Dec/Jan 2020 | Vol. 3/No.6
NAMIBIA
WINDING PATH TO DECENT HOUSING FOR NAMIBIANS
Construction & Mining Namibia, Dec/Jan 2020
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ARCHITECTURE
MINING SOLUTION
OUR SERVICES • Surface Mining Services (Drilling, Blasting, Hauling, Rehabilitation and Construction of Tailing Facilities) • Underground Mining Services (Drilling, Blasting, Hauling, Ventilation and Roof Support) • Aggregate Supply (Crushing and Screening) • Training (Safety, Mining Operations) • Mine Planning (Short-term and Longterm) • Construction (Mine Infrastructure) • Advisory Services (Technical, Financial and Legal due Diligence)
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WHO WE ARE EVS Mining Contractors is a solution driven company and hence we seek to an understanding of our client’s need and offer tailor made solution for each site and/or challenge.
MISSION
To provide efficient and cost effective mining services, whilst up-holding the highest standard of safety, quality and environment management.
VISION
To be a prominent, dynamic, innovative and task oriented mining services company in Africa.
Tel: +264 (61) 415 700, Mob: +264 (81)142 1883 Fax: +264 (61) 415 701, info@evsmining.com, www.evsmining.com
Construction & Mining Namibia, Dec/Jan 2020
Ending with a BANG!
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he edition of the Construction and Mining magazine comes to you in the aftermath of a successful and thought-provoking Construction Industry Federation Conference at Safari hotel in Windhoek, where the remarkably well attended event set out an ambitious vision for the years to come. The purpose of the conference was to bring together the members of the CIF and key private and public sector stakeholders to discuss the current state of the industry and to highlight the opportunities for the building and construction sector, despite the current economic environment Namibia finds itself in. The mood was one of anticipation and expectation and when the day came, it didn’t disappoint. In this edition, we recap some of the key highlights from
Contents
the Conference and we have a selection of pictures that will jog a few memories and capture a flavour of the event for those not in attendance. We congratulate all companies that have managed to raise structures to improve and enhance the lives of every Namibian in these trying times. Looking ahead, we are excited to note the prospects of projects to be accomplished in the following year. We have to mention that the existence of vibrant companies will be strengthened through vigorous campaigns by individual companies to expose their successful footprint in the sector. We look forward to covering a wider range of issues more specifically on energy, housing, technology and innovation in the coming year. As always, send us your valued opinion piece to editor@ constructionnam.com for publishing. Keep reading.
Roxy Silta Tjarukua | info@constructionnam.com Cell: +264 81 432 8467
Marketing Caryn Chanengeta marketing@constructionnam.com Cell: +264 81 296 7087
Printers Impeccable Tech & Designs. info@impeccable.tech Cell: +264 81 753 4100
Design and Layout Keith M. Tuwelo tk.keith@outlook.com +264 85 639 6024
Physical address 24 Mozart Street Windhoek West, Windhoek, Namibia
The Standard Bank buy-a-brick shack in The Grove Mall of Namibia. This is a flagship corporate social investment campaign geared towards addressing the country's housing needs for disadvantaged communities through the 'Shack Dwellers' Federation of Namibia'
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A young technician with passion
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Tribute to Willie du Toit. 1951 – 2019
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Elizabeth Imene. A young and dynamic accountant at D&M Rail Construction
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Namibia and Zimbabwe construction industries sign MoU
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Chinese, investments bring forth female truck drivers.
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Types of Construction Technology that has Shape the Industry in 2019
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Transnamib looks at Automation to Improve Business
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WBCG ROUNDS OFF 2019
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Mining as a catalyst for untapped sme growth
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Development Bank Innovation Award goes to smart electricity metering
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ARCHITECTURE
FNB Commercial Property Finance FNB Commercial Property Finance provides tailor-made services for businesses which intend to acquire or refinance their office, industrial or retail property from which their business operates (owner-occupied property). They also provide financing for property investors looking to purchase properties for investment purposes (tenanted property), developers of office, industrial and retail property, developers of residential and affordable housing as well as for property investors and developers acquiring properties in Namibia.
Types of Commercial Property Finance products:
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1. Specialized Properties
4. Residential Development Loans (Not Stand Alone Houses)
• • • •
Schools Churches Hotels/Lodges/ B&B (purpose built hospitality properties) Hospitals
2. Vacant Lands •
•
We finance vacant lands, of which 60% of purchase price is contributed by the bank, and 40% contribution is from client. We strictly finance serviced land; in a better classified area and we expect the following services to be in place water, storm water, electricity, sewerage and proper grading of gravel road/tarred road as per the town plan regulation.
3. Existing Commercial & Industrial Properties •
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We would finance a maximum of 75%/80% loan to the value and or cost of the property depending on the product Multi-Tenanted/Owner Occupied.
Construction & Mining Namibia, Dec/Jan 2020
•
•
We also finance commercial and industrial properties over a 10 year period at the proposed prime rate
Sectional title scheme, ownership is only passed on upon completion whereas, with single residential the erf can already been transferred and a home loan building loan can be arranged. We normally back proven developers. The key of any scheme is the amount and level of pre-sales.
5. Development Loans •
•
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We request that the client contributes a minimum equity of 30% towards the project. Equity should be in the form of the land and cash which will be used for construction. The client has to proof of equity fbefore we commit to pay out. As for partnerships with developers, we only deal with those with impeccable reputation and have financial means to offer owners’ contribution. This is because the bank does not finance 100% on either residential or commercial/industrial properties. Taking into consideration that we are principally financiers and not developers. The financing will be subject to credit review and we must take cognizance of the risks associated, especially reputational risk to the bank.
ARCHITECTURE
CPF Namibia Team – Contact Details Mr. Jeffrey Katjivena (Acting Head of Commercial Property Finance Namibia) - Central North & Far North Area), jkatjivena@fnbnamibia.com.na Ext +264 61 299 2489, mobile +264 811227657
Mrs. Cliffy Nauses (Commercial Property Finance Manager - Windhoek Central & Southern Area), CNauses@fnbnamibia.com.na Ext +264 61 299 8633, mobile +264 811404806
Mr. Riaan Van Heerden (Commercial Property Finance Manager - Coastal Area & Private Wealth), Adriaan.VanHeerden@fnbnamibia.com.na Ext +264 61 299 8125, mobile +264 811227507
Mrs Margot Ackerman (Commercial Property Finance Manager - FNB Business), MAckermann@fnbnamibia.com.na Ext +264 61 299 7526, mobile +264 811421972
Mrs. Natasja Slinger (Commercial Property Finance Manager – Administration & Compliance), NSlinger@fnbnamibia.com.na Ext +264 61 299 2060 mobile +264 856573482 Construction & Mining Namibia, Dec/Jan 2020
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CONSTRUCTION
Construction industry wants changes
The Construction Industries Federation of Namibia (CIF) hosted a two-day conference mid-November at which industry stakeholders lamented their frustrations in the industry due to factors such as tough competition from foreign construction companies as well as ‘unfair’ conditions imposed on up and coming small and medium enterprises in the industry.
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he industry has suffered hard hits between 2014 and 2019 due to the economic recession experienced in the region, resulting in many job losses. The on-going decline in jobs in the last four years has caused an even bigger panic in the industry, this has been supported by a decline in the Gross Domestic Product contribution which is now observed at 2.9% in 2019, a dramatic drop from 7.2% in 2014. As a result, the sentiments expressed at the conference were all in support of creating a more conducive environment for local players, especially the inclusion of smaller
enterprises. The total employment by the construction industry suffered hard losses with a 26% decline in 2018. Thus, the construction industry now only makes up 6.2% of total employment currently. CIF statistics show that in September 2016 at least 8 160 people were employed in the construction industry but those numbers drastically dropped to 4 303 in August 2017. A 2017 survey conducted by CIF in June concluded that 3 857 people were retrenched from their jobs.
recorded that their businesses were running normally, while 121 told the federation that they were scaling down their work force to the minimum, ten were dormant in their operations while four had been forced to close their businesses.
Another three organisations declared bankruptcy in that year as a sign of hard times. Another survey later that year, concluded that five more companies closed down while two others declared bankruptcy. Government fiscal consolidation has contributed In the survey which included 273 members to the contraction experienced in the of the federation, by the end of 2017 construction industry as this meant that only 19 of those members (companies) the state planned on spending less on building expenditure. Government spending has accounted for an average of 81.6% of the construction sector over the past ten years, therefore being the main driver of the sector. As it is, government currently plans on increasing its expenditure on construction, renovation and improvements by 28.7% for the year 2018/2019 and by 26% in 2019/2020 which could be a temporary benefit for the construction sector. In order to promote the interest of the construction industry stakeholders in
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Construction & Mining Namibia, Dec/Jan 2020
CONSTRUCTION Namibia, the industry has put the establishment of a National Construction Council on the table as this, they believe, will promote and develop the construction industry in Namibia. The council will be able to register all person engaged in the industry, protect the public from unscrupulous contractors, coordinate the technical training of contractors and advise the ministry on all matters relating to the industry. While addressing the conference on the state of finance for the industry, CIF president Nico Badenhorst lamented that in the last three years most construction companies used up their reserves and this has put them in a predicament. Most construction companies in Namibia are privately owned which means that it is challenge for them to secure capital. “You try and sustain your company, continue working and keeping your personnel and just spending money without work. As you know, most of our construction companies in Namibia are
privately owned so it’s difficult to raise capital in these tough economic times”. He went on to explain the effects performance guarantees have on local contractors as a restricting factor. “In the past contractors were able to get guarantees from other financial institutions like insurance companies which do not require collateral but currently under the new procurement act, we have to submit demand guarantees. And the only institutions that issue demand guarantees are commercial banks.”
“Demand guarantees also restrict growth for contractors. It is difficult to grow as a contractor if you always have to issue demand guarantees. Cost of guarantee for local contractors can be anything between 3% and 6% of the guarantee value vs foreign contractors who give less than 1%”, he adds. Due to financial difficulties experienced by the industry in the last three years, the finances for these companies are not what they should be, and limits local contractors from qualifying for financial criteria in certain tenders.
He explained that a demand guarantee means is that for every dollar they guarantee a contractors must give a dollar collateral which impacts the cash flow for these companies which are already riddled with financial burdens.
The industry suggested that the ministry of finance facilities for the Development Bank of Namibia to help construction companies with guarantees at more favorable terms where there is a demand guarantee but they will not be required to issue high collateral.
This presents a challenge for contractors as they are not able to secure demand guarantees due to the fact that they have to give collateral for that.
“Maybe if guarantees can be reduced to 5% and also lower the retention to 5% to assist with cash flow to the contractors,” he said.
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Construction & Mining Namibia, Dec/Jan 2020
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TELECOMUNICATIONS
A young technician with passion
‘’There is no better feeling than fixing a customer problem, while giving customer satisfaction with the company I work for and walking out of the client premises knowing that I made their day and they are happy with the service or product’’ States David Angula, a PABX technician at OmniTel Namibia, a truly state-ofthe-art Namibian telecommunication company which specializes in the fields of Telecommunication, IP Telephony, Structured networks, Least cost routing, servers & PC’s and much more. OmniTel Namibia officially begun its inception on 1 October 2008, resulting from a management buyout of Siemens Enterprise Communications (PTY) Ltd in Namibia. David is one of the young PABX technicians at OmniTel, he confers enthusiastically that he was drawn to the technological field at a young age, as he was the go to guy fixing calculators, radios and hand held game consoles in primary school. ‘’My decision to go into the technical field was fueled by my inquisitive nature 8
and technological passion, I have been fascinated by technology all my life.’’ David adds. Although he has been a technology fanatic he first initially studied Human Resources Management at NUST (then Polytechnic of Namibia) but dropped the course because he realized that it wasn’t his ‘things’, he states. With that he went on to complete a diploma in Electrical Engineering, and during that time he was introduced and begun his journey in the technological field. ‘’In my first year of Electrical Engineering, I had a module where I learned basic computer hardware, so I started repairing computers and I loved it.’’ ‘’I inherently ended up earning some money, thereby lessening my parent’s financial burden as they didn’t always have to send me pocket money’’ he adds. David states that he was lucky and happy he got an apprenticeship with OmniTel Namibia soon after completing his diploma.
Construction & Mining Namibia, Dec/Jan 2020
‘’Upon seeing that it was more generic and involving various types of technologies, I grasped it, and the rest is history, here I am today and the journey continues.’’ David through the apprenticeship program got certified in various PABX systems like the Siemens HiPath 3000 Basic and Advanced, Siemens HG1500 (IP Trunking and IP Telephony), Openscape Business and Samsung T1-T5 Technical Expert certification, to mention just a few. David mentions that even though he has been with OmniTel for nine years, his main challenge is gathering information on a problem from a client. who is angry. ‘’This makes the troubleshooting process lengthy because I need the info to identify and verify the issue. But I learned to deal with this over the years and always patiently listen to the client until they finish lodging their complaint or request’’
TELECOMUNICATIONS well as timely service delivery (efficiency & time management), these are some of the perquisites that have eventually become part of me even when not at work.’’ he states. A PABX technician requires a lot of traveling, and includes soft-wareupdate, set up and maintenance. ‘’But what I love most about the Job is that I am always learning something new every day’’ David says. But when he is not working although usually on emergency stand by, he likes to spend time reading technical blogs and novels, as well as doing graphic design for fun. ‘’I’m also a die-hard fan of generic music so I enjoy listening to various genres randomly and spend some of my spare time playing piano as it improves my patience, discipline and perseverance.‘’ David states that he believes with the telecommunication industry in Namibia there is a two-way relationship between telecommunications and economic development.
Another challenge he states is translating complex technical terms into plain language that clients/users can easily “digest” and understand. David has had a few notable successful projects while working with OmniTel, as he was involved in the City of Windhoek project in 2011 which migrated all their systems (Siemens HiPath 4000s and HiPath 3000s) including end telephony devices to Voice over IP (VoIP). In 2015, he led the MVA Fund project when the company installed PABX systems for their seven branches countrywide.
He also assisted Telecom Namibia in 2017 with setting up a Hybrid VoIP network for the International University of Management (IUM) between their Openscape and Samsung PABX systems. When asked how OmniTel Namibia has helped him he responded; I will never be able to talk about the technical side of me without mentioning OmniTel because I gained most of my knowledge while under their “umbrella’’. ‘’OmniTel Namibia is a truly Namibian multi-cultural company and our scale of work is tremendous simply because of our focus on teamwork and collaboration, as
This relationship operates through telecom expansion causing economic growth and it is on that basis, that the country needs to speed up the transformational phase of telecommunication development that is already underway. His final advice to young Namibians who are interested in the telecommunication industry is that as long as they are dedicated and hardworking, they are guaranteed to thrive in the industry. “Momufitu ngeenge omuna ongwe, itashiti oukongo wohamba naw’aaluke”. This basically means that no matter how difficult something might be, it doesn’t necessarily mean it is not doable he adds.
Construction & Mining Namibia, Dec/Jan 2020
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TRIBUTE
Tribute to Willie du Toit The Construction and Mining magazine pays tribute to the late Willie du Toit for his outstanding contribution to the transportation industry in Namibia for the past 51 years. Stephan Terblanchne. Chief executive Officer of the FP du Toit Group said the death will leave a large void in which will be difficult to fill. Besides being a mentor to many Namibians from all walks of life especially those in the transport industy, Mr. du Toit also stood at the head of the Namibian Logistics Association for many years. The amount of knowledge that went with his passing is almost immeasurable
Willie du Toit 1951 – 2019
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Construction & Mining Namibia, Dec/Jan 2020
Willie Du Toit passed away in at his home in Windhoek, Dec 3rd. He was 68.
INTERVIEW: D&M RAIL
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he Construction and Mining magazine met up with Elizabeth Imene. A young and dynamic accountant at Namibia’s biggest rail construction company D&M Rail Construction, to tell us about herself and the work she does. CNM: Tell us about yourself (Who is Elizabeth, include family, upbringing and qualifications) My name is Elizabeth Imene, I am the second child of four children born in Ongangwa. I was raised in Oranjemund, where I attended primary school at Oranjemund Private School. I left to attend boarding school at Delta Secondary School Windhoek. I matriculated and attended the University of Namibia doing a Bachelor of Accounting Degree. CNM: What/Who motivated you to study this field? I always loved working with numbers and compiling financial reports is thrilling to me.
Elizabeth Imene. Accountant at Namibia’s biggest rail construction company D&M Rail Construction I later moved to the head office and having been climbing the ladder from finance clerk to assistant accountant and up until date Accountant: General Ledger.
putting trust in me help me build networks.
The nature of my job entails to prepare and examine financial transactions, to ensure accuracy and also to make sure that taxes are paid properly and on time.
CNM: What do you enjoy most about your job?
CNM: Where and when did your journey begin in the industry? (Including your journey with D&M Rail)
CNM: What would say are must have attributes of an accountant?
Key lessons that I am currently learning that nobody is perfect I still have a lot to learn, Listening, the need to understand and be understood, that being responsible is key to elevating my skills and ability with all the knowledge that I have learned I hope to become a finance manager in this company.
CNM: What is the nature of your job and what challenges do you face (If any)?
After I graduated University, I started working for D&M Rail Construction as a clerk, in Ondangwa. After 9 months of temporary contract I became a permanently employed as a finance clerk and worked at our Otjiwarongo depot in 2012.
Working for a company that is constantly looking to develop its employees.
Organizational skills, innovative, reliability, confidentiality and vigilance
CNM: What key lessons are you learning on the job now and what does the future hold for you?
CNM: How has D&M Rail help you grow as a person and accountant?
CNM: Do you have any advice for the upcoming professionals in your field?
My years spent here at D&M Rail has helped me to become a better accountant by encouraging me to develop myself professional and
The Moment you stop learning is the moment your career stops. No matter how long the journey is never give up.
Construction & Mining Namibia, Dec/Jan 2020
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ARCHITECTURE
Namibia and Zimbabwe construction industries sign MoU The Construction Industries Federation (CIF) of Namibia signed a memorandum of understanding with its Zimbabwean counterparts, Zimbabwe Building Contractors Association (ZBCA), following the conclusion of a two day construction industry conference.
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he signing took place on the 14th of November 2019, and is supposed to promote collaboration between the Namibian and Zimbabwean construction industries. 12
While addressing contractors at the signing ceremony, president of the Zimbabwe Building Contractors Asociation, Francis Mangwedeza said that he hoped his presentation had made an impact in Namibia for local contractors to learn from the experiences brought out of Zimbabwe. “Thank you for having us. As SADC we are approaching an era where we want to have free trade and services like that. From what I have learned today, you are doing brilliant things here and making progress. You are facing similar problems to what we have but how you handle them is slightly different to what we have done. Some of the things I have learned here I will take back home and go implement”, Mangwedeza remarked. He explained that it is important for SADC to establish regionally integrated associations such as this, in order to provide each other with the support in handling challenges faced by the construction industry in the region. “This is why we had this initiative to integrate our two organisations
Construction & Mining Namibia, Dec/Jan 2020
and hopefully build a regional organisation from there,” he concluded. CIF president Nico Badenhorst, while speaking at the officiation of the MoU also added that the agreement will provide a huge scope of collaboration which includes the promotion of local contractors, information sharing, capacity building, technical assistance, business linkage and referrals, corporation research activities and promotion of professional values and conduct. He added that a joint forum will be established ensure the implementation of the MoU, in order to develop a program of action. The industry has high hopes for the impending National Construction Council (NCC) which will be facilitated by the Ministry of Works and Transport, and was initially earmarked for the end of this financial year. This council is necessitated by the industry’s aim to drive unscrupulous construction companies out of the industry in order to protect the public,
ARCHITECTURE to register all Namibian construction companies as a proper data base is expected to give more Namibian companies better chances at landing local jobs as well as to function as a consultant on industry issues to the line ministry. “A NCC would require that any contract operating in Namibia be registered with the council. Depending on the criteria determined by the NCC, contractors would then be categorized. This would ensure that only those that indeed are actively operating in the industry, would be registered. In addition, it would ensure that capacity would be aligned with size of projects. The training and development of contractors will also ensure that capacity of respective contractors will increase over time” CIF consulting general manager Barbel Kirchner said in a press release in August. Sylvester Kamwi, Chief National Development Advisor at National
Planning Commission under the office of the President while speaking at the conference mentioned that during consultations he was informed that the slow pace in implementing capital projects is because of the new policies that the government has embarked upon making reference to the procurement process. He adds that the development is slowpaced because of the TAW which is a monthly release of funds by treasury which is hindering the progress of the implementation of the development budget. Furthermore the directorate of capital projects in the department of works in is failing the contractors because there are only two to three quantity surveyors to supervise over 400 capital projects. He also bemoaned the trend of abandoning government projects by some contractors. “Perhaps there is a need for those contractors that are abandoning our government projects to show that commitment to avoid the current
tendency of abandoning some of these projects. Let me indicate to the audience that the development budget is nothing else but a budget a budget that is there to address social economic challenges that not only Namibia is facing,” Kamwi said. Namibia has much to learn from its more seasoned counterparts such as Zimbabwe especially since they are more equipped with technical personnel in the construction industry which remains a challenge for Namibia. Addressing the conference on behalf of Zimbabwe’s industry, Francis Mangwedeza highlighted similar challenges experienced by the construction industry in Namibia such as the setup up of poor infrastructure by Chinese contractors, cheap equipment as well as low cost of capital 3%. In his presentation he pushed toward the establishment of regional cooperation between industries in order to tackle the issues facing contractors.
Construction & Mining Namibia, Dec/Jan 2020
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MINING
Chinese, investments bring forth female truck drivers. Its day break in the desert of Namibia, the sun is blasting and shuttle buses are arriving at the Husab Uranium mine. The chinese operated uranium mine is located approximately 60 km from Walvis Bay in the Erongo region, and is considered to be one of the largest uranium mines in the world.
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The mine workers emerge from the shuttles for their daily tasks, amongst them is Kerry B Puuahee (31) a female 330-ton haul truck operator, who has been working at the mine for three years. She is one of three female truck drivers on the mine. The Husab mine since its inception in 2013 has been acknowledged as the largest employer in the country’s mining industry in 2017, according to the Chamber of Mines CEO Veston Malango, with permanent employees at the mine numbered at 1,620, in addition to 176 temporary employees and 522 contractors.
Construction & Mining Namibia, Dec/Jan 2020
Kerry B Puuahee | 330-ton haul truck operator at Husab Uranium mine
Puuahee adds that she joined the mining industry because it presents more opportunities and allows her to grow quickly. “Driving this beautiful thing here (pointing to the truck) is a lovely experience, which you know is something we never imagined one could do here,” She states. The young mother’s job includes loading ore from the pit unto the processing workshop. The mine has sufficient reserves to supply enough uranium to power 20 Gigawatt Electric (GWe) of nuclear capacity for almost 40 years.
MINING
“Driving this beautiful thing here (pointing to the truck) is a lovely experience, which you know is something we never imagined one could do here,”
Husab mine is one of China’s largest single investments in Africa with a production of nearly 15 million pounds of uranosouranic oxide (U3O8) per year. A typical day at the mine begins for the workers with safety and routine talks followed by shuttle transfer to the ‘pit’- where the work begins. Arriving at the truck park, Puuahee enthusiastically carries out her daily check-up on the truck - which she refers to as her “baby”. Officially starting her work in the control room, but first, she sticks her family photos overhead, which serve as her “inspiration”. ‘’To the fellow young women out there: This is an opportunity you have got to take, we’ve got to take the challenge and live up to the name of gender equality that we want,” Puuahee adds. The 4.8-billion-U.S.-dollar project in the Namib desert, owned by the Swakop Uranium company has also
received praise from President Hage Geingob. “You have impressed me with your huge investment. This is indeed a good investment. Taming the mountains and civilizing the desert. Namibia is proud to have you as our partner!” he acclaimed when he visited the mine in March 2016. Although proud of breaking new ground in the male-dominated industry, Puuahee admits that some of the challenges faced are that it’s typically a man’s job and therefore based on the physicality of a man. Puuahee joined the legion of job seekers when the mine began construction in 2013 and moved from the coastal town of Swakopmund to Arandis, which is near the Husab mine. Figures provided by the CGNPC shows the mine produced over 1,000 metric tons of uranium oxide in 2017. The company announced that it would increase its nuclear fuel
supply, including uranium mining, nuclear fuel pellets and nuclear fuel fabrication, in the hope of catering to the rising demand for its civil power plant projects. Husab mine is expected to promote Namibia’s GDP growth by about 5 percent and increase the country’s export volume by about 20 percent, making Namibia the third largest producer of uranium in the world, according to Cai Yusheng, CEO of Swakop Uranium. ‘’China’s capital investment in the project is a significant contributor to the Namibia national revenue’’ stated Beata Meteka, the brand manager at Swakop Uranium. Puuahee confirmed her joy when asked how she feels about the company. “Swakop Uranium provides employment for a lot of people, so I think it’s also a life changer for many people, especially the youth,” She stated.
Construction & Mining Namibia, Dec/Jan 2020
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TECHNOLOGY
Types of Construction Technology that has Shape the Industry in 2019 Construction technology is an increasingly important aspect of the future of construction. With the skilled labor shortage, stagnant productivity, and safety issues that plague the industry, it’s hard to stay ahead of these issues. Construction companies, universities, and technology companies are working hard to find solutions to these problems.
C
ompanies are finding ways to improve productivity, reduce workplace injuries, and push construction into the future. These new construction technologies are shaping the industry in 2019, and the changes made will leave the industry completely changed. AI & Machine Learning AI and machine learning sound like something from a sci-fi novel and listening to construction technology analysts describe it’s place in construction can make it sound complicated and improbable. However, AI and machine learning are part of a trend that will shape the construction industry for years to come. Companies now are using machine learning to improve job site safety. Smartvid.io is one such company. It aggregates visual information from cameras to reduce risk. Using field observations and automatic observations by their AI, their platform can alert managers to potential risks and hazards on the site. AI and machine learning could come to play an even bigger part in the construction industry. Areas like bid prep, estimation, and even project management could soon see AI aid. AI 16
can be eventually used to help in many different areas in construction, and with more users the predictive abilities will get better. Augmented Reality and Virtual Reality Depending on what article you read it seems like virtual reality is going out of fashion before it came in to fashion within construction. Many industry leaders talked about the power of virtual reality and how it was going to change the entire game. With the advent of augmented reality, a combination of virtual reality and reality, construction technology experts are predicting that that will be the game changer. The physical technology as well as the software needed in order to use and operate augmented reality is expensive still. While there are companies working to make it cheaper and more accessible to a wider range of consumers, now it is primarily used by very large and wealthy companies. Companies using augmented reality are seeing the benefits. Autonomous Equipment Much autonomous equipment is in it’s nascence; however, some companies are starting to build their own autonomous vehicles for the job site.
Construction & Mining Namibia, Dec/Jan 2020
Boston Dynamics has built its own semiautonomous robot. Spot can be used on the job site to survey, the video or photos can be used for a variety of reasons. Overall Spot seems to be a way for companies to eventually use tech to ensure workplace safety alongside human professionals. Komatsu, a heavy-equipment manufacturer, is additionally working on autonomous construction vehicles. While these are a while out, they are a construction technology that will permanently shape the industry. Drones Drone usage is increasing on construction sites and used for a variety of purposes. One of the common usages for this construction technology is for surveying land. Drones can decrease the amount of time needed to produce an accurate survey. They also eliminate some of the human error in the process. They are also used in reporting for structural improvements because they can get the job done faster. The footage captured or real time views has also been used for improving job site safety. The drone footage can be reviewed without any person actually having to venture to a potentially hazardous area. This reduces the number of workplace injuries and improves workplace safety. Robots In construction technology, robots are gaining in popularity. From the brick laying robots to the 3D concrete printing robots, there is a drive to build the next great thing. These robots do repetitive motions that after a while hurt human
TECHNOLOGY workers, or they work as aids. The MULE (Material Unit Lift Enhancer) helps workers load and place heavy material. This robot doesn’t replace but supplement human laborers. And by using a MULE, it saves workers the repetitive injury strain they face.
with venture capital firms pouring money into construction software. This gives subcontractors options for their accounting, project management, time, and more. They can choose the software package or options that make the most sense for their business. These also mean that it can be difficult for subcontractors to find the best option for their specific incidences. With over 2400 app options, subcontractors have to be careful of what package they choose. Construction software is a technology shaping 2019. The ease of project management, accounting, estimating and projects more profitable and productive. Computer Aided Design Computer Aided Design, or CAD, had been used in architecture for a while now. CAD software can be used to create two- and three-dimensional models of a potential building, unit and more. Unlike BIM, CAD doesn’t contain all the rich information that BIM has. So, people only using CAD could lose out on some important data opportunities.
And independent robots won’t be the only technology seen on a job site. Several companies have started developing exoskeletons for commercial use. These would help reduce fatigue for field workers which could reduce the number of job site injuries. Building Information Modeling As drawing and planning software becomes more accessible for firms of multiple sizes, it’s benefits are more widely known. Building Information Modeling, or BIM, is a construction technology that is shaping the construction industry. BIM is different from CAD, it’s more than just a 3D model. BIM contains information, tons of information that is actionable within the model. It can reduce change orders, improve field communication and coordination, and has a lot of promise for the future. When a building originally designed with BIM software needs to be remodeled or renovated, it will be easier for the teams to make those renovations. Since they have information about the previous build at their fingertips, they can complete the projects faster. Construction Software There has been a resurgence in the construction technology industry,
Nevertheless, this is a construction technology that is exploding across the industry. Companies across the United States are turning more towards twoand three-dimensional models. As the technology develops, the capabilities will change, and it will become more important for firms to use CAD in their design process.
• The storage is easier for a project, you’re less likely to lose or misplace materials. • Most importantly there is increased safety. There isn’t unsafe weather and the working conditions are easier to maintain. Prefabrication aims to improve inefficiencies in material usage and production. Prefabrication is often broken into two categories, panelization and modularization. Modular Construction Modular construction is a type of prefabrication. For something to be modular, the project is constructed entirely or almost entirely off-site and assembled on site. Where modular construction is different is that the entire unit versus a panel is assembled off site. Marriott International has been pioneering this in their hotel construction for the past several years. They announced originally that they were going to build roughly 50 hotels using modular construction. This year they announced they were going to build a 360-foot-tall modular hotel in 90 days. While an entire hotel in 90 days sounds improbable, modular construction makes it possible.
Prefabrication Prefabrication is a broad type of construction. Prefabrication can include specific elements to entire buildings, like modular construction. There are many benefits to prefabricating elements of a project. Prefabrication benefits: • Greater Control over quality, weather, and the end product. • The environmental impact of building is lessened • There is reduced waste
Conclusion
• There is reduced air, water, and noise pollution
The construction technologies emerging in 2019 will change the future of construction. Having better information on your projects, a faster way of building them, and a way of building them safer improves the construction industry as a whole. esub.com
• Prefabricated elements can improve project schedules because different elements can be completed at the same time. • There is better logistics and scheduling of labor and materials.
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AUTOMATION
Transnamib looks at Automation to Improve Business computing systems and beacons that link up with base stations in order to transmit freight information. This would enable the rail operator to provide customers with real time information on cargo movement. Incorporated in this system is the limited movement authority, which is a safety tool that assists to prevent train on train collisions by notifying the train to slow down if another train is detected in front of it.
Logan Fransman | TransNamib’s Executive for Technology and Innovation
L
ike many other industries, the transport and logistics industry derives great benefit in terms of improved efficiencies created by advancements in technologies. Fitting to its new business strategy, TransNamib is assessing its current systems and processes. Speaking at the 11th Annual Transport and Logistics workshop this year, TransNamib’s Executive for Technology and Innovation, Logan Fransman, explained that the rail operator is currently researching prospective signaling technologies that could be considered to improve operational efficiencies at TransNamib.
Discussing maintenance systems, Mr. Fransman explained that geo-fencing software, a location-based service to detect the geographical location of trains, in conjunction with a break status monitoring system, can be used to quickly detect break downs. “This is a crucial tool for TranNamib, if you consider its aged fleet of locos”, explains Mr. Fransman. Vision technology, he further explained, is another maintenance option that scans the railway tracks to detect discrepancies and maintenancerelated matters, which would inform the rail operator which sections of the track to proceed carefully on.
One of the signaling systems the company is looking into, involves onboard
WBCG ROUNDS OFF 2019 As the year draws to an end, it’s good to look ahead and think about what the New Year will unveil as well as considering the happenings in the year we are about to wish farewell to. Another year of growing the Namibian logistics hub sees WBCG working with various partners and stakeholders. We very much appreciate your continued and on-going support, and look forward to a successful 2020 as we work with you, our valued associates. 18
During my short time at here I have learnt a lot and we have already been through many developments. I would therefore like to thank the WBCG staff for their wonderful contributions towards the furthering of the company, and ultimately the industry. I look forward to a new year where we passionately deliver on our mandate. I wish the nation a joyous and peaceful festive season and all the best for the year 2020. Yours sincerely Mbahupu Hippy Tjivikua
Construction & Mining Namibia, Dec/Jan 2020
With the constant introduction of improved and new technologies, there are innovative systems that can be deployed for every area of operation. As the person heading the technology and innovation team, Mr. Fransman is tasked to ensure that TransNamib uses new technologies to obtain their goal of improved efficiencies. As a show of TransNamib’s commitment to embracing innovation, Mr. Fransman noted that the company is currently testing an autonomous vehicle which clears sand off tracks. The vehicle is being tested on the railway line in the south of Namibia, where the sand regularly blows over the tracks causing significant time delays. “When employed correctly, automation can substantially improve organisational efficiency and performance”. The executive urged both students and industry present, to look at some of these disruptive innovative ways and invited them to approach the national rail operator with ideas to improve its services.
MINING
Mining as a catalyst for untapped sme growth
Tuliikeni Ndadi | Mining Engineer - Masters in International Mineral Resources Management at Standard Bank Namibia | Corporate and investment banking (CIB)
SMEs are deemed as vital actors for enhancing innovation, employment creation, income generation and most importantly, local value addition. As such, the government has prioritized the growth of SME development, which has been articulated in major policies governing the country. As the biggest primary sector in Namibia, a large portion of untapped SME growth lies within the sector through local supply linkages that it creates. The Namibian mining sector thus has the potential to become a significant catalyst for sustainable social and economic development through supply chains that support local SMEs. At present, the local mining supply chains are already being exploited by the sector with approximately 40% of total revenue that is spent on goods and services from Namibian businesses. Despite the large proportion of local expenditure, it is believed that there are still significant opportunities in the local production of mining inputs, particularly consumables, and the provision of services to the mining sector.
The benefits of such linkages are manifold which include the direct and indirect multipliers through the creation of business opportunities for local suppliers, wealth creation as well as the transfer of skills and technology.
The most sustainable avenue through which to increase local procurement and SME growth is in the provision of goods and services that can be integrated with other sectors of the economy.
Moreover, the development of SMEs through local mining supply chains can also be integrated with other areas of the economy in application of a specific skill or technology that might be applicable to another sector.
An example of this is usually in nonspecialized auxiliary goods and services that are not directly related to the core mining activities.
At a continental level, the Africa Mining Vision (AMV) which was endorsed by the African Union in 2009 also recognizes the importance and development potential embedded in local mining supply linkages. RECENT POLICY DEVELOPMENTS Recently, there have been a number of favourable policy reforms aimed at boosting local SME development through Namibian supply chains. These policy reforms include the recent directive issued by the Minister of Finance, Hon. Calle Schlettwein, for public enterprises to prioritise spending of goods and services from local SMEs and Namibian businesses. With regard to unlocking opportunities in the Namibian mining supply chain, the Minister also announced in the 2019/20 Budget Speech earlier this year that a database of mining inputs and services to be developed with an allocation of N$2billion to the Development Bank of Namibia. Such a database would allow SME’s to identify untapped business opportunities within the mining supply chain OPPORTUNITIES CREATED THROUGH MINING Mining projects present a range of opportunities across the entire value chain. These opportunities can be classified into the following broad categories: services; capital goods and construction materials; consumables and replacement parts; bulk services and infrastructure.
These include financial services, distribution services, logistics provision, skills and technology development. Such linkages are thus interconnected with other sectors in an economy and SMEs can benefit from interacting with these other sectors, beyond mining. Given the current uncertainties in the macro global economic environment, it is uncertain when new mining projects in the pipeline are likely to enter development. However, the outlook for uranium remains positive and when prices reach economic thresholds, it is anticipated that Bannerman’s advanced Etango project will enter development in addition to other main projects such as Trekoppje, Valencia and the reopening of Langer Heinrich uranium mine. Coupled with existing linkages and favourable policy reforms, these developments present new opportunities for Namibian SME’s and suppliers. STANDARD BANK’S SUPPORT TO SME’S Standard Bank Namibia has an established relationship with Namibian mines and their respective ecosystems and will continue to support SMEs by developing financial solutions tailored for their needs, including solutions to deal with working capital and cash flow challenges. Standard Bank’s business model has is focused on supporting Namibian businesses to expand and create new economic opportunities.
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ARCHITECTURE
Building Plans
A
total of 214 building plans were approved by the City of Windhoek in October. This is a 5.9% increase in the number of plans approved on a monthly basis when compared to the 202 building plans approved in September. The approvals were valued at N$134.7 million, a decrease of N$298 million or 68.8% compared to last month. The number of completions for the month of October stood at 244, valued at N$109.9 million. The year-to-date value of approved building plans currently stands at N$1.70 billion, 1.8% lower than at the end of October 2018. On a twelve-month cumulative basis 1,947 building plans worth approximately N$1.81 billion have been approved, a decrease of 14.5% y/y in number and a contraction of 9.8% in value terms over the prior 12-month period. The largest portion of building plan approvals was once again made up of additions to properties. 179 additions to properties were approved in October, an 11.9% increase over the number of additions approved in September. Yearto-date 1,400 additions to properties have been approved with a cumulative value of
N$656.5 million, a decline of 22.8% y/y in terms of value compared to the same period in 2018. Completed additions amounted to 215, valued at N$82.3 million, an increase of 4.4%% y/y in number but a contraction of 3.9% y/y in value. Year-to-date 1,028 additions have been completed to a value of N$477.3 million, a drop of 49.5% y/y in number and 31.7% y/y in value. New residential units were the second largest contributor to the number of building plans approved with 31 approvals registered in October, compared to 35 in September. In value terms, N$47.8 million worth of residential units were approved in October, increases of 9.6% m/m and 8.4% y/y. 316 New residential units valued at N$489.8m were approved in the first ten months of 2019, 28.8% y/y less in number and 2.9% y/y less in value than during the corresponding period in 2018.
29 Residential units valued at N$27.6 million were completed in October bringing the year-to-date number to 254, up 323.3% y/y, and value to N$350.8 million, up 243.2% y/y. Commercial and industrial building plans approved in October amounted to 4 units, worth N$9.6 million. The number of approvals for commercial and industrial properties has been languishing in single digit territory since September 2016 and has an average approval rate of less than 4 approvals per month over the last 12 months. On a 12-month cumulative basis, the number of commercial and industrial approvals has decreased by 10.4% y/y in October to 43 units, worth approximately N$557.7 million, an increase of 39.2% in value terms over the prior 12-month period. No commercial and industrial building plans were recorded as completed in October. During the last 12 months, 1,947 building plans have been approved, decreasing by 14.5% y/y. These approvals were worth a combined N$1.81 billion, a decrease in value of 9.8% y/y. The number of building plans approved, on a cumulative 12-month basis, continued to contract over the last four months.
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The overall decrease in both number and value of cumulative plans approved is concerning as, even in nominal terms, this indicates a continuing decrease in construction activity in the capital. Low consumer and business confidence means that growth in construction activity will likely remain subdued over the short- to medium-term.
DBN GBA AWARDS
Development Bank Innovation Award goes to smart electricity metering Wordpress newspaper printers and Ian Shuttle named Good Business Award winner
W
inner of the Development Bank of Namibia (DBN) 2019 Innovation Award, Pulsar Electronic Solutions proposed a smart metering platform to enable household and enterprise electricity users to control their electricity usage remotely using mobile devices. Although the Bank is actively engaged in financing additional generation and transmission capacity, it also recognises that streamlining and economizing electricity usage is an important factor in energy sustainability for Namibia. Deputy Director and Economic Adviser to the Minister of Finance, Penda Ithindi, presented the Award, together with Chairperson of the DBN Board, Tania Hangula.
Winner of the Development Bank of Namibia (DBN) 2019 Innovation Award, Pulsar Electronic Solutions proposed a smart metering platform to enable household and enterprise electricity users to control their electricity usage remotely using mobile devices.
aim of reducing imports from across the border. Runner-up in the large enterprise category, Ombepo Energy constructed Talking about the Award, DBN CEO and operate Namibia’s first wind farm Martin Inkumbi said the Bank’s near Lüderitz in the //Karas Region. experience is that innovation is not an Ombepo Energy is a venture between instant, overnight phenomenon, but an InnoSun Energy Holdings and Lüderitz exacting process of enterprise maturation Town Council. DBN has prioritized energy to the point of bankability. and electricity, and has developed He added that Pulsar Electronic Solutions a strong track record in the field of has earned the support of the Bank in the renewable energy. journey ahead and pledged support from Winner of the Development Bank of the Bank to place the project on the path Namibia 2019 Good Business Awards to enterprise success. SME category, Ian Shuttle, provides First runner-up in the Innovation Award, transport services for other companies, NamOceanic Kelp Production, proposed shuttle services for hotels and chauffeur the manufacture of chicken feed from services. It employs more than 50 kelp. Chicken, is one of Namibia’s staples, people. The Bank has identified SMEs and feed is currently imported. as important sources of employment creation. Second runner-up Primebiochar proposed a soil supplement manufactured from biomass obtained in bush clearing. The supplement will assist in retaining water in the soil and improve nutrient value of the soil for horticulture. Winner of the Good Business Awards large enterprise category, Wordpress prints newspapers and supplements, previously printed in South Africa and elsewhere. Among its goals, the Development Bank of Namibia provides finance for local manufacturers, with the
First runner-up in SME category, Blue Box Technology is owned by young entrepreneurs, provides digital retail media, event management and coin operated cellphone charging kiosks with secure lockers. The Bank has identified youth entrepreneurship as the breeding ground and basis for the future of Namibia’s economy. Second runner-up, Miiyelo Investment, provides automotive retail services in Otjiwarongo, focusing on sale of tyres,
wheel balancing, tow-in services and it operates a car wash. Talking about the nature of the Good Business Awards, DBN Chairperson Tania Hangula said the Bank’s main objective is to support economic and social development. It aims to achieve this goal through the provision of finance and business support to Namibian enterprises. Long-term business sustainability, she noted, is important to ensure sustainable economic growth and social progress. Winners of the Bank’s large enterprise and SME awards represent this goal. Through the Good Business and Innovation Awards, the Bank demonstrates commitment to support Namibian businesses who have demonstrated resilience and a winning attitude, Hangula added. Economic Adviser to the Minister of Finance, Penda Ithindi, said the Bank is a key agency in developing Namibia, and announced that the Bank has supported the creation of 24,000 new jobs and 32,000 temporary jobs since 2004 while approving over N$15 billion development finance for infrastructure and enterprise activities over the 15 years of its existence.
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DBN GBA AWARDS
Winner of the Development Bank of Namibia 2019 Good Business Awards large enterprise category, Wordpress. The company prints newspapers and supplements, previously printed in South Africa and elsewhere. Among its goals, the Development Bank of Namibia provides finance for local manufacturers, with the aim of reducing imports from across the border. Presenting the Award, Economic Adviser to the Minister of Finance, Penda Ithindi and Chairperson of the DBN Board, Tania Hangula, as DBN CEO Martin Inkumbi looks on.
Runner-up in the Development Bank of Namibia 2019 Good Business Awards large enterprise category, Ombepo Energy. Ombepo Energy constructed and operates Namibia’s first wind farm near Lüderitz in the //Karas Region. Ombepo Energy is a venture between InnoSun Energy Holdings and Lüderitz Town Council. Presenting the Award, Economic Adviser to the Minister of Finance, Penda Ithindi and Chairperson of the DBN Board, Tania Hangula, as DBN CEO Martin Inkumbi looks on.
First runner-up in the Development Bank of Namibia 2019 Innovation Award, NamOceanic Kelp Production, proposed the manufacture of chicken feed from kelp. Chicken, is one of Namibia’s staples, and feed is currently imported. Presenting the Award, Economic Adviser to the Minister of Finance, Penda Ithindi and Chairperson of the DBN Board, Tania Hangula, as DBN CEO Martin Inkumbi looks on.
Winner of the Development Bank of Namibia 2019 Good Business Awards SME category, Ian Shuttle. The company provides transport services for other companies, shuttle services for hotels and chauffeur services. It employs more than 50 people. Presenting the Award, Economic Adviser to the Minister of Finance, Penda Ithindi and Chairperson of the DBN Board, Tania Hangula, as DBN CEO Martin Inkumbi looks on.
First runner-up in the Development Bank of Namibia 2019 Good Business Awards SME category, Blue Box Technology. The innovative company, owned by young entrepreneurs, provides digital retail media, event management and coin operated cellphone charging kiosks with secure lockers. Presenting the Award, Economic Adviser to the Minister of Finance, Penda Ithindi and Chairperson of the DBN Board, Tania Hangula, as DBN CEO Martin Inkumbi looks on.
Second runner-up in the Development Bank of Namibia 2019 Innovation Award, Second runner-up Primebiochar proposed a soil supplement manufactured from biomass obtained in bush clearing. The supplement will assist in retaining water in the soil and improve nutrient value of the soil for horticulture. Presenting the Award, Economic Adviser to the Minister of Finance, Penda Ithindi and Chairperson of the DBN Board, Tania Hangula, as DBN CEO Martin Inkumbi looks on.
Second runner-up in the Development Bank of Namibia 2019 Good Business Awards SME category, Miiyelo Investment. Miiyelo provides automotive retail services in Otjiwarongo, focusing on sale of tyres, wheel balancing, tow-in services and it operates a car wash. Presenting the Award, Economic Adviser to the Minister of Finance, Penda Ithindi and Chairperson of the DBN Board, Tania Hangula, as DBN CEO Martin Inkumbi looks on.
Winner of the Development Bank of Namibia (DBN) 2019 Innovation Award, Pulsar Electronic Solutions proposed a smart metering platform to enable household and enterprise electricity users to control their electricity usage remotely using mobile devices. Although the Bank is actively engaged in financing additional generation and transmission capacity, it also recognises that streamlining and economizing electricity usage is an important factor in energy sustainability for Namibia. Presenting the Award, Economic Adviser to the Minister of Finance, Penda Ithindi and Chairperson of the DBN Board, Tania Hangula, as DBN CEO Martin Inkumbi looks on.
Innovation needs support and patience. Speaking at the 2019 Development Bank of Namibia (DBN) Good Business Awards and Innovation Award, DBN CEO Martin Inkumbi said the Bank’s experience is that innovation is not an instant, overnight phenomenon, but an exacting process of enterprise maturation to the point of bankability.
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Resilience is a winning attribute. Talking about the nature of the Good Business Awards at the Development Bank of Namibia Good Business and Innovation Awards, DBN Chairperson Tania Hangula said long-term business sustainability is important to ensure sustainable economic growth and social progress. Winners of the Bank’s large enterprise and SME awards represent this goal. Through the Good Business and Innovation Awards, the Bank demonstrates commitment to support Namibian businesses who have demonstrated resilience and a winning attitude.
Massive development impact. At the 2019 Development Bank of Namibia Good Business and Innovation Awards, Economic Adviser to the Minister of Finance, Penda Ithindi, said the Bank is a key agency in developing Namibia, and announced that the Bank has supported the creation of 24,000 new jobs and 32,000 temporary jobs since 2004 while approving over N$15 billion development finance for infrastructure and enterprise activities over the 15 years of its existence.
GUEST COLUMN
NAMIBIA
Dear stakeholders, thank you for partnering with us, we wish you a Merry Christmas and a Prosperous 2020 2018 2
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ARCHITECTURE
The Board, Management and Staff of D&M Rail Construction wishes all our stakeholders and the Namibian Nation a peaceful festive season and a safe happy 2020
Tel: +264 61 402 371 info@dmrail.com John Ludwig Str 35, Klein Windhoek PO Box 830, Windhoek, Namibia | www.dmrail.com 24
Construction & Mining Namibia, Dec/Jan 2020