Walvis Bay Corridor Group's Annual Review 2015/2016

2015/2016 A

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Building the Foundation of the Logistics Nation

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CORPORATE PHILOSOPHY

24 Vision, Mission

and Values

INTRODUCTION

04

05

43

Cont

ANNUAL REVIEW HIGHLIGHTS

43 1 September 2015 to

31 August 2016

40 ADMINISTRATION AND SUPPORT SERVICES

40 Projects & Funding 41 Finance and Administration

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MANAGEMENT REPORT: 06 09 13 14 16 18 20

Chairman’s Report Chief Executive Officer’s Report Achievements (September 2015 to August 2016) Marketing and Communications Board of Directors as at 31 August 2016 WBCG Management as at 31 August 2016 WBCG Members & Partners as at 31 August 2016

22 INTERNATIONAL AND REGIONAL BUSINESS DEVELOPMENT 22 Brazil 24 DRC 25 South Africa 26 Zambia

tents

28 32 PROJECTS

32 Logistics Hub 34 Spatial Development Initiatives 35 Wellness Services

CROSS BORDER FACILITATION

28 Trans Kalahari Corridor Secretariat 29 Walvis Bay-NdolaLubumbashi Development Corridor

CORPORATE PHILOSOPHY OUR VISION To be the leading trade route for southern Africa

OUR MISSION • Facilitate and promote transport and trade along our secure and reliable corridors • Provide innovative service offerings to our customers • Consistently exceed our customers’ expectations • Add value through our unique public–private partnership (PPP) • Apply principles of good corporate governance

OUR VALUES • Commitment to cooperation • Professional service delivery • Integrity

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WBCG Annual Review 2015/2016

INTRODUCTION It is my pleasure to reflect on the activities and achievements of the Walvis Bay Corridor Group through the 2015-2016 Annual Review. The WBCG’s mission is to promote and advocate the progress in Namibia’s Logistics Hub aspirations.

The theme we have chosen for this review is BUILDING THE FOUNDATION OF THE LOGISTICS HUB. In order for the Hub to work, it needs to be built on a solid foundation.

According to research this solid foundation consists of the strategic location, Government commitment and political and economic stability. With this in mind we can declare that Namibia is getting itself more organised. We see the public and private sectors starting to define and focus on their roles in positioning the country as the Logistics Hub of Southern Africa.

The WBCG has become one of the key organisations in the Namibian economy, driving the agenda and expanding the role of the transport sector in the country’s economy and for its people. The successes and experiences have been shared with other corridors and similar organizations on various platforms, which in turn could enhance corridor development on the African continent.

With regard to the Namibia Logistics Hub as a catalyst for international trade linkages, great emphasis has been placed on the enhancement of infrastructure to link Namibia politically, socially and economically with the rest of the SADC region. The vision of developing Namibia into a regional transport turntable for the Southern Africa Development Community (SADC) has led to significant investment in upgrading our transport infrastructure to meet international standards.

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Investments in the industry are not inputs to short-term incremental innovations. They are investments in the future of logistics in Namibia. They can drive productivity growth, improve social prosperity and create new and better jobs that will improve intra-African trade and allow our region to play a greater role in the global economy.

Namibia’s role as a gateway to the rest of the SADC region has become more prominent and has created more interest from the regional as well as the international market. With more direct shipping calls to Walvis Bay, high efficiencies, short transit times and strategic partnerships, the Walvis Bay corridor routes are now in a robust position to serve the SADC market to the rest of the world.

JOHNY M. SMITH CHIEF EXECUTIVE OFFICER

CHAIRMAN’S REPORT as at 31 August 2016

Mr G. A. Uirab Chairman of the Board

WBCG Annual Review 2015/2016

MACROECONOMIC ENVIRONMENT The past year was marked by some unfortunate shifts in global economic conditions, most notably the continuation of the sharp decline in commodity and oil prices, in part attributable to growing concerns over China’s slowing economic growth. As a consequence, monetary policy remained accommodative throughout the major developed economies and key currency interest rates remained at historically low levels. Fiscal priorities continued to focus on controlling spending, an emphasis replicated in the private sector as weak revenue growth persisted in many industries. While short-term market uncertainty, particularly around the reduced global oil price, exists in some of our segments, our strategic focus has put us in a strong position to benefit from longer-term growth.

The WBCG has built important advantages in its core marketplace and logistics businesses that give us confidence that further growth in our core markets is imminent.

Firstly, and most importantly, the Walvis Bay corridors have transformed themselves from high cost corridors to a market alternative which is aligned to all the other traditional routes of shipping and logistics between the SADC region and the rest of the world.

Secondly, the time and cost advantages of the Walvis Bay corridor routes have created significant savings for our customers as they offer reliability and create long term customer propositions and value addition to logistics service providers within the SADC region.

The WBCG is now recognised throughout the SADC region as a leading name in the corridor market, renowned for providing a safe and secure alternative for logistics.

As international awareness of the brand increases there are exciting prospects for future growth. This offers attractive investment opportunities for regional and global logistics companies who are interested in developing their footprint in the SADC region.

We have invested in the infrastructure and systems necessary to underpin our growth plans, which enables us to become a logistics hub for the SADC region. It is, however, important that further investments and partnerships are formed to create more aviation and rail infrastructure to grow and develop our logistics hub in Namibia.

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I also want to acknowledge the enthusiasm and hard work of the people here in Namibia and in the rest of the SADC region who continue to deliver Walvis Bay as the preferred trade route to our customers in the region and worldwide.

Their contribution and partnership is crucial to our continued growth and success.

FINANCIAL AND BUSINESS POSITION Despite the difficult position that the WBCG is finding itself in due to limited financial resources among its members, it has remained focused on ensuring that various options are exercised to optimize what we have as an institution. We have explored more partnerships to allow certain activities to continue further development of our corridors.

Corridor volumes have dropped by more than 30% because of the TransCunene corridor, but our focus has always been on growing new markets and this has brought some stability in terms of our market share in the SADC market.

LOOKING AHEAD Because of current market conditions attention is inevitably concentrated on the risks that exist in the global economy. It is, however, important to also recognize the resilience that our diversified business model and market strength provide, as well as noting the many counterbalances that should help to underpin the global economy.

WBCG Annual Review 2015/2016

STRATEGY We have devised a new strategy for the period 2016-2021 to facilitate the development of the Namibia logistics hub by focusing on: •

• •

positioning and branding the WBCG competitively through partnerships to increase balanced import/export cargo volumes effectively promoting the corridors as the preferred trade routes to all our customers continued commitment to provide adequate and cost effective capacity and efficient services.

We look for long-term relationships to understand clients’ needs, develop insight to inform our value propositions and choose the right opportunities to maximise the benefits of our expertise.

Three areas of differentiation form the basis of our strategy: putting our clients at the centre of what we do, working more collaboratively among our members and exploiting new solutions wherever we can to secure future growth. With the hard work and support of more diverse members and partners we believe that we can make a difference to the SADC region by reducing the cost of doing business. We remain confident for the year ahead despite continuing uncertainties in some of our markets.

We continuously work across the various markets in the SADC, all of which have attractive opportunities for growth. With each one at a different stage in their journey, the entire group now benefits from pooled resources and extensive expertise, accelerating our progress and ambitions everywhere.

Our board and experienced management team is focused on ensuring that the WBCG and the Walvis Bay corridors remain the lasting logistics and supply chain solution for customers in the SADC Region.

The WBCG has always been a business that believes in and strives for improvement. I trust that we will continue to create opportunities for growth and pursue them with energy, passion and commitment for the benefit of our customers, our people, our industry and, of course, our members.

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The WBCG has kept on positioning the end customer at the heart of the business, through marketing, innovation, local participation strategies and now has the direct customer contact required to succeed in today’s competitive marketplace.

The WBCG’s opportunity for growth lies in positive growth within the SADC Region and the increasing penetration of new opportunities in emerging markets.

Our footprint within the SADC Region as well as our International office within Brazil provides a continuous drive for tapping into new markets and growing our markets share for transport and logistics within the SADC Region.

MANAGING GEO-POLITICAL RISKS AND OPPORTUNITIES Political and other volatility continues to be a growing feature of the global economy and many of the markets in which we operate.

We are continually improving our ability to understand and interpret it, to evaluate and act against the potential risks and to take advantage of the opportunities for the business. We have integrated the work of our strategy and risk team and also improved our in-depth analysis of and scenario planning for priority markets. I am confident that this will further enhance our resilience and growth potential.

WAY FORWARD Our private public partnership remains at the core of our strength to build and enhance our supply chain via the Walvis Bay Corridors for more companies between the SADC region and the rest of world. We are ever appreciative of the SADC Governments’ efforts to support this drive and initiative to develop Namibia into a logistics hub for the SADC region.

CHIEF EXECUTIVE OFFICER’S REPORT as at 31 August 2016

Mr Johny M Smith CEO

WBCG Annual Review 2015/2016

The past year has been a challenge for the WBCG because various economic factors such as the drop in the oil price and the decline of southern Africa’s economies have affected business and movement along the Walvis Bay Corridors. This has, however, given us the opportunity to review our markets and put more emphasis on those where we can find new opportunities and explore our own market development process in different, more effective ways.

CHANGING THE LANDSCAPE Pushing ourselves to greater heights after more than 16 years in the SADC market, we can now see that more confidence exists in Walvis Bay as an alternative trade route for trade and logistics within the SADC arena.

As some of the markets are becoming more receptive to the Walvis Bay Corridor concept, more companies are getting convinced of the time and cost savings that these trade routes offer to them. Apart from being the obvious choice in terms of time advantage for European and the Americas cargoes we have seen an increase of trade volumes between Asia and SADC markets via the Port of Walvis Bay. Traditional barriers are being broken down as more customers are looking at different alternatives to reduce the cost of their relevant supply chains. This is a fact not only from the perspective of importers, exporters, traders, logistics companies and road transporters, but also global shipping lines.

MARKET INNOVATION As the African market becomes more attractive for investors it also leads to more supply chains being developed to support the growth of our economies in the relevant regions. Walvis Bay continues its awareness campaign of presenting the Walvis Bay Corridors to logistics stakeholders who do business in the SADC Region. Our marketing and communications strategy is focused on creating new partnerships to expand our corridor message. During the period under review we have created more platforms to reach more customers and stakeholders in the SADC region and internationally.

Our presence in the region – with branch offices in the Democratic Republic of the Congo, South Africa and Zambia – remains a strong base to be close to our customers and provide support to our services along our corridors, linking trade between the SADC

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region and the rest of the world. Our office in São Paulo in Brazil continues to provide us with a good platform to engage with the Latin American market, learn and understand the market and picking up business opportunities to grow this international corridor between Brazil and Namibia, which for the SADC region is the shortest route to international markets.

During the past year a new five-year plan for the WBCG was drawn up after reviewing on what and where we should concentrate in our private public partnership to grow our corridor concept. Our strategy for 2016–2021 remains focused on building Namibia into a logistics hub for the SADC region.

CAPACITY BUILDING PROJECTS Apart from our main focus on business development, we continued to work on our other projects to develop capacity for the transport and logistics sector to cope with future demand. Providing wellness services remains a star characteristic. We entered into strategic partnerships with key agencies in the health sector and are now able to provide mobile health services at various locations on demand, as well as for our border communities through our stationary mobile centres at three of the busiest border posts in Namibia. Our strategic partners – such as USAID, GIZ, SADC Secretariat, Global Fund and our Ministry of Health and Social Services – have made all of this possible. Other support programmes for capacity building that are being developed through our projects and funding portfolio have assisted us with training for the industry and strengthening SME companies in the transport and logistics sector. This strategic initiative will add long-term value to our sector.

It is a project that has been sponsored by the Embassy of Finland, a long-standing partner of the WBCG. The project support that we receive from the African Development Bank provides

for capacity building in various areas, e.g. completing our Master Plan Programme for the logistics hub, road safety and security improvements along the TransCunene Corridor, an accredited training programme for individuals in the sector and a continuous platform for the private and public sector to engage on the Walvis Bay-Ndola-Lubumbashi Corridor.

With our Spatial Development Initiative, which is still at the infant stage, a progressive approach is being followed to develop projects from concept and idea level up to the feasibility and implementation stage. During the past year we focused on developing internal capacity to initiate the process of developing business plans to progress towards project implementation and eventually convert our transport corridors into economic corridors.

CONTINUOUS IMPROVEMENT I believe that our corridor business is competitive, hungry for action and instilled with high-voltage energy. Despite achieving industry-leader status we have never become complacent. We retain our “challenger� mentality from the early days. We pride ourselves on competing to win. Always.

Every single day we commit to exploring opportunities across the markets in the region and further abroad to continuously improve and grow organically, to ensure that we are positioned to maintain our market leadership in all those categories we participate in.

Along the Walvis Bay Corridors we are sharing resources, expertise and innovation across all our markets and we apply our proven strategy right across the WBCG at a pace. We also leverage the opportunities of cross-border capacity in transportation services, as we create even better platforms for partnerships to become a more efficient and more effective corridor route of choice to our customers.

Each of our markets has great potential and we are working together as an industry to build a bigger and stronger business for the long term. We are investing in infrastructure and capacity in every market, because these are the things that really matter to customers.

Based on our deep insights into the changing needs of our customers, along with our investments in infrastructure, our strong relationships with our partners and above all our ability to adapt to and embrace change,

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WBCG Annual Review 2015/2016

we continue to push ourselves forward. With the combined capacity of the group this enables us to make the right decisions and move towards the future, for the benefit of all our stakeholders.

As a group operating across various territories at different stages of development and in markets and segments with different structures, we measure our success by how we as a group come together to deliver consistent long-term growth.

OUTLOOK I am extremely proud of the business we have built so far. But more than that I am excited about the future, as we continue to create and grasp opportunities to better serve our customers and grow our business within the SADC region. Our management team keeps growing stronger and provides on-going expertise and support to our members in our quest to grow our market share.

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WBCG Annual Review 2015/2016

ACHIEVEMENTS

September 2015 to August 2016

WBNLDC member states signed tripartite agreement.

WBCG CEO Johny Smith was named Africa’s Transport Leader of the Year 2016.

WBCG became part of the steering committee of FCFASA, the Federation of Clearing and Forwarding Association of Southern Africa.

WBCG Wellness represented Civil Society Organizations of Namibia at PEPFAR Country Operational Plan Review in South Africa.

Wellness testing in Omusati reached recordbreaking numbers.

Successful information sessions were held in South Africa, Zambia, Botswana and the DRC.

The WBCG helped to eliminate restrictions on heavy motor vehicles.

Upgrading of Zambia’s Western Corridor commenced.

AIDEX Africa was impressed with the WBCG Wellness model; WBCG was the only Namibian company selected to present itself at the event.

Namibia hosted Western Corridor Clusters meeting.

Truck consignment of 109 units passed through the Port of Walvis Bay up to December.

WBCG Wellness and the Ministry of Health and Social Services signed Memorandum of Understanding (MoU).

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WBCG Annual Review 2015/2016

MARKETING & COMMUNICATION BACKGROUND During the past year we worked tirelessly to improve our support to our internal and external stakeholders. We identified better ways to work with the WBCG’s regional and international markets by complementing the marketing and business development programme of the Group. In support of our core business we continued to apply our communications strategy to strengthen business development initiatives.

We intensified the activities as laid out in our communication strategy in the regional market and we expanded on the international network.

As a means to reach more stakeholders we hosted several information sessions in Namibia and in our regional markets to share developments on the Walvis Bay Corridors.

ACTIVITIES Event Management In the area of marketing we focused our attention on face-to-face engagements. The department organised more than 15 networking events nationally, regionally and internationally to create awareness of the services offered by the Walvis Bay Corridors. These events included information sessions, exhibitions and conferences as well as local and regional logistics hub forums to support the WBCG’s business development drive. Information sessions were hosted in Johannesburg, Durban, Gaborone, Francistown, Lusaka, Kinshasa, Windhoek, Walvis Bay and Lüderitz.

Most of these events were arranged in support of the logistics hub initiative but also to create more awareness and stakeholder support for other WBCG projects. Specific sessions were held for the Wellness Service in different parts of the countries which contributed to their project objectives and growth to raise awareness of their activities. We have once again strengthened our partnership with the Namibia German Centre of Logistics through the Annual Transport and Logistics Workshop, which was hosted in Swakopmund last year.

Our focus during the last session was to build

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a stronger programme as a bridge between the academic provisions in the logistics sector and the practical case studies to improve engagement between participants and enhance the learning process in the logistics sector.

Strategic Partnerships We continued to develop strategic partnerships to enhance our role as a facilitator to trade and transport. The events and partnerships are carefully selected to derive maximum value for our stakeholders, offering them the opportunity to meet new clients. We entered into new partnerships and strengthened our existing partnerships with various conference organisers to create a platform for our members to increase awareness of Namibia’s offering to the regional transport market. A new collaboration with the Namibia Trade Forum provided a platform for the private sector to engage in new opportunities of exploring trade between SACU and Mercosur countries, which supports the growth of our international corridor between Brazil and Namibia. Our partnership with South Africa’s Transport Forum provided us with the opportunity to address industry players in Durban, updating them on the developments at the Port of Walvis Bay and on the corridors.

Media The WBCG has a good relationship with the media, not only in Namibia but also outside the country. During the year under review we focused on developing our contacts to media organisations in all the relevant markets in order to expand our channels of

WBCG Annual Review 2015/2016

communication. Various advertorials were placed in national, regional and international transport and trade publications, which include the Freight and Trading Weekly (FTW), the Namibia Trade Directory and Insight Magazine. To keep Namibia’s logistics news in the print media we regularly submitted media releases and articles specifically requested by journalists. Stories sourced from our newsletter were also published by local papers and online news agencies. By cultivating a strong relationship with our national broadcaster we were able to participate in various TV and radio programmes about the developments on the corridors, the logistics hub initiative and our wellness service project. Radio and TV interviews were also given in South Africa, Botswana and Zambia to promote the Port of Walvis Bay as well as the Botswana and Zambian Dry Ports respectively. Marketing and Communications continued to circulate weekly media clippings of relevant local and regional information to WBCG members and the team to keep them informed on the changes in the SADC landscape.

Communications Our digital publications and online presence continues to extend our footprint in the global arena. Our monthly online newsletter, the eCorridor, has increased its reach and is now distributed to over 2 500 recipients globally.

The newsletter’s continuous growth is assured as new stakeholders are regularly added to the distribution list.

The WBCG website serves as an important source of information to our stakeholders.

It is regularly updated with news articles, events, important industry documentation and advertisements. We have entered linksharing partnerships in order to strengthen the connection to our members and partners.

This practise also helps to increase the flow of traffic to our respective websites. The WBCG website had 11 222 users during the period under review, of whom 68.14% were new users. The largest number of visitors was from Namibia and South Africa. Visitors from Kenya, the United Kingdom, the United States, India, the Netherlands, Germany, Brazil and Zambia also showed keen interest in learning more about the Walvis Bay corridors.

Our social media presence and interaction has increased through our Facebook page. The page attracts new members daily and steadily grows in popularity. With regular updates

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and engagements we are able to talk to a younger audience about the future of logistics in Namibia and provide users with the latest information. This platform carries news items, upcoming events, advertisements, vacancies and photo uploads. Another advantage of using Facebook is that we can link our information to our stakeholders, which allows us to share information from their pages to ours and vice versa. In order to create a better understanding of our decision makers in the industry and partners of the WBCG we have started to profile our board members and other strategic partners in the eCorridor, on the website and on Facebook. It is an on-going process of getting to know each other better.

WAY FORWARD We have steadily expanded our network to improve our reach and extend our regional and international footprint. The Marketing & Communication Department continues to look for innovative ways to disseminate the WBCG’s and our stakeholder’s information to the local, regional and global markets. The department confirms its support for the various WBCG projects and business development offices through its event management activities, marketing and communication opportunities, and by developing strategic partnerships in order to aid us in achieving the objectives of the organisation. In our sphere of operation we will continue to look for new methods to increase awareness of the Walvis Bay Corridors and support Africa’s vision of an integrated, unified continent.

BOARD OF DIRECTORS as at 31 August 2016

Mr. H.I. //Garoeb

Mr. H.H. Schmidt

Mr. N Oberholzer

Mr. Immanuel !Hanabeb

Mr. G.A Chair

Mr. T.N. Shaanika

Ms. S. Naanda Mr. J Dias

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Mr. W.C. Dempsey Treasurer

Mr. W Goeiemann

Mr. W. Prosser

Mr. N.M. Daniel

A. Uirab rman

Mr. A.T. Victor

Mr C. Lutombi

Mr. N. Nghishekwa

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WBCG MANAGEMENT as at 31 August 2016

Ricardo Latkani WBCG Brazil Business Development Representative

Siobhan Fox WBCG South Africa Business Development Manager

Johny M Chief Execu Kabash Munung WBCG DRC Business Development Manager

Andrew Sinyangwe Jr. WBCG Zambia Business Development Manager

Cindy-Lu Hasheela Manager: Marketing & Communications

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Klaudia Mwaala Manager: Finance & Administration

M. Smith utive Officer

Clive Smith Project Manager: Logistics Hub

Immanuel Shipanga Manager: Projects and Funding

Samuel Sandi Consultant:Cluster Secretariat WBNLDC

Edward Shivute Programme Manager Wellness Service

Gilbert Boois Manager: Spatial Development Initiative

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WBCG MEMBERS & PARTNERS as at 31 August 2016

Namibian Ports Authority (NamP-

TransNamib Holdings Ltd is the only

ort) manages and promotes the

rail service provider in Namibia and

Ports of Walvis Bay and Luderitz as

specializes in the transportation of

the preferred links for sea-borne

bulk and containerised freight, uti-

trade with Namibia and the SADC

lising a combination of rail and road

countries.

transport to deliver its services.

Container Liners Operations Fo-

Namibia Chamber of Commerce and

rum (CLOF) represents all contain-

Industry (NCCI) is the country’s busi-

er shipping lines only calling and

ness chamber and therefore serves as

servicing Walvis Bay port directly

a convenient central point of enquiry for any potential Corridor user who wishes to gain insight into Namibia’s

The Namibia Logistics Association

business community.

(NLA) represents the Namibian logistics industry. This includes small and large companies operating in

Walvis Bay Municipality represents

road transport, freight forwarding,

the social-economic interests of the

courier services and customs clear-

town of Walvis Bay, which is a tax ha-

ing.

ven for manufacturers, importers and exporters as it harbours both the Port of Walvis Bay and Export Processing

Walvis Bay Port Users’ Association

Zone.

(WBPUA) represents all entities associated with cargo, freight and shipping activities in the Port of

Roads Authority focuses on manag-

Walvis Bay.

ing the national road network and on improving the standard of Namibian roads with a view to a safe and effi-

The Namibia Transporters Association (NATA) is a collective of Namibian-based Small and Medium logistic service providers comprising of various transporters and freight forwarders.

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cient road sector.

The Ministry of Works and Transport, represented by the Department of Transport, focuses on the maintenance of the existing road infrastructure (to avoid deterioration), upgrading road links to neighbouring countries and further development of port infrastructure (amongst others).

Ministry of Industrialization, Trade and SME Development, represented by the Namibia Investment Centre, is Namibia’s official investment promotion agency and first point of contact for investors.

Its role is to attract, encourage and facilitate investment in Namibia. It offers a wide variety of services and investor incentives, and works closely with key ministries as well as service and regulatory bodies.

The Ministry of Finance, represented by the Department of Customs and Excise, deals with all Namibian customs and excise issues. Namibia is a member of the Southern African Customs Union (SACU), as are Botswana, Lesotho, South Africa and Swaziland.

The Ministry of Home Affairs and Immigration, represented by the Department of Immigration. Their focus is on the activities and schedules of the immigration entry/exit points.

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WBCG Annual Review 2015/2016

INTERNATIONAL AND REGIONAL BUSINESS DEVELOPMENT BRAZIL

By Ricardo Latkani, Business Development Representative

BACKGROUND 2016 was a year that saw tremendous movement in Brazil. The change in the political arena resulted in a rise in industrial production and a decrease in inflation. The country boosted the export sector with an initial line of credit of NAD 8 billion for the fourth quarter of the year and is starting to revise international deals.

The Brazil to Walvis Bay international trade corridor offers significant opportunities for traders between the Latin American and southern African markets. We approach Brazilian investors by pointing out that the best way to participate in Africa’s growth is to make the transition from being an exporter to being a co-producer-exporter. The concept is to bring Brazilian technology, know-how and expertize to Namibia and participate in industrialization projects, thereby creating jobs and becoming a partner on the African continent.

The Brazilian market is gaining a better understanding of the WBCG concept as we heavily engage in promoting Namibia, the Port of Walvis Bay, the Corridors and the Logistics Hub. We focus on the sectors of agribusiness, car manufacturing, food processing, furniture, electronics, frozen food and medicines. The targeted products include tyres, vehicle spare parts, trucks, cars, sugar, maize, rice, sweets, fruit juice, poultry, beef, pork, fish as well as copper cathodes, air conditioning equipment, medical equipment and medicine.

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ACTIVITIES AND ENGAGEMENTS The Brazil office strengthened its partnership with the Afro-Chamber to reach more exporters, traders and commodity brokers in its efforts to promote Walvis Bay as a trade route for Brazil into the southern African region.

The MERCOSUL agreement coming into effect in the SACU region offers tremendous opportunities for trade between the Latin American and southern African economic regions.

More awareness of this opportunity was created during the financial year. In terms of agriculture we continue to promote Namibia’s ‘Green Belt’ concept about produce that originates from the north of Namibia, from Grootfontein further along the WBNLDC. The Green Belt presents an opportunity for the Brazilian agribusiness sector to partner with Namibia to produce high quality products in the region.

The period under review saw many important engagements with various stakeholders in the Brazilian market. The WBCG, joined by Namport, exhibited at the Intermodal 2016 in São Paulo, which is the second largest logistics fair in the world. This platform provided an excellent opportunity to engage with various stakeholders. The Walvis Bay solution was also presented at one of Brazil’s top ranking business schools, Mackenzie University in São Paulo, alongside Wall Mart’s and BMW’s

WBCG Annual Review 2015/2016

Latin America presentations. The WBCG furthermore exhibited at an event coordinated

by Thomson-Reuters which included CEOs from the top 100 Brazilian companies such as BRF, BomBril, HP Foods and Archer Daniels Midland (ADM).

The Brazilian office has realised some fruitful engagements in the agro-processing sector.

One of the biggest Brazilian exporters of meat and related products explored investing in Namibia by setting up a food processing company to use as a base for exporting its products to various markets in the world. The feasibility study for this value-added service has been completed and is now evaluated by the Government of Namibia. Establishing this facility involves an investment of USD150 million which would boost the socio-economic situation in Namibia by creating approximately 600 direct and 1500 indirect jobs.

OPPORTUNITIES There is a consistent drive to engage a variety of stakeholders with a focus on the port and logistics community, to promote the linkage between Brazil and the SADC region via the Port of Walvis Bay and along the Walvis Bay corridors.

Trade volumes are still around 40%, which remains relatively low due to the economic crisis in Angola. Sales from Brazil to Angola have dropped by 65%. To mitigate the impact of this downturn, measures were put into place to sustain the DRC and Zambian markets.

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An opportunity exists to promote Namibia as a sugar hub for the SADC and West Africa. We continue to engage the industry to encourage this concept. We have had discussions with the shipping lines to reduce ocean freight costs to aggressively promote Walvis Bay as an alternative route from Santos to Gauteng as Direct Call reduces lead-time by six days.

We further explored a twinning partnership between the Port of Paranaguá in southern Brazil and the Port of Walvis Bay.

THE WAY FORWARD With the backing of the new Government, Brazilian companies are looking for medium and long-term projects to develop business partnerships that co-ordinate development strategies to grow consistently as a result of solid investments. The idea is to increase trade volumes through skills, development and poverty eradication – all of which are connected to job creation.

Awareness of our route continues to grow through the various interactions with stakeholders in the Brazilian market. The international industry strives to offer the best and most fruitful opportunities to meet Africa’s constantly increasing demand. Namibia therefore needs to continuously develop and implement strategies to promote itself to the Brazilian market as an opportunity for investment.

WBCG Annual Review 2015/2016

DRC

By Kabash Munung, Business Development Manager

BACKGROUND AND INFORMATION The Democratic Republic of the Congo (DRC) is recognised as the biggest import and export market in the southern African region. The political volatility in the DRC has affected the economic climate and therefore the movement of imports and exports has been negatively affected. The country, however, remains one of the region’s top three copper exporters. Due to its natural resources and mineral wealth, the Congolese market has tremendous potential to grow in volume through the Port of Walvis Bay. Its mineral deposits are estimated to be worth more than US$ 20 trillion. With copper being one of the DRC’s main exports and the presence of global mining companies increasing, greater mechanisation is expected in the mining sector. The annual growth rate of 7.7 percent in 2015 is an indication that the DRC economy will continue to grow.

Performance-related investments are driven by robust extractive industries and others.

Mining commodity exports from the Southern Province of the DRC dropped due to the decline in the global demand for copper and therefore less export was handled on the Walvis Bay-Ndola-Lubumbashi Development Corridor.

There is, however, a need for further development of the transport network as well as infrastructure to support the overall development of the country. Surveys in the agricultural sector revealed that there are still up to 600 000 hectares of unutilised land in the Katanga Province.

ACTIVITIES AND ENGAGEMENTS Since starting WBCG operations in the DRC in 2012, the WBCG has positioned itself as swift and reliable as well as an expert in the transport and logistics industry. We continue to engage the industry and Government to lobby for support and to enlighten the market on the potential of the Walvis Bay route.

Due to its potential for project cargo and handling imports as well as commodity exports, the WBCG continues to focus on the mining sector. To increase awareness of the corridor we engage the industry stakeholders at various mining platforms and conferences.

A pro-active approach is applied by our branch office in the DRC to explore individual relationships with the local transport and logistics sector. This approach helps to develop the capacity along the WBNLDC, which in turn supports growth in volumes along this corridor.

During the period under review we have seen new agricultural product from the Katanga Province moving through the WBNLDC. There has been a steep rise in the handling of timber products to the Chinese markets. This has led to a better balance of cargo between imports and exports via the Port of Walvis Bay for the Southern Province of the DRC.

OPPORTUNITIES The WBNLDC secretariat is continuously addressing bottlenecks in the corridor.

Some of these challenges include system and procedure alignment between the three member states which needs to be streamlined to enable an increasingly smooth flow of cargo on the route. The WBCG branch office in Lubumbashi is therefore working closely with the WBNLDC secretariat to address operational matters which support the WBCG members operating on this corridor. There is potential for more Congolese companies looking for Namibian partners in Walvis Bay and vice versa to expand business

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WBCG Annual Review 2015/2016

relationships and thereby stimulate more imports and exports via the Port of Walvis Bay. There is also a growing need for new retail and commodity companies in Lubumbashi and the WBCG branch office there is currently looking at how to explore such opportunities further.

THE WAY FORWARD Since the establishment of the WBCG office in Lubumbashi four years ago we have seen a growth in volumes on the WBNLDC. This growth not only consists of the traditional mining commodities but also the introduction of various other commodities not transported on this route in the past.

As confidence about Walvis Bay is growing within the Congolese market, the variety of service providers operating on this corridor is increasing as well. We are therefore continuously working with new customers and projects to develop this route further as a more cost-effective and efficient alternative for the southern DRC.

SOUTH AFRICA

By Siobhan Manager

Fox,

Business

Development

BACKGROUND South Africa’s growth is affected by low commodity prices and huge uncertainty within the Government. As the South African economy continued to be pressurized by lower cost, Walvis Bay is being offered and accepted as a shorter and quicker route for logistics service providers in the SADC region. The WBCG continues to offer sustainable solutions and alternative trade routes which provide a more suitable trade option for the Gauteng Province of South Africa.

ACTIVITIES AND ENGAGEMENTS There has been a continued effort to develop the matrix of projects as opportunities in the Gauteng Province and to see how it could be linked to the various corridor markets between Walvis Bay and the SADC Region.

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The Trans-Kalahari Corridor between Botswana and Walvis Bay has seen a growth in volumes. As a result of engagements in the industry the interest in moving South African based projects on the Trans-Kalahari Corridor through the Port of Walvis Bay has gradual increased. The WBCG branch office in South Africa continued to work with TKCS to explore opportunities in the South African market.

As South Africa plays host to the head offices of a number of multi-nationals we have focused our attention on this market and set up distribution channel solutions for them in the region via Namibia. Discussions were held with supply chain companies as well as shipping and logistics service providers in Johannesburg, Durban and Cape Town on establishing facilities in Walvis Bay to create more logistics capacity via Walvis Bay. Creating market awareness for the WBCG has been a core focus to achieve growth and development in this market. Awareness of the WBCG was increased through conferences, panel discussions, presentations, one-onone meetings and also through the media.

This office participated in and was afforded speaking opportunities at the following events: • • • • • • • • • • • • • •

2nd Connecting Africa conference Africa Rail Networking Breakfast Rail Expansion and Technology Congress African Ports Evolution Southern African Roundtable of the CSCMP 4th Annual African Railway Summit TBN Luncheon 4th Annual Dredging and Port Expansion Africa Pan African Port and Harbours Security Summit Afri-Logistics and Supply Chain Convention Breakbulk Africa African Rail Evolution SARA Rail Conference Africa Cargo Show

OPPORTUNITIES The expansion of the Port of Walvis Bay’s new container terminal and SADC gateway port terminal has created much interest and presents many opportunities.

WBCG Annual Review 2015/2016

The focus areas in the South African market are agriculture, mining, FMCG, transporters and logistics companies and freight forwarders. All of them have shown keen interest in the WBCG and meetings have been held with most top companies within these sectors. Projects have also been established within the FMCG and logistics sectors as well as with various freight forwarders and project-based companies.

THE WAY FORWARD The Brazil trade route has become a focal point for the South African market. Projects have been established with various companies regarding the direct shipping route from Brazil. We have had discussions with numerous South African based importers who import directly from Brazil through South Africa’s east coast port. As a west coast port we are able to sell the concept that the Port of Walvis Bay is able to reduce the transit time and cost of importing goods from Latin America. The South African market is focused on the trade route between Brazil and Walvis Bay for cargo destined for South Africa and Botswana.

Judging by the commitment received from the industry, importers and exporters in Gauteng intend to make use of the significant time and cost benefits once direct shipments have been established.

ZAMBIA

By Andrew Sinyangwe, Business Development Manager

BACKGROUND During the 2016 season the Zambian market showed a slight improvement despite declining global economic trends, with a fickle strengthening of copper prices. Even though metal prices have not been sustainable for Zambia’s fiscal policy, they have not affected the trade patterns negatively but shown an improvement in Zambia’s copper export trends.

The Government of the Republic of Zambia is currently engaged in the industrialisation of the entire country by selecting various industrial zones which will improve export production. Government is also supporting diversification into agriculture with the aim of exporting grain to less productive economies, thereby reducing its dependence on the mining sector.

Economic growth slowed down to 3% and the outlook remains the same in the short term.

Investor confidence has not been affected, however, and more pledges regarding foreign direct investments have been made.

Load shedding continues despite significant investments into thermal and hydro power generation and an extra 300 MW being fed into the national grid from two new power stations. Plants that use renewable energy sources are under construction.

Zambia is improving its technical capacity in terms of soft and hard infrastructure which is necessary for trade facilitation and the ease of doing business in general. The improvements range from roads, tollgates, border posts, the rail network and ICT. They are aimed at effectively allowing Zambia to fully participate in regional and international trade. The two tollgates constructed so far – at Manyumbi in the Central Province and at Kafulafuta in the Copperbelt Province – are successfully collecting revenue for the upgrading and maintenance of the country’s roads.

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WBCG Annual Review 2015/2016

ACTIVITIES AND ENGAGEMENTS There has been some focus on developing the Zambia-Brazil trade route via the Chamber of Commerce.

Due to market demand the WBNLDC did not perform as well as we expected and we are still at a market share of about 6%. Speaking engagements and personal selling remain the mainstay of our activities. We had some good opportunities at the various meetings with ZACCI, LCCI and MCTI where we requested to give presentations or talks on transport and trade.

2016 proved to be a very resilient year in terms of export volume growth from Zambia.

In December 2015 and January 2016 import and export volumes were at par before Zambian exports started to rise steadily. There was a marked increase in the export volumes of copper and timber (wood products), with timber slowly becoming a favourite commodity.

Exports grew by 4.67% from 212,918 Mt in 2015 to 222,858 Mt in 2016. The geographical location of the forest favoured us. The client recently acquired another lot in the Central Province for exporting to the eastern cost.

OPPORTUNITIES The social and cultural factors remain resilient to change but are no longer static except in youth trends. Purchases of apparel, electronics, building materials, hardware and second hand vehicles continue to be a large-scale forte of the trading sources in the Middle and Far East while high-end electronic gadgets are gaining more prominence and a larger share of the Trans-Atlantic markets. These are our opportunities.

Greater opportunities lie in export volumes as well as imports but they depend on the use of a trade route via Walvis Bay. Increased activity in the agricultural sector offers the potential to import at least 150 TEUs of agricultural equipment from Brazil and Italy per annum.

This figure could rise to 350 TEUs per annum.

Some of the opportunities for increased and continuous growth are in cotton, coffee and leather exports to Europe. Imports for the sector include fertilisers and ammonium nitrates.

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Copper, zinc, lead ore and cobalt remain the country’s top mining exports – around 1,500 Mt in total. In addition there is the potential to import 500 Mt of chemicals and factory inputs for the sector. It is important to note that copper loads and corresponding backloads of mining inputs may also increase for this market.

THE WAY FORWARD Our main focus has been to reach the market by personal selling. We also put more emphasis on increasing export volumes in order to balance northbound and southbound cargo volumes.

This alone would help us to reduce the cost of transport and allow more participation from foreign transporters, which would increase the much talked about transport capacity. We have also segmented the market and are focusing more on transatlantic cargo, as it is the best fit as a niche market while fully participating in Middle East and Far East supply chain solutions.

Coupled with this, it is also imperative for the organization to identify strategic partners with the ability to fulfil market requirements and add value to the service offerings which we are unable to provide.

If used well, Namibia’s unique geographic position can be a solution for many supply chain problems. The Port of Walvis Bay has a solid plan plus high-end equipment and just needs to take advantage of the many opportunities with renewed vigour and strategy. The various opportunities in the Zambian market are exciting and of considerable interest and should be pursued with a vision.

WBCG Annual Review 2015/2016

CROSS BORDER FACILITATION TRANS KALAHARI CORRIDOR SECRETARIAT (TKCS)

By Zunaid Pochee, Business and Marketing Development Specialist

BACKGROUND AND INFORMATION The Trans Kalahari Corridor Secretariat (TKCS) was formed as a result of a memorandum of understanding signed on 03 November 2003 between its member states Botswana, Namibia and South Africa. Last year the Secretariat celebrated its 13th anniversary. It continues to strive for and advocate trade facilitation, humanization and regional integration. In November 2015 the Ministry of Foreign Affairs in Windhoek officially accredited the TKCS as an international diplomatic organization.

This allows the TKCS to have its own identity as an independent transboundary corridor institution within the SADC.

ACTIVITIES AND ENGAGEMENTS The Trans-Kalahari Corridor Secretariat works closely with other regional and international organisations to reduce non-tariff barriers at various borders. Currently the TKCS is engaged in various initiatives to promote and develop infrastructure along the corridor route, which will transform it into an economic corridor. The development that has been targeted for this year is the construction of truck stops along the route. They will also have a positive impact on the economic growth of towns and villages.

Additionally, the TKCS is continuously aiming at improving safety and security initiatives

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WBCG Annual Review 2015/2016

along the route. To date, the Secretariat has embarked on a joint operation with its member states to evaluate the road safety and risk issues of the route. This evaluation is yet to be done in various areas outside the border posts on the Trans Kalahari Corridor over a 4-day period. The joint operation includes the local and national police authorities, traffic police, drug enforcement units, customs and immigration officials as well as the crossborder road authority units in the respective countries. Passenger vehicles and longhaul vehicles are stopped and checked for roadworthiness and the validity of the driver’s licence. Vehicles are also randomly searched for signs of human trafficking, contraband and illegal substances. The TKCS, together with the member states, will continue to look at various safety and security initiatives to enable the seamless movement of people and goods along the route.

CHALLENGES The various stakeholders have pointed out several major challenges regarding operations along the Trans Kalahari Corridor (TKC). It was observed that the hazard signs of some operators transporting dangerous goods are not sufficiently visible. There is also a lack of information as well as a lack of system linkage, e.g. between the Traffic Department’s registration of vehicles and the Police Department’s vehicle clearance.

There is a need for an electronic national administration traffic information system (eNaTIS) to get unroadworthy vehicles off the road. Alcohol screening devices are also needed at operation sites. The inability to check for warrant of arrests electronically makes it difficult to determine whether to stop drivers and their consignments or let them continue on their way. A problem with customs controls seems to be that trucks are not searched well enough and the main focus is on documentation. In addition, member states noted that they need a joint approach to illegal immigrants.

SUCCESSES Current volumes on the route are stable.

Volumes of consignments from South Africa to Namibia are increasing continuously.

Import and export cargo is steadily on the rise between the Port of Walvis Bay and Botswana.

This is attributed to the development and

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completion of the Botswana Dry Port at the Port of Walvis Bay.

THE WAY FORWARD There is a clear need for synchronised law enforcement standards and the compilation of an operating procedure manual. Integration between member systems should be promoted to enhance information sharing. In the meantime the TKCS and its member states will continue to promote the route to local and regional stakeholders.

WALVIS BAYNDOLALUBUMBASHI DEVELOPMENT CORRIDOR (WBNLDC)

By Samuel Sandi, Project Consultant

BACKGROUND AND INFORMATION The political situation in Zambia during the period under review was as secure as it has been since independence. Due to the stable political situation, the Zambian economy grew by about 5.8 percent, of which the mining sector contributed a significant 15.7 percent. Other economic sectors contributing to this growth were electricity, construction, transport, information and communication.

Regarding the transport sector it is worth noting that since resuming operations, Zambia Railways Limited (ZRL) has added alternative routes (e.g. use of TAZARA railways, inter-mine routes) and thereby stimulated the transport sector. The increased number of storage facilities across the country has contributed to the growth of the sector. Equally, the implementation of road construction projects boosted the cargo volume transported by road in Zambia and to the neighbouring countries.

ACTIVITIES AND ENGAGEMENTS The WBCG market has been increasing over the years due to the Namibian Government’s continuous investments in the transport sector, the port, and the road and rail infrastructure.

These investments are complemented by a loan from the African Development Bank for the port expansion in Walvis Bay. Once completed, the new Port of Walvis Bay will compete favourably with other ports in the region.

During the period under review the following achievements were recorded for the Walvis Bay-Ndola-Lubumbashi Development Corridor: A. Establishment of a permanent secretariat for the WBNLDC A draft memorandum of understanding establishing the WBNLDC will be discussed at the next tripartite meeting planned for early 2017.

B. Establishment of an OSBP at Kasumbalesa Zambia and the DRC’s One Stop Border Post at Kasumbalesa will be operational by 2017.

C. Other developments along the corridor (i) Unnecessary road blocks on the DRC corridor have been removed. (ii) Security from Kasumbalesa to Lubumbashi has been improved and trucks were driving at night, but after the riots the situation deteriorated again in September 2016. (iii) After the change of the Government regulations in the DRC, copper loading has improved. What used to take about 6 days to load is now taking 24 hours.

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(iv) The pedestrian walkway which was constructed at the Kasumbalesa border post has brought some order to the process of customs clearance; unauthorized clearing agents from the DRC are now barred from entering Zambia. (v) The Zambian Ministry of Defence is constructing a 10 km trench on both sides of the border at Kasumbalesa to prevent illegal trade and illegal immigration.

D. Clearance at Kasumbalesa Border Post Congestion at Kasumbalesa has been brought under control. The clearance systems on the Zambian and the DRC side need an average of 1 to 2 hours to process a truck, if all the documents are in order.

E. Tripartite Road Transport Agreement The member states of the WBNLDC signed the trilateral road transport agreement which is to exempt Namibia and Zambia from paying excessive transit fees on DRC roads.

F. Tripartite Water Transport: DRC, ZAMBIA AND NAMIBIA The WBCG has been requested to draft a tripartite water transport agreement by the member states after the successful signing of a similar agreement in the road transport subsector.

G. Western corridor – Zambian side The western corridor on the Zambian side has been upgraded. It will be the shortest route from Namibia to the Katanga Province in the DRC once the only missing link, between Kaoma and Kasempa in Zambia, is completed.

H. Ministry of Health The Zambian Ministry of Health has lifted the

WBCG Annual Review 2015/2016

ban on importing rock salt from Namibia for animal feed.

I. Leather exports through the Port of Walvis Bay in Namibia The veterinary department confirmed that it has not banned leather exports from Zambia via Namibia.

J. Immigration Zambia and the DRC have resolved the immigration challenges at their respective borders, including Kasumbalesa. Namibia is still in the process of starting to issue commercial visa to drivers at Namibian border posts.

K. Decriminalisation–Namibian Roads The Ministry of Justice approved a bill on decriminalization which now awaits gazetting.

L. Railway Developments The Namibian Ministry of Works and Transport started discussions with a South African/ Austrian investor on the PPP rail development from Grootfontein to Sesheke in Zambia in October 2016. TransNamib is upgrading the railway section from Walvis Bay to Tsumeb.

Road works along the WBNLDC include the following: I. Road maintenance along the WBNLDC continues periodically II. A new road is planned from Walvis Bay to Swakopmund behind Dune 7 III. A dual carriageway is planned from Walvis Bay to Swakopmund IV. A two (2) + one (1) road development is planned from Swakopmund to Oshakati.

CHALLENGES •

•

Problems with foreign trucks: Unroadworthy trucks from the DRC and Zambia break down along the corridor and are left on the highways for days, thereby endangering the safety of other road users. Fuel is carried in drums which are fitted under the trucks. Under the Petroleum Product’s and Energy ACT, 1990 section 40, it is illegal to transport fuel in that manner. Some drivers arrive at the Namibian borders without proper licenses to transport dangerous goods.

Transporters’ queries: I. Corruption at the weighbridges in Zambia II. Cargo stolen from trucks in Zimba and Choma in Zambia

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III. Delays at Sesheke border post; ASYCUDA & power outages IV. Custom systems failures in Namibia V. Namibian customs release trucks without acquitting them in their system, which creates problems with bonds VI. The Zambian Control of Goods Act, Import Permit, requires that trucks carrying malt from the Port of Walvis Bay to the DRC via Kasumbalesa pay US$ 100 per 30 tonnes as a permit fee. If a truck carries more than 30 tonnes, another US$ 100 is charged for the balance or anything more than 7 tonnes. Trucks carrying malt have to be escorted from the Katima Mulilo border post to Kasumbalesa, but there are no escort vehicles.

• Timely issuing of in-transit permits: Zambia issues import permits within 2 days of application. It takes more than 7 working days, however, to obtain the equivalent permit for Namibia, called in-transit permit by the Ministry of Agriculture.

THE WAY FORWARD It is worthy to note that most of the bottlenecks experienced by the WBNLDC receive very active attention from the cluster members of the three countries. It is envisaged to resolve at least 70 percent of them by June 2017.

PROJECTS LOGISTICS HUB

By Clive Smith, Logistics Hub Project Manager

BACKGROUND AND INFORMATION Nominated as the implementing agency of the Namibia Logistics Hub Project, the WBCG continues to build momentum toward positioning the country as Africa’s logistics centre. Following the completion of the Logistics Master Plan in 2015, this project, under the auspices of the National Planning Commission, remains a key National Programme.

With the potential to unlock Namibia’s latent advantages and propel the Namibian nation to achieve the goals of Vision 2030, the Logistics Hub Project is at the forefront of the economic positioning of the country. Logistics and transport play a pivotal role as a catalyst for other industries, and as a result the project continues to receive great support from both the public and the private sector.

As a national development strategy the Logistics Hub Project endeavours to aid the logistics and transport industry to tap directly into the economic growth in neighbouring countries and bring the multiplier effects to Namibia. The industry further strives to enhance the competitiveness of the country by focusing on its geographical advantages and to create direct employment opportunities as well as stimulate opportunities in other sectors.

Additionally, the Logistics Hub pursues to use the country’s potential to position itself as the preferred trade route for landlocked SADC. To allow for an effective implementation process we continue to work towards ensuring that both the public and the private sector are actively engaged in order to enable a collective and synergized approach of the Master Plan Programmes and Projects.

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WBCG Annual Review 2015/2016

ACTIVITIES AND ENGAGEMENTS

Nanchang, China, and the Finland Trade Mission in May 2016 in Helsinki, Finland.

The Logistics Hub Unit organized and participated in various activities and engagements in an effort to realize the project’s ideals and objectives during the period from September 2015 to August 2016.

Stakeholder engagements proved to be the prime focus as it is vital to solicit widespread input. The purpose of the engagements was to ultimately consolidate the public and private sector efforts and contributions, all of which is meant to feed the Logistics Hub project in its entirety.

These included on-going preparations for the Logistics Master Plan Phase III Study, finalizing the work plan for the JICA three-year technical cooperation programme, on-going monthly Logistics Hub Forums and industry capacity building programmes, preparing marketing plans and tools to attract investors and providing technical support on priority projects. Engagements included soliciting support from development partners, meetings with regional and international development agencies such as the African Development Bank, the Southern African Customs Unit Secretariat, the Southern African Development Community Secretariat and the United Nations Economic Commission for Africa (UNECA).

Other activities engaged the local freight, logistics and transport industry to continuously seek their support in strengthening Namibia’s transport sector. We also engaged regional and international multinational companies to campaign for interest in the utilization of the Port of Walvis Bay and the Walvis Bay Corridors.

More commonly assignations played a role in attracting multinationals to establish regional head offices in Namibia.

The Logistics Hub Unit also participated in various regional and international arenas where the Logistics Hub Project was actively marketed and engagements with potential investors and development partners continued. These events included the Argus Africa Storage and Logistics Conference in September 2015 in Durban, South Africa, and CILF 2015 in October 2015 in Shenzhen, China, as well as the Nersant Business Mission in October 2016 in Tomar, Portugal, the 2nd Annual Infrastructure Project Financing in April 2016 in Singapore, the Seminar on Logistics Management for Namibia in April 2016 in

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Our venture to position Namibia as the continent’s Logistics Centre continued with the following events: The Japan Trade Mission in June 2016 in Tokyo, Japan, the Africa Ports and Harbour Show in June 2016 in Johannesburg, South Africa, and the National Single Window Study Tour in Kenya and Ghana during August 2016. We also presented our project at the Botswana-Namibia Business Forum in Gaborone in July 2016 and at the Cross Border Information Session in Kinshasa, DRC, in September 2016.

Additionally, to further allow for the inclusion of the ideals of the Logistics Hub Project in various other national programmes, the Project Manager also serves on several committees such as the Technical Committee of the National Single Window Project, the Advisory Board of Logistics & Supply Chain Management of the Namibia University of Science & Technology and as Deputy Chair of the Transport Thematic Working Group for the National Development Plan 5 (NDP 5).

As member of the Logistics Thematic Working Group we joined NPC and the Ministry of Works and Transport as well as other transport SOE’s at a workshop in Swakopmund to formulate desired outcomes for NDP 5. The WBCG represented all modes and had specific inputs for the maritime, road and aviation sectors.

During our presentation we emphasized the importance of wider private sector stakeholder involvement and we will work with NPC to arrange sessions in Windhoek and Walvis Bay. These engagements have given us immense regional and international exposure and continue to attract interest from multinationals.

We also hosted a number of regional and international delegations, all of whom are interested to explore the investment and operational opportunities that the Logistics Hub Project has to offer. A number of projects with international partners were derived from the WBCG’s engagements and its Namibian public and private sector partners manage all these through their participation.

THE WAY FORWARD With input from various stakeholders we prepared a comprehensive implementation plan. It will be fully integrated into the Harambee Prosperity Plan as well as the

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NDP 5, which runs from 2017 to 2022. The basis of the work plan is derived from critical programmes and projects identified in the Logistics Master Plan. These are strategic marketing, a strong and attractive operation base for international logistics, an efficient transport network (by modes), an efficient transport network (by towns), an integrated border infrastructure, cross cutting elements (finance, human resources, power and water supply) and environmental and social considerations.

Preparatory work, with support from development partners, has been completed and implementation commenced in January 2017.

We will continue to engage all stakeholders to ensure full inclusive participation both locally, regionally and internationally.

CONCLUSION The successful implementation of the Logistics Hub Projects hinges on effective coordination of the various programmes. It further requires full Government and legislative support as well as commitment from various ministries and state-owned enterprises. The private sector has an equally important role to play as effective and efficient service delivery is key to the fulfilment of services offered to our target markets. It is thus of paramount importance that Namibia adopts the PPP model with all of its large-scale infrastructure development projects, allowing for private sector investment and involvement.

It is important to develop human capital and the necessary skills in the transport and logistics sector. In the short term Namibia will have to consider importing critical skills that will also provide further capacity building opportunities for nationals in the transport sector. Namibia’s political and economic relations will further determine the extent to which the Logistics Hub Project will receive international support.

It is thus equally important that we continue to strengthen relations with our fellow African countries and actively engage in the various bilateral and other trade agreements that Namibia has signed.

With the advent of smart technology, the Logistics Hub Project needs to further embrace information and communication technology in order to be innovative in its service offerings.

We remain committed to the successful and timely implementation of the Logistics Master Plan programmes and will continue to

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advocate to the Government that sufficient resources, both financial and technical, need to be allocated to the project.

SPATIAL DEVELOPMENT INITIATIVE (SDI)

By Gilbert Boois, SDI Project Manager

BACKGROUND AND INFORMATION The Spatial Development Initiative (SDI) is a national programme with significant regional support intended to generate sustainable economic growth by mobilizing private investment capital for industrialization along the footprint of the Walvis Bay Corridors. The SDI, which commenced operations in July 2012, is based on a bilateral economic cooperation agreement signed by the Governments of Namibia and South Africa in November 2006.

Namibia’s Ministry of Industrialization, Trade and SME Development (MITSMED) mandated the WBCG to spearhead these programmes.

ACTIVITIES AND ENGAGEMENTS Following extensive engagements with the project promoters of the 20 SDI projects, the WBCG recommitted itself to develop a feasible level in ensuring that we deliver on the mandate received from MITSMED. WBCG also assisted MISTMED in profiling and packaging investment projects in various sectors – energy, affordable housing, infrastructure and logistics, agro-processing, tourism and manufacturing – presented at the INIIC (Invest in Namibia International Investment Conference) on 8–9 November 2016.

Based on value chain research on specific sectors we are populating business plan templates for 10 projects in the context of the “Growth at Home” strategy anchored around value chains in terms of Namibia’s industrialization agenda. This process will also ensure that we develop bankable SDI projects for implementation.

WBCG Annual Review 2015/2016

Three SDI projects were identified following the regional value chain initiative of discussions between Namibia and South Africa in April 2015. These are the Lodestone Iron Ore, the Grootfontein Container Depot and the Okakarara 300MW Coal Energy Baseload projects, for which questionnaires on economic viability assessments of targeted value chains were completed and submitted to MITSMED and the Department of Trade and Industry of South Africa (DTI). During a recent bi-national commission meeting between Namibia and South Africa the two Governments agreed on a follow-up joint technical committee meeting before 30 November 2016 to discuss the funding for feasibility studies and value chain analysis.

During the year under review the WBCG and UNIDO also concluded the final project document that has since been cleared for implementation by the Minister of Industrialization, Trade and SME Development.

To this end UNIDO is engaging specific donors and development finance institutions locally, regionally and abroad to mobilize the resources required to implement this project successfully.

Following discussions with the African Development Bank (AfDB) on possible funding avenues for SDI, we recently submitted a funding proposal to the AfDB for SDI activities along the Walvis Bay-Ndola-Lubumbashi Development Corridor (WBNLDC) which will benefit the three corridor states, i.e. Namibia, Zambia and the Democratic Republic of the Congo.

To this end and in support of the “Growth at Home” agenda the WBCG successfully facilitated the business registration of Sigma International (PTY) Ltd in Namibia as a manufacturer of branded clothing lines, uniforms and corporate wear. Sigma International is well positioned to commence manufacturing and distribution operations in Namibia and the SADC region in 2017.

We participated in various platforms throughout Namibia together with regional clients to promote the SDI concept and ideas on developing the SDI projects along the corridors.

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CHALLENGES Several discussions between the DTI and MITSMED on the on-going support for Namibia’s SDI Programme proved challenging as the DTI now has a new mandate and focus regarding SDI activities. Also, funding is limited, especially for feasibility studies and related technical studies.

THE WAY FORWARD The UNIDO Project, together with the regional value chain initiative between Namibia and South Africa, the possible AfDB funding for SDI as well as the new process to gather and analyse information to populate the 10 business plans, will put Namibia’s SDI Programme on a sound footing in terms of long-term sustainability and gradually transform the WBCG into a hub for consulting work and project delivery and implementation.

WBCG Annual Review 2015/2016

WELLNESS SERVICES

By Edward Shivute, Wellness Services Project Manager

BACKGROUND AND INFORMATION The WBCG established an HIV/AIDS Wellness Service initiative to address HIV/AIDS in a comprehensive and cost-effective way through combined efforts and shared resources with its transport member companies and the broader Namibian transport sector. To date, this initiative has received vast recognition and it has since expanded to provide support to both private and public institutions. Under the auspices of the Ministry of Health and Social Services and as part of the multisectorial approach in terms of the provision of health programmes in Namibia, this initiative continues to manifest itself in the country and the region.

The main objectives of the project include increasing the use of improved, effective and sustainable responses to reduce HIV transmission along the major transport corridors, to ensure the general wellbeing of employees and promote healthier lifestyles, to mitigate the impact of the HIV/AIDS pandemic along the transport corridors and to strengthen the response capacity of the WBCG in delivering high quality initiatives

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regarding HIV/AIDS and employee wellness. It further looks towards developing strategic and sustainable partnerships with key stakeholders such as line Government ministries, transport sector companies and other private sector institutions to ensure increased coordination and resource mobilization and thereby promote engagement and project commitment through public-private partnership (PPP) models.

Through its broad membership the WBCG offers a platform that facilitates and supports the fight against HIV/AIDS and the provision of general wellness interventions along its trade corridors. By doing so, it reaches an audience generally and traditionally perceived to have high HIV and AIDS numbers within the transport sector of Namibia.

The expansion of human mobility has inherent risks. A number of studies suggest a correlation between the availability of transport and the spread of HIV. Due to its high number of mobile employees (e.g. truck drivers) the transport sector has become a vector for the transmission of HIV. Key drivers for the epidemic are mobility and labour migration, multiple and concurrent sexual partners, interaction with sex workers, inconsistent condom use and the creation of links between sexual networks.

As a response to this threat to our national economic development process we developed a 5-year Strategic Plan (2013–2017) to guide our HIV/AIDS and Wellness Services through a multi-sectorial approach in collaboration with the Ministry of Health and Social Services.

The main focus of the plan is to implement high impact health and wellness activities

WBCG Annual Review 2015/2016

that demonstrate potential for revenue generation, customer service, membership and stakeholder growth, improved operations (marketing, M&E, finance and administration) and the overall sustainability of the WBCG Wellness project as some of its core objectives and activities.

The WBCG has made significant progress in terms of developing a programme that focuses on high impact activities and reinforcing its long term project sustainability plans through a public-private partnership model. The support received from various development partners such as The Society for Family Health (SFH) through USAID, the Southern Africa Development Community (SADC) through the Global Fund, GIZ and the Ministry of Health and Social Services, has helped the project to provide high impact health services.

The support further ensured that over 60% of transport workers and employees within the broader private and public sectors know their HIV status. We have recorded a significant reduction in the number of new cases of HIV infection, which is due to an increase in health-conscious behaviour. We continued to focus on ensuring the financial sustainability and growth of the WBCG Wellness initiative in the midst of threatening external causes –amongst others the World Bank’s recent elevation of Namibia to an Upper Middle Income Country that resulted in the exodus of donors who fund many of the country’s most important social efforts.

ACTIVITIES AND ENGAGEMENTS After two years of intensive consultations and discussions with the Ministry of Health and Social Services, the WBCG Wellness Services signed an official Memorandum of Understanding (MoU), ready for implementation. The MoU will allow the WBCG to expand its health services both in the private and the public sector. Amongst the key services to be added is the provision of anti-retroviral treatment for all HIV+ clients visiting our wellness clinics. The MoU will also assist us in mobilizing financial and material resources from various development partners and companies in Namibia as the health services to be provided will significantly reduce the total cost that companies are currently paying through medical aid schemes

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to keep their employees healthy. All the companies and institutions associated with the WBCG’s health and wellness initiative can now simply send their employees to our clinics and they will receive most of the services normally provided by private medical aid institutions.

Over the years this remarkable project has evolved into providing a holistic approach in terms of health and wellness, including services for both communicable and noncommunicable diseases as well as primary health care services through a blend of mobile wellness clinics and fixed roadside wellness centres located along the major transport corridors in Namibia. The project has now been significantly transformed from an exclusive HIV/AIDS initiative into a broader wellness concept. This transformation came as a result of a demand driven campaign from public and private sector organizations in Namibia.

In order to address the advent health needs of hard-to-reach populations such as long distance truck drivers and many other mobile communities within the transport sector, the WBCG project is implementing a “mixed model approach” based on the principle of combining static roadside wellness clinics and mobile wellness clinics with on-site HIV/ AIDS and employee wellness workplace interventions.

This initiative is now also spreading beyond the trucking industry into allied industries, with the potential to spread the message of wellness and information about HIV&AIDS and general wellness. Through our HIV/ AIDS and employee wellness programme we significantly contribute to the national goals and outcomes as outlined in the National Strategic Framework on HIV/AIDS Response in Namibia. This demonstrates an active “multi-sectorial approach” led by the HIV and AIDS/Wellness Strategy for the public works and transport sector.

The project focus areas of the Wellness Service include the sustainability of the WBCG Wellness Initiative, the promotion and quality of HIV/AIDS and employee and community based health and wellness services and the promotion of the return on investment and cost benefit projection tools. Further focus areas are to train and develop (capacity building) project staff for quality assurance, to monitor and evaluate project activities (quality assurance), to market and promote wellness

WBCG Annual Review 2015/2016

services to create a strong wellness brand and to implement and maintain only high impact wellness activities.

We further endeavour to sensitize the Namibian Transport Industry about the implementation modalities of the Road Transport Management System (RTMS) and the Regional Minimum Standards and Branding (RMSB) and to develop a 5-year strategic plan (2017-2021) which is PPP model driven and will have a strong focus on project sustainability. We also conduct key stakeholder capacity building platforms to advocate for commitment and buy-in, ensure quality of service and customer satisfaction levels of the industry key stakeholders, research and operate at least two roadside wellness clinics on the major transport corridors in line with the RTMS and RSMB guidelines and identify, evaluate and support safety and wellness programmes along the corridors.

OPPORTUNITIES In line with the WBCG Wellness Service’s strategic initiative to develop sustainable models (WBCG Strategic Plan), the wellness project has enjoyed significant success over the past few years. Strategic partnerships were developed with various stakeholders such as development partners GIZ, the United States Agency for International Development (USAID), the Society for Family Health (SFH), the Southern Africa Development Community (SADC) through the Global Fund, the Ministry of Health and Social Services (MoHSS), the Ministry of Works and Transport, the Corridor Empowerment Project (CEP) and the North Star Alliance.

Meanwhile, the WBCG Wellness project has initiated a sustainable funds generation portfolio which allows the project to generate self-income in order to bridge possible future funding gaps. Key resources used to achieve our ultimate goal include our fully operational mobile wellness clinics and three roadside wellness clinics based in Katima Mulilo, Walvis Bay and Oshikango. The mobile wellness clinics visit various companies and provide rapid biometric screening services on-site.

The services are fast and efficient and do not create production downtime for the respective companies.

The MoU between us and the Ministry of Health and Social Services will further enhance our opportunities in the health market and we

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believe that this partnership will strengthen our strategic position and ability to mobilize resources in order to support our income generation concept. We will also use various opportunities to strengthen the marketing concept of the WBCG Wellness Service in order to attract more business.

Further opportunities include: • Strengthen membership recruitment drive for non-members • Untapped market potential (high demand from non-members) • Expansion of WBCG Wellness Services into allied sectors will strengthen our sustainability vision • Workplace wellness and health concerns all, i.e. is a lifestyle trend • Available budgets at companies and willingness to invest in wellness activities • No competitor really gives attention to executive health and the WBCG is strategically positioned to do that • Need for employee education/awareness of health and lifestyle management • Need for employee workplace programme, policy development, annual health programmes for companies • Public sector investment into health and related programmes is key to sustainability • Positive support from PPPs (e.g. NATAU can link us to other members) • Undiscovered markets must be explored through the national multi-sectorial approach

SUCCESSES We have achieved significant growth with the Wellness Service projects during the period under review. These include the completion of training aimed at capacity building for WBCG project staff, the completion of the customer satisfaction survey and our marketing and business plan development. We have procured the mobile wellness truck, recruited three new members in the transport sector since the last survey, we provided employee wellness screening services and conducted site supervisory and quality assurance visits. We procured CD 4 count consumables, continuing with our on-site awareness sessions, and signed the MoU between WBCG-MoHSS. We also developed the WBCG Database which is hosted by the WBCG and currently used to develop timely wellness reports.

The WBCG Wellness Initiative has been nominated to serve on three key national

WBCG Annual Review 2015/2016

technical working groups based on the recognition of our health-related work in the country. The committees are the technical teams working on Voluntary Medical Male Circumcision, the National Key Populations Programme and the HIV Provider Initiated Testing Committee. The project was also selected to represent all Civil Society Organisations (CSOs) at a PEPFAR meeting in South Africa. The contribution that we are making in the national response to HIV/AIDS and Employee Wellness Programmes has been noted and recognised by the MoHSS.

THE WAY FORWARD Strengthening the Wellness Service to become more profit orientated and a sustainable centre for wellness excellence is a continuous exercise. It consists of developing new partnerships to grow the service of wellness for our existing and new client base within the borders of Namibia.

The Walvis Bay Corridor Group recognizes the importance of building smart partnerships and facilitating and implementing high impact HIV and employee wellness interventions in the transport sector. Hence, in line with the abovementioned interventions, successes and opportunities, we will continue to foster and develop smart partnerships with institutions which have the wellbeing of their staff at heart.

We also seek to advance collaborations with transport companies in Namibia and other relevant stakeholders such as the Ministry of Health and Social Services and the Ministry of Works and Transport to develop these partnerships in order to share expertise and resources in the wake of limited donor or development partner support.

It is equally important to recognize that although the Walvis Bay Corridor Group has

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shown significant capacity to sustain its HIV/ AIDS and wellness initiatives, there is still scope for further engagements and structured approaches with all key stakeholders towards efficient services. The WBCG is strategically positioned to increase its market share in terms of community-based and employee health and wellness initiatives, hence we will continue to improve our branding and marketing concepts and to make our services attractive to the end users.

We therefore strongly believe that the implementation of these high impact health activities will in the long term ensure project sustainability and commitment from both public and private sector institutions.

WBCG Annual Review 2015/2016

ADMINISTRATION AND SUPPORT SERVICES

Project, executed on the TKC and WNLDC, on the Trans-Cunene Corridor (TCuC) between Namibia and Angola.

PROJECTS & FUNDING

The Projects & Funding portfolio within the WBCG continues to play an important role in the long term outlook of the capacity building that is required in the transport and logistics sector in Namibia. During the past year the main projects focused on the current capacity building project which is funded by the African Development Bank. This project forms part of the new container terminal project at the Port of Walvis Bay and is financed with a middle income grant component (MIC) of more than N$ 12 million provided by the AfDB over a period of three years. The specific activities under this project include: 1) National Logistics Master Plan The master plan is a study to provide a comprehensive logistics policy and a system development plan for Namibia.

2) Road Safety Programme on the TransCunene Corridor A road safety programme that will replicate the Safe Trade and Transport Corridors

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3) Capacity & Institutional Building for the Walvis Bay-Ndola-Lubumbashi Development Corridor Management Committee (WBNLD CMC) The WBNLDC Interim Secretariat hosted by the WBCG is supported through a technical assistance agreement. It also covers coordination, hosting of meetings, travel and procurement of IT equipment over an implementation period of three years.

4) Capacity & Institutional Building for the WBCG’s Project Development & Funding Department Capacity building and support for the WBCG’s Project Development & Funding Department to ensure on-going transport facilitation and advocacy activities on the country’s regional corridors over an implementation period of three years.

5) FIATA Training Programme for Freight Forwarders Provision of FIATA certified training for a minimum of 70 freight forwarders in the transport and logistics industry in Namibia.

The WBCG also focused on a capacity building programme funded by the Embassy of Finland which covers four different areas: i. Institutional building at the Namibia Transporters Association (NATA), a new association which supports the development of small and medium transporters to create capacity for the transport sector along the various corridors. ii. SME Training: Individuals in the Namibian transport and logistics sector were offered the opportunity to enrol for the Certificate in Road Transport. The course was started on 20 November 2015 by the Business School of Excellence at no cost to participants. All expenses are fully covered by the financial support received from the Embassy of Finland. The course ends during 2017.

WBCG Annual Review 2015/2016

iii. The department is in the process of selecting and appointing a consultant to assist with conducting a market study for trade partnerships between Finland and Namibia. This process included a study tour to Finland, conducted in partnership with the Embassy of Finland and the Namibia Chamber of Commerce, to explore possible business partnerships between the two countries. iv. The Manager: During the period under review Projects & Funding also participated in various meetings (e.g. the Africa Infrastructure Conference) and met with several stakeholders such as NEPAD, AfDB, IDC, GMLS and SAAFF. Other projects, meetings and workshops attended by the Projects and Funding Department: • The PIDA CAP Orientation & Kick-off Workshop in Magaliesberg, South Africa, took place from 22 to 23 September 2015.

• OSBP Workshop: A second AfDB and Jica technical workshop for revising the One Stop Border Post (OSBP) Sourcebook was held in South Africa from 26 to 28 October 2015. The workshop finalised input and submitted it to the consultant for inclusion in the Sourcebook. A follow-up meeting of the OSBP Sourcebook and Knowledge Sharing Event took place in March 2016 in Addis Ababa.

• The AU-EU Validation Workshop of the Transport Sector Development Programme, held in Addis Ababa, Ethiopia, from 23 to 24 February 2016, discussed and adopted the White Paper on Transport Policy and the concept of a Smart Corridor.

• At the NEPAD-IPPF Project Pipeline Validation Workshop, held in Nairobi, Kenya, in April 2016, the WBCG together with NAMPORT promoted Namibia’s port and corridor projects. Our corridors were selected for inclusion in the pipeline under preparation.

The WBCG teamed up with the Worcester Polytechnic Institute in the United Sates and provided support to a team of four students who arrived in Namibia to work on a mobile application for the WBNLDC Corridor in March 2016. The WPI presented their final report to the WBCG and key stakeholders on 03 May 2016. The results of the project, entitled ‘Achieving Safer Transportation along the Walvis Bay Corridors through the use of a Smartphone Application’ are available to

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the Walvis Bay Corridors for further feasibility investigation.

FINANCE AND ADMINISTRATION

By Klaudia Mwaala, Finance Manager

BACKGROUND AND INFORMATION During the year under review the Finance and Administration function focused on improving and streamlining processes to enhance service delivery. Two new positions, Finance Assistant and Office Administrator, were established to improve support to the various functions within the Walvis Bay Corridor Group (WBCG).

Business development and head office functions now offer better support to the structures of all the projects currently managed by the WBCG. As a result we were able to provide an improved response in reporting to our partners, donors, development institutions and our members.

ACTIVITIES AND ENGAGEMENTS We continued to modernize and harmonize our information technology at the Head Office to ensure that we have a system that supports our growing needs in business and human resources. This has created significant value in terms of improved communication between our Head Office and our regional and international offices, and also reduced communication costs and operational expenditure for the WBCG in general.

The fact that the WBCG operates in the international transport market makes us vulnerable to the forces of market supply and demand. The depreciation of the South African Rand, to which the Namibia Dollar is pegged, had unfavourable effects on our cash flow position because it significantly increased the operational expenditure at our regional offices.

The WBCG remains a robust company with a relative low staff turnover. Capacity building through training, development, exposure and consistent improvement are the main factors that harness human resources at the WBCG.

WBCG Annual Review 2015/2016

With the two new positions of Finance Assistant and Office Administrator, which were filled in March 2016 and August 2016, the WBCG currently has a staff complement of 28 people.

Finance and Administration has played an important role in coordinating the funding of the various projects between respective donors and internal support functions. On-going communication and follow-ups between these parties have ensured that the WBCG remains a strong partner to the relevant development institutions. The WBCG’s strict adherence to corporate governance, transparency and accountability has allowed us to consistently ensure that we can utilize opportunities in the form of new and continuous project funding from donors. Our strength lies in the consistent improvement of service delivery to our various projects such as the Wellness Service, Projects and Funding portfolios as well as the SDI and Logistics Hub projects, which are leading us to new opportunities in the national, regional and international markets.

As a non-profit organization the WBCG strives to develop new opportunities for funding to ensure that we have sufficient resources to perform our short and medium-term activities.

SUCCESSES The continuation of our projects and operations is a clear testimony to our successes and the confidence that our donors, members and stakeholders have in the WBCG. With the support of the Projects and Funding portfolio, the development of longterm funding remains a priority to provide for the gaps in WBCG activities. The WBCG has always received unqualified annual audited financial statements from its external auditors, including the donor-funded projects.

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1 Sept 2015 to 31 Aug 2016

ANNUAL REVIEW HIGHLIGHTS

TOP STORIES: Agreement opens up opportunities for trade between Namibia and Brazil

The WBCG enriches its partnership with USAID on wellness

Walvis Bay is fast becoming the preferred route for Zambians

HIGHLIGHTS - WBCG Annual Review 2015/2016

JAPANESE GOVERNMENT PLEDGES MORE SUPPORT TO NAMIBIA the second follow-up of Namibia’s Logistics Hub Master Plan. The support will be rendered through the Japan International Corporation Agency (JICA).

During a recent visit to the Walvis Bay Corridor Group (WBCG), his Excellency, Hideyuki Sakamoto, the new Japanese Ambassador to Namibia, reconfirmed his Government’s pledge to support

The Japanese Government provided technical support to Namibia during the drafting of ‘The Project on Master Plan for Development of an International Logistics Hub for SADC Countries in the Republic of Namibia’ that was launched early this year following its inception in 2013.

The second follow-up of the Logistics Master Plan will be a two-year

programme and the first preparatory mission will be in Namibia between October and November.

The ties built between Namibia and Japan, an experienced world-class logistics hub with expertise, will benefit and enhance the trade and growth of the Namibian economy.

“As the official executing agency of the logistics hub, we are thrilled by any business opportunity that comes through an embassy as it escalates to future partnerships and engagements”, said Mr Clive Smith, WBCG’s Project Manager for the logistics hub.

RAIL LINKING WBNLDC MEMBER STATES TO BE CONSTRUCTED A new railway line will soon link Namibia, Zambia and the Democratic Republic of Congo (DRC), the member states of the Walvis Bay-Ndola-Lubumbashi Development Corridor (WBNLDC). This is the result of a Public Private Partnership (PPP) agreement, which Epinsan Consortium signed with the Government of Zambia back in 2009, committing to the construction of the railway line.

As early as next year, Epinsan Consortium will start to prepare for the construction of the Solwezi-Lumwana-Kaoma-MulobeziSesheke railway line, which will link to the rail systems of Namibia and the DRC. A feasibility study, which was made available to the WBNLDC Secretariat in August last year, shows that the identified rail route will start from the ore-rich province of Katanga at Fungulume in the DRC down to the Lumwana mines in Zambia with links to Solwezi, to the Kasempa mines, Kataba and to the Kaoma mines, down to Mulobezi Saw Mills and Sesheke and then into Namibia to the Port of Walvis Bay. Providing the shortest trade route between Namibia’s Port of Walvis Bay and the vital transport hubs of Livingstone, Lusaka and Ndola in Zambia, Lubumbashi (southern DRC) and Zimbabwe, this corridor is perfectly positioned to service the two-way trade between the Southern African Development Community (SADC) region and Europe, North and South America and emerging markets in the Far East. The WBNLDC takes three to four days in transit to and from Lusaka and Harare and five to seven days to and from Lubumbashi.

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HIGHLIGHTS - WBCG Annual Review 2015/2016

Agreement Opens up Opportunities for Trade Between Namibia and Brazil

WBNLDC MEMBER STATES SIGN AGREEMENT

Operating in Brazil since 2012, the Walvis Bay Corridor Group (WBCG) continues to promote business development efforts between Namibian and Brazilian companies.

In an effort to further support the facilitation of trade with the rest of southern Africa, the WBCG employs strategic partnerships with its members.

A Trilateral Road Transport agreement between Namibia, Zambia and the Democratic Republic of Congo (DRC) was signed in Lubumbashi in April last year. The three countries are the member states of the Walvis Bay-NdolaLubumbashi Development Corridor (WBNLDC) and now look forward to strengthened economic relations. The agreement, in the pipeline since June 2015, aims to develop a strong and competitive transport industry to ensure that all operators compete successfully for a fair share of the transport market between the territories of the member states.

The Namibia Chamber of Commerce and Industry (NCCI), also a member, serves as the country’s business chamber, a convenient central point of enquiry for any potential corridor user who wishes to gain insight into Namibia’s business community.

Recently the WBCG entered into a cooperative agreement with the Afro Brazilian Chamber of Commerce (Afrochamber) and, through the NCCI, will work on a chamber-tochamber basis to improve and create more interest between Namibian and Brazilian companies via the WBCG office in Brazil.

This agreement will further facilitate and regulate the movement of passengers and goods, while promoting their free flow between these countries. In addition, the creation of new public and private sector business development is ensured, making the Trilateral Road Transport Agreement very lucrative. The WBCG is thrilled that the Walvis Bay-NdolaLumbumbashi Development Corridor’s agreement is signed and eagerly awaits its full implementation.

The WBCG Business Development Manager in Brazil, Ricardo Latkani, explains that he has already started working closely with the Afrochamber to actively promote and develop initiatives to strengthen cooperation between business and corporate structures in both countries. “The WBCG remains committed to connecting southern Africa to the rest of the world”, he states.

The African Development Bank (AfDB) is lending financial support to the WBNLDC secretariat for a period of three years. With this funding the interim secretariat aims to develop a strategic plan to reduce bottlenecks along the corridor by 50%, establish a permanent WBNLDC secretariat and initiate the spatial development initiatives along the corridor.

WBCG STRENTHENS PARTNERSHIP WITH FCFASA In early May 2016 the Federation of Clearing and Forwarding Associations of Southern Africa (FCFASA) hosted a capacity building workshop in Mauritius.

The theme of the workshop was ‘improving trade across the borders’. Most of the discussions showcased the improvements that

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Mauritius has achieved to digitise business processes in order to ease the process of doing business with that country.

Mauritius has introduced several electronic systems, among them a port continued to next page

HIGHLIGHTS - WBCG Annual Review 2015/2016

community system, customs systems and a single window system which integrates all the other systems and links all trade between Mauritius and the outside world. The single window system was implemented on a private public partnership basis whereby the Government of Mauritius owns 60% of the system and the remaining 40% is owned by the private sector.

Since Namibia is in the process of establishing a single window system, Mauritius serves as an important benchmark.

FCFASA is the regional apex body for the National Clearing and Forwarding Associations in southern Africa. FCFASA members cover the key transit routes of the Southern African Development Community (SADC) and the Common Market for East and Southern Africa (COMESA).

The WBCG forms part of the National Steering Committee responsible for the development and implementation of this project, which is chaired by the Ministry of Industrialisation, Trade & SME Development.

THE WBCG ENRICHES ITS PARTNERSHIP WITH USAID ON WELLNESS The level of engagement for the WBCG’s Wellness Service moved up a notch when the Walvis Bay Corridor Group was chosen to represent Civil Society Organisations in Namibia at a PEPFAR Country Operational Plan (COP) review held in Johannesburg, South Africa. As an important member responding to the HIV/AIDS epidemic in Africa, WBCG’s Wellness Service utilised the platform to interact with the U.S. Government through its U.S. President’s Emergency Plan for AIDS Relief (PEPFAR).

operational plans of our Ministry of Health and Social Services (MoHSS).

Namibia and nine other African countries presented their respective Country Operational Plans for 2016 to Ambassador Deborah Birx, Coordinator of the United States Government

Activities to Combat HIV/AIDS and United States Special Representative for Global Health Diplomacy. The COP informs PEPFAR on HIV/AIDS activities in Namibia parallel to the

WALVIS BAY IS FAST BECOMING THE PREFERRED ROUTE FOR ZAMBIANS

With the support of the Finnish Embassy the Walvis Bay Corridor Group hosted a Beyond Border Information Session in Zambia on 7 July 2016. The Chairman of the WBCG Board and Chief Executive Officer of Namport, Bisey Uirab, outlined the importance of the Zambian market using Walvis Bay as an alternative trade route. “The port is linked to Zambia via the Walvis Bay-Ndola-Lumbubashi Development Corridor and offers cargo handling with minimum delays. The benefits of

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Impressed with the presentation by the Namibian delegation, Ambassador Birx endorsed the document. This successful partnership with USAID through the Society for Family Health (SFH) has allowed WBCG to work on various activities of national and regional stature. The U.S. Government has pledged support to the MoHSS and WBCG to ensure that the implementation of programmes continues. This unique opportunity gave the U.S. Government direct insight into WBCG programmes, especially the HIV/AIDS and wellness issues that are affecting the Namibian transport industry.

using Walvis Bay are highlighted in terms of transit time, good safety and security and reliability.”

Zambia, a land-locked country, has various options for trading with the international world and can afford to be very selective with its routes.

However, transporting cargo between Zambia and Namibia takes a total of only 3 to 4 days, and therefore offers continued to next page

HIGHLIGHTS - WBCG Annual Review 2015/2016

a new definition of ‘Land-Lucky’.

Even though at least 5 different seaport options are used, the Port of Walvis Bay is increasingly becoming the preferred route among traders, importers, exporters and other logistics service providers due to the various competitive advantages it offers.

The keynote address was delivered by one of Zambia’s icons, Chance Kabaghe, a businessman and Chairman

WBCG’S JOHNY SMITH NAMED AFRICA’S TRANSPORT LEADER OF THE YEAR

of Capital Fisheries. He offered his countrymen the good advice that “if currently you are not using the Port of Walvis Bay, then start doing so soon.”

Capital Fisheries, a one-stop wholesaler for all types of fish and sea food, has been using the Port of Walvis Bay for a little over a decade. “We have come to know the Port of Walvis Bay as an efficient service provider: one who is time critical, cost effective and offers a personalised service,” Kabaghe said.

Wellness Testing in Omusati Reaches Record-Breaking Numbers The week of 27 June was a record-breaking period for the Walvis Bay Corridor Group’s Wellness Service. The team participated in the Health and Wellness Awareness Week and Edu-Sector Health Day Commemoration hosted by the Ministry of Education, Arts and Culture at the Shaanika Nashiongo Secondary School in Okahao.

Johny M. Smith, Chief Executive Officer of the Walvis Bay Corridor Group, was named Africa’s Transport Leader of the Year for 2016 at an awards ceremony hosted by Terrapin in Johannesburg on 28 June 2016. Launched in 2008 by Terrapin, the Transport Africa Awards have become the blue chip mark of success for Africa’s transport and infrastructure sectors.

“We tested 937 people, which is about 200 per day,” said Edward Shivute, Project Manager of the WBCG Wellness Service. “This was another milestone for the team as we managed to reach this figure during one week. Usually it would take a lot more testing sessions.” Test results were made available immediately.

The awards recognise outstanding achievements in the transport and infrastructure industry and an individual who has the courage and conviction to make fundamental changes in the way they operate – changes which are so innovative and forward thinking that competitors can only follow their lead.

“It is a great honour to receive this esteemed award,” Smith said. “But since Namibia is transforming itself into a logistics hub it is essential that we continue to focus on developing infrastructure and improving competitiveness by serving the logistics sector in the SADC region.”

This acknowledgement therefore provides a major boost for Namibia’s transport developments and it is all the more important as Namibia’s vision to turn into a logistics hub is becoming well recognised by industry leaders in the southern African region and beyond.

Approximately 10 000 students and teachers from the Omusati Education Region as well as senior officials from the Ministry of Education participated in the week-long campaign. The Wellness Department has explored various other options to provide wellness services outside the transport sector to ensure long-term sustainability of the project. Initiatives like these are carried out in partnership with the Ministry of Health and Social Services (MoHSS) to improve wellness in rural areas and align them to the general improvement of wellness in Namibia.

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HIGHLIGHTS - WBCG Annual Review 2015/2016

WELLNESS TO ASIST WITH FIRST CROSSBORDER CLINIC The Walvis Bay Corridor Group’s Wellness Service is collaborating with Zambian health officials to establish the first Cross-Border HIV/AIDS Initiative (CBI). The Wellness Project Manager, Edward Shivute, met with officials from the Ministry of Health (MoH) in Zambia to discuss the establishment of the new clinic in Shesheke, Zambia.

The Clinic will not remain in the Wellness Service’s care, however. “We are merely lending our expertise in running wellness clinics,” Shivute explains. The WBCG is tasked with providing the clinic and operating it for a year before the reigns are handed over to Zambia’s Health Ministry. In turn the MoH in Zambia will provide the necessary medical consumables and ensure that the clinic is staffed with competent personnel and operates

according to Government policies and regulations. With the initiation of the new clinic in Shesheke the Wellness Group utilised this platform to give an overview and provide an update on the current progress of the CBI project.

Understanding that wellness is a

Namibia Hosts Western Corridors Cluster Meeting

“The Walvis Bay Corridor Group has been instrumental in its efforts to improve transport performance in order to foster economic development”, the Permanent Secretary of the Ministry of Works and Transport, Willem Goeiemann, said at a Western Corridors Cluster meeting for senior officials held in Walvis Bay. The meeting, hosted by the SADC Secretariat, was assisted by Namibia’s Ministry of Works and Transport and the WBCG and attended by senior Government officials from Angola, Botswana, the DRC, Namibia, South

Africa and Zambia. The gathering aims to regulate and evaluate the progress of full implementation of solutions on the various corridors.

For illustration the WBCG was given the platform to present the Spatial Development Initiatives (SDIs) on the Walvis Bay Corridors, which are intended to provide efficient, seamless and cost effective transport routes. The meeting decided that the Secretariat will ensure with its convening power that corridor states fulfil their commitments.

conscious, self-directed and evolving process of achieving one’s full potential, the Wellness Service continues to strive to create this reality for many, vigorously driving its message on a national and international level.

INTERNATIONAL AID CONFERENCE IMPRESSED

BY WBCG’S WELLNESS MODEL The Walvis Bay Corridor Group participated in the AidEx Africa Conference held in Nairobi, Kenya, in September 2016. AidEx is the leading international event for aid and development professionals. The conference includes an exhibition, workshops, awards and networking opportunities. “The conference is a great platform that has allowed us to promote our work and services to a wider international audience”, said Edward Shivute, Project Manager of the Wellness Service. continued to next page

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HIGHLIGHTS - WBCG Annual Review 2015/2016

Upgrading of Zambia’s Western Corridor Commences The two-day conference was the third of its kind and hosted only a selected group of participants who passed the pre-assessment process. AidEx Africa’s fundamental aim is to engage the health sector at every level and provide an annual forum for participants to meet, source, supply and learn. As the representative of the only country from southern Africa at the Conference, WBCG kept its momentum by serving on the panel of experts.

Afforded the opportunity to detail its Wellness Service and the role it plays in Namibia’s health sector, Shivute highlighted the role that the Ministry of Health has played in supporting the Wellness Service with medical consumables, which impressed many of the attending countries. “Most of the participants were interested in our Public Private Initiative and are already initiating talks to implement a similar mechanism”, he says.

WBCG AND HEALTH MINISTRY ALIGN RESOURCES TO REACH VULNERABLE POPULATIONS The Walvis Bay Corridor Group and the Ministry of Health and Social Services (MoHSS) enjoy a long-standing relationship which has culminated in signing a Memorandum of Understanding (MoU).

This agreement allows for sharing resources to expand the current health services to reach more Namibians, especially the vulnerable but hard to reach populations.

According to Edward Shivute, the Manager of the WBCG’s Wellness Services, the aim of this agreement is for the WBCG to operate as an extended facility of the MoHSS, using its mobile and static roadside wellness clinics. “In continued to next page

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A new railway line will soon link Namibia, Zambia and the Democratic Republic of Congo (DRC), the member states of the Walvis Bay-Ndola-Lubumbashi Development Corridor (WBNLDC). This is the result of a Public Private Partnership (PPP) agreement, which Epinsan Consortium signed with the Government of Zambia back in 2009, committing to the construction of the railway line.

As early as next year, Epinsan Consortium will start to prepare for the construction of the Solwezi-LumwanaKaoma-Mulobezi-Sesheke railway line, which will link to the rail systems of Namibia and the DRC. A feasibility study, which was made available to the WBNLDC Secretariat in August last year, shows that the identified rail route will start from the ore-rich province of Katanga at Fungulume in the DRC down to the Lumwana mines in Zambia with links to Solwezi, to the Kasempa mines, Kataba and to the Kaoma mines, down to Mulobezi Saw Mills and Sesheke and then into Namibia to the Port of Walvis Bay. Providing the shortest trade route between Namibia’s Port of Walvis Bay and the vital transport hubs of Livingstone, Lusaka and Ndola in Zambia, Lubumbashi (southern DRC) and Zimbabwe, this corridor is perfectly positioned to service the two-way trade between the Southern African Development Community (SADC) region and Europe, North and South America and emerging markets in the Far East.

The WBNLDC takes three to four days in transit to and from Lusaka and Harare and five to seven days to and from Lubumbashi.

HIGHLIGHTS - WBCG Annual Review 2015/2016

order to reduce HIV infections and mitigate the impact of HIV and AIDS in mobile populations and affected communities, we are constantly striving to improve access to services for key populations such as sex workers and mobile populations – specifically long-distance truck drivers and the surrounding border communities in

Namibia,” Shivute explained.

“The idea is to leverage private sector resources to support the WBCG Mobile and Roadside Wellness Clinics and Services while reducing the public hospital burden,” Shivute said.

Innovative and original, this agreement demonstrates that

public private partnerships in the sector can sustainably contribute towards strengthening public health interventions in Namibia. As the project progresses the WBCG looks forward to expanding it further into the region.

WBCG WORKS TO IMPROVE LOGISTICS IN NAMIBIA WITH GERMAN COOPERATION eration has actively supported Namibia since independence. “We are happy to continue to be part of the country’s development. While this task is ambitious, we are motivated by the impact that this project will have.”

The implementation unit of the Logistics Master Plan is set to receive new support. Following negotiations on Government level between Namibia and Germany, the German government through its implementing agency, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, and

the Logistics Hub Project of the Walvis Bay Corridor Group have become partners to implement the Logistics Hub Master Plan.

The project’s detailed operational plan with set focal areas will commence in 2017. GIZ Technical Advisor, Michael Engelskirchen, says that German coop-

By aligning their activities to agree on the division of tasks and support, the partnership has already taken its first step toward the full implementation of the Logistics Master Plan. As WBCG’s Logistics Hub Manager Clive Smith puts it, “The focus is on supporting the implementation of the Logistics Master Plan to become an effective and resource efficient road and transportation sector.”

WBCG Head Office Tel: +264 61 251 669 Email: marketing@wbcg.com.na

WBCG DRC Tel: +322 386 5109 Email: bdm@wbcg.cd

WBCG South Africa Tel: +27 11 258 8912 Email: bdm@wbcg.co.za

WBCG Brazil Tel: +55 11 504 47701 Email: ricardo@wbcg.com.br

WBCG Zambia Tel: +260 21 129 4494 Email: bdm@wbcgzm.com

Website: www.wbcg.com.na

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