spending.

“There does not seem to be a recognition that this savings pool needs to be protected in order to contribute to future financial stability, not to mention serving the individuals who have diligently contributed to it to ensure a better tomorrow for themselves,” they say.

INTEREST

Interest payments for 2021/22 will account for 12.5% of total expenditure. Of these payments, N$6.1 billion is directed to domestic creditors and N$2.4 billion will be paid to foreign creditors. Interest payments will increase by 8.5% to N$9.2 billion in 2022/23 and will reach N$9.8 billion in 2023/24.

As a result, debt servicing costs are now expected to account for a total of 16.3% of total government revenue in 2021/22, increasing to 17.6% in 2022/23 and 17.1% in 2023/24.

“This is 6.3 percentage points higher than the self-imposed benchmark of 10%,” Cirrus says.

“Moreover, government debt servicing is expected to represent 4.6% of GDP, 0.2 percentage points higher than in 2020/21 and 1.6 percentage points higher than the self-imposed benchmark of 3%.”

Interest payments are now the third-largest expense accounted for in the budget and are expected to remain the third largest expense over the next two financial years, they note.

“In essence, government is increasingly borrowing to service debt, which is increasingly unsustainable,” Cirrus says.

IJG says interest cost as a proportion of revenue is “flirting with debt trap territory”.

According to the analysts: “Debt service costs are taking up more and more of government’s revenue, adding to the rigidity of the expenditure framework and effectively cannibalising the development budget along with other recurrent expenditures such as the wage bill.

“Thus precious little of the money raised in a given year is available to be allocated to expanding the productive capacity of the country which would aid in growing out of the current debt burden.”

REFORMS

IJG points out that most of the regulated institutional investors already comply with local asset requirements, except for the Government Institutions Pension Fund (GIPF).

“It remains to be seen whether this volume of debt can be raised without crowding out not only the rest of the domestic debt capital market, but also the equity market,” IJG says.

They continue: “In the absence of increases to domestic asset requirements it is highly likely that government raising this amount of debt will necessitate flows out of equities (dual-listed equities most likely) as well as crowding out banks and other corporates looking to raise debt capital. This would be detrimental to capital market development and could result in a rising cost of capital.”

According to IJG, structural reforms are necessary “for the simple reason that the expenditure framework is rigid and unable to cope with shocks to revenue”.

“Without structural reforms deficits remain large and debt costs become ever more unsustainable, eating into tax revenues that could be utilised in an effort to improve the lives of Namibians. The unseen cost of inefficient spending weighs heavily on the future productive capacity of individuals and infrastructure,” IJG says.

According to Cirrus, budget deficits have conventionally been funded with either net investment inflows, net foreign debt issuance, or pension fund inflows.

“An increasingly business-unfriendly environment in the country has caused net flows of investment capital to turn negative (outflows), which trend is expected to remain over the next three years, as the National Equitable Economic Empowerment Bill (NEEEB) and the Namibia Investment Promotion Act (Nipa) are enacted,” Cirrus says.
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Netball is back

March 24, 2021, 3:00 pm
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Netball is backNetball is back SUPERSPORT



African netball will come roaring back when the 2021 Spar Challenge takes place in Cape Town, beginning today.

The 16-match series will feature the Spar Proteas, Uganda's She Cranes, Namibia's Debmarine Desert Jewels, the President's XII and Spar Baby Proteas.

All matches will be broadcast on SuperSport Variety 4.

Ranked fifth in the world, South Africa will start as favourites, but can expect tough opposition against Uganda especially, with the East Africans rated seventh internationally.

“This is another opportunity for us to give the Spar Proteas team international exposure and ranking games. We are thankful for that at this difficult time in the world. We respect Uganda and Namibia's netball team and know they will be tough opponents.

“The more we can play, and the more experience the team can get, the better they will become. Therefore, it is also important to give more players opportunity through the President's XII team,” said Spar Proteas head coach Dorette Badenhorst. The Proteas under-21s have been invited to participate to ensure they get game time under their belts ahead of their upcoming Youth World Championship in Fiji at the end of the year.

The fixtures are as follows:

Thursday, 25 March:

10:00: South Africa vs Namibia

14:00: South Africa Under-21 vs President's XII

16:00: Opening ceremony

18:00: South Africa vs Uganda

Friday, 26 March:

16:00: South Africa U-21 vs President's XII

18:00: Uganda vs Namibia

Saturday, 27 March:

16:00: South Africa U-21 vs Uganda

18:00: South Africa vs Namibia

Sunday, 28 March:

10:00: Uganda vs Namibia

16:00: South Africa U-21 vs President's XII

18:00: South Africa vs Uganda

Monday, 29 March:

16:00: South Africa U-21 vs President's XII

18:00: Uganda vs Namibia

Tuesday, 30 March:

16:00: South Africa U-21 vs President's XII

18:00: South Africa vs Namibia

Wednesday, 31 March:

14:00: Namibia vs President's XII

16:00: South Africa vs Uganda

17:30: Awards ceremony
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Golgotha's son turning tables

March 24, 2021, 3:00 pm
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Golgotha's son turning tablesGolgotha's son turning tablesInspiration to many on and off the field The saying that dynamite comes in small packages rings true; Peter Shalulile is a force to be reckoned with. LIMBA MUPETAMI

WINDHOEK



Namibian footballer Peter Shalulile is a man after everyone's heart.

If he's not scoring goals, he is celebrating those goals with what has become his trademark acrobatic jump.

If his fans are not talking about that, they are talking about his tucked-in shirt. Shalulile said his goal celebration and dress code on the field are inspired by his family and his upbringing.

“My goal celebration is all about being on the farm; when you are on the farm planting seeds, that is the secret behind the celebration,” he told SA FM last month.

“My family is in farming. When you are planting seeds on the farm that is how you do it. When you are happy while doing it, that's how it looks.”



Military style

Shalulile further revealed that his parents were in the military and insisted he dressed neatly, and being a football player, he took it onto the field.

“When you come home, you have to look neat and when you went to school, they made sure the T-shirt was not out and I got used to that and it became a habit,” he added.

The footballer is truly making the nation and his club Mamelodi Sundowns proud with the exceptional records he has set so far. But before he started being a menace to defenders, Shalulile' s interest was hockey at People's Primary School.

This interest was short-lived as he went on to Jan Jonker Afrikaner Secondary School in Katutura, where his love for football bloomed. If he wasn't at school, he would spend time in the streets of Golgotha where he grew up. Most who know Shalulile describe him as a humble, down-to-earth guy who is dedicated to his career, and at a time when most footballers' ambitions are about driving flashy cars associated with the bling life, he doesn't drink or associate with the party lifestyle.

He has three siblings and has become the inspiration to them and many upcoming football players who are trying to make it out of their daily struggles.

However, Shalulile's success doesn't come from just hoping and dreaming. He worked hard for it and stayed true to the values and discipline he was raised with.



Little steps to stardom

The former captain of the Warriors, Ronald Ketjijere, before the 2019 Africa Cup of Nations championship, jokingly described Shalulile as a player who would always come around looking for money he has borrowed to a teammate.

“You won't get away from owing that guy, he would sit in your room in camp, waiting for his money, even if it's just N$100. That's him, he knows the value of money and is not someone who will spend it on unnecessary things,” Ketjijere said.

Sports reporter Marco Ndlovu tells a story of how Shalulile continued driving a Toyota Tazz even though his teammates would be seen in fancier cars.

“Most of his teammates ended up hanging with Shalulile in his Tazz in their free time. He is not someone who is fazed by material things,” Ndlovu said.

Others who have been around and saw the growth of the player from his days at Tura Magic say that he is a work machine.

At one time, said local football pundit and member of Magic Isack Hamata, Shalulile would hide injuries to avoid missing matches.

“He would turn up for a match, knowing very well that he had an injury. He would bandage his ankle and play like he had no pain. That's Shalulile.”

Sundowns king

As it stands, the footballer has scored eight goals for the Brazilians and three goals in the Confederation of African Football (Caf) championship with his club in the knockout stages.

Shalulile is a product of Magic, which he joined during their campaign in the Namibia Football Association's Khomas second division.

He then joined the Warriors, where his football skills quickly attracted attention. With his contribution, the team won their first-ever Council of Southern Africa Football Associations trophy in 2015.

His performance was noted and soon after he joined Highlands Park. At the 2019/20 season, he scooped the 16-goal golden boot. His social media posts in between have always expressed his gratitude to God as the One who helps him achieve great feats.

And maybe He does, as the Namibian soon after joined one of the richest clubs in Africa.

But the road to Sundowns was one filled with critique and doubt from former players and football pundits who thought Shalulile would warm the bench, with South African players poised to get the first 11 spots in the line-up.



Naysayers left eating dust

Those who concluded that he wouldn't make it included the likes of former Kaizer Chiefs midfielder Doctor Khumalo and Sundowns goalkeeper Ronny Kanalelo. However, they ended up eating humble pie.

“I was one of the ones who said that Shalulile wouldn't make it at Sundowns, but the boy proved me wrong. I'm eating humble pie and I'm apologising to him and Sundowns,” Khumalo said later.

Kanalelo was one of the first people to voice doubts about the Namibian's move to Sundowns.

But he, too, owned up to his mistake in predicting that his countryman would struggle at the club.

Shalulile warmed the hearts of the technical team and instantly made the first 11 squad, and tirelessly continues to be a thorn in the flesh of opponents in the DStv Premiership.

At present, his side is also vying for a top position in the Caf championship, in which he has already scored three goals as they are in the knockout stages.

But although Shalulile is impressing local fans, the chance of him scooping the top goal scorer and best player awards hangs in the balance.

This is best explained by the PSL's first-ever footballer of the season, Wilfred 'Silver Fox' Mugeyi.

Mugeyi believes not scoring enough will hinder the Namibian's chances of being crowned the best player as strikers are always judged on goals.

“Mostly it's very rare to win without being a top goal scorer,” Mugeyi told KickOff.com. “But I give him a chance as well because I think he's doing very well. He's one of the hottest players at the moment. But where it's tricky now it's where you get the likes of Grobler being top goal scorers, and they are doing well as well.

“So, in that case, the likes of Grobler will take the player of the year, because he is doing two things-being a top goal scorer and playing well. Now we have got Shalulile who is playing well but not scoring enough goals. So, whom do you take? That's the trick because you cannot choose him over Grobler who is doing well in the goalscoring department. So, for him to win it, he needs to score goals.”

Shalulile is one to prove critics wrong. Time is what will turn the Namibian's fortunes around, according to a local fan, Paulus Fay.

“They said he will bench for Sundowns. Now he is the leading man in the team. It's like whenever someone says something negative about him, the opposite happens,” he said.

Shalulile is back in Namibia at the moment and is preparing for the upcoming Afcon qualifier clash against Guinea on Sunday.
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New vehicle market continues to recover

March 24, 2021, 3:00 pm
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New vehicle market continues to recoverNew vehicle market continues to recoverExcess demand creates stock shortage Many importers underestimated the recovery of the South African vehicle market. We attribute this performance to a good model range, covering all segments as well as a dealer network that has remained positive. Stanley Anderson, sales and operations director: Hyundai Auto South Africa. In comparison to January 2021, the South African new vehicle market bounced back during the month of February 2021 and currently the main issue holding manufacturers back is being able to supply enough vehicles to meet the demand.

“Sales activity on new vehicles has improved, but the availability of stock is still impeding growth in the new vehicle segment. Many importers underestimated the recovery of the South African vehicle market and as a result the industry is experiencing significant stock shortages with the current situation expected to continue for a while still. Component availability is also impacting manufacturing and has a further effect on vehicle stock levels,” says the CEO of Motus Retail and Rental, Corné Venter.

According to the National Association of Automobile Manufacturers of South Africa (NAAMSA), the top selling passenger cars for the month of February 2021 were the Volkswagen Polo Vivo (2543 units), followed by the Volkswagen Polo (1402 units), Suzuki Swift (945 units), Hyundai Venue (880 units) and Volkswagen T-Cross (833 units).

The overall passenger car race was won by Volkswagen who sold a total of 6329 vehicles in February claiming a 24.5% market share, followed by Toyota with 3462 vehicles and Hyundai who sold 2500 units claiming an 8,75% market share.

The performance of Hyundai in the passenger vehicle market is remarkable given that all Hyundai models are imported. “We attribute this performance to a good model range, covering all segments as well as a dealer network that has remained positive and are now bearing the fruits as we continue to gain market share in a declining overall market. We also believe that our seven-year warranty offers the added peace of mind that customers are looking for in uncertain times,” says Stanley Anderson, sales and operations director, Hyundai Auto South Africa.

In the passenger car market Suzuki grew with 3.2%, Kia South Africa with 1.9%, Hyundai Auto South Africa with 1.6%. Ford was the biggest loser, declining 3.7%, but made up some ground in the LCV segment.

In the Light Commercial Vehicle category, it was Toyota who came out on top, with sales of 4651 garnering them a 38,7% market share. Selling 1913 vehicles Ford took second place ahead of Nissan in third place with a total of 1713 vehicles.

The winners in the light commercial vehicle segment were the Toyota Hilux (3031 units), followed by the Ford Ranger (1858 units), Isuzu D-Max (1315 units), Toyota Hi-Ace (1210 units) and the Nissan NP200 (1130 units).

The South African medium and Heavy Commercial Vehicle segments including Medium, Heavy, Extra heavy commercials and Buses continue to perform well.

Mercedes-Benz Commercial Vehicles sold a total of 426 vehicles and enjoys a 21,4% market share followed by Hino (195 units), UD Trucks Southern Africa (192 units), Volvo trucks (175 units) and Scania (168 units).

Segment analysis

The four biggest segments of the South African passenger car market in the month of February were the Entry-level, Sub-small, SUV and Crossover segments.

The Entry-level segment, which makes up 25.7% of the passenger car market, was dominated by the locally produced Volkswagen Polo Vivo (2543 units) followed by the ever-popular Kia Picanto (715 units), Toyota Starlet (667 units), Renault Kwid (465 units) and Renault Triber (432 units).

The sub small segment which makes up 21.7% of the passenger vehicle market was led by the Volkswagen Polo (1402 units) followed by the Suzuki Swift (945 units), Hyundai i20 (489 units), Volkswagen Polo sedan (331 units) and Kia Rio (228 units).

The Toyota Fortuner walked away with the laurels in the SUV segment selling 706 units, followed by the Toyota RAV (419 units), Suzuki Jimny (341 units), Mazda CX-5 (337 units) and recently launched Suzuki Brezza (231 units).

Competition in the Crossover segment is extremely fierce with Hyundai retailing 880 units of its Venue, followed by the Volkswagen T-Cross (833 units), Ford EcoSport (577 units) and Kia Seltos (335 units).

Looking ahead

A few exciting new model launches should have an effect on March sales figures as some of these have been anticipated for some time, but delayed due to Covid-19. Big hitters expected to go on sale during the month of March include the Toyota Urban Cruiser, BMW M3 and M4, Kia Picanto X-Line, and seven Audi performance models including the RS5 and TTRS. Volkswagen will be expanding their Transporter range while the new Hyundai Sante Fe is expected imminently. Renault will be launching their Kiger in the second half of 2021.

The pricing of the majority of manufacturers including Isuzu, Ford, Mazda, Land Rover, Renault, Hyundai, Kia and Toyota has remained unchanged for the time being. However, the prices of Audi’s are expected to rise by 4% in March, VW’s by 0.9% while the prices of Honda models are expected to rise by between 3 and 6% on the 1st of April.

“New cars will remain under pressure due to stock supply but it is expected that this demand will roll over into pre-owned vehicle sales. Motus dealers are currently selling one pre-owned vehicle for every new vehicle sold. Dealers are also seeing pre-owned vehicles fetching better prices than ever before with the demand at an all-time high.

Motus expects growth in all segments during the month of March, the combination of the reduction in Covid-19 infections and easing of lockdown restrictions should have a positive impact on consumer sentiment and economic activity and it is expected that the vehicle market will benefit from this although it might only become evident towards the end of the month. - MotorPress
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Omunaskola gwomOngwediva a pumwa kosheenditho

March 24, 2021, 3:00 pm
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Omunaskola gwomOngwediva a pumwa kosheendithoOmunaskola gwomOngwediva a pumwa kosheenditho Omunaskola gwoomvula 17 okwa lopotwa a pumwa nokusa kohauto omanga, a li mondjila okuya koskola mOngwediva ongula yEtitatu lya piti. NAMPA

OSHAKATI



Opolisi mOngwediva moshitopolwa shaShana oya patulula oshipotha shedhipago lwaashi lyoshiningilawina konima sho omuhingi gwohauto a pumu omunamimvo 17 omunaskola mondjila yaNgwediva-Oshakati ongula yEtitatu lyoshiwike sha piti.

Sho a koleke oshiponga shoka, Inspector Thomas Aiyambo gwombelewa yomauyelele goshigwana mopolisi yaShana, okwa popi kutya oshiponga shoka osha ningilwa popepi nondunda yomanwino yedhina Kitoko mOngwediva lwopotundi onti 06h39.

Aiyambo okwa popi kutya omunamimvo 33 okwa li ta hingi ohauto yombaki yoToyota okuza kOshakati uuka kOngwediva omanga nakusa a li ta taaguluka opate.

Nakusa okwa dhimbululwa kutya Monica Kathindi, a li mondondo onti 10 poskola yedhina Ekwafo Secondary School mOngwediva.

“Nakusa okwa sile pehala lyoshiponga nolutu lwe olwa falwa kokila yomidhimba yopolisi mOshakati,” Aiyambo a popi.

Aakwanezimo yanakusa oya tseyithilwa eso lye nomakonaakono gopolisi otaga tsikile.

Aiyambo okwa pula aahingi ya hinge aluhe nuukeka unene pethimbo lyoowili dhoka ondjila hayi kala yuudha.

Okwa pula aahingi natango ya gandje ompito kaayendi yokolupadhi unene aanaskola uuna taya taaguluka opate.
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UNHCR otaka tala konkalo yondjala moAngola

March 24, 2021, 3:00 pm
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UNHCR otaka tala konkalo yondjala moAngolaUNHCR otaka tala konkalo yondjala moAngola Ehangano lyoUnited Nations Refugee Agency olya uvaneke tali ka tala konkalo yaakwashigwana yaAngola mboka taya mbombolokele moNamibia molwaashoka oya taalela ondjala moshilongo shaandjawo.

Shoka osha hololwa kominista yomakwatathano gwopaigwana, Netumbo Nandi-Ndaitwah mEtitatu omanga ta yamukula komapulo gwomuleli gwongundu yoPopular Democratic Movement, McHenry Venaani kutya epangelo otali ningi po shike mokutala konkalo yaakwashigwana yaAngola mboka taye ya moshilongo shaaheli paveta. Venaani okwa popi kutya nonando pamatompelo gopauntu kashi li mondjila Namibia a shunithe aakwashigwana mboka koshilongo shaandjawo, epangelo lyaNamibia olwa pumbwa okukwatathana nepangelo lyaAngola opo ku vule okutulwa po omilandu dhekondololo poongamba. “Otu li mekwatathano nepangelo lyaAngola okupitila momukalelipo gwawo moNamibia nomOmaandaha otwa ningi omutumba mOhangwena ngoka gwa kaliwa woo komukalelipo gwAngola,” Nandi-Ndaitwah a popi.



ETHANO: NAMPA
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Omukokele a tindi ondjo mekwatonkonga

March 24, 2021, 3:00 pm
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Omukokele a tindi ondjo mekwatonkongaOmukokele a tindi ondjo mekwatonkonga LEANDREA LOUW

OMBAYE



Omukokele ngoka a tseyika nawa mOmbaye okwa holoka mompangulilo yaMangetrata gwaMbaye mEtine lyoshiwike sha piti, komeho yamangestrata John Sindano na ota tamanekelwa ekwatonkonga lyokatekulu ke iikando yontumba pokati kaMaalitsa naNovemba gwomvula yo 2020.

Omutamanekwwa okwa tulwa miipandeko muDesemba gwomvula ya piti, sho okanona hoka ka lombwele kuume kako, ngoka e kape omayele opo ka lombwele omulongi gwako, ngoka a tseyithile opolisi noshipotha osha patululwa. Omutamanekwa nale okwa li a kalelwa po kuRay Rukoro gwoENS Africa Namibia, ihe ngashiingeyi ota kalelwapo koLorentz Angula Incorporated. Omufali gwiihokolola kompangu gwepangelo, Annakleta Kandjimi okwa pula oshipotha shuundulilwe komasiku 23 gaJuni opo ku vule okukaningwa etokolo komupangulindjai, neindilo lye olya taambwako. Omutamanekwa ota kala mondjeedhililo.

Omwedhi gwa piti, omutamanekwa okwa ningi eindilo lyomboloha ndyoka lya tindi kumangestrata oye tuungoka.

leandrea@republikein.com.na
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COMPANY NEWS IN BRIEF

March 24, 2021, 3:00 pm
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COMPANY NEWS IN BRIEFCOMPANY NEWS IN BRIEF Telegram raises US$1 billion

Telegram has raised over US$1 billion through bond sales to multiple investors, the messaging app's founder Pavel Durov said on Tuesday.

The funding round included a combined US$150 million investment by Mubadala Investment Co and Abu Dhabi Catalyst Partners, which is part-owned by the Abu Dhabi state fund.

Although the company did not provide any details about its other investors, Durov said they included "some of the largest and most knowledgeable investors from all over the world."

The funds would be used to help roll out expansion plans as well as drive its monetization strategy, which includes premium plans for business users, Durov said.

"Telegram's user base has reached a critical mass that places it amongst global tech giants," Mubadala executive Faris Sohail Faris al-Mazrui said in a statement.

Telegram, along with messaging app Signal, have seen an increase in users this year amid privacy concerns with larger rival Facebook-owned WhatsApp. It currently has 500 million monthly active users. - Nampa/Reuters

Kenya Airways bets on cargo

Kenya Airways is doubling down on cargo as it does not expect its passenger business to recover from the impact of the Covid-19 pandemic until 2024, its chief executive told Reuters on Tuesday.

The airline, whose joint venture with Air France KLM will expire this September, said its peak summer travel season was almost wiped out after Kenya closed its airspace and losses tripled last year to US$333 million.

"We expect the passenger business to normalise by 2024. It is a volatile situation dependent on very many things," Chief Executive Allan Kilavuka told Reuters after an investor briefing.

To blunt the impact, Kenya Airways plans to boost its share of the outbound cargo market to 35% by 2025 from 10%, he said.

The airline is converting a second passenger Boeing 787 plane into a freighter to haul cargo from Europe, Asia and the Americas, having converted a similar plane earlier this year. - Nampa/Reuters

GameStop revenue shy of estimates

GameStop Corp, the video game retailer at the centre of this year's Reddit-driven trading frenzy, fell short of holiday-quarter revenue estimates on Tuesday, squeezed by pandemic-led store closures and as more gamers drifted to online purchases.

Adjusted net income rose to US$90.7 million, or US$1.34 per share from US$83.8 million, or US$1.27 per share, a year earlier.

GameStop's shares have skyrocketed this year as amateur traders bet against Wall Street hedge funds that had shorted its shares, driving the company's valuation to as high as US$33.68 billion, more than Best Buy. The stock has become one of the hottest and most visible "meme stocks" followed on social media.

The results come as top shareholder Ryan Cohen, the billionaire co-founder of online pet supplies retailer Chewy, tries to transition the company into an ecommerce business that can take on big-box retailers such as Target and Walmart, as well as technology firms such as Microsoft Corp and Sony Corp.

GameStop said it would spend 2021 improving the speed of its delivery services, expanding its product offering and hiring people experienced in e-commerce. - Nampa/Reuters

IAG secures US$1.76 bln credit line

British Airways owner IAG said on Tuesday it had secured a US$1.76 billion credit facility from a group of banks that would be available to its coronavirus-hit airlines Aer Lingus, British Airways and Iberia.

The travel sector was dealt a fresh blow this week when Britons were warned not to book summer holidays abroad, deepening fears of a second straight lost summer as Europe's slow and chaotic vaccine rollout undermines expectations of a rebound.

The company said in a statement on Tuesday that the three airlines would have a separate borrowing limit within the overall three-year facility.

"Amounts drawn would be secured against eligible unencumbered aircraft assets and take-off and landing rights at both London Heathrow and London Gatwick airports," it said.

IAG also said that British Airways had simultaneously cancelled its US dollar facility, which had $786 million available at December-end and was due to expire on June 23.- Nampa/Reuters

Mega insurance merger derailed

Property and casualty insurer Hartford rejected a US$23.24 billion takeover offer from larger rival Chubb Ltd on Tuesday, derailing what would have been the largest deal in the property and casualty insurance sector since 2016.

Hartford said its board had determined that entering into talks about a deal would not be in the best interests of the company and its shareholders.

Chubb had made a US$65 per share offer for the insurer on March 18, a premium of about 13% to Hartford's closing stock price a day earlier.

A deal between Hartford and Chubb would be the biggest in the sector since Aon Plc's US$30 billion bid to buy Willis Towers Watson last year, and the largest in the US P&C insurance space since Chubb was created in its current form in January 2016.

Chubb's bid for Hartford has come after its chief executive officer, Evan Greenberg, warned in April that the pandemic would likely spur the single-largest loss in the industry's history. - Nampa/Reuters
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Rundu rice ready for harvest

March 24, 2021, 3:00 pm
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Rundu rice ready for harvestRundu rice ready for harvestPensioner grows rice on Kavango floodplain A former truck driver is ready to harvest one hectare of rice he planted on the banks of the Kavango River last November. KENYA KAMBOWE

RUNDU



'You will never know until you try' perfectly depicts the story of a former truck driver, now a pensioner, from Rundu's Sauyemwa location who planted rice last year and is now ready to harvest it.

Namibian Sun tracked down Musongo Joseph Kakuvi (60) after one of his nephews posted about his 'Rundu rice' on a social media platform.

Kakuvi, who farms on four hectares of land in a floodplain of the Okavango River, said he wanted to know if it was possible to grow rice in the area. “There were a lot of stories about where rice can grow but I decided to defy the odds and see if our Kavango soil can grow rice. It turned out that our soil is favourable and I am now intrigued to take this project to greater heights,” Kakuvi said.



The process

Kakuvi said his son bought one kilogram of rice seed in Oshakati in last November.

He planted half of it on one hectare, reserving the other three hectares for tomatoes and garlic.

Water is not a problem for Kakuvi, who pumps directly from the river.

Four months later, Kakuvi's rice is ready to be harvested.



Pounding the rice

When asked how he plans to separate the kernels from the bran, Kakuvi said he would use the traditional method of pounding the grain.

“I will pound it like we pound mahangu and then I will be able to separate the bran from the rice. Like I said, it was a trial run for me, I never planted rice before nor have the experience, but I am willing to do whatever it takes to feed my family,” he said.



Challenges

Besides the lack of a machine to harvest the rice, Kakuvi said he needs at least two water tanks to store the water he pumps from the river.

He also needs fencing material.

“They say if you don't try, you will not know and that is what I did but now I am faced with challenges and I am seeking help, especially the water tanks and the fencing material. It's a costly exercise as I have to buy petrol for the pump,” Kakuvi said.

He said if he receives the necessary support, his project can be a great success for him and the region.

“We often hear that Kavango is the potential breadbasket of the nation, therefore I am able to assist in that regard. We can feed the nation with rice and even export it if we take it seriously,” he said.

He urged young and old to take initiative instead of waiting for the government to initiate projects.

“We need to take charge and feed our people. I tried with rice and it worked. If we all try to do something, we will be able to feed the nation and stop importing food from other countries,” he said.

kenya@namibiansun.com
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Living with lions

March 24, 2021, 3:00 pm
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Living with lionsLiving with lionsCoexistence is possible The severe drought in the Kunene Region in recent years has exacerbated human-wildlife conflict, but coexistence is possible if the proper measures are taken. ELLANIE SMIT

KAMANJAB



The Namibian Lion Trust has 16 lion guards who cover an area of 300 square kilometres to protect the lions as well as mitigate lion-farmer conflict in the Kunene Region.

The trust's main emphasis is the protection of the lions, but also community support as well as education and conservation, said trust director Tammy Hoth.

“Coexistence is definitely doable. It is just that everybody has to be on the same page. If the conservancies do not talk the talk, how will farmers understand that this is how they must now farm and function? I think that is the biggest problem, because it all has to do with culture and tradition and who is in charge,” said Hoth.

She said when they first started to address the lion-farmer conflict in the region, it was as the Afri-Leo Foundation in 1997.

They then became affiliated with AfriCat in 2010 and in 2019 the Namibian Lion Trust was started.

Hoth said their aim was to address the conflict on the southern boundary of Etosha on commercial farms, where she realised there were many lions being shot.

“Is there the will to coexist? That is the big question, whether you are a game farmer or a livestock farmer or have a lodge. What is your level of tolerance? That is always the difficult thing to measure. Because lions here along the southern boundary and these commercial farmers have zero tolerance. But then your communal farmer is expected to tolerate it, because he will then get support from tourism, whether it is hunting or photographic.”

She said they identified hotspots where lion-farmer conflict was common and these were divided up into lion guard zones.

“These were basically the hotspots where lions would be moving out of Etosha and out of Hobatere.”

She said the concept was to identify where the hotspots are and support farmers in these areas firstly with bomas (kraals).

“Those communities that were hardest hit were supported with bomas. Our lion guards therefore identify these communities and where support and bomas are needed.”

She stressed that the bomas are for the community and not for individuals and must be maintained by the community after the trust builds them.

“Basically, the concept is to allow the farmers to have ready protection for their livestock and therefore lose fewer livestock as a result of lion conflict and therefore the retaliation will also decrease,” said Hoth.

She pointed out that this is also a measure of coexistence. “If you have a proper boma and maintain it and bring your animals in when it cools down in the evening and do not let them out until it gets hot, the animals are better protected.”

Hoth added that there are certain times during the day when lions hunt and it is therefore better to keep animals in a kraal.

While she said the ministry is trying to do a good job in addressing human-wildlife conflict, she added that the areas that have to be covered are just too vast, while the problem is just too massive.

“It sort of got out of hand because of the drought. We just had the drought for too long.” According to her, there has been drought in Kunene since 2013.

“During 2017/2018 there was a little bit of respite and then came 2019 that knocked the socks off everybody.”



Petrina and Mbatata Tjavira

Mbatata (26) and his mother Petrina (69) farm at Marienhöhe, about 50 km south of Kamanjab.

Marienhöhe is a communal farm in the #Khoadi //Hoas Conservancy.

A total of 24 family members live in the area where Petrina has been farming for more than 25 years.

According to Mbatata, they have experienced severe drought since 2014. They farm with livestock, which includes 49 cattle, 38 sheep and 18 goats.

He said since 2014, they have lost about 200 cattle to drought, while they have not received much drought relief from the government.

“Only last year we received some things. In all those other years, we did not receive anything.”

Petrina further said lions are threatening her livelihood as she makes her living from livestock farming.

“I was thinking, how will I survive, what will I eat, how will I put my children through school? The government does not assist with anything, they just say people should live with wildlife.”

From 2012 to 2019, lions killed about 44 of her cattle, while she lost five cattle since last year.

Mbabta said to prevent lion conflict, they release their cattle from the kraal around 10:00 in the morning and bring them in before sunset, because lions mostly hunt at night.

He added that the Namibia Lion Trust warns them when collared lions are in the area so that they can protect their animals.

However, some lions are not collared and then it is a problem for the trust to inform farmers.

He said they are trying to upgrade their kraals to better protect their livestock against lions.



Frederick Clay

Frederick Clay has been farming at Marienhöhe for 25 years. He currently has 10 goats.

He said he first used two dogs to protect his livestock, but these were killed by lions. After this, Hoth assisted him in strengthening his kraal and also with flickering solar lights which scare off lions in the night.

Clay has also installed pieces of white cardboard on his kraal fence, which reflect light at night and scare away elephants and lions. He has added thorn branches around his kraal, which helps to keep lions out.

He said the environment ministry should work with the Namibian Lion Trust, because they know how to handle a lion.

Clay said that would ensure that the trust would help the ministry to catch problem lions, collar them and control them.

He also said they have not really received drought relief.

“Last year we received some maize meal and oil, but this year, nothing.”

Hoth further stressed the importance of the carrying capacity of the land.

“If you go back to the pre-60s this family (living on the Marienhöhe Farm) was probably maximum 12 strong.”

She said Marienhöhe is probably a 6 000-hectare farm.

“They could just barely make a living out of it. Now between 60 and 80 people live on a 6 000-hectare farm that could hardly carry 12. Just do the math.”

She said there is actually no way that people should be farming there.

“This area all the way to the Skeleton Coast park up to the Kunene should be a wildlife area.

People can live there obviously, because they have their ancestral homes, but no livestock.”

She said if they want to farm, the government needs to come up with a plan.

“There are enough farms that people have given up. Especially now.”

Hoth pointed out that resettlement farms have become a total failure. “They just bought the land, put these people on and there was no training.

So, I do believe there are places where these people can farm, but not in this area, which is actually just going to provide enough sustenance for wildlife.”

She added that research plays a big role within the trust.

“We have a wonderful group of lions that live in Hobatere North, which includes three females and their cubs, which totals about 12 to 13 lions.”

She said it is essential that the Hobatere Lodge loves and looks after these lions so that they can stay alive.

Susanna Hoaes, Hobatere lodge manager, said should these lions be killed, it would be an incredible loss for the lodge.

“If there are no lion sightings, there would be no interest from guests and we would not be able to attract our guests when we don't have lions. That is why our staff is really very informative when it comes to lions and their protection.”
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Ndonga Linena vote recount case struck from roll

March 24, 2021, 3:00 pm
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Ndonga Linena vote recount case struck from rollNdonga Linena vote recount case struck from roll KENYA KAMBOWE



RUNDU

A matter between the All People’s Party (APP) and the Electoral Commission of Namibia (ECN) over the disputed November 2020 Ndonga Linena constituency election results has been struck from the Electoral Court roll.

APP secretary-general Vincent Kanyetu says deputy judge president Hosea Angula on Tuesday ordered that the matter be struck from the roll.

The hearing took place on 19 March before judges Angula, Boas Usiku and Hannelie Prinsloo.

Kanyetu said the party would reorganise and return to court on a later date.

“He [Judge Angula] is saying we should have first approached ECN to give us access the material before going to court. But if you look at the whole thing, it is already done. We have written to ECN through our lawyer requesting a recount and ECN did not bother to give us a response.

“What we are going to do now is that we are going to re-strategise with our lawyer and go back to court.”

The APP is represented by Henry Shimutwikeni.

The case

On 18 January, Shimutwikeni - on behalf of APP - approached the Electoral Court with an application to have the votes for that constituency recounted.

The APP is challenging the outcome of the 25 November 2020 election after party agents observed ballots cast in favour of their candidate declared as spoilt.

The party alleged that some voters did not mark the appropriate box on the ballot, but made crosses on the face of APP candidate Djami Daniel.

A total of 57 votes were declared spoilt when the ECN announced the final results for Ndonga Linena.

The APP believes that if a recount is done, it will prove that Daniel was the legitimate winner.

Last December, Swapo’s candidate, Michael Kampota, was sworn in as the councillor for the constituency after securing a mere 12 more votes than Daniel.

ECN chairperson Notemba Tjipueja and chief electoral officer Theo Mujoro, as well as political parties Swapo, the Popular Democratic Movement and the Independent Patriots for Change are the respondents along with urban and rural development minister Erastus Uutoni in this matter.

kenya@namibiansun.com
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Namdeb set to evict housing tenants

March 24, 2021, 3:00 pm
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Namdeb set to evict housing tenantsNamdeb set to evict housing tenants OGONE TLHAGE



WINDHOEK

Diamond mining company Namdeb is set to evict employees from houses it owns in Oranjemund. Workers who have not submitted offers to purchase the properties have been given until 30 April to find other accommodation, or risk facing legal action.

The company said it has given the employees ample time to sign agreements with the adoption of its accommodation strategy, in which it intends to offload various properties.

“It is a well-known fact that Oranjemund currently does not have sufficient appropriate accommodation for the accommodation requirements of the town. The implementation of Namdeb’s accommodation strategy has indicated a significant need from Namdeb employees to buy a house in Oranjemund; more than the houses currently being occupied by Namdeb employees,” a letter by the company read.

It afforded tenants living in its houses the opportunity to purchase the properties, the company said.

Get out

“Following numerous extensions for private tenants to exercise their First Right of Refusal to purchase their current properties, the company has now exhausted this venture and thus will not offer [the] same any more after 30 April (sic),” the letter said.

“Given that you have not submitted your offer to purchase your property to date, Namdeb hereby invokes its rights in terms of the termination clause of your lease agreement whereby 30 days’ notice, which is effective from 1 April 2021, to vacate the premises you are occupying, no later than 30 April.

“Failure to comply with this termination notice by the said date will result in Namdeb exercising its right to institute legal action against you so as to take possession of the properties,” the letter added.
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