16 FARMERS Tuesday, August 15 2017 | NEW ERA Cash-strapped farmers unable to stage Okamatapati Show Staff Reporter Windhoek Consecutive droughts have left Ongombe Farmers A s s o c i a t i o n ( O FA ) paralysed and unable to stage the 29 th Okamatapati Show – the annual highlight for more than 600 communal farmers and their livestock. Confirming the sad news to communal and emerging farmers, chief organiser of the show Albert Tjihero told Farmers Forum that the financial burden on communal farmers has just become too much after consecutive droughts since 2013. “Circumstances beyond their control have made it extremely difficult for members of our association to rebuild stocks and the current financial crisis has left most of them cash-strapped and simple unable to face more expenses by transporting their animals to either Windhoek or Otjiwarongo for the annual Okamatapati Show,” Tjihero said. He added that the OFA has since 2013 been warning against this very unfortunate situation by appealing to commercial farmers and all roleplayers in the meat industry to support the OFA in its endeavour to stage the show annually and make it an event Namibians will be proud of. “We have since then struggled to get financial support from sponsors, but times are tough for everyone and we had to cancel the event. The Windhoek Show Society demands up-front payment of some N,000 to make use of its facilities and on top of that farmers have to transport their animals to the capital at great expense and provide feed for an entire week. “The OFA faced a tight budget having to raise more than N0,000 for the show to take place. It’s just not possible to expect that from them in these trying financial times,” Tjihero states. The OFA was established in July 1983 and has been a major influence as a mouthpiece for communal farmers ever since. Tjihero says communal and emerging farmers have shown extraordinary commitment and dedication in ensuring the annual show takes. The Okamatapati Show and its organisers made headlines at the end of the show in 2013 at the Windhoek Show Grounds when they were shown the door by the Windhoek Show Society (WSC) and forced to stage its annual show in Otjiwarongo in 2014. But the show returned to Windhoek in 2015 and 2016 after burying the hatchet with the WSC. The WSC accused exhibitors at the Okamatapati Show of damaging the infrastructure during their first show at the Windhoek Show Grounds in 2013. “In this changed and weakened landscape, we need Namibian farmers to stand shoulder to shoulder and face the challenges. We need each other more than ever before and I therefore find it strange that some white farmers still regard most black farmers as inferior. Ironically, most of these white farmers have inherited good farmland, unlike most black farmers who had to wait for affirmative action and resettlement farms,” Tjihero notes. He adds that the government must also come to the party. “While I urge white farmers with lots of land to make available something for potentially excellent black farmers, I also urge government to stick to their promises of land reform and speed up the process. Another disturbing fact is the amount of farmland in the hands of foreigners. It’s absurd,” he observed. Photo: Contributed Tough times… Chief organiser of the Okamatapati Show Albert Tjihero has confirmed that this year’s event is off due to cash-strapped communal farmers not being able to afford to transport their animals to the show in Windhoek. The Cash Cow of Africa (Part I): Dairy On a recent visit to Rwanda, I made a visit to a few grocery stores and found the milk section lacking, except in Nakumatt, which situates itself within the market as a high-end grocery store chain. On the same trip, Uganda provided the same story. This is no surprise when you look at the statistics for milk consumption for East Africa. Kenya leads the pack with 120 liters per capita annually for milk consumption, which is 89 liters below the recommended amount from the World Health Organization (WHO). Uganda, Tanzania, and Rwanda record anemic annual per capita consumption numbers of 53 liters, 42 liters, and 38 liters, respectively. Ethiopia consumes a measly 20 liters per capita, which is 180 liters below the recommended 200 liters. The dairy industry is garnering the attention of private equity investors who see its growing demand in Africa in the face of insufficient capacity and its cash generative value in conjunction with beef. This week’s Fast-Moving Consumer Goods (FMCG) coverage will be a double article, with the first part about dairy in Africa and the second part about beef in Africa. The issue of dairy in Africa involves a plethora of factors that cannot be completely synthesised into one story line. For example, capacity is a mixed bag of facts. According to a recent survey by East Africa Dairy Development (EADD), there is a surplus of 52 million litres of milk in Rwanda, which experts forecast to increase over time. At the same time, this number doesn’t indicate how much of those 52 million litres of milk is of the processed form and how much is unprocessed. According to the Dairy Development manager for the Dairy Development Authority (DDA), Dr Robert Wangoola, Uganda produces between 1.5 billion and 1.8 billion litres of milk annually, but only 10 percent to 15 percent of the milk is processed. With consumption levels hovering around 11-15 litres per capita annually in Ghana and Nigeria, capacity has yet to even be tested, particularly for the processed milk, which is a major differentiating factor (as I have gotten sick a few times from unprocessed milk in a couple West African countries). While country-by-country consumption of Africa is a convoluted story, one uncontested truth is the demand for milk is growing across the continent. A recent survey published by global packaging company Tetra Pak is projecting Africa to see an increase of more than 50 percent in liquid dairy consumption, growing from 15 billion litres in 2010 to almost 25 billion liters in 2020. Milk consumption in Africa is currently the lowest in the world, around 37 litres per capita annually, which is 67 litres below the world average of 104 litres per capita and only accounts for six percent of world consumption. The growth, however, will come at the expense of “loose milk”, which is unpasteurised milk sold in cans and/or bags. Dairy farming in Africa. Accordingly, this implies more imported pasteurised milk until local production can develop the technology and packing capability to meet demand. West Africa has many examples of high dairy importing, with some countries importing USD 13 million to USD 20 million of pasteurized milk (i.e., Mali, Niger), negatively impacting trade balances. The second uncontested truth is that cows are in abundance on the continent. However, that truth is coupled with the troubling reality of poor utilisation of cows. In some sub-Saharan African countries, cows produce below 200 litres of milk per year, compared to over 12,500 litres per cow in some developed countries. For example, Kenya has the cattle population of South Africa, yet it reports milk production numbers that are not even close to what you would expect given its cattle population. The cause of these abysmal results in sub-Saharan Africa is generally low technology via the absence of any credits or subsidies to help investment in such technology. Accordingly, many dairy farmers in sub-Saharan Africa fail to enter the processing aspect of the dairy business where most of the value is added. It is this capital expenditure gap that many private equity investors seek to fill, coupled with assistance on building a dairy farmer’s processing capabilities and the expansion of its dairy product offerings (need I emphasize the potential for flavored milk?). Still, achieving commercial scale requires overcoming many risks and challenges. First, location is extremely important, especially where infrastructure for transportation is insufficient. This issue is exacerbated in countries where refrigeration and energy is generally lacking. Transportation costs and the fluctuation in fuel prices ultimately test the resilience of most local farmers. Secondly, breeding is a complex process that not all local dairy farmers are adept, usually from the lack of exposure to other dairy farmers across the country and beyond. Mobile phones and the internet will play a role in changing this. Third, disease and parasites always threaten the cow and the milk. Drift from nearby dairy farms could immediately cause loss of livestock, contamination of milk or, most extreme, the end of the farmer’s Photo: technoserve.org business. Without the veterinary support afforded dairy farmers in developed countries, dairy farmers face more uncertainty in maintaining the health of their livestock. Fourth, feed stock for the cow is a major counter factor to the growth and health of the cow. Investors can play a major role, generally through the utilisation of their network of technical advisers. The utilisation of membership in regional organizations offers opportunities for regional export and capitalisation on the differing (and higher) prices in certain countries as compared to the local economy. For private equity investors, there are also huge social impact opportunities. Milk is a strategic factor in the growth of the agriculture sector and the movement of populations out of poverty. The development of the dairy sector will combat malnutrition as well as put money in the pockets of smallholder farmers that account for a large percentage of the industry. Many readers may argue that milk and accompanying dairy products (i.e., cheese, yogurt, etc.) are not a big part of many African diets. However, this point is muted by the “Got Milk” campaign in the U.S. and similar campaigns in Rwanda and Kenya. The nutritional benefit of dairy consumption is a proven fact. Any investment in a dairy farmer will best be maximized by coupling it with a strategic campaign to build awareness of the benefits of dairy consumption and to build the brand. In the end, dairy consumption will increase as incomes grow and mindsets change. An investor best never limit their focus to solely liquid milk because, as cultures change with exposure and tastes expand with globalization, the African palate will require more milk and related dairy products to satiate its desires. – Africa.com
Tuesday, August 15 2017 | NEW ERA 17 TENDER INFORMATION As an added bonus for our readers we will publish the results of all tenders opened in public from Mondays to Thursdays on a regular basis. This information is noted and reported by a New Era Reporter Closing at City of Windhoek 05 July 2017 Windhoek Jazz Festival Forty quotations were received for the provision of services for the 2017 Windhoek Jazz Festival to the City of Windhoek when tender nr. NCS/RFQ/COW-09/2018 closed at Windhoek City Council’s Town House Complex in Windhoek at 11H00 on Friday, 07 July 2017. Bids as announced for: 1. Usi Hoeseb Communications 8 058.25 2. Chama Trading Enterprises item 1 735.00 item 2 410.00 item 3 789.25 3. M & M Special Security item 1 004.00 item 2 000.64 4. Celebration Events item 1 800.00 item 2 194.00 5. Radiant Trading Enterprises 4 853.58 6. Collective Productions 2 357.10 7. DB Audio Namibia 8 259.60 8. Funky Food and Cleaning Services No bid provided 9. Mikel Jes Music Production 354 685.73 10. Azul Design and Advertising 3 378.00 11. Innovation Clear Span item 1 4 207.15 item 2 062.50 12. I-Gift & Pro-Safe Clothing 5 017.50 13. Vutes Trading .25 14. Sabati Investments No bid provided 15. LM Investments 000.00 16. Warrior Special Services item 1 506.00 item 2 506.00 17. Fimau Trading 340.00 18. Stay Today Books Namibia item 1 500.00 item 2 000.00 item 3 500.00 19.Sukoro Productions Studio item 1 052.50 item 2 310.00 20. Busby Promotion item 1 6 126.51 item 2 9 173.91 21. Ogilvy & Mather Namibia 03 141.66 22. Mango Media Solutions 250.00 23. Fradays Investments No bid provided 24. Diana Amunyela 325.00 25. Tao Sony Kitchen Corp item 1 0 000.00 item 2 000.00 item 3 500.00 26. Muningando Investments item 1 475.00 item 2 154.90 item 3 470.00 item 4 095.50 27. Christian Stiebahl 000.00 28. Off Limits Communication Namibia item 1 6 672.85 item 2 875.00 item 3 170.00 item 4 717.50 item 5 4 747.50 29. Conference Link 8 220.00 30. Adforce 5 548.50 31. Optimistic Media Group 6 100.00 32. Majo 7 th Jazz Band 000.00 33. Lize Elhers 000.00 34. Suzy Eises 000.00 35. Elemotho 000.00 36. Power GP Investment 000.00 37. Sean K 000.00 38. ECK Music and Production Investments 500.00 39. Big Ben 000.00 40. Sigera Jazz Band 000.00 Closing at Telecom Namibia 11 July 2017 Mystery Shopping Services Two quotations were received for the provision of Mystery Shopping Services to Telecom Namibia when tender nr. NCS/ RFQ/TN-19/2017 closed at it’s Procurement Division at the Head Office in Windhoek’s Central Business District at 14H30 on Tuesday, 11 July 2017. Bids as announced for: 1. Cutting Edge Training Solutions and Consultancies 7 300.00 2. Business Intelligence Africa 650.00 optional item $ 700.00 Closing at Global Fund 18 July 2017 Braille Printing Services Ten offers were received for the translation and printing of the TB- Youth Magazine into Braille for the Global Fund Namibia when tender nr. GF018/2017 closed at it’s Offices in Windhoek (Levinson Arcade) at 11H00 on Tuesday, 18 July 2017. Tender prices and documents attached as announced for: 1. Zimutoma Investment 2 600.00; expired social security certificate and bank letter from Nampost attached. 2. Shatowa Investment 476 000.00; no sample provided 3. Island Investment 4 687.85; no sample provided 4. Namibia Office and Medical Supplies 131 140.00 5. Dial-A-Stationery and Medical Supplies 291 950.00; no sample provided 6. SGM Investment 8 000.00; certified copy of letter from bank and no sample provided 7. Executive Media Group 499 485.00 8. Power Two Investments 7 692.00 9. Allybaba Family and Investment Group 190 000.00 10. Provision Investment Group 9 130.00 Closing at Bank of Namibia Various tenders closed at the Bank of Namibia’s Head Offices at 71 Robert Mugabe Avenue in Windhoek at the respective dates and times indicated in brackets. EOI BON nr. 05/2017 (Wednesday, 12 July 2017, 12H00) Quality Assurance Services Seven expressions of interest were received for the provision of Quality Assurance Services to the Bank of Namibia. Bids as announced for: 1. Hieroglyphics no price found 2. Ernst and Young 0 000.00 (excluding VAT) for 150 hours 3. Delloite 4 346.00 (including VAT) for 70 hours 4. Cyan Commodity Sourcing no price found 5. Nammed Distributors no price found 6. KPMG 4 250.00 (including VAT; excluding disbursements) 7. Barclays Trading no price found BON nr. 05/2017 (Friday, 11 August 2017, 12H00) Printing Services Ten offers were received for the provision of Printing Services (printing of Annual Report and In-House-Newsletter) to the Bank of Namibia. Bids as announced for: 1. H-Thirty Three Investment 9 562.15 2. Performance Development Centre 4 337.57 3. Solitaire Press 0 410.00 for 500 copies $157 780.00 for 1 000 copies 420.00 per issue newsletters 4. Shipanga MN Trading 7 925.00 5. Creative Concepts 5 000.00 for 500 copies 8 000.00 for 1 000 copies 799.15 N/L 6. Lyambezi Investment 3 975.00 for 500 copies 5 950.00 for 1 000 copies 7. John Meinnert Printing 3 331.50 for 500 copies 6 112.25 for 1 000 copies 898.25 for 350 newsletters 8. Pratelova 6 125.00 9. After School Multi Media 0 800.00 10. Pont Marketing and Event 0 219.40 INTERPRETATION OF TENDER REFERENCES AS PER THE NEW PROCUREMENT ACT, 2015 Tender numbers starting with: ‣ ‘G’ are for the supply of goods ‣ ‘SC’ are for the provision of consulting services ‣ ‘NCS’ are for the provision of non-consulting services ‣ ‘W’ are for a “works” tender ‣ ‘RP’ are for the request of proposals ‣ ‘RFQ’ are for request for sealed quotations ‣ ‘EOI’ are for an expression of interest ‣ ‘ONB’ are for open national bidding ‣ ‘OIB’ are for open international bidding TENDER TIPS OF THE DAY Before submitting a tender, remember to first ensure compliance as to: WHAT: 1. Valid mandatory/obligatory documents are required? a). copy of company registration certificate or good standing certificate with the Ministry of Trade and Industry b). original, stamped certificate of good standing with Social Security Commission, bearing a date that is within the running period of the tender tendered for c). original good standing tax certificate from the Receiver of Revenue. If exempted from paying taxes, submission of written proof from the Receiver of Revenue d).close corporation certificate from the Ministry of Trade and Industry (if company is a close corporation) e). certificate of registration as a small medium enterprise from the Ministry of Trade and Industry (if company is a SME) f). certificate of registration as a black economic empowerment (if company is a BEE) g). tenderers who apply for the affirmative action price preferences must attach a valid Affirmative Action Certificate issued by the Employment Equity Commission 2. Are the pre-qualification criteria required (with proof)? a). quantity and quality of goods/products to be delivered or services to be rendered b). skills (capabilities), experience (similar projects completed satisfactory in a similar environment) and qualifications (e.g. civil engineering degree) c). support/advice/inputs/innovative ideas (during the project) or after sales services (e.g. when supplying vehicles, installing goods) d). track record (positive references from previous companies where completing similar projects) e). preference will be given to tenderers who tender market related prices and to companies with 51% Namibian ownership of which 30% shall be from previously disadvantaged groups (woman, racially disadvantaged, physically challenged) f). performance guarantee, tender security (bid bond) or letter of intend to spread the risks involved in the contract to a certain percentage, e.g. insurance against losses g). all tender prices must remain firm for the duration of the tender DEFINITIONS IN NEW PUBLIC PROCUREMENT ACT “procurement” means to obtain/get hold of goods, services, works, non/consultancy services by means of purchase (buying), rental, lease or hire-purchase “Minister” referred to in this Act means the Minister of Finance “public entity” means an office, ministry or agency of the Government, including: · A Local Authority · A Regional Council · A Public Enterprises as referred to in the Public Enterprises Governance Act · A body or trust that is owned or controlled by the Government, when engaged in any procurement individually or in a consortium and · An entity declared as public entity by the Minister of Finance “accounting officer” means the accounting officer of a public entity “bid” means an offer or proposal submitted in response to a request to supply goods, works or services, or any combination thereof, and, where applicable, includes any pre-qualification process “bidder” (tenderer/ contractor) means a participant in procurement or prequalification process, and includes a contractor “bidding document”- (a) means any document issued by a public entity on the basis of which bidders prepare bids; and (b) includes any document which contains instructions to bidders, specification, maps, designs, terms of reference, work schedules, evaluation criteria, bills of quantities, conditions of contract or other similar items DISCLAIMER: NOTE THAT NEITHER NEW ERA NOR THE TENDER BOARD IS RESPONSIBLE FOR ANY WRONG INFORMATION OR ERRORS.