Bringing people together through buying and selling

March 25, 2021, 3:00 pm

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Bringing people together through buying and selling Pull quote: Being your own boss requires a certain level of discipline, which is a challenge I love waking up to every day. Yes, I have always wanted to be an entrepreneur because of my desire to serve people. Wetumwene Shikage

We facilitate the buying and selling of mainly second-hand goods for individuals or organisations. We also market local businesses using our online platforms that have a wide reach in local business and private platforms. We offer these services on our live website: e-sellnamibia.com, WhatsApp, Instagram and Facebook pages.

Inspiration to start the business came as the two founders saw the need to make buying and selling of second-hand goods safe and efficient in Namibia. They desire to make it easier for people to have access to goods and services at an affordable price.

Every business requires uniqueness in order to stand out. The co-founders assured that with E-Sell, you will get your money's worth and time efficiency.

“One of the benefits of buying products through us is that we provide warranty and proof of ownership on every item our clients buy or sell using our platform,” said Quisseque.

Trying to juggle their ambitions along with family responsibilities and their religious commitments continue to be part of their daily challenges. “We are still overcoming this every day by aligning our priorities and devoting the most time to what matters most,” said Quisseque.

One of the business philosophies the founders of E-Sell follow is that they do not engage in any transactions which do not benefit all parties involved, adding that expectations lead to disappointments.

Entering this industry requires one to be ready to serve and not only be ready to sell. The industry needs passion for the work as well as a serving mentality. Their services connect people and working with people requires one to have a growth mindset.

As a start-up it is almost impossible to operate in an isolated sphere. Many want to achieve great things birthed from great ideas, however in the growing Namibian economy there is a need now more than ever to work together. Networking creates opportunities for growth. It may be in gaining new clients or perhaps in building stronger relationships with suppliers to ensure a lasting and healthy relationship. Trust, inspiration, exposures, interactions, and pre-qualified referrals that you get through networking are special resources that can't be found anywhere else.

E-Sell contributes to society by bringing people together through buying and selling and minimising theft and scams. They have in many cases partnered with other start-ups as a sign that they welcome innovative ideas and use their platforms to promote local products and businesses.

Start-ups in Namibia, and all over the world, are facing an unprecedented crisis in the form of the Covid-19 pandemic. Day-to-day operations have been adjusted to be in line with the regulations set up by the government to ensure no further spread of the virus. Because of the nature of their business, it has been an easy transition into the “new normal”, putting themselves in the forefront of any transactions and ensuring that both the seller and buyer do not have any forms of physical interaction unless deemed fit and really necessary.

Email: admin@esellnamibia.com

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A happy salesperson

March 25, 2021, 3:00 pm

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A happy salesperson Wetumwene Shikage

Martha Swartbooi was born in the Okahandja district on a small and marginalised farm. She lost her mother at a young age and was then forced to be independent and to stand on her own two feet.

As on orphan, she moved around from one town to another, from one school to another. Martha did not have any parents or anyone to support her financially. This resulted in her leaving school and thereafter started looking for any job that could help her become financially able.

“I started working for a retail shop as a cashier later at customer care. After that, I came to Pupkewitz and I have been here ever since and I am so happy. I started working for Pupkewitz Megabuild in 2004 as a cashier, and four years later they promoted me as a saleslady,” she said.

Swartbooi says her main duties include assisting customers with their needs. Her everyday work is based on customer service face to face as well as through emails and phone. “I do quotations, I follow up with the customers and I attend to the daily orders of my clients. I need to make sure that my customers receive their quotations correct and on time,” she says.

Swartbooi says she loves the daily interaction with the clients and satisfying their needs. “It warms my heart to make everything easier for my clients. I love to see them smile and be happy.”

Her biggest achievement as a full-time working mother is putting all her children through school. She has four children, now aged 32, 28, 26 and 25, and she is proud of them all and wants all of them to graduate from university.

One of her dreams is to have a house to call her own. As a single mother, her message to Namibian women is to be leaders and change-makers because this is no longer only a man's world. “Make the best of it. In whatever situation you are, be strong don’t give up easily. I also believe that we as women should stand together as we lead our nation to success,” she says.

Making the best of every step

March 25, 2021, 3:00 pm

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Making the best of every step Reliance Biwa is an account manager at Weathermen & Co Having an innate need to effect positive change wherever she goes allows for good progression. Wetumwene Shikage

Biwa has found a way to flourish in the field of marketing and advertising. She was born at Mariental and raised at Vaalgras. She left the nest to study marketing in South Africa and upon returning to her home country, first put her marketing skills to use in the engineering and banking sectors. Thereafter, she joined her first advertising agency, Adforce, in 2014 as account executive and later, senior account executive, before taking up her current position at Weathermen & Co in 2018.

In the Weathermen team, Biwa is responsible for managing clients’ portfolios and all things brand-related. A typical day for her – if such a thing exists – may include receiving a brief, getting to the heart of it and brainstorming with the studio creatives who go off to execute the resulting concept. Thereafter, Biwa presents the work to clients and ensures everything is in order at the costing and billings end.

Biwa’s greatest motivator is the knowledge that her team is always working towards providing solution-driven campaigns.

“We want to deliver meaningful solutions to our clients, audiences and other end-users. The most gratifying part of my job is seeing a client reach or exceed their key performance indicators (KPIs), because it means the agency understood the client’s brand and the market need, and successfully tailored the message to suit the right channels. Being behind a successful final product fills me with pride and makes me feel like I am contributing to something that will, in turn, contribute to the betterment of our communities.”

In addition to the opportunities her job affords her to make meaningful differences in society, Biwa has found the opportunities for personal growth to be equally as astounding. Biwa: “It is unbelievable how much and how quickly you develop and grow on the job. I’ve found that I can sometimes be a completely different person to who I was, say, just two weeks earlier.”

However, for Biwa, the growth does not stop at work. She is on her way to completing her master’s degree this year and hopes to put every bit of it into practice and share her knowledge with the industry. For anyone looking to advance in their chosen field, Biwa cannot overstate the importance of continuously investing in oneself.

“There are many ways to hone your skills and feed your passions which need not be limited to higher education. A good mentor, for example, is one of the best things to have on your side. There is also an abundance of online resources which can give you an edge in the market. Your first steps, though, should be investing the time to discover what your passion truly is, and then finding the right tribe to support you on your path to chasing it.”

Africa to play key role in India's oil industry

March 25, 2021, 3:00 pm

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Africa to play key role in India's oil industryIndia imports over 80% of its oil Africa's share of India's oil imports is about 15%, or about 34 million tonnes of oil last year. We would naturally be seeking commercial partners in Africa to meet India's growing energy needs. Dharmendra Pradhan, Oil Minister: India NIDHI VERMA

African nations could play a central role in efforts by India to diversify its sources of oil and gas, India's oil minister said on Wednesday, as the nation strives to reduce its energy reliance on the Middle East.

India, the world's third biggest oil importer, has asked state refiners to speed up the diversification of oil imports to gradually cut their dependence on the Middle East after OPEC decided earlier this month to largely continue production cuts in April.

"As India seeks to further diversify sourcing of crude oil and LNG, Africa has a central role - largely due to its proximity and absence of any choke points in trans-shipments," Dharmendra Pradhan told an industry summit.

India imports over 80% of its oil and has a huge oil import bill.

Africa's share of India's oil imports is about 15%, or about 34 million tonnes of oil last year, Pradhan said. India's imports of gas from Africa are also gradually increasing.

India traditionally buys oil from Nigeria, Angola, Algeria, Egypt and Equatorial Guinea. In recent years it has bought oil from Cameroon, Chad, Ghana and Cote d'Ivoire also, Pradhan said.

"Therefore, we would naturally be seeking commercial partners in Africa to meet India's growing energy needs through imports of crude oil, LNG and other petroleum and energy products".

State-run Indian companies have invested US$8 billion in oil and gas assets in various African nations.

India, the third largest refiner in the world, is a major exporter of refined fuels.

Africa is the second-largest destination for Indian refined fuels, Pradhan said, adding rising demand for technology, fuels, skills and investment in some African nations offers India opportunities for equity investment and two-way tie-ups. - Nampa/Reuters

MTN donates vaccines to 9 African countries

March 25, 2021, 3:00 pm

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MTN donates vaccines to 9 African countries The first 723 000 of up to 7 million Covid-19 vaccine doses that MTN Group is donating to African countries have arrived in nine nations, the African Union's disease control body said yesterday.

Africa CDC Director John Nkengasong told a news conference that Ghana, Gambia, Liberia, Guinea Bissau, Sierra Leone, Nigeria, Senegal, Mauritius and Togo had received doses from the South African telecoms company.

Several other countries, including South Sudan and Malawi, are due to receive doses in the coming days.

MTN is donating US$25 million to support the African Union vaccination programme. The doses will be distributed to health workers across the bloc's 55 member states, MTN said this week.

African countries have begun vaccinating their citizens only in recent weeks after richer countries secured early supplies.

Africa is relying primarily on free doses from the World Health Organization-backed COVAX vaccine-sharing facility, which aims to secure 2 billion vaccine doses by the end of 2021.- Nampa/Reuters

Building self-confidence through self-awareness

March 25, 2021, 3:00 pm

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Building self-confidence through self-awareness Self-management is the second pillar of emotional intelligence, as described by Daniel Goleman. Following his theory, to be able to manage ourselves successfully, we need to be self-aware of our emotions and be able to self-manage them.

It is a competency that is composed by the following abilities: self-control, trustworthiness, conscientiousness, adaptability, achievement orientation and initiative. In this article, we will explore how the emotional abilities of self-control, trustworthiness, conscientiousness can impact different careers.

Self-Control

We cannot control what we do not know, so the first step in having emotional self-control is to recognise our emotions and how they manifest in us. In general, they are easy to recognise and shared in different cultures, but each person experiences them in a unique way due to the individual’s experience and values. With certain emotions, we will notice how our heart rate accelerates, or we feel hot or cold, for example. These feelings could support us in identifying our emotions. The next step is to explore what causes the emotion we want to control.

Trustworthiness

In this instance, trustworthiness refers to the likelihood of undesirable events, which defines people's predisposition to engage in a trusting relationship with a person or object while assuming the perceived risks. Reliability leads us to the idea of statistical probability. For example, people feel safe when traveling by plane because they can infer, from the information they have, the low probability of the risk of accidents.

Trust, on the other hand, refers to a concrete action. Taking risks on the behaviour of the other party based on a positive expectation of reciprocity. When one person decides to trust another -based on the specific contextual situation that can lead the other person whom one trusts to honour this investment of trust.

Conscientiousness

Conscientiousness is one of the five personality traits of the so called ‘Big Five’ traits in the personality theory (openness, conscientiousness, extraversion, agreeableness, neuroticism) that is used in HR to support people decisions. A person scoring high in conscientiousness in a personality test, for example, usually has a high level of self-discipline, they are methodical and highly perseverant.

However, in the study of Positive Psychology, conscientiousness also means becoming more self-aware. By being more in tune with your thoughts, feelings and emotions, you can expand your perception of reality. Raising your awareness involves stretching your mind beyond your comfort zone to enter a deeper sense of understanding.

Being fully present, aware and attentive to the current moment, leaving the state of distraction, is a state of mind that is called "mindfulness". Explained in other words it is described as the "mental state reached when focusing on the present moment, while calmly recognizing and accepting your feelings, thoughts and physical sensations".

www.hrexchangenetwork.com/hr-talent-management/columns/self-management-and-its-impact-in-leadership

Service delivery above everything else

March 25, 2021, 3:00 pm

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Service delivery above everything elseProviding medical care is a fundamental necessity in Namibia Nelson Makemba is a medical doctor who has his own practice. Wetumwene Shikage

Since May 2015, Makemba has run his medical practice with the primary aim of assisting those who require medical help. The responsibility of general practitioners is to assist in the ongoing health of their patients by preventing, diagnosing and managing common health conditions. An important aspect of their work is making referrals to specialists as needed in special cases.

Being a doctor is a challenging career, and running a private practice even more so.

Makemba describes the experience as critical but also rewarding. “It brings joy to my heart being part of the healing process of so many patients.”

He employs six assistants.

Nesha Medical Practice is built on is service delivery above everything else. When asked how he would describe his experience thus far, he mentioned that it is excellent. “I wouldn’t be anywhere else,” he said.

Just as any other career, the medical world has its own challenges. “Limited infrastructure has always limited our ability to diversify our service and hence the decision to scale up and acquire a bigger office,” he said.

On the other hand, achievements and accomplishments keep the team motivated. “Setting up the practice to start with, that has been a major step. Community involvement, particularly information dissemination through television, radio and social media platforms, has been a major impact,” he explained.

The service-driven doctor has goals for his practice which include becoming the best at what they do and rendering services to the best of their abilities.

“Putting a smile on my client’s faces and seeing them return telling me that they feel better is the most rewarding thing a doctor experiences,” he says.

A typical day starts early, either with ward rounds or in theatre, and then proceeds to the office where he sees his patients throughout the day.

Economic transformation through agri investment

March 25, 2021, 3:00 pm

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Economic transformation through agri investment PHILLEPUS UUSIKU

The agriculture sector contributed an average of 8.5% to the country's Gross domestic Product (GDP) over the period 1990 to 2019, with the highest growth of 25% registered in 1994.

The sector is also the largest employer with a share of 23% of the overall labour force.

According to the Agricultural Bank of Namibia (Agribank), the impressive growth rates over the years could be attributed to favourable climatic and economic conditions prevailing at the time as the sector did not experienced a double-digit increase in the last decade.

Agribank notes that the government has made significant strides in supporting the agriculture sector through its development capital budget.

Between the 1994/95 and 1998/99 financial years (FY), the government committed about N$407 million in development expenditure, while between 2014/2015 and 2018/2019 (FY), the sector attracted a development expenditure of N$1.3 billion.

The highest overall development budget allocation the sector ever received was in the 2016/17 (FY), reaching a peak of 22%.

Agriculture development budget expenditures have been largely marked by investment in infrastructure for water supply, irrigation, animal health & disease control as well as market infrastructure, Agribank said.

Private sector

Despite the inconsistent trend in development budget allocations, fiscal commitment to the sector reflects that government spending continues to shape Namibia's agriculture policy programs to support development of the sector and economic growth at large, Agribank added.

Although government spending is necessary for growth, escalating debt has become a concern due to emerging and existing socio-economic challenges. “This suggests that development budget allocations to economic sectors such as agriculture are likely to witness a decline. Therefore, there is a need to encourage and incentivise private sector investment to ensure sustainable sector growth,” Agribank pointed out.

Despite decades of public and private investment in the sector, growth in agriculture continues to dwindle and remains below expectations. Harsh climatic conditions remain a major threat to the sector.

Additional investments in the agriculture sector remain necessary to increase agricultural production and productivity, specifically focusing on technological change and climate resilient production techniques, Agribank said.

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Rates, Covid hit SBN’s profit

March 25, 2021, 3:00 pm

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Rates, Covid hit SBN’s profitInterest income down N$158 mln At the end of 2020, SBN Holdings’ assets totalled about N$33.08 billion, some N$2 billion less than the end of 2019. Jo-Maré Duddy – Historically low interest rates, combined with the impact of the Covid-19 pandemic, eroded SBN Holdings’ income for the year ended 31 December 2021 and the locally-listed group reported a profit after taxation of nearly N$421.2 million – a drop of about N$192.3 million or 31.3% compared to its previous book-year.

Releasing its annual results, SBN Holdings – with Standard Bank Namibia as its flagship brand – said a decline of 11.9% year-on-year (y/y) in its net interest income was the biggest contributor to the fall in profit. During the year under review, the prime interest rate in Namibia decreased by 275 basis points.

SBN Holdings earned nearly N$1.18 billion from its net interest income in 2020, some N$158 million less than 2019.

The group said despite the hard lock-down enforced across the country during April and May 2020, as well as other restrictions during the year, non-interest revenue declined by only 5.6%. At around N$1.19 billion, non-interest revenue was about N$70 million less y/y.

SBN Holdings’ operational expenditure increased by 1% to N$1.5 billion.

“This, together with the hefty decline in total income, saw the group’s cost-to income ratio deteriorate from 57.3% to 63.5%. Management attributes the change in operational expenditure to a 7.3% decrease in staff costs coupled with above-inflation IT cost increases,” Cirrus Securities commented.

CREDIT RISK

SBN Holdings provided for credit impairments of about N$253.9 million in 2020, up 6.2% y/y. Commenting on the results, IJG Securities said when normalised for the impairment of one large client in the 2019 financial year, credit impairments for 2020 increased by 48.9% or N$83 million y/y.

According to SBN Holdings, non-performing loans (NPLs) as a percentage of total loans increased at a “manageable” rate to 7.8%. Excluding one large client, the rate increased to 5.3%.

“The difficult macro-economic conditions, worsened by the Covid-19 pandemic, have had an impact on the credit environment, particularly on clients in the tourism, accommodation, commercial real estate and SME sectors,” the group said, adding: “We have continued to follow a cautious risk appetite.”

According to Cirrus, SBN Holdings remains the listed bank with the highest credit risk, evidenced by the increase in impairments and NPLs.

Commenting on the pandemic, SBN Holdings said: “It was imperative that the bank did everything possible to keep the lives and businesses of clients going by providing support and relief to clients impacted by Covid-19. More than 97% of all applications received have been approved, amounting to outstanding capital relief of N$1.7 billion to more than 2 000 clients.”

LOANS, DEPOSITS

IJG pointed out that SBN Holdings’ total assets declined by 6.1% y/y as loans and advances to customers declined by 3.2% y/y to N$22.07 billion, while placements at other banks declined by 21.2% y/y to N$2.23 billion.

At the end of 2020, the group’s assets totalled about N$33.08 billion, some N$2 billion less than the end of 2019.

Cirrus commented that not extending credit in the current heightened credit risk environment is a prudent approach by management.

However, the analysts added: “Worryingly, total deposits also decreased 6.3% to N$26.1 billion. The decreased deposits coupled with the net repayment of advances resulted in SBN Holdings’ loan-to-deposit (LTD) ratio increasing from 92% to 93%.”

OUTLOOK

SBN Holdings declared an ordinary dividend of 14c per share compared to 27.37c in 2019.

IJG said the group’s results should be viewed in the context of the Covid-19 pandemic, the resultant lockdowns and the radical reduction in interest rates. “However, the company’s results were below IJG’s expectations, largely due to top line missing our estimates,” the analysts added.

According to Cirrus, the results are not unexpected, as this includes a nine month period which include the Covid-19 pandemic and subsequent regulations. “The 31.3% decrease in profit after tax, however, creates a low base for the 2021 financial year,” they said.

SBN Holdings said the Covid-19 pandemic is “ever evolving which requires ongoing review of the impact on our operations, clients and business plans”. “We will continuously assess the impact of Covid-19 on product and sector risk appetites, particularly home loans and commercial real estates, and implement measures to minimise credit losses,” the group added.

SBN Holdings is listed on the Local Index of the Namibian Stock Exchange (NSX). It closed at N$7.98 per share on Wednesday. The share price has gained nearly 15.7% since the end of last year.

Both Cirrus and IJG currently have a “sell” recommendation on SBN Holdings.

Shituwa hostel opens

March 23, 2021, 3:00 pm

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Shituwa hostel opens TUYEIMO HAIDULA



ENDOLA

Learners at Shituwa Secondary School in the Ohangwena Region breathed a sigh of relief when the new hostel block opened two weeks ago.

Government bureaucracy and lack of funds forced learners to endure living in filthy conditions while they waited for over six years for the hostel to be completed.

The school, which is home to 875, now accommodates 776 learners in the hostel - 400 girls and 376 boys.

When government schools opened for the 2021 academic year, about 580 grade 10 learners at Shituwa had not yet resumed school and were waiting for the contractor to finalise outstanding issues of water and electricity connection at the hostel.

The hostel has been under construction since 2016 and was envisaged to have been completed in 2017 and occupied by 2018, but the construction process dragged on.

Still sharing beds

The learners were, in the meantime, accommodated in overcrowded corrugated iron sheet rooms where some were forced to share beds.

Those who were accommodated elsewhere had to walk long distances to and from school. Others were accommodated in unfavourable places, increasing the absenteeism rate at the school.

Principal Hendrick Nghinyengwasha said the worst is over as the learners now live in decent accommodation.

On a tour around the hostel, it, however, became apparent that the school has not received enough beds. Some learners sleep on mattresses and others are forced to share beds.

The grade 11 learners are currently sleeping on the old beds.

“We also don’t have beds. For now, we only have a limited number of used beds from the old hostel,” Nghinyengwasha said.

He added that he remains hopeful that the outstanding issues will be addressed.

The school is ranked fourth regionally in grade 11.

– tuyeimo@namibiansun.com

Political office not a deathbed – Amathila

March 23, 2021, 3:00 pm

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Political office not a deathbed – AmathilaYouth not panacea to all Namibia’s challenges According to the veteran politician and medical doctor, it is crucial that politicians know when to call it a day instead of clinging to power until their bodies are unable to function without external support. NAMPA







WINDHOEK

“For everything, there is a season, a time for every activity under heaven. A time to be born and a time to die. A time to plant and a time to harvest.”

This Bible verse encapsulates the position of former deputy prime minister Libertine Amathila regarding politicians who have overstayed their welcome in political office, locally and elsewhere.

For the veteran politician and medical doctor, it is crucial that politicians know when to call it a day instead of clinging to power until their bodies are unable to function without external support.

She said this during an exclusive interview with Nampa which covered a plethora of contemporary issues recently.

Chief among them is the perceived lack of harmony between the youth and the old guard who boast about having liberated the country from the shackles of colonialism.

Amathila retired from active politics in 2010 after having served in the Executive for 20 years. She was 70 at the time.

‘Fantastic’ to retire

“It’s a fantastic thing to retire while you still have a brain which is working and legs which are still walking and not retire when people are so exhausted with you,” she said.

At present, assertions held by certain quarters are that Namibia is faced with a leadership crisis - on one hand is an impatient youth that wants to take over, while on the other is an old guard determined to lead for eternity.

She said those past their sell-by-date should leave in order to pave way for the injection of fresh blood and ideas.

“I don’t believe in dying in a political chair... My opinion has always been that when I reach a certain age, I must give room for other people to also bring in new ideas,” she said.

The trend of overstaying in power is not unique to Namibia, she admitted.

She added: “There are politicians who can hardly walk but they are sitting in the chairs [political office] to waste the time of the younger person who could move the country forward.”

Amathila went on to say people like power - and not just Namibians.

'I don’t know what power brings them... but I don’t think they are so hardworking. They just want to sit there, maybe thinking there is money but there is no money in politics unless you’re stealing,” she asserted.

Power-hungry

She further accused politicians of being power-hungry.

“I wish they could think differently and give other people the chance to also come in and show what they can do.”

A calculated Amathila equally cautioned that young people are not the panacea to Namibia’s challenges, saying there are those who have fallen into the trap of insatiable greed and of using political power for self-gratification instead of addressing the plight of the masses.

“These politicians who are in jail [Fishrot accused] were young people we brought in. [But] what did they do? What are we reading about them? So, youth do not solve the problem per se,” she pointed out.

“We are so disappointed with those people we put in these positions who destroyed the country, literally.”

She emphasised that a culture of service, sharing and hard work must be re-engineered into Namibia’s moral fibre.

Bid for Felseneck back on

March 23, 2021, 3:00 pm

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Bid for Felseneck back on JEMIMA BEUKES



WINDHOEK

The High Court has overturned the lands ministry’s decision to resettle Passions Culinary and Hospitality Institute on Farm Felseneck No. 26 and Okanatjikuma No. 26.

The court found that the applicants lied on their documents that the company is co-owned by former Okahandja mayor Valery Aron, chef Jona Levi, former deputy mayor of Okahandja Niklaas Steenkamp and Veripurua Katjatenja.

In fact, according to court documents, the company only belongs to Levi and was not owned by a group of “four Namibians comprised of two females and two males”.

In his founding affidavit, Ricardo Uirab, who took the matter to court under his company Innodev CC, pointed out this gender balance gave Passions Culinary and Hospitality Institute an unfair advantage.

He also added that Aron and Katjatenja – both women - are also previously disadvantaged people.

“It is therefore a material aspect that Passions Culinary and Hospitality Institute is purportedly owned by women who are previously disadvantaged and that would have influenced the decision-makers to favourably recommend their allotment,” Uirab said.

Restart process

He added that the company’s core business was not game farming and tourism and that they do not have the required experience and capacity to make a success of the game farming unit.

Meanwhile, in his judgment last month, High Court Judge Harold Geier ordered that this decision be reviewed and set aside.

The ministry of land reform and the Land Reform Advisory Commission is further ordered to restart the resettlement process afresh.

Both these entities are also ordered to provide written reasons for their respective decisions to resettle Passions Culinary and Hospitality Institute within 40 days.

Geier ordered that the lands ministry, the Land Reform Advisory Commission and the chairperson of the evaluation committee must pay the legal costs involved.



- jemima@namibiansun.com

Sustainable development key to transformation

March 23, 2021, 3:00 pm

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Sustainable development key to transformation3rd Sustainable Development Awards launched Recognising the importance of integrating sustainability into the core of business and industry as well as the daily lives of all Namibians. We invite citizens to join us in the search of companies, local authorities, civil society organisations, youth and media practitioners that have demonstrated sustainable development. Benedict Libanda, CEO: EIF PHILLEPUS UUSIKU

The Sustainable Development Advisory Council (SDAC), in cooperation with the Environmental Investment Fund of Namibia (EIF) launched the third Sustainable Development Awards set to take place on the 21 of May 2021.

The awards intend to recognise the importance of integrating sustainability into the core of business and industry as well as the daily lives of all Namibians.

In addition, the awards will recognise and reward the contributions of outstanding individuals and institutions in the field of sustainable development.

This year awards target the private sector and Small and Medium Enterprises (SMEs), community level natural resource management and utilization initiatives, research and development, youth action for sustainable development and journalism in the field of sustainable development, EIF said in a statement.

The awards further target green banks, school in action for sustainable development, women in action for sustainable development, thought leadership and the ministerial award.

All individuals, organisations, businesses, companies and community groups are invited to submit applications within respective categories. Self-nominations and third-party nominations will be considered. Entries may be submitted for programmes or projects implemented during last 2 years starting January 2019, the statement reads.

Background

The Sustainable Development Awards was first held in 2015 and was based on a joint idea of the Sustainable Development Advisory Council and the Environmental Investment Fund of Namibia. It was planned to be hosted every two years and a subsequent second edition of the awards was held in 2017. The third edition of the awards was however delayed for a number of reasons but will now be held in May 2021.

In his welcoming remarks at the launch, Benedict Libanda, the Chief Executive Officer (CEO) of EIF noted that “We are staging the third edition of the Sustainable Development Awards in partnership with the Sustainable Development Advisory Council. We therefore invite citizens nationwide to join us in the search of companies, local authorities, civil society organisations, youth, media practitioners, and individuals that have demonstrated and promoted sustainable and responsible development”.

Officiating at the launch ceremony was Pohamba Shifeta, Minister of Environemt, Forestry and Tourism. In his virtual address the minister unveiled the theme for this year’s award “Accelerating the green economy transformation as we recover from Covid-19.""We remain cognizant about the challenges bestowed by the Covid-19 pandemic, along with the devastating impact it has had on the Namibian economy but has simultaneously provided an opportunity for us to rethink the country’s approach to economic growth and socio-economic development,” he said.

Sponsors

In her closing remarks Hallo Angala, a member of the Sustsinable Development Advisory Council highlighted that “the third edition of the awards will therefore recognize institutions and individuals in all spheres that have integrated environmental, social, economic, and management aspects of sustainable development into their businesses and operations”.

The third SDA ceremony is made possible through esteemed sponsorship by Agricultural Bank of Namibia, First National Bank of Namibia, Namibia Wildlife Resorts and BDO Namibia who will serve as the official auditors of the awards.

The deadline for entries closes on Friday, 16 April 2021 at 13:00 PM. Hence, all applicants are urged to submit their applications early as possible to avoid disappointment.

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 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."

EDITORIAL

March 23, 2021, 3:00 pm

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EDITORIAL“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 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.

Health clears Vahekeni, finance unimpressed

March 23, 2021, 3:00 pm

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Health 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

MTC share sale to finance debt

March 23, 2021, 3:00 pm

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MTC 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.

TransNamib, Cabinet clash over hotel stake

March 23, 2021, 3:00 pm

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TransNamib, 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.

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 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.