Monday, June 12 2017 | NEW ERA SPECIAL FOCUS 6 NDP5 to increase manufacturing, agricultural output and maximise benefits from marine resources Staff Reporter Windhoek Economic Progression: Part 2 The Fifth National Development Plan (NDP5), which was recently launched by President Geingob, is the 5th NDP in the series of a total of seven National Development Plans that are to implement and achieve the objectives and aspirations of Namibia’s long-term vision, Vision 2030. In sequence, NDP5 will be the third five-year implementation vehicle towards Vision 2030 and will be implemented from the financial year 2017/18 up until 2021/22. The NDP5 framework is organised around the four interconnected pillars that are founded on the principle of sustainable development, namely: economic progression; social transformation; environmental sustainability; and good governance. These pillars are aligned with Namibia’s commitment to eradicate poverty and inequality as outlined in Vision 2030, the Harambee Prosperity Plan (2016), and the Swapo Party Manifesto (2014). Additionally, the pillars support the global and continental development frameworks to which Namibia is committed. These include Agenda 2030, Sustainable Development Goals (SDGs), The Paris Agreement (CoP21); African Union (AU) Agenda 2063 and SADC Regional Indicative Strategic Development Plan (RISDP). Within these contexts, Namibia commits itself to enhancing growth and economic diversification while addressing challenges that include a high degree of regulation and a mismatch between the skill levels in Namibia’s workforce and the skills demanded by the labour market. NDP5 identifies five game changers that will move Namibia from a reactive, input-based economy towards a proactive, high performing economy. The game changers are: Increase investment in infrastructure development; Increase productivity in agriculture, especially for smallholder farmers; Invest in quality technical skills development; Improve value addition in natural resources; Achieve industrial development through local procurement. Economic Progression Structural transformation through value-added industrialization. Manufacturing Sector: Where we are The Namibian economy’s manufacturing activities remain highly dependent on inputs from the primary industries. The whole sector contributes just about 11 percent to GDP. The sector contracted by an average of 1.4 percent during the NDP4 period and there was a contraction of about 2 percent in manufactured products exports over the 2012-2015 period. In order to break out of the Middle Income Trap, Namibia needs to diversify its economy while also producing a diverse range of exports at increasingly high levels of sophistication. Therefore, the three factors that are critical to the structural transformation of the manufacturing sector are: Diversification of the economy; Sophistication of exports (value addition); and Good governance that protects a sound investment climate and business environment. Desired outcome By 2022, the contribution of general manufacturing sector to GDP has Big plans… By 2022, Namibia hopes to be the key fisheries and processing hub in the South West Atlantic Ocean through increased volume of fish handled, canned or processed in Walvis Bay cumulatively by 40 percent. increased from N.8 billion in 2015 to N.6 billion. Challenges A significant portion of the economic activities in key sectors (agriculture, fisheries, tourism, manufacturing and services) remain primitive, informal and limited. Limited manufacturing technology and skills for agroprocessing and modernisation of the agriculture sector have resulted in limited economies of scale and hence value addition. Furthermore, the mining industry cannot complete the full pipeline of “mining value addition” because some mines are unable to process minerals beyond concentrates mainly because of the lack of economies of scale. Namibia’s retail operators are dominated by foreign players procuring their products from foreign suppliers hence this raises a challenge for domestic produce to find retail space. In addition, there is a limited awareness about the technical standards products have to comply with. Agriculture Sector and Food Security. Where we are Even though agriculture contributes only 3.8 percent to GDP, it remains a strategic sector as it supports above 70 percent of the Namibian population and employs about a third of the working force. The importance of the sector in addressing food security and livelihood is acknowledged. The continuous drought and frequent outbreaks of animal diseases have negatively impacted the growth of the sector during the NDP4 period, contracting it by an average 2.2 percent per year. Nonetheless sustained efforts have continued to move the country from an exporter of live animals to an exporter of value-added agricultural goods. Desired outcome By 2022, the proportion of food insecure individuals has dropped from 25 percent in 2016 to 12 percent and food production has increased by 30 percent cumulatively over the NDP5 period. Challenges Poverty is a major factor limiting access to food. Access to food in Namibian is affected by reliance on market purchases for food. When combined with the heavy reliance on food imports it makes Namibia vulnerable to high food prices. Overall the production scale of smallholder farmers is low, which is attributed to limited access to inputs. The other factors that affect productivity includes poor soils, access to land and frequent occurrence of natural disasters such a drought and food. Access to sustained technological progress also affects smallholder productivity, leading to their failure to maximise yield through intensive farming practices. Rural Economic Development: Where we are Rural economic development is vital since most farming and tourism activities take place in rural areas and more than half (57.9 percent) of the population live in rural area. Economic activity in rural areas remains low since most of the businesses are very small (informal or unregistered) and mainly concentrated in wholesale, retail, accommodation and food services. Manufacturing in rural areas is hampered by many constraints such as inadequate skills, poor access to markets and lack of access to financial resources. Thus, business activity in rural areas is limited to those sectors with low entry barriers. Integrated planning both at the national and subnational level is crucial to improve access to services and trigger economic activities for the rural economy. Desired outcome By 2022, the rural quality of life and socio-economic well-being has improved with rural poverty declining from 37 percent in 2010 to 25 percent.. Challenges The land tenure is a developmental challenge for rural development. Namibia inherited its land tenure system from the colonial period. Land in Namibia is either freehold, communal, or state-owned. As a result, the distribution of land tenure is extremely unequal. Until land reform makes it possible for more Namibians to own land, progress in rural agricultural development will be slow. Land tenure constrains economic development in settlements because the 20 years of user rights does not allow property holders to invest or use their property as collateral to access development funding. Moreover, the land application process is lengthy and cumbersome. Further, there is poor coordination of rural development interventions. Frontline services are delivered by a number of government and non-governmental agencies without reference to each other, which leads to wastage of resources and duplication of interventions. Most programmes in rural areas have similar objectives and they are spread too thinly across several line ministries resulting in limited developmental impacts. Blue Economy: Where we are Namibia’s share of the South Atlantic Ocean provides valuable goods and services. It is an important resource for tourism, fisheries, transport and logistics as well as mining. The blue economy includes key industries and resources such as fisheries and aquaculture, water resources, shipping and transport, tourism, marine renewable energy, minerals, genetic resources, pharmaceutical, blue carbon trading, biotechnology and general sea-based products. Namibia’s territorial waters and its Exclusive Economic Zone (EEZ) can significantly contribute to its economic transformation agenda. This is particularly important because Namibia’s EEZ could be enlarged significantly based on the country’s submission of an application to the United Nations through the United Nations Convention of the Law of the Sea (UNCLOS) for the extension of its continental shelf. In order to capitalise on the potential of the blue economy, it is essential to create a governance framework that strengthen linkages and minimise conflict between fisheries, transport, environment, mining, tourism and logistics since they all operate in the same coastal area. Desired outcome By 2022, Namibia will have implemented a blue economy governance and management system that sustainably maximises economic benefits from marine resources and ensures equitable marine wealth distribution to all Namibians. Challenges A lack of coordination and integration between sectors due to the lack of a regulatory and legal framework which, ensure appropriate planning, management and governance. Basis… The NDP5 framework is organised around the four interconnected pillars that are founded on the principle of sustainable development namely: economic progression; social transformation; environmental sustainability; and good governance. Source: NDP5 Fisheries: Where we are The fisheries sector is the third largest income earner after mining and tourism and contributes about 15 percent of total exports. The annual marine landings of about 550,000 metric tons (MT) valued at an average of N billion (about 800 million US$) ranks Namibia as the nation with the third largest fishery capture in Africa, after Morocco and South Africa, and 30th worldwide. About 16,300 people are directly employed in the fishing sector, while others are indirectly employed in fisheries related activities such as stevedoring services, fishery-related supplies and logistics. Fisheries also constitute a vital component of domestic food security by providing a source of protein. Namibia’s freshwater fisheries have the potential to generate 5,000 tonnes a year of high quality protein, through sustainable fisheries management (NNF 2017). In addition, healthy fish stocks in the northern rivers contribute to ecosystem functioning and biodiversity conservation. However, there has been a collapse of the inland fisheries of the Zambezi and Chobe rivers due to overharvesting and commercial fishing. Desired outcome By 2022, Namibia is the key fisheries and processing hub in the South West Atlantic Ocean through increased volume of fish handled, canned or processed in Walvis Bay cumulatively by 40 percent. Challenges One of the key challenges to be addressed during NDP5 is the enhancement of fisheries’ market access to lucrative export destinations by ensuring compliance to more stringent SPS (sanitary and phytosanitary) standards. This will involve strengthening current certification systems on export, including stronger official control measures on Hazard Analysis Critical Control Point (HACCP), fisheries and aquaculture health systems. Currently Namibia is importing small pelagic fish for canning and Patagonia squid for value addition and re-export. Such importation need to be encouraged in order to achieve the substantial volumes needed for economies of scale in value addition activities such as canning.
Monday, June 12 2017 | NEW ERA NEWS 7 Photo: Emmency Nuukala More laws… On Friday President Hage Geingob signed the following acts into law at State House – Appropriation Act, Public Private Partnership Act, Nature Conservation Amendment Act, Access to Biological and Genetic Resources and Associated Traditional Knowledge Act. Kashihakumwa opens academy for guards N$120 million solar plant commissioned in Karibib Eveline de Klerk Karibib Solar energy generation reached yet another milestone last Friday when an N$120 million solar power plant was launched at Karibib in the Erongo Region by the Deputy Minister of Mines and Energy, Kornelia Shilunga. The solar plant, which will feed five megawatts (MW) into the country’s national grid, is one of the 14 renewable energy projects commissioned under the interim Renewable Energy Feed-in Tariff programme (Refit), initiated by the Ministry of Mines and Energy and the Electricity Control Board (ECB) to establish independent power producers in the country. The plant was developed by Met- Decci Energy Investment from South Africa and its local partners. MetDecci is a conglomerate of Met Group in South Africa that supplies infrastructure for the energy and mining sectors, and Decci from the Czech Republic that develops, owns and manages solar power plants. According to Jonathan Matheson from MetDecc, 19,000 solar panels are being used to generate the 5MW. He added the plant alone can provide 3,800 households with electricity. Currently Karibib itself uses 2.8MW while the Navachab gold mine uses 9MW. Matheson noted the new solar plant is relatively low maintenance and will still have value after its 25-year lifespan. Speaking during the official opening of the plant, Barnabas Uuwanga, the director for MetDecci Namibia, said that apart from the 25-year contract they signed with the Karibib Town Council, they will also share part of their profits with the council by selling electricity to NamPower. “The profit-sharing is additional to the land rentals we are paying. This is because we want to contribute and increase the revenue generation of the town council,” stated Uuwanga. Attending the launch of the project Shilunga, the Deputy Minister of Mines and Energy, remarked that the commissioning of the solar plant is indeed an important milestone for Namibia’s electricity supply industry and the country as a whole. She added that the Refit programme is an important part of the ministry’s strategy which seeks to strengthen local capacity to supply electricity and at the same time create opportunities for investors. “Thus we thank MetDecci and the Karibib council who ensured that the project became a reality and edge Namibia closer to becoming self- reliant in terms of electricity generation,” said Shilunga. Omaheke Regional Council PROCUREMENT COMMITTEE Helvy Shaanika Ongwediva Former Oshana regional police commander Ndahangwapo Kashihakumwa has ventured into what he knows best by opening a training academy for security guards. The former police commissioner who went on early retirement last year said he would like to meet government halfway in training and employment creation, the fight against crime and producing security agents with a clean criminal record. According to Kashihakumwa the training institute came into existence following proper consultations with the Inspector General of the Namibian Police, Sebastian Ndeitunga, and Minister of Defence Penda ya Ndakolo. The founding president Dr Sam Nujoma, former president Hifikepunye Pohamba and the queen of Oukwanyama Meekulu Martha Mwadinomho yaKristian Nelumbu have given their blessings to the new institution, he said. “I have also spoken to the regional commander of Ohangwena, Commissioner Shinedima Shindinge. They are all happy with the initiative,” said the retired police commander. Currently registration for the first intake at Tobias Hainyeko Security Guards (THSC) Training Academy is in full swing and targets private companies and individuals seeking training in their private capacity. Classes are expected to commerce soon. The training academy is situated at Edimba village, which is about 3km east of Eenhana, along Eenhana-Okongo main road, but registration also takes place at Oshakati Youth Centre. Kashihakumwa has identified the need within local private security companies where security guards are recruited without proper training or a criminal background check. As a result private security companies have become nests for convicted criminals who operate as inside men and women for organized crime. “Our country is suffering, our economy is suffering, our peace is suffering while some private security companies are just in it for money and this is where we come in, to strike a balance. For us money is really a secondary thing, that is why we charge really less,” stated Kashihakumwa. Part of the consultations with Ndeitunga was for the academy to get assistance from the police when carrying out background checks for its applicants. He said because of the lack of training and understanding, some of the guards recklessly or unknowingly commit crimes or become victims of crimes themselves. He gave the example of a recent incident at Hochland Park Engen service station in Windhoek where two brothers were severely battered by a security guard. “You can see that those people (victims) were not retaliating and one could hear somebody screaming, telling the guard to stop, but the assault continued. Security guards do not have an understanding when one needs to use force, the extent of force that one may apply and when one can shoot if he/she has to act in self-defence,” Kashihakumwa explained. Hainyeko Security Guards Training Academy will offer, among others, courses on the constitution, human rights, criminal procedures, ethics, team building, duties and responsibilities of a security guard. Kashihakumwa called on security guard company owners to send their personnel for training and first to consider the academy’s graduates for future employment, adding that he will ask the Ministry of Safety and Security to standardize security training for all its security employees in future. “Don’t get me wrong, I am not trying to play monopoly but anyone can come up with a similar institution. This is all in favour of our country’s safety and security,” he said. The training and screening of security guards for private security companies will help the companies employ reliable and reputable personnel who will create a good image for such companies. Apart from people that are already employed, unemployed persons between the age of 18 and 60 that are willing to pursue a career as a security guard can also register for the one-month course. INVITATION FOR BIANNUAL BIDS 1. BID NUMBER: A10/1-37/2017 – OMAHEKE REGION DESCRIPTION: CIVIL AND STRUCTURAL MAINTENANCE,RENOVATION, REPAIRS AND MINOR NEW WORKS AT GOVERNMENT BUILDINGS 2. BID NUMBER: A10/1-19/2017 – OMAHEKE REGION DESCRIPTION: MAINTENANCE, RENOVATION, REPAIRS AND MINOR NEW WORKS ON LOW TENSION INSTALLATIONS FOR GOVERNMENT BUILDINGS CLOSING DATE: 18 JULY 2017 AT 11H00 BID DOCUMENTS: AVAILABLE AS OF 15 JUNE 2017 AT THE OMAHEKE REGIONAL COUNCIL HEAD OFFICE IN GOBABIS ROOM 109 LEVY: CONTACT PERSONS: DELIVERY ADDRESS: N0 NON-REFUNDABLE PAYABLE TO OMAHEKE ORC SETTLEMENT RECEIPTS ACCOUNT 3001442601 BANK WINDHOEK, GOBABIS OR CASH PAYMENT AT THE FINANCE OFFICE MR E.J.S. MATJILA (Technical) +264 62 577 101 MR S.W. IMASIKU (Administrative) +264 62 566 500 DIRECTLY INTO THE BID BOXES AVAILABLE AT OMAHEKE REGIONAL COUNCIL HEAD OFFICE IN GOBABIS ROOM 120