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New Era Newspaper Tuesday July 18, 2017

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12 Inside BUSINESS

12 Inside BUSINESS Tuesday, July 18 2017 | NEW ERA Staff Reporter Windhoek Development Bank of Namibia (DBN) CEO Martin Inkumbi has reiterated the bank’s support for the manufacturing sector. The bank is currently engaged in a drive to stimulate the sector with finance, and is reaching out to existing manufacturers with expansion plans, and potential manufacturing start-ups. Inkumbi states that more consumption of locally manufactured goods is required to grow the local manufacturing sector. He adds that charity starts at home, and that to stimulate the sector, both public and private procurement policies and practices should give preference to goods that are produced locally. This has benefits such as local employment creation and also improving the country’s balance of payments. The cost of cheaper imported products can be much higher to the Namibian economy than the market price of that product, when lost employment opportunities and drains on the balance of payments are taken into account, he explains. Local value chains must be grown by procuring and consuming locally produced goods wherever possible. Inkumbi says that DBN believes that manufacturing can benefit from opportunities through import substitution, in line with The importance of financing the manufacturing sector NDP5 and the Growth-at-Home strategy. By seeking opportunities, and exploiting them, Namibian manufacturers can make progress towards achieving economies of scale. This will also be augmented by the ambitions of manufacturers to penetrate regional markets. Concerning regional markets, Inkumbi says although South Africa and Angola are experiencing recessionary economic environments, there are opportunities in other countries in the SADC. He says that economic contraction is a cyclical phenomenon, and that the upward trend of growth resumes in the long-term. He points out that a viable manufacturing enterprise will have the scope to increase its output in future, and encourages entrepreneurs with plans to initiate them now, rather than delay at the expense of future productivity. In addition to DBN finance applied to local start-ups and expansion, Inkumbi notes that the bank also makes the offer of trade finance. Regional expansion can be a costly exercise, however with availability of capital for expansion, cross-border ambition should be seen as an investment in long-term returns. Talking about the bank’s support to manufacturing, Inkumbi says that the DBN’s lending terms are competitive for manufacturers, however the bank has expanded its own philosophy to encompass support in the early application phase, as well as post-borrowing. In certain instances, where the bank identifies strong development impact potential, it will make available expertise and financial support for studies and knowledge gathering through its Project Preparation Fund (PPF). The aim of the PPF is to secure the viability of the project and seek means to mitigate risks prior to borrowing. The DBN also provides access to a network of consultant business professionals who assist with capacity development after lending. This can be used to develop skills or streamline and strengthen operations to the benefit of the borrower. Talking broadly about access to finance for manufacturers, Inkumbi says that manufacturing enterprises face challenges attaining the optimal financing mix. DBN’s experience indicates that manufacturing enterprises with a higher equity capital in the financing mix tend to do better than those funded solely with debt capital. Manufacturing enterprises require a longer period to achieve break-even, given the complexity of their environments and the need to secure markets for their products. Inkumbi also points out that the Bank may, at its own discretion, recommend a repayment holiday for manufacturers on interest, capital or both, depending on the requirement of the borrower, the project’s cash flow and factors which become apparent in the application assessment. Talking about indirect benefits to commercial sources of finance, he goes on to say strong manufacturing base will improve the economic ecosystem, and this will also improve long-term prospects for the financial sector, which is a good reason for all financiers to support manufacturing enterprises. He adds that the DBN will consider financial syndication to spread risks. This, however, must be supported by local procurement policies and practices, and financiers should encourage this among their own clients, in effect creating networks of procurement centered on the encouragement and policy of the provider of capital. If local consumers buy more local goods, this will result in higher sales revenues and better profitability for local manufacturers, which will makes it easier for local manufacturers to obtain finance from financiers. Addressing manufacturers directly, he said the bank has a sound track record in financing the manufacturing sector, which includes cement, food processing, manufacturing of plastic goods, printing and agri-processing. Since its inception, DBN has provided N.15 billion in finance to the manufacturing sector. Manufacturing requires vision and ambition, and the bank recognises this, and has started engaging local manufacturers to better understand their challenges in raising capital. Manufacturers who have ambition and plans should make use of the bank’s open door policy, and expect more, Inkumbi advised. SMEs can weather the storm of uncertainty Dennis Isaacs Business is not as usual in our current economy and financial institutions should support Namibia’s Small and Medium Enterprise (SME) sector to weather the storm of uncertainty. As part of their vital role to the economy, Namibia needs SMEs and we want them to emerge better, stronger and wiser on the other side. Economic times are tough and like any other sectors SME’s are also feeling the pinch. Not only attaining the much-needed startup capital is an ongoing challenge for small businesses, but also getting that foot in the door with an affordable loan that can help them grow their businesses further. Although dealing with unfavourable environments like these can be part of the challenge, Staff Reporter Windhoek The Eurowings long-haul offering continues to grow. Last week one of the low-cost airline’s Airbus A330 aircraft took off for the first time en route to Windhoek. The passengers on the almost fullybooked plane departed from Cologne/ Bonn’s Konrad-Adenauer airport punctually at 22h55 and touched down Hosea Kutako International Airport after about ten and a half hours of flight time. In future, the route will be operated every Wednesday and Sunday, then one needs to remain focussed and determined to know how to weather the storm. One thing is certain, you cannot continue doing business the same way when times were good and business came easily. You have to do things differently to get different results and its advisable to make these decisions sooner rather than later. Small businesses should look out for mechanisms and tools that they can use to grow into larger enterprises. It is about making business leaner and more efficient in its operating model, while identifying your core business areas, see where you can get more value for your business through meaningful partnerships, networking and continuously strive on effective ways of doing business. from October 9, the Sunday flight from Cologne to Windhoek will change to Monday. Eurowings’ long-haul flights are more than 90 percent booked. As a result, the low-cost long-haul offering is a success story that the airline will continue to expand sustainably in the future. With the expansion of long-haul from Munich, flights can now be booked from southern Germany to Windhoek online via the internet ( The first flight from Munich departs in May 2018. The airline also offers additional connecting flights from many German and European airports, enabling travellers from other regions. For instance, instead of focussing too heavily on the current challenges, look at the opportunities of growth and empowering yourself with financial knowledge and seek financial or business advice as this will empower you to make the right decisions during challenging times. By doing this self-reflection process it will in fact make you realise why you didn’t do business like this all along. At the same time look for a virtual way of banking your business, as electronic transactability makes money easily transferrable and get in touch with doing business with your clients through self-service banking channels like Internet Banking, Mobile Banking, Smart Banking and getting an appropriate App for your tablet. The benefit of this way of banking is that online transactions are predominantly provide a secure and convenient enabling environment for your business to grow. Grow your money faster with a business savings account, as interest earned on a such an account is higher than on a regular business current account. At the same time, you can also have immediate access to your funds when you need it while attracting monthly interest. Look out for loans that can support your business in achieving long-term financial goals. Also ensure that your monthly instalments are aligned to your business cash flow and that your loan funds can be linked electronically to your business account, so you can transfer funds electronically from your current account. In a nutshell, there are usually two reasons why businesses don’t succeed. Either they do the same thing or they only do new things. A successful business keeps a healthy balance of both sides by harvesting your crops and planting new seeds of opportunities. In tough times take a look at which lines of business are most successful and those which are not. Seek a financial partner that understands your business, gives appropriate advice, connects you to the right opportunities, enables you to make and receive payments with ease and is always available and easily accessible. The lifeblood of all entrepreneurial businesses is about thinking innovative and to weather the storm by adjusting your gear differently in order to get back on your feet again. * Dennis Isaacs is Standard Bank’s head of enterprise banking. New Eurowings long-haul route between Cologne/Bonn and Windhoek Safe landing… The Eurowings Airbus A330 aircraft touched down at Hosea Kutako International Airport for the first time last week Photo: Contributed

Tuesday, July 18 2017 | NEW ERA Inside BUSINESS 13 Erongo Youth Career Exhibition gets financial boost OMARURU Local ownership allows for locally relevant decisions – Namsov Staff Reporter Windhoek Gerrie Hough Namsov Fishing, which is a majority-owned Namibian company with a board and management structure that is 90 percent Namibian, says local ownership allows for all operational activities to be controlled from their offices in Walvis Bay. This key point, says Namsov, ensures that business decisions and actions remain relevant to the economy and communities. “With our strategic partnerships, the Namibianisation process in place and expansion of assets, we have crafted our path to success with great care. At the core of NOTICE our company is a strong principle that the benefit of T our ASSESSMENT operations always ends FOR up in the THE hands of the Namibian people,” said Gerrie Hough, managing director ANDFILL of Namsov. SITE IN TSANDI, “This is our celebration to embrace the Namibian I REGION dream of growth and prosperity, a company that remains driven to make a strong generational impact and s cc a company (NEC) that, hereby above all, give strives notice to ensure to all no Namibian arties (I&APs) is left behind,” that Hough an application added. will “It is our resolve to remain a key player in the ssioner development in terms agenda of of the Namibia Environmental through our commercial 7) and efforts. the There Environmental is surely no history Impact that is perfect and no entity that can claim such. However, there f 6 is February no better time 2012) than now for to the dig our following heels in deeper and find ways to evolve and partner together to take our development agenda to the next level.” Namsov Fishing Enterprises, built on the existing ite of Tsandi marine and commercial legislation, acts and regulations that provided a conducive business environment, usati Region now employs 649 people and has investments PUBLIC with an NOTICE estimated value of N.1 billion. MENTAL “Our role IMPACT as a responsible, ASSESSMENT efficient FOR THE ject will comprise out of the following and honest company UCTION OF ensures A LANDFILL that Namibians SITE IN TSANDI, are employed, communities OMUSATI are empowered, REGION and our industry value directly and indirectly benefits those within our ental Consultants cc (NEC) hereby give notice to all ecosystem ted and Affected as a Parties result (I&APs) of our that continued an application existence,” will Hough said. ironmental Commissioner in terms of the Environmental cil t (No 7 of 2007) and the Environmental Impact ulations (GN 30 of 6 February 2012) for the following PUBLIC NOTICE ENVIRONMENTAL IMPACT ASSESSMENT FOR THE PROPOSED TOWNSHIP ESTABLISHMENT OF ONDJOZE : Tsandi Landfill Site of Tsandi EXTENSION 2, OMARURU, ERONGO REGION TION: Namibia Tsandi, Environmental Omusati Consultants Region cc (NEC) hereby give notice to all potentially Interested and Affected Parties (I&APs) that an application will RIPTION: be made to The Environmental project will Commissioner comprise in out terms of of the following Environmental Management Act (No 7 of 2007) and the Environmental Impact Assessment Regulations (GN 30 of 6 February 2012) for the following n of activity: a Landfill Site : andi Namibia Village Council Environmental Consultants PROJECT NAME: Township Establishment of Ondjoze Extension 2, Omaruru UBMISSION OF COMMENTS: PROJECT LOCATION: Ondjoze Township - Omaruru, Erongo Region PROJECT DESCRIPTION: The project will comprise out of the following 7 four activities: l Management • Township Establishment Act of Ondjoze (No. Extension 7 of 2 in 2007) Omaruru and PROPONENT: Omaruru Municipality ry 2012), all I&APs are hereby invited aditional Authority Public Meeting nts, L Date: CONSULTANT: 21 concerns July 2017 Namibia or questions. Environmental Consultants All I&APs Time: 11h00 OF I&APS AND SUBMISSION OF COMMENTS: nformation Document (BID) consisting Venue: Omaruru Community Hall ia’s Environmental Management Act (No. 7 of 2007) and ENVIRONMENTAL CONSULTANT: Namibia Environmental Consultants development N 30 of 6 February 2012), activity. all I&APs Should are hereby you invited wish REGISTRATION OF I&APS AND SUBMISSION OF COMMENTS: ct Namibia Environmental Consultant bmit their comments, concerns or questions. All I&APs ith a Background Information Document (BID) consisting rmation about the development activity. Should you wish I&AP, kindly contact Namibia Environmental Consultant tails below: In line with Namibia’s Environmental Management Act (No. 7 of 2007) and EIA regulations (GN 30 of 6 February 2012), all I&APs are hereby invited to register and submit their comments, concerns or questions. All I&APs will be provided with a Background Information Document (BID) consisting of descriptive information about the development activity. Should you wish to register as an I&AP, kindly contact Namibia Environmental Consultant on the contact details below: 13 7757 Email: Tel: +264 (0) 81 Tel: 613 +264 7757 (0) Email: 81 613 7757 CLOSING Email: DATE FOR COMMENTS: 31 July 2017 CLOSING DATE FOR COMMENTS: 31 July 2017 MMENTS: 29 May 2017 G DATE FOR COMMENTS: 29 May 2017 Erongo Marine Enterprises on Friday donated N0,000 to the third Erongo Regional Youth Career Exhibition held in Omaruru. Managing director of the horse mackerel fishing company, Martha Uumati, during the handover said the career exhibition demonstrates the youth’s efforts to bring about their own transformation and empowerment. The exhibition is organised by the Erongo Youth Forum. Uumati said the company’s corporate responsibility contributions include financial assistance to various schools in the region, as well as infrastructure development in the form of classrooms and school halls. Erongo Marine Enterprises recently sponsored the studies of Simon Petrus, a young inventor at the Windhoek Vocational Training Centre. Petrus received N5,000 for his 2016 invention of a mobile phone that operates without a SIM card and does not require airtime to make calls. She handed the donation to the exhibition’s patron, Deputy Prime Minister and Minister of International Relations and Cooperation, Netumbo Nandi-Ndaitwah. Deputy Minister of Public Enterprises, Largesse… Deputy Prime Minister and Minister of International Relations and Cooperation Netumbo Nandi-Ndaitwah (right) receiving the donation from Erongo Marine Enterprises’ managing director Martha Uumati when Erongo Youth Forum hosted its 3rd Erongo Regional Youth Career Exhibition in Omaruru on Friday. Engel Nawatiseb, in a speech read on his behalf at the event called on young people to grow the economy by MARKET OVERVIEW venturing into technical professions as the country needs technical skills. – Nampa Money Market Change Latest Selected NSX Stock 3 months 0.00% 7.34% Symbol Stock Name Spot % Move 6 months 0.00% 7.83% CGP CAPRICORN INVESTMENT GROUP 1800 0.00% 9 months 0.00% 7.98% NBS NAMIBIA BREWERIES LTD 3365 0.00% 12 months -0.01% 8.18% BVN BIDVEST NAMIBIA LTD 787 0.00% Bonds Change Latest FNB FNB NAMIBIA HOLDINGS LTD 4680 0.00% GC17 (R203 : 7.47%) 0.16% 8.14% ORY ORYX PROPERTIES LTD 2071 0.00% GC18 (R204 : 7.42%) -0.02% 8.33% NAM NAMIBIAN ASSET MANAGEMENT 72 0.00% GC21 (R208 : 7.63%) -0.05% 8.45% NHL NICTUS NAMIBIA 200 0.00% GC24 (R186 : 8.63%) -0.05% 9.85% BMN BANNERMAN RESOURCES LTD 27 0.00% GC27 (R186 : 8.63%) -0.05% 10.24% DYL DEEP YELLOW LTD 284 4.80% GC30 (R2030 : 9.18%) -0.03% 10.85% SILP STIMULUS INVESTMENT LTD-PREF 12129 0.00% GC32 (R213 : 9.26%) -0.03% 10.97% FSY FORSYS METALS CORP 128 -4.48% GC35 (R209 : 9.53%) -0.02% 10.96% TUC TRUSTCO GROUP HOLDINGS LTD 430 0.00% Commodities %Change Latest B2G B2GOLD CORP 3541 2.58% Gold 0.52% $ 1,235.03 Platinum 1.18% $ 932.18 Copper 0.00% $ 5,926.00 Brent Crude -0.41% $ 48.38 Main Indices %Change Latest NSX (Delayed) 0.45% 1063.66 JSE All Share 0.20% 53,702.56 SP500 0.47% 2,459.27 FTSE 100 0.29% 7,399.62 Hangseng 0.31% 26,470.58 DAX -0.39% 12,582.51 JSE Sectors %Change Latest Financials 0.33% 15,017.76 Resources 0.31% 32,473.62 Industrials 0.07% 72,909.66 Forex %Change Latest N$/US dollar -0.82% 12.9282 N$/Pound -1.00% 16.8994 N$/Euro -0.88% 14.8214 US dollar/ Euro -0.05% 1.1464 Namibia Monthly Data Latest Previous Namibia Inflation (Jun 17) 6.1 6.3 Bank Prime 10.75 10.75 BoN Repo Rate 7.00 7.00 17-Jul-17

New Era

New Era Newspaper Vol 22 No 167