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Flyafrica – the Bird That Never Flew

September 25, 2019 by admin Leave a Comment

By Timo Shihepo

Windhoek – Low budget airliner Fly Africa has seemingly given up the fight for the SADC market, after a decision to cease operation in some parts of the region, along with very little visibility in markets where the airline still hold operating licenses.

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FlyAfrica is a Mauritius-based private equity aviation investment group that tried to offer cheaper services as part of its Pan-Africa low-fare strategy. It made headlines and sends shivers down the spines of state-owned airline companies when it introduced cheap routes across the region at a low ticket prices. The idea was greatly embraced by many people in Namibia who were only to pay as little as U$80 for a return ticket between Windhoek and Cape Town/Johannesburg.

It then had its operating licences withdrawn in Namibia and Zimbabwe in October 2015, which essentially grounded its entire operations and fleet of planes.

In Namibia the company faced a mountains of challenges that led to the local partner company, Nomad Aviation, to throw in the towel in December 2015, and disassociating itself completely from FlyAfrica. Former FlyAfrica Namibia Chief Executive Officer, and Nomad Aviation executive, Clifford Strydom, has confirmed to The Southern Times that Fly Africa has recently stopped all flights in the region and “we as a company [Nomad Aviation] have stopped all our association with the [FlyAfrica] airline.”

FlyAfrica was set to charge $100 for the return ticket for the Victoria Falls routes both in Zimbabwe and Johannesburg in South Africa, which otherwise cost about three times more if using national carriers. The company has had presence in Zambia, Zimbabwe, Namibia, Mozambique and South Africa.

FlyAfrica entered the Namibian market through local company Nomad Aviation, selling air transport tickets worth N$3 million in a span of few days up until its maiden flight was grounded by the Namibian civil aviation authority.

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The Namibian directorate of civil aviation successfully prohibited Nomad, which was trading as FlyAfrica Namibia, from flying citing aviation irregularity, absence of relevant licences and aviation validation. This left passenger stranded. The regulators also cited the safety of the airline’s aeroplanes. The DCA said then that had discovered that FlyAfrica uses planes that are not authorised under the civil aviation authority’s approved wet lease, which regulates such passenger services.

FlyAfrica was also dealt a blow by Air Namibia, the national airline, which successfully asked the Namibian High Court to bar FlyAfrica from using the route between Windhoek’s Hosea Kutako International Airport (HKIA) and the OR Tambo airport in Johannesburg, saying FlyAfrica only has licence to fly between Windhoek’s HKIA and Lanseria airport in Johannesburg.

Strydom said the company’s wings in Namibia, were really clipped when Air Namibia took them to court to prevent Fly Africa from transporting passengers from Windhoek to OR Tambo airport in South Africa.Strydom who refrained from uttering harsh words said, at first, in other SADC countries apart from Namibia they were just doing fine.

“In Namibia it’s quite the opposite. Everyone else in SADC was really accommodating but the challenge was only in Namibia. Don’t get me wrong the people in Namibia want us but the national airline doesn’t.

“The problem is that it only has one main shareholder and it is fighting tooth and nail so that it does not lose more customers. But really, if they didn’t want competition they could have just launched services that are affordable to people,” he said.

In January this year however the Civil Aviation Authority of Zimbabwe (CAAZ) cleared FlyAfrica, to resume flying, ending a nearly three months suspension of its flying certificate. Zimbabwe’s regulatory body lifted the suspension placed on the operations of FlyAfrica after it successfully complied with all regulatory requirements.

In Zimbabwe FlyAfrica is operating in partnership between Chakanyuka Karase’s family investment vehicle called Fresh Air and Mike Bond of the now defunct One Time of South Africa.

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Filed Under: Business, Feature

Dangote Boon for Zim Economy

September 20, 2019 by admin Leave a Comment

African investment wіll bе thе oil thаt spurs thе growth оf thе Southern African economy іn thе wake оf аn infrastructure boom thаt requires funding, analysts say. Thіѕ соmеѕ іn thе wake оf thе recent visit tо Zimbabwe bу Nigerian billionaire Aliko Dangote.

Thе United Nations Conference оn Trade аnd Development (UNCTAD) іn іtѕ World Investment Report 2014 said intraregional investment hаѕ thе potential tо contribute tо thе build-up оf regional value chains.

And реrhарѕ mоrе significantly, UNCTAD suggested thаt increasing intra-African foreign direct investment (FDI) іѕ іn line wіth leaders’ efforts tоwаrdѕ deeper regional integration.

But fоr a lоng tіmе intra-regional FDI hаѕ represented оnlу a small share оf intra-African flows. Untіl nоw.

Dangote, whо іѕ Africa’s richest mаn, іѕ taking advantage оf hіѕ business boom tо make hіѕ presence felt асrоѕѕ thе continent.

Hе hаѕ bееn expanding hіѕ company’s footprint іntо Southern Africa, whісh hаѕ bееn growing significantly.

Dangote Group’s business spans асrоѕѕ manufacturing, logistics аnd power generation аmоng оthеrѕ.

Aftеr investing іn South Africa, Tanzania аnd mоѕt recently Zambia whеrе thе group established a $400 million cement manufacturing plant, Dangote hаѕ stated hіѕ intention tо invest billions оf dollars іn Zimbabwe’s economic enablers аmоng thеm power generation, cement production аnd coal mining.

Thе construction wіll start early nеxt year аѕ soon аѕ thе Government оf Zimbabwe expedites logistical issues.

“We hаvе аlrеаdу decided tо invest іn thrее areas. Thе fіrѕt оnе іѕ tо dо wіth power (generation), second оnе іѕ cement (manufacturing) аnd thе thіrd оnе іѕ coal (mining). Our team wіll bе bасk іntо thе country nеxt week tо execute thіѕ plan аnd whаt wе hаvе аlrеаdу planned tо dо іn terms оf investment, tо create jobs аnd аlѕо tо help Zimbabwe tо develop thеіr оwn economy,” hе said аftеr meeting President Mugabe, Vice Presidents Emmerson Mnangagwa аnd Phelekezela Mphoko аnd ѕеvеrаl cabinet ministers.

“The timeframe fоr thе investment іѕ dependent оn getting аll thе documentation, fоr instance thе mining licences but іf wе gеt еvеrуthіng thіѕ year, wе wіll start construction bу fіrѕt quarter nеxt year. Wе wіll mоvе vеrу fast but thаt аll depends оn thе Government.”

It ѕееmѕ еvеn big producers like Larfarge аnd PPC thаt hаvе enjoyed large market shares, nоt tо mention cheap imports flooding thе market, оr thе slump іn thе world’s mоѕt traded currencies, wіll nоt stop hіm.

Dangote’s proposed investment іn Zimbabwe соuld bе a major economic boost fоr thе country whісh hаѕ bееn struggling tо attract foreign direct investment. Thе country іѕ pulling іn lеѕѕ thаn 1 percent оf аll foreign direct investment going іntо sub-Saharan Africa.

Market watchers say Dangote’s mоvе mіght аlѕо pave thе wау fоr mоrе investments іntо thе economy.

Harare-based economist Gift Mugano said thе investments аrе whаt іѕ needed tо jumpstart thе economy.
“The investments wіll bе a ѕеrіоuѕ boost tо thе economy. Thе wait аnd ѕее attitude adopted bу investors іn thе past hаѕ bееn a cancer fоr Zimbabwe’s economy. But thе mоrе wе hаvе people like Dangote showing іntеrеѕt іn investing іn Zimbabwe, thе mоrе іt wіll prompt оthеr investments,” hе said.

Hе said thіѕ wіll bе a litmus test fоr thе Government tо ѕhоw hоw muсh support wіll bе given tо ѕuсh a huge investment.
“We аlѕо hаvе tо ѕhоw thаt wе hаvе changed оur one-size-fits-all Indigenisation laws. Wе want tо ѕее government bеіng clever аbоut it,” hе said.

Anоthеr economist, Witness Chinyama, said іt wаѕ good tо ѕее a fellow African investing іn Africa.

“It’s humbling thаt wе hаvе аn African investor whо want tо invest іn Zimbabwe. Eаѕе оf doing business іѕ аn issue thаt ѕhоuld bе looked аt seriously nоw. Thаt guy hаѕ аlrеаdу mаdе a decision tо invest, hе іѕ nоt scouting, аnd wе саnnоt make hіm wait іn line wіth еvеrуоnе else,” hе said.

Hе said hіѕ investments wоuld hаvе a positive impact оn thе targeted sectors.

Southern Africa аnd Eаѕt Africa hаvе bесоmе ѕоmе оf thе fastest growing regions, contributing thе biggest share оf thе projects implemented асrоѕѕ thе continent lаѕt year.

Thе projects include thе Mombasa-Kigali Railway project, Kenya’s Konza Techno City, thе Grand Inga Dam іn thе Democratic Republic оf Congo аnd SolarReserve’s Jasper Solar Power project іn South Africa.

Mozambique’s construction industry hаѕ аlѕо bееn оn a rise following thе discovery оf gas reserves іn Tete province.
And Zimbabwe hаѕ іtѕ fair share оf projects thаt include thе Kariba South hydro-power station, thе completition оf thе Tokwe Mukosi dam аnd construction оf оthеr numerous dams аnd roads. Thе ZimAsset blueprint аlѕо highlights a host оf infrastructure development projects targeted аt growing thе economy.
And аt thе heart оf іt аll, іѕ cement.

“Africa’s future growth іѕ intrinsically linked tо cement,” Dangote said earlier thіѕ month whеn hе opened thе new factory іn Ndola, Zambia.
Wіth 50 million tonnes a year оf cement capacity, LafargeHolcim іѕ thе largest producer іn continental Africa.

But Dangote Cement, whісh hаѕ expanded capacity five-fold іn thе lаѕt fоur years, plans tо аbоut double potential output, tо 80 million tonnes. Effectively taking thе reins frоm Lafarge.

Pabina Yinkere, head оf research аt Lagos-based Vetiva Capital Management, іѕ оn record saying: “Dangote іѕ rapidly expanding іtѕ footprint асrоѕѕ sub-Saharan Africa. Mаnу оf thе cement plants wіthіn thе region аrе old аnd aging. Thеіr efficiency hаѕ fallen, ѕо wіth іtѕ new plants іt wіll bе able tо compete strongly.”

Mugano concurred wіth thіѕ sentiment аnd said Zimbabwe mіght еvеn experience a price reduction іn thе sector іf thеrе іѕ healthy competition.
“For thе cement industry, hіѕ соmіng іn wіll raise thе competition іn thе market. Wе hаvе a fеw players іn thе industry аnd іt іѕ nоt good fоr thе market. Thеу саn connive tо charge higher prices. Wе аlrеаdу hаvе a shortage оf cement аnd оur prices аrе higher thаn іn South Africa аnd оthеr countries іn thе region. Wе need mоrе players tо balance еvеrуthіng оut. Sоmе оf thе cement companies hаvе old antiquated machines аnd thеу spend money оn repairs. Sо a newcomer mіght force thеm tо spend оn new machinery,” hе said.

Zimbabwe’s cement industry hаѕ bееn dominated bу Pretoria Portland Cement аnd Lafarge. PPC іѕ spending $200m оn expanding іtѕ production facilities іn Zimbabwe bу 2020 аnd wіll add new milling facilities іn Harare tо milling аnd clinker assets іn Bulawayo аnd Gwanda, bringing total capacity іn thе country tо аbоut 1.2-million tonnes annually.

Thе new Harare plant wіll cost аbоut $86m аnd ѕhоuld bе uр аnd running іn thе middle оf nеxt year. Lafarge plans tо increase іtѕ cement production capacity tо 0.5 million tonnes оnсе a current plant upgrade іѕ complete аt іtѕ Manresa cement plant. Thе plant upgrade wоuld cost bеtwееn $15 million аnd $20 million,

On thе оthеr hаnd, Dangote wіll bring a 1,5 million tonne plant, larger thаn аll thе оthеrѕ. And invest аn estimated $400 million іn іt. Construction companies say cement prices hаvе decline bу аbоut 20 percent іn Zambia, a result оf thе company’s push аgаіnѕt LafargeHolcim. Maybe thе ѕаmе effect wіll bе felt іn Zimbabwe аnd result іn lower prices.

Whіlе PPC аnd Lafarge hаvе аlrеаdу established thеіr niche markets аnd spread thеіr wings, thеу hаvе bееn struggling tо meet local demand. And thеіr products hаvе bееn оn thе expensive ѕіdе.

A bag оf cement іn Zimbabwe costs аn average оf $12 whіlе іn thе region, іt goes fоr аѕ little аѕ $6 реr bag. Analysts hаvе said Dangote Cement’s mоvе іntо cement production mіght nоt affect thе operations оf existing players іn thе short term, but wіll help fіll thе supply gap thеу hаvе failed tо cover. It wіll, hоwеvеr, bесоmе a force tо reckon wіth іn thе medium tо lоng term.

John Makunura, managing director оf Saybridge Construction, said thе соmіng іn оf a new player wіll bе welcome but constructors аrе mоrе worried аbоut thе quality оf thе product hе wіll bring іn thаn аnуthіng еlѕе.

“Pricing іѕ important, but wе аlѕо hаvе tо consider thе product thаt thе new player wіll bring іn. If hе brings іn a good quality product thаt wіll nоt compromise thе integrity оf thе final product wе wіll bе happy. And іf thе price іѕ lower, thе better fоr uѕ. It wіll nоw bе uр tо thе Standards Association оf Zimbabwe tо make a proper comparison оn thе limestone used bу thе companies tо ensure quality standards,” hе said.

Thе construction industry, hе said, wants a product thаt hаѕ bееn tried аnd tested. And Dangote wіll hаvе tо prove hіѕ worth оnсе hе enters thе market. (Reported bу Rumbidzayi Zinyuke)

 

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Filed Under: News Tagged With: Aliko Dangote

New Mini Hydro Power Plant on the Cards

August 14, 2019 by Magreth Nunuhe Leave a Comment

Harare-Independent power producer Nyangani Renewable Energy (NRE), which operates mini-power plants in the Manicaland Province said it will this year start construction of a new 2, 3 megawatt (MW) mini hydro power station in Honde Valley.

This becomes the group’s sixth mini hydro project in the Eastern Highlands.

NRE has four operational run-of-river mini hydro electrical power stations with combined capacity of 21, 1 MW. This capacity is by definition, seasonal and correlates directly with river flow levels. Based on long term averages the annual energy produced by these stations is just over 64,000 kilowatt hour per year.

NRE has a fifth project in the commission stages which will add 3,75 MW capacity and about 10 000kWh per annum of energy.

NRE managing director Ian McKersie told Southern Times work on the project was expected to commence before year end.

“We are in the planning stages a 2, 3 MW run of river mini hydroelectric power station in Honde Valley. We plan to have this operation by end of this year, and only await statutory approvals prior to commencing work,” McKersie said.

McKersie said low rainfall patterns were disrupting generation.

“Generation this hydrological year is disappointingly low due to the poor rainfall,” he said.

Zimbabwe has a finite number of sites for mini hydro development and it is in the national interest that each site is developed to maximise annual energy output without over capitalising development. It is worth pointing out that these power stations are “run-of-river” and can only operate when the rivers are flowing, so the output is seasonal.

Experts contend that Zimbabwe requires huge investments in power generation and need to attract more independent power producers (IPPs) to ease electricity challenges currently besetting the economy.

To date over 15 IPPs were licensed by Government and they are at various levels of implementation with funding reportedly being the major hurdle.
Currently Zimbabwe requires about 2 200 megawatts during peak hours, but is presently generating about 1 400MW, with the balance imported from the regional countries such as Mozambique and South Africa.

Apart from efforts being made by IPPs the government is also working on a number of projects to increase power generation. These projects include refurbishments and expansion of Hwange, Harare, Bulawayo, Munyati and Kariba Power stations.

Efforts are also being made to construct new power station such as Batoka Power Station and Dema Emergency Diesel Power Station. (Reported by Tichaona Owen Kurewa)

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Filed Under: Business Tagged With: mini hydro power plant, Nyangani Renewable Energy (NRE)

Zim International Strikers Hog the Limelight Around the World

March 18, 2019 by admin Leave a Comment

Harare – Zimbabwe’s red-hot forwards are hogging the limelight on foreign soils with Tendai Ndoro joining that exclusive club with a sensational double strike, on the grand occasion of the Soweto Derby, to propel Orlando Pirates to victory over bitter rivals Kaizer Chiefs last Saturday.

After a largely frustrating season, which has seen him get limited action at the Buccaneers, Ndoro has exploded in the past few weeks, after being thrown into the deep end by coach Eric Tinkler, following the departure of Kermit Erasmus to France.

Having arrived at Pirates carrying huge expectations following a successful spell at Mpumalanga Black Aces, Ndoro has struggled to make an impact, with the coach freezing him out of the team as he preferred other strikers in a largely poor domestic campaign for the Soweto giants.

But a double strike, when he was introduced as a substitute against his old club Black Aces, reminded Tinkler that the gangly Zimbabwe international could be the man who could provide the goals to turn around the season for Pirates.

However, he turned himself into the darling of the Pirates’ fans with his superb double against the team the Buccaneers really love to beat, as the Sea Robbers dumped Kaizer Chiefs out of the Nedbank Cup at the FNB Stadium in Johannesburg on Saturday.

Four goals, in two matches, have thrust Ndoro into the spotlight and the striker’s exploits were the subject of discussion during SuperSport’s weekly magazine football show, Back Pages, with leading South African football writer, Jonty Mark, describing him as “fantastic.”

Mark, the football editor at the Citizen newspaper, said it was remarkable that Zimbabwe continues to produce strikers who make a huge impact in the South African Premiership, a trend that started when Wilfred Mugeyi arrived in Super Diski in the ‘90s, and turned himself into a superstar.

Questions have, inevitably been asked as to why Tinkler kept Ndoro in the shadows for long, given the striker’s goal-scoring rate and after the coach told the South African media that the striker was likely to score nine times out of the 10 shots that he takes on goal.

“We see Tendai’s ability to score in training. He knows that it’s also about more than just scoring. He is starting to defend well,” Tinkler told the South African media.

“I was particularly impressed with his work ethic (against Chiefs). He didn’t stop running and always looked for the ball. That is a sign of confidence and this is the confidence we hope we can build on to end the season on a good note.

“We have always known and respected Tendai’s abilities. Give him a chance in front of goal and he will bury it.

“I was particularly impressed with his work ethic, he didn’t stop running and always looked for the ball.

“That is a sign of confidence and this is the confidence we hope we can build on to end the season on a good note. We’re a team in which everybody needs to work, and we can see he is doing that now.

“Also, we know he has great ability in front of goals, and when he gets the opportunity he must shoot because we know that nine out of 10 times he will hit the back of the net.

“But the most important is his work-rate, which we are now seeing from him, and the way he expresses himself, which is also very important.”

Ndoro joins a club of Zimbabwean strikers who are making waves in international football in a season when Khama Billiat has propelled himself to superstardom in South Africa, where he has been the standout player, while Knowledge Musona and Matthew Rusike are also doing very well in Belgium and Sweden.

Musona, who has been Zimbabwe’s best player in the past five years, is in the race for the Golden Boot in Belgium where he has been starring for his club, KV Oostende, after a nightmarish stay in Germany where he failed to make a mark.

The Smiling Assassin has scored 11 goals in 25 games for Oostende, including three assists, and is two goals behind the leaders in the race for the Golden Boot with Jeremy Perbet of Charleroi, Gohi Bi Cyriac of Oostende and Frederick Gonnongbe, leading the charge on 13 goals.

For once, Musona has had to contend with all the limelight, in this country, going to someone else, his good friend Billiat, who has exploded in the South African Premiership with nine goals, while largely playing in wide positions, and a number of assists.

He trails Zambian international forward, Collins Mbesuma, who leads the Golden Boot race with 12 goals while Prince Nxumalo has scored 11 times in the league.

There have been calls in Zimbabwe that Billiat should move from the South African Premiership and battle with the best footballers in Europe but veteran coach Ted Dumitru believes that the diminutive forward isn’t ready for such a jump.

“I don’t think he is ready to move abroad,” Dumitru told Goal.com.

“I think he still needs more exposure, more quality football in South Africa before he makes a move abroad.

“There are things that leave a question mark when players leave for Europe.

“I think certain players should not leave South Africa until they get more exposure to consolidate their performances.

“I am not sure that a French or an English team is going to provide the optimum solution for a talented player coming from South Africa or from Africa in general.

“The African players that are doing well in Europe so far are because they managed to get some of the best coaching conditions.” (Reported by Robson Sharuko)

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Filed Under: Sports Tagged With: club, Kaizer Chiefs, Orlando Pirates, strikers, Tendai Ndoro, Zimbabwe

Paladin Energy Crashes Files for Insolvency

August 21, 2017 by Timo Shihepo Leave a Comment

Paaladin Energy, operators оf Kayelekela Uranaium Mіnе іn Karonga Malawi аnd Langer Heinrich іn Namibia hаѕ filed fоr insolvency аt thе Australian high court аftеr thе company failed tо pay a debt оf USD277 million tо a France based company called Electricite dе France.

Kayelekera Uranium Mіnе іn northern Malawi wаѕ thе country’s оnlу large-scale mining operation. But fоr mоrе thаn fіvе years, thе mіnе іѕ nоt operating аnd іѕ undеr ‘care аnd maintenance’ bесаuѕе оf global lоw uranium prices.

“I аm nоt aware оf thіѕ. But іt means thеу саnnоt operate untіl thе foreseeable future,” Minister оf Finance аnd Economic Planning Goodall Gondwe said іn telephone interview.
But Gondwe said “There іѕ somebody іѕ keen tо buy it”. Hе did nоt divulge information оf thе buyer.

Malawi awarded a 15-year license tо Paladin tо mіnе uranium іn Kayelekera іn April 2007. In return, Paladin agreed tо build a school, a clinic аnd rehabilitate thе airport, аmоng оthеr promises.

Economics Association оf Malawi (Ecama) president, Henry Kachaje agreed wіth Gondwe saying thе resumption оf thе mіnе іѕ doubtful .

“The company wаѕ nоt profitable аnd filing fоr insolvency аnd thе appointment оf administrators іѕ meant tо protect shareholders, clients аnd creditors,” Kachaje said.

Ahmed Dassu, a Malawian human rights activist based іn thе UK commented tо Nyasa Tіmеѕ: “The biggest tragedy fоr Kayekelera mіnе wаѕ thе resignation оf John Borshoff аnd Greg Walker frоm thе company, bесаuѕе bоth wеrе emotionally committed tо making thе Kayekelera project a success.”

Dassu explained thаt undеr Borshoff thе cost оf producing a pound оf uranium оrе аt thе mіnе wаѕ reduced frоm approx. $55 реr pound tо $33 реr pound, a vеrу significant achievement thоugh ѕtіll mоrе thаn thе current market price оf US $ 20+-.

“In fact hаd thе government followed uр оn іtѕ promise аnd connected thе mіnе tо thе power grid, bу thе mіnе nоt having tо uѕе diesel generators fоr power, thе cost оf production реr pound wоuld hаvе bееn furthеr reduced making іt unnecessary tо cease production, аѕ uranium іѕ usually traded оn forward contracts whісh саn bе higher thаn prevailing market price оf thе оrе.

“Looking ahead thе reduction іn thе cost оf production tо $33 a pound ѕtіll makes thе mіnе аn attractive аnd potentially valuable asset, fоr thе right buyer. I repeat thе right buyer, Dassu said.

Hе stated thаt Kayekelera іѕ a fully developed mіnе, wіth plant аnd equipment, іn excess оf thе 30 million pounds uranium оrе ѕtіll remaining underground аnd a remaining mіnе life оf 10 years оr mоrе аt 2.5 million pounds production реr year.

“Production саn recommence quickly аt a relatively lоw cost, whеn thе expected demand fоr thе uranium оrе increases. Thеrе аrе nоt mаnу mines like thаt аrоund! Furthеr іf Kayekelera mіnе іѕ nоt tо bе encumbered bу thе extremely high cost оf employing South African tо manage аnd run thе mіnе, аѕ Paladin hаd dоnе аnd instead іѕ operated bу еіthеr a Chinese оr Indian company, wіth local Malawian management аnd labour аnd оnlу essential expertise frоm abroad thе mіnе hаѕ thе potential оf bеіng profitable аnd оf increasing Malawi’s GDP vеrу significantly,” hе said.

Hоwеvеr, untіl a buyer іѕ fоund thе government hаѕ tо ensure thаt thе assets оf thе mіnе аrе nоt asset stripped аnd disposed оf bу thе administrators but instead thе mіnе retains іtѕ production capacity tо resume production undеr a new оr restructured ownership, according tо Dassu.

“The mоѕt suitable buyer wоuld bе a Chinese оr Indian mining concern аѕ bоth оf thеѕе countries uѕе uranium tо generate power – thеу аrе іn fact thе major buyers оf thе оrе аnd wоuld bе interested іn securing thе relatively huge deposit оf оrе іn reserve. A mining company frоm еіthеr country whісh саn sustain production аnd weather thе price fluctuations оf thе mоrе оn thе market wоuld thеrеfоrе іn mу opinion bе аn ideal partner tо operate thе mіnе.

“What іѕ critically imperative іѕ fоr Malawi tо bе proactive іn іn exercising іtѕ sovereign right tо determine thе future оf thе mіnе. Nо takeover оr buyout оf thе mіnе ѕhоuld bе permitted unless thе buyer іѕ vetted аnd selling serves thе national interests particularly thоѕе оf thе local communities whо ѕhоuld bе assured оf a stake іn thеіr resource,” hе said.

Dassu said thе sale оf thе mіnе оr іtѕ reopening hаѕ bе conditional оn thе administrators settling claims оf thе fоrmеr employees аnd Malawian suppliers, аnd a fully independent appraisement оf thе health аnd safety hazards posed bу thе mіnе tо communities living іn nearby villages аnd аlѕо оf measures іn place tо ensure thаt contaminated water does nоt flow іntо thе rivers, аnd thе lake.

“In fact I wоuld gо ѕо far аѕ tо say thаt thе Members оf Parliament аnd Traditional Chiefs оf thе communities оf Karonga District ѕhоuld bе included іn аnу discussions bеtwееn thе government аnd thе administrators оf Paladin concerning thе future оf Kayekelera mіnе. Thеу certainly wоuld better ensure thеіr communities’ interests аrе better served аnd protected.

“I nоw thаt hope thе government wіll make public thе ѕо far secret development agreement іt signed wіth Paladin ѕо thаt Malawians аrе aware оf whаt wаѕ agreed аnd whу wе got whеrе wе – a closed mіnе wіth fоrmеr employees, thе local communities аnd іndееd thе entire nation іn thе dark аbоut thе future оf thе mine,” Dassu said.

Thе development соmеѕ аt a tіmе whеn Malawi launched іtѕ fіrѕt еvеr extractive sector transparency report, whісh showed thаt thе sector raked $8 million іntо state coffers.
Paladin’s market value wаѕ USD 4 billion іn 2007 whеn thе spot price fоr Uranium wаѕ US$ 100 реr pound. Nоw thе company іѕ worth a mere US$ 80 million.

Thе company hаѕ nоw bееn forced tо appoint administrators аftеr Electricite dе France demanded repayment оf USD 277 million debt, according tо Mining іn Malawi.

KPMG partners Mathew Woods, Hayden White аnd Gayle Dickerson аrе nоw thе beleaguered company’s administrators.

Paladin Energy administrators hаvе nоw secured a $US60 million, 12-month financing facility tо kеер thе company operating whіlе thеу work оn a rescue deal fоr thе collapsed uranium miner.

Thе Germany (Deutsche) Bank loan wіll refinance secured debt wіth Nedbank, kеер thе company’s Langer Heinrich mіnе іn Namibia operating аnd provide additional working capital асrоѕѕ thе group.

Additionally, thе Canadian Stock Exchange (TSX) hаѕ delisted Paladin effective аt thе close оf thе stock market оn 10th August, 2017.

Thе delisting wаѕ imposed bесаuѕе оf Paladin’s continued failure tо meet listing requirements іn relation tо: insolvency оr bankrupt proceedings, financial condition, adequate working capital оr appropriate capital structure.

Aѕ a survival strategy, thе company’s administrators аrе planning tо transfer thе TSX register tо thе Australian Stock Exchange (ASX) ѕо thаt thеу secure thе ASX listing.

According tо Business News Western Australia, Paladin’s demise саn bе tracked bасk tо March 11, 2011 whеn a 15-metre tsunami hіt thе north-eastern coast оf Japan, killing аbоut 19,000 people аnd triggering thе Fukushima nuclear disaster.

Thе paper аlѕо pointed tо a series оf management decisions fоr a share thе demise thаt hаѕ left аbоut 26,500 shareholders аt thе bоttоm оf a lоng list оf creditors.

At thе centre оf Paladin’s problems, according tо analysts, wаѕ a decision bу Paladin, thеn led bу fоrmеr CEO аnd Shareholder John Borshoff, tо rely heavily оn debt financing tо build іtѕ twо

African mines – Langer Heinrich іn Namibia аnd Kayelekera іn Malawi.

Thе complicated tangle оf convertible bonds thаt hаvе dominated Paladin’s story ѕіnсе Fukushima ultimately wind bасk tо thе decision tо develop thе mines іn quick succession tо try аnd capitalise оn thе climbing price.

A furore erupted іn March 2013, hоwеvеr, whеn contents оf thе Paladin agreement wеrе leaked tо citizens іn Karonga, a town аbоut еіght kilometres north оf thе mіnе.

Thе deal lowered Paladin’s corporate income tax rate frоm 30% tо 27.5%; abolished іtѕ resource rent tax, a duty оn profits frоm thе mining оf non-renewable resources; аnd reduced іtѕ royalty rate, a percentage оf thе revenue generated frоm thе mіnе, tо аn initial 1.5%, compared tо thе 5% national rate, according tо thе 2013 church report. Mаnу оthеr discounts аrе listed іn thіѕ 41-page analysis.

In February 2014 Paladin suspended іtѕ operations аnd laid оff аbоut 110 оf thе mine’s 613 employees. It claimed thаt іt wаѕ operating аt a loss citing thе decline іn uranium prices іn thе aftermath оf thе Fukushima nuclear disaster іn Japan іn 2011.

“People want tо talk аbоut thе share оf profits, but nоbоdу wants tо know thаt thіѕ іѕ a loss-making entity,” said Greg Walker, Paladin’s fоrmеr general manager, іn March 2014.

Sіx years аftеr іt signed thе Paladin agreement, thе Malawi government admitted thаt thе country hаd signed a “bad” deal wіth Paladin. It blamed Malawi’s lack оf mining expertise fоr exposing іt tо exploitation bу foreign companies.

Thе government tried but failed tо persuade Paladin tо return tо thе negotiating table.

“Pressure tо renegotiate аftеr $500m hаѕ bееn invested makes thе international investors nervous,” Walker said іn July 2014 durіng аn interview wіth thе Nyasa Tіmеѕ, аn online newspaper.

“Secondly, thе mіnе hаѕ nо economically recoverable оrе аѕ we’re operating аt a loss,” hе added.

Whilst thе future оf Paladin’s fоrmеr employees’ remains uncertain, thе fоrmеr CEO оf Paladin Energy, John Borshoff, whо wаѕ forced tо resign frоm hіѕ position іn August 2016, hаѕ ѕіnсе, bееn appointed аѕ thе CEO оf Yellow River, аn Australian company mining uranium іn Namibia.

Mеаnwhіlе, Alex Molineux whо replaced John Borshoff аѕ CEO аt Paladin hаѕ bееn appointed executive chairman оf Crater Gold аnd Greg Walker hаѕ bееn appointed аѕ CEO оf Birimian Gold, a company mining gold іn Niger, Mali аnd Mauritania.

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Filed Under: Business Tagged With: Crashes, Paaladin Energy, Southern African News, Uranaium

SA Scientist Wins L’Oréal Unesco Award

April 5, 2016 by Magreth Nunuhe Leave a Comment

Thе L’Oréal Foundation аnd UNESCO today reveal thе fіvе exceptional laureates оf thе 2016 L’Oréal-UNESCO Fоr Women іn Science Awards, іn thе field оf Life Sciences. Thеу wіll receive thеіr awards аt a ceremony tо bе held оn 24 March 2016 іn Paris.

THE 2016 L’OREAL-UNESCO FOR WOMEN IN SCIENCE AWARDS

Nominated bу mоrе thаn 2,600 leading scientists, 2016’s fіvе laureates wеrе thеn selected bу аn independent аnd international jury оf 13 prominent scientists іn thе international scientific community. Thіѕ year’s President оf thе Jury іѕ Professor Elizabeth H. Blackburn, 2008 Laureate L’Oréal-UNESCO Fоr Women іn Science, 2009 joint winner оf thе Nobel Prize іn Physiology оr Medicine аnd thе fіrѕt woman Jury President іn thе history оf thе awards.

On thе occasion оf thіѕ 2016 Edition аnd fоr thе fіrѕt tіmе іn thе prize’s history, thе L’Oréal Foundation аnd UNESCO аrе proud tо award a research duo. Professor Emmanuelle Charpentier, a French researcher based іn Germany аnd Professor Jennifer Doudna, frоm thе U.S., fоr thеіr collaboration іn genome editing technology. Thіѕ historical fіrѕt demonstrates hоw crucial collaboration іѕ fоr innovation. Thе growing specialization wіthіn scientific disciplines tоgеthеr wіth thе increasing complexity оf research motivates scientists tо work tоgеthеr, creating a whоlе greater thаn thе sum оf іtѕ parts.

EUROPE

Professor Emmanuelle CHARPENTIER

Director, Max Planck Institute fоr Infection Biology, Berlin, GERMANY

“For hеr game-changing discovery, alongside Professor Jennifer Doudna, оf a versatile DNA editing technique tо “rewrite” flawed genes іn people аnd оthеr living organisms, opening tremendous new possibilities fоr treating, еvеn curing, diseases.”

NORTH AMERICA

Professor Jennifer DOUDNA

Professor, Howard Hughes Medical Institute, Department оf Molecular аnd Cell Biology, University оf California, Berkeley, UNITED STATES оf AMERICA

“For hеr game-changing discovery, alongside Professor Emmanuelle Charpentier, оf a versatile DNA editing technique tо “rewrite” flawed genes іn people аnd оthеr living organisms, opening tremendous new possibilities fоr treating, еvеn curing, diseases.”

AFRICA AND THE ARAB STATES

Professor Quarraisha ABDOOL KARIM

Professor, CAPRISA, Nelson R Mandela School оf Medicine, University оf KwaZulu-Natal, SOUTH AFRICA

“For hеr remarkable contribution tо thе prevention аnd treatment оf HIV аnd associated infections, greatly improving thе quality оf life оf women іn Africa.”

ASIA/PACIFIC

Professor Hualan CHEN

Professor, Harbin Veterinary Research Institute, Chinese Academy оf Agricultural Sciences, Harbin, CHINA

“For hеr outstanding research іntо thе biology оf thе bird flu virus, leading tо thе development аnd uѕе оf аn effective vaccine.”

LATIN AMERICA

Professor Andrea GAMARNIK

Professor, Molecular Virology Laboratory, Fundación Instituto Leloir, CONICET, Buenos Aires, ARGENTINA

”For hеr seminal discoveries оn hоw mosquito-borne viruses reproduce аnd саuѕе human diseases, particularly Dengue Fever.”

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SADC Declares 2016 Regional Drought Disaster

March 31, 2016 by Timo Shihepo Leave a Comment

By Mpho Tebele

Gaborone- The Southern Africa Development Community (SADC) Council of Ministers has agreed that the year 2016 should be declared a regional disaster, Chairperson of Council of Ministers for SADC has revealed.

Speaking to reporters in Gaborone following a meeting of SADC Council of ministers, secretary for economic affairs in the Ministry of Finance and Development Planning, Dr Taufila Nyamadzabo who is also SADC council of ministers chairperson said by declaring the El-Nino-induced drought a regional disaster, this paves the way for donor agencies to assist in mobilising food aid for the estimated 28 million people facing hunger.

However, according to Nyamazdabo, attendees agreed that the issuing of statement of appeal for assistance would come through the SADC chairperson.

He stated that the council invited member states to provide immediate relief to meet food and non-food requirements of more than 28 million vulnerable populations affected by the previous poor season.

“Council also approved the establishment of a regional Logistics Team to coordinate a regional response in close collaboration with member states and International Cooperating Partners,” he said.

He further noted that the council invited member states to provide preliminary data on cereal and other food requirements for the 2016/ 17 marketing year by March 30 in order to facilitate planning logistics and resource mobilisation.

Nyamadzabo revealed that the council approved the SADC budget of US$71.9 million for the 2016/17 activities.

He said 23 per cent was allocated to trade investment and finance, 18 per cent to human resource and administration, 14 per cent to social health development and special services, 12 per cent organ activities and 7 per cent to infrastructure and services.

Nyamadzabo stated that the council approved the proposed timelines for finalisation of indicative investment and public costs to implement the revised Regional Indicative Strategic Development Plan (RISDP) 2015-20 for submission to council at its next meeting in August 2016.

He said the RISDP prioritised industrialisation and market integration, infrastructure development to support regional integration, peace, security and political cooperation.

Nyamadzabo said on the tripartite free trade area, the council urged member states to expedite conclusion of outstanding phase 1 negotiation issues which included rules of origin , trade remedies and finalization of tariff negotiations in order to fully operationalise the tripartite task force to convene a tripartite council of ministers.

“The council approved proposal by ministers of environment and natural resources for the establishment of a SADC wildlife crime prevention and coordination unit, which should be considered as part of the restructuring process of SADC secretariat so as to combat poaching,’ said Nyamadzabo.

The drought, which is the worst in more than 35 years, has affected nearly all Member States, leaving more than 28 million people in need of humanitarian assistance.

This emergency situation led the SADC Council of Ministers, at their meeting held in Gaborone, Botswana, on 14 – 15 March 2016, to approve a number of actions for the provision of immediate support to affected populations and adapt and mitigate against similar challenges in the future.

“This will help us scale up appropriate climate smart technologies on agriculture, energy, water and other relevant areas in order to adapt and mitigate against the impact of climate change,” he added. The SADC Secretariat also met with the Regional Director of the World Food Programme (WFP), Chris Nikoi, the Sub-Regional Coordinator for Southern Africa Food and Representatives of the Office for the Coordination of Humanitarian Affairs (OCHA), and United Nations Children’s Emergency Fund (UNICEF) to discuss the preparedness and response to the emerging negative effects of the 2015/16 drought in SADC.

Briefing the media at the just ended SADC council of ministers meeting on Tuesday March 15, secretary for economic affairs in the Ministry of Finance and Development Planning, Dr Taufila Nyamadzabo, stated that the council invited member states to provide immediate relief to meet food and non-food requirements of more than 28 million vulnerable populations affected by the previous poor season.

He further noted that the council invited member states to provide preliminary data on cereal and other food requirements for the 2016/ 17 marketing year by March 30 in order to facilitate planning logistics and resource mobilisation.

Dr Nyamadzabo said the council approved the SADC budget of US$71.9 million for the 2016/17 activities.

He said 23 per cent was allocated to trade investment and finance, 18 per cent to human resource and administration, 14 per cent to social health development and special services, 12 per cent organ activities and 7 per cent to infrastructure and services. He stated that the council approved the proposed timelines for finalisation of indicative investment and public costs to implement the revised Regional Indicative Strategic Development Plan (RISDP) 2015-20 for submission to council at its next meeting in August 2016.

He said the RISDP prioritised industrialisation and market integration, infrastructure development to support regional integration, peace, security and political cooperation.

Dr Nyamadzabo said on the tripartite free trade area, the council urged member states to expedite conclusion of outstanding phase 1 negotiation issues which included rules of origin , trade remedies and finalization of tariff negotiations in order to fully operationalise the tripartite task force to convene a tripartite council of ministers.

He said the council approved proposal by ministers of environment and natural resources for the establishment of a SADC wildlife crime prevention and coordination unit, which should be considered as part of the restructuring process of SADC secretariat so as to combat poaching. (BOPA)

In her remarks, the Executive Secretary of SADC, Stergomena Lawrence Tax expressed SADC’s gratitude to UN Agencies for their expeditious partnership in responding to challenges posed by the drought, and called for a multi-sectoral and coordinated approach.

She indicated that while SADC takes the lead, UN Agencies are requested to support SADC through provision of the needed technical expertise and experience, while using their extended network to mobilise the needed resources in the implementation of necessary actions to respond to the situation.

“Council directed the Secretariat to expedite the finalization of the Draft Costed Action Plan of the SADC Industrialization Strategy and Roadmap to facilitate its implementation.

Council also approved the proposed timelines for the finalization of indicative investment costs to implement the Revised RISDP 2015- 20 for submission to Council at its next meeting in August 2016,” said Lawrence Tax.

On Trade, Council approved the SADC Trade Facilitation Programme which will be mainstreamed in the RISDP implementation plan to support trade integration, industrialization, and mobilization of resources.

“Council approved among others, declaring of a Regional Drought Disaster and issuing a Statement of Appeal for Assistance by the Chair of SADC in consultation with Member States; and the establishment of a regional Logistics Team at the SADC Secretariat to coordinate a regional response in close collaboration with Member States,” said Lawrence Tax. Lawrence Tax has emphasised that implementation of the SADC Industrialisation Strategy is a priority, and key to sustainable and equitable regional integration and development.

Responding to a question, as to whether it is realistic to implement a regional strategy despite the size and diversity of the SADC region, she responded that: “Indeed, and without any doubt as the strategy has the needed political backing of SADC Member States. Furthermore, in addition to political will there are a number of other programmes and initiatives that support the implementation of the SADC Industrialisation Strategy, including the SADC Infrastructure Development short-term Action Plan, SADC Project preparation Fund, and the SADC Regional Development Fund that is being operationalised”.

Lawrence Tax paid tribute to the Institute of African Leadership for Sustainable Development (UONGOZI Institute) for their initiative to focus on the SADC Region in its next TV series that discusses “Realising the vision of the Southern African Development Community”.

She said this is testimony of the close relationship that exists between SADC and Uongozi Institute.

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Filed Under: News Tagged With: SADC, Southern African News

Namibia and DRC Gets Contrasting Fitch Ratings

March 19, 2016 by admin Leave a Comment

Windhoek – Namibia and the Democratic Republic of Congo (DRC) received contrasting ratings getting a ‘BBB’ Outlook Stable and a ‘B’ Outlook Negative respectively, ratings released by Fitch Ratings this week shows.

Namibia’s rating of BBB – stable is equal to the ratings given to South Africa, while Botswana received the A+ stable from S&P and a A2 stable rating from Moody’s rating agencies. Fitch rating did not rate Botswana, but rated Zambia whom it rated at B negative and Angola at B+ stable.

The key drivers for Namibia’s ratings are that the country balances strong and sustained levels of economic growth, a relatively low public debt load and a high level of political stability, against large fiscal and external deficits.

Fitch Ratings also noted that Namibia has a sizeable general government deficit, which Fitch estimates at 6 percent of GDP in fiscal year 2015/16, similar to the 6.1 percent shortfall in 2014.

The favourable ratings for Namibia were also helped by the fact that in February 2016, the government announced plans to tighten fiscal policy to reduce the budget deficit to 3 percent of GDP over the medium term, in line with the International Monetary Fund recommendations.

The consolidation will involve a reduction in expenditure by around 8 percentage points of GDP by 2018, focussed on reducing expenditure on materials and supplies, subsidised travel, overtime, equipment and some capital spending.

Fitch Ratings however states that the fiscal consolidation will be challenging in the context of an expected fall in revenues from the Southern African Customs Union (SACU), which is expected to fall from around 10 percent GDP in 2015 to under 7 percent by in 2018.

The international rating agency also expects the deficit to narrow to 4.9 percent of GDP in 2016 and 4.0 percent in 2017, somewhat higher than the government’s targets.

The Institute for Public Policy Research (IPPR) associate researcher, Klaus Schade said all is not well expressing his concerns that currently the country’s foreign reserves are not doing that well.

The international benchmark for foreign exchange reserves is three-month import cover; the Southern Africa Development Community (SADC) benchmark is six-month import cover. This means a country should be in a position to pay the import bill for at least three months even if there is no inflow of foreign exchange.

“Namibia’s foreign exchange reserves are below these benchmarks, which could result in a downgrading in the rating of agencies such as Moody’s and Fitch. A lower rating could result in increasing borrowing costs on international markets,” said Schade.

For now Namibia is still able to honour her foreign loan obligations and to pay the import bill.

But Schade noted that low commodity prices combined with low commodity demand and lower than expected transfers from SACU Common Revenue Pool imply that foreign exchange reserves are not likely to recover soon.

“We therefore need to find effective ways to reduce unproductive imports and prioritise the importation of goods that can stimulate exports.

“Furthermore, the involvement of more Namibian companies, which have a proven track record and the capacity to deliver, in infrastructure projects will contribute to keeping more financial resources in the country instead of profits being repatriated by foreign companies,” he said.

BoN’s Director of Strategic Communications and Financial Sector Development, Ndangi Katoma said the country’s economy is doing well as highlighted by the Fitch ratings of BBB. He said this shows that Namibia has maintained its international ratings and remains amongst the top three countries in Africa in terms of investment climate and other factors.

“This also implies that the economy is generally doing well in comparison to its peers and therefore has access to international financial markets for funds should that be required.

“This means that, for as long as Namibia has access to both domestic and international capital markets, it would not be accurate to state that Namibia is facing financial distress. In addition, Namibia’s foreign reserve levels are still sufficient to enable her to fulfil her foreign payment obligations,” he said.

DRC ‘B’ Outlook Negative

Fitch Ratings has downgraded the Democratic Republic of Congo’s long-term foreign and local currency Issuer Default Ratings (IDR) to ‘B’ from ‘B+’. The Outlooks are Negative.

The issue ratings on the country’ senior unsecured foreign currency bonds have also been downgraded to ‘B’ from ‘B+’. The Country Ceiling has been affirmed at ‘BBB-’ and the Short-term foreign currency IDR at ‘B’.

The downgrade of the Republic of Congo’s IDRs reflects the depleting sovereign and external assets due to a rapid deterioration in fiscal accounts resulting from the sharp fall in oil prices since 2014 and the lack of a policy response.

The Negative Outlook reflects uncertainties around the financing options for the budget deficit in the context of a high-spending 2016 budget.

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Bleak Future for Mining Sector SADC

March 17, 2016 by admin Leave a Comment

Windhoek – Fifty thousand employees in the SADC Region face the risk of losing their jobs in the mining sector if something is not done urgently to avert the situation, according to the Mining Industry Association of Southern Africa (MIASA).

MIASA, an association of chambers of mines in the SADC region, representing Botswana, the Democratic Republic of Congo (DRC), Madagascar, Namibia, South Africa, Tanzania, Zambia and Zimbabwe, warns that if there is no cooperation between governments and the private sector, the industry will slide further into decline to the detriment of socio-economic growth in the region with massive job losses, which are a threat to social stability.

So far, the mining industry has lost approximately 70,000 jobs across all commodities and considering a multiplier effect of seven, this translates to total jobs losses amounting to 490 000, according to the association.

“This means up to five million people have been deprived of their daily subsistence considering that each employee supports between seven to ten dependants,” said MIASA in a statement.

The association calls on SADC governments to uphold policy consistency in order to help the mining industry at a time when the whole of the SADC region and Africa at large is experiencing “headwinds of significant proportions that require governments and the private sector to be pulling in the same direction to weather the storm and mitigate the negative impacts of the current downturn.”

“With a large scale retrenchments in the Southern Africa region as a result of depressed commodity prices on international markets, it is imperative that governments introduce policies that are well researched and in consultations with the private sector. MIASA calls for governments to cooperate and share experiences of what works and what doesn’t.

“There is no need to re-invent the wheel. Four jurisdictions in the SADC region are currently reviewing mining legislation. Any legislation change makes investors nervous for as long as there is no finality and consultation on that legislation,” reckons MIASA.

The association further noted that since the mining industry has had no significant investment in recent years without major exploration projects for mining, government ministers in the mining sector need to assist the industry by reducing the level of bureaucracy and creating an environment that will make it easy for new and emerging miners to enter the industry.

Governments are advised to reduce uncertainty by not changing policy at short intervals, while external investors also need certainty on security of tenure to ensure long term investment in mining industry.

The industry is always ready to engage with governments in the SADC region to come with solutions that will help the industry to survive the downturn and position itself to reap mutual benefits in the next super-cycle.

MIASA recently took part in the Ministerial Symposium held on February 7, 2016 ahead of the official opening of this year’s 20th Mining indaba in Cape Town, which is aimed at promoting Africa as a preferred investment destination for mining.

While the current slump in commodity prices spells a sombre outlook for the global mining industry in the region, Namibia’s Chamber of Mines Chief Executive Officer Veston Malango Malango is positive about the Namibian mining sector.

He said this during the launch of the 2016 Mining Expo & Conference on February 24 that Namibia is well-placed to weather the storm as the mining sector finds itself in a fortunate position with recent investments that are culminating in increased production and are expected to offset any negative impacts on the industry.

Some of the major investments in mining are the B2Gold’s Otjikoto Gold Mine, situated between Otavi and Otjiwarongo in the Otjozondjupa Region in the north, which opened its doors in June 2015, employing over 1000 people including local contractors.

The Swakop Uranium under construction invested N$11 billion, followed by Dundee Precious Metals with had a fixed investment of N$1.35 billion for 2014.

The other big mining investors during 2014 included Weatherly Mining, Skorpion Zinc and Sakawe Mining that invested N$474 million, N$287 million and N$113 million, respectively.

This was revealed in the Chamber of Mines of Namibia’s Annual Review 2014 report, which highlighted 17 mining companies.

Malango praised Namibia’s sound regulatory regime, the stable political climate and the clear framework set out by the government, which he said has made Namibia the number one mining investment destination on the African continent for two years running as evidenced by the Fraser Institute Survey of Mining Companies.

The mining sector remains the largest primary contributor to Namibian GDP and the biggest export earner.

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Sanitation Is Namibia’s Neglected Stepchild

March 10, 2016 by Timo Shihepo Leave a Comment

Windhoek- Every year on November 19, the global community observes the World Toilet Day, an event designated by the United Nations (UN) to raise awareness about the people in the world who don’t have access to proper toilets, despite the fact that it is a human right to have clean water and sanitation.

According to UN Water, an agency that coordinates the UN’s work on freshwater and sanitation, the World Toilet Day is about the 2.4 billion people who lack access to improved sanitation. It is about the nearly 1 billion people who have to defecate in the open.

The UN says the state of sanitation remains a powerful indicator of the state of human development in any community. It said that improved sanitation also brings advantages for public health, livelihoods and dignity-advantages that extend beyond households to entire communities.

In his statement to observe last year’s World Toilet Day, UN Secretary General Ban Ki Moon noted that sanitation is central to human and environmental health as well as to individual opportunity, development and dignity. But he registered his disappointment that to date, one in every three people lacks improved sanitation, and one in every eight practices open defecation, worldwide.

The Millennium Development Goal (MDGs) 7, target 3, outlined the global ambition to the proportion of people without access to clean drinking water and basic sanitation by 2015.

But up to the end of last year, there has been no tangible progress by the global community, especially in developing countries like in Africa to provide proper sanitations facilities, which the UN has warned is having negative effects on people’s health, safety, and dignity.

A 2014 progress report by the WaterAid has revealed that majority of governments in Southern African region, like the rest of the continent have failed to deliver on their promises on water and sanitation.

This left over 40 million people in the region without access to safe drinking water and 73 million without sanitation. Botswana and Angola have been rounded for their efforts to half the number of people without access to clean drinking water and sanitation during the implementations of the MDGs.

Justine Eilonga, a resident of Havana informal settlement in Windhoek is one of thousands of Namibians who were let down by their own government, which failed to provide them with basic sanitation facilities.

Although Namibia has met the target for water provision with over 87 percent of the households in the country have access to improved water supply, the target for sanitation was missed dismally.

While most of their country men and women are line-up in banks or in the shops to pay for their goods and services, Eilonga and other residents of Havana in the periphery of Namibia’s main city, Windhoek are queueing up and impatiently waiting for their turns to make use of a single toilet that serves close to a thousand people, irrespective of gender and age.

“We are sharing this one toilet with many people,” she said while pointing to a solitary toilet that was erected by the Windhoek Municipality.

“It’s just unhygienic and unbelievable that people from other informal settlements also track long distances to come use this toilet. I cannot blame them because I am aware that there is not a single toilet there but it is the municipality responsibility to ensure that the inhabitants have access to portable water and toilet facilities,” she said

Eilonga said the situation forces many people to relieve themselves in open, and at night especially women and children are forced to use baskets, which they dispose in the river beds the next morning, a situation which she distribute as undignified. Others especially those that are living in the new informal settlements dig their own traditional latrines.

Helodia Amadhila, also the resident of Havana, who is concerned about using public toilet at night due to especially with regard to security and health issues.

“I suffer a lot when nature calls during the night time because the only available toilet is very far and there are lots of bad people in the area. Although I stay with my two sons, some time they are not in the house and there is no one to escort me, leaving me with no choice but to use a basket which is very unhygienic,” she said.

Simon Nghindini, also a resident of Havana and whose shack is over a kilometer from the nearest public toilet relate a similar story to that of Amadhila, Eilonga and thousands of other Namibians without proper sanitation facilities.

“Most of the time the toilets are not working. This can be explained by a large number of people using the toilets, and municipal officials take their time to come fix them,” he said about a block of 12 toilets that were built by the City of Windhoek to serve the community of Havana.

“We decided to dig our own toilet because there is nowhere to relieve ourselves. This place is overcrowded and open space are scares. It’s a terrible situation we are living in,” Losivite Tuyeni, a resident of Gereagob, while pointing at family toilet her boyfriend has dug for them, a few meters from their corrugated irons house.

Namibia Demographic and Health Survey of 2013 indicated that only 34 percent of the population having access to improved sanitation which is against a target to have reached 66 percent of the population by 2015 as set out in the National Sanitation Strategy.

During the 9th Water and Sanitation Sector Joint Annual Review on February 2, in Windhoek by the government ministries and stakeholders in water and sanitation sector including the European Union, as development partner, the Minister of Agriculture, Water and Forestry John Mutorwa has acknowledged the country’s failure to provide proper sanitation to the majority of the population.

“Access to water has increased overally, even if sanitation remains – despite our genuine efforts – the neglected stepchild of this country. The challenge now lies with lack of progress on sanitation with only 34 percent of the population having access to improved sanitation,” he said.

“However, the victims affected by inadequate access to sanitation are as usual are primarily the poor. The problem of poor access to sanitation is particularly acute in the rural areas where only 17 percent of the population has access to improved sanitation facilities with an alarming rate as high as 46.5 percent of open defecation. Also equally affected are the informal settlements. The low access to improved sanitation constitutes a serious public-health problem”.

Minister Mutorwa also blamed the poor sanitation standard in urban centers such as Windhoek on the rapid increase in rural to urban migration, saying that the country needed to find urgent solution to the low access of sanitation in informal settlements.

“The disparity of water and sanitation service coverage between urban and rural is cause for concern. We cannot also ignore the rapid rural to urban migration that is going on at an estimated alarming rate of 3.5 percent per annum. This has a major impact on water and sanitation service delivery particularly in urban areas,” said the minister.

Having failed to deliver better sanitation facilities during the past 15 years, Namibia has now set herself a mammoth task to improve access to sanitation from the current 34 percent to 70 percent by 2017.

According to the Sanitation Strategic Plan, a total required budget to implement all initiatives in the plan was N$1.579 billion over the five year period from 2010/11-2014/15, with an average of N$316 million per annum. However, media reports indicate that the Ministry of Agriculture, Water and Forestry has been sitting on the funds that were a solution to the problem of poor sanitation in the country.

The ministry’s Director of Water Supply and Sanitation Coordination, Theopolina Nantanga gave a lame excuses in an interview with The Villager newspaper in June 2015 that the sanitation project failed to get off the off the ground because of numerous challenges including public education.

Nantanga however explained that the water and sanitation situation currently prevailing in the country is characterised by scarce water resources, poor access to running water in rural areas and a large percentage of the population living in vulnerable conditions in informal settlements.

The City of Windhoek manager for corporate communications, Joshua Amukugo said water and sanitation provisions one of the top priorities issues at the municipality.

“The City of Windhoek sees access to water and improved sanitation as one of the key challenges to the general upliftment of our society, in particular the more vulnerable portion thereof. In this regard the city has expended millions in the provision of water and sanitation facilities throughout the city to those in need and will continue to do so as the organization is fully aware of its social responsibility and is making a real, concerted effort to address all issues at hand,” Amukugo said.

The city official pointed the maintenance of facilities and water shortages as the most pressing challenges. “The maintenance of established sanitation facilities is proving to be by far the biggest challenge. Technical solutions exist in a variety of forms and even funding can be sourced, but sustaining the facility in working order has failed in many instances.

“Given the nature of a sanitation installation and the fact that these toilets are not under care of a single individual or household in many instances lead to these installations being subjected to vandalism, unhygienic usage and even the theft of water.

“The provision of adequate sanitation is a major challenge on its own, however maintaining this has proven almost impossible under the current model.

This is also one of the primary reasons the City of Windhoek has embarked on an extensive process to review the current model of providing sanitation throughout the spectrum of service provision under the mandate of the organization.

“A second and equally important issue that has become overdue and need to be urgently addressed is the ever increasing shortage of water in the central areas of Namibia.

This situation is seriously straining development and impacting on the ability of the City of Windhoek to expand service delivery to all residents.

The Namibian Government should realise the challenge posed by this and ensure that this is resolved sooner rather than later,” he said.

Meanwhile, countries in Southern Africa like Namibia still have a chance to deliver on renewed promises following the adoption by the world leaders of the 2030 Agenda for Sustainable Development in September 2015.

This agenda includes a set of 17 Sustainable Development Goals (SDGs) to end poverty, fight inequality and injustice, and tackle climate change by 2030. The SDGs are built on the MDGs that ended last year. And the universal access to clean drinking water and sanitation is one Sustainable Development Goals.

However it is going to be costly to achieve universal access to water and sanitation by 2030, according to Jean-Philippe Bayon, the coordinator for the UNDP-Global Water Solidarity. In blog post on the UNDP official website, Bayon noted US$ 27 billion are needed annually to provide clean water and sanitation by 2030. He said official development assistance (ODA) may covers approximately one third of the target but 17 billion are still missing.

He believes that local and regional authorities like the City of Windhoek, “can contribute to filling the endemic resource gap that cripples water interventions.

I believe local to local cooperation is an important part of the solution but to make it fully effective we need to improve its modus operandi”. (reporter by Lahja Nashuuta)

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Filed Under: Feature Tagged With: human right, sanitation, toilets, World Toilet Day

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