The Swedish Development Agency (SIDA) will extend its agreement on support to the Walvis Bay Corridor Group (WBCG) to 31 March 2005. The new agreement was signed in Windhoek this week. SIDA is a long-standing partner of the Walvis Bay Corridor Group and has accompanied the developments of the Walvis Bay Corridor since 2000 and has been involved in the Namibia transport sector since the early 90’s. The new support programme is dedicated for the development and utilisation of the northern leg of the Walvis Bay Corridor, the Trans Caprivi Corridor. Trade along this corridor is expected to boost with the completion of the Sesheke Bridge over the Zambezi river in early 2004 with Zambia, Zimbabwe and southern DRC, allowing access to land-locked southern and central African countries. The Trans Caprivi Highway, an element of the Walvis Bay Corridor, was opened in 1999.

The support programme will focus on a facilitation and promotion programme, designed to streamline and enhance transport operations along the Trans Caprivi Corridor. As such, corridor development is an important mechanism for generating economic growth and fostering regional integration and trade within the Southern African Development Community (SADC).

Results for the 6 months until 30 September 2003 compared to the corresponding period showed that the Nictus Group turnover decreased by 8%, operating profit before taxation and interest decreased by 34% and interest paid increased by 92% due to the increase in long term loans. Net profit for this period decreased by 70%.
The downtrend in the consumer market and the lack of buying power directly
impacted on the Nictus furniture and carpet retail segment, which is predominantly cash sales related. The restructuring in the retail market in Namibia is still
The motor segment still experiences negative trading conditions. The light commercial vehicle market declined by 19% and the Namibian market, as a whole declined by 8%, in comparison to an increase in the RSA market. The recent interest rates cuts negatively impacted on the Nictus insurance and finance segment, affecting investment income. The general negative economic conditions and the drought experienced in Namibia also brought the premium income under pressure. The Board proposed no interim dividend.

Following on the groups previous 2 years, which were characterised with the
very successful restructuring of the Nictus Group, the expected results for this
period were negatively affected by the adverse economic conditions, especially
in Namibia. Management focused on the implementation of the necessary systems and controls required, in order to sustain and uphold the immense growth and profitability experienced in the previous two years. Furthermore, the Group focused on the upgrading and maintenance of their premises at Auas Delta Windhoek, the
administrative building in Randburg (RSA) and the administrative Head Office,
namely Corporate House in Windhoek. During this time, the group’s head office,
insurance and finance sector were also relocated to Corporate House in Windhoek.
The retail sector continued experiencing the low buying power of the consumer,
which is attributed to the prevailing high interest rates still experienced. The strengthening of the Rand and Namibian Dollar and the concurrent deflation
scenario impacted negatively on the groups stock holding.

The Namibian Farmworkers’ Union (Nafwu) accused 11 members of parliament, among them senior Cabinet members of not complying with minimum requirements for farm labourers.

Lands minister Hifikepunye Pohamba, who is also deputy president of Swapo as well as former justice minister Ngarikutuke Tjiriange, now Swapo secretary general, were also implicated by Nafwu, which is affiliated to Swapo via its umbrella body, NUNW. The union sent task teams to various farms recently to check if requirements were met with regard to housing, minimum wages of N$ 428 per month and food rations. The minimum wage agreement was signed by all farm unions, the ministry of labour and the Agricultural Employers’ Association in November 2002 and was gazetted on 1 April this year, when it became applicable. The union hopes by releasing the names, the farm owners would respond quickly and rectify the situation.

The labour organisation also announced that it was working towards a further requirement, that farm labourers, who worked 10 years or more on a farm and are laid off, should obtain the right of residence on such a farm with all their dependents and their cattle, goats and sheep. If that was not possible, farm owners should build houses for them in urban settlements, Nafwu demanded.

Some ministers dismissed the accusations of the union. Mines and energy minister Dr Nickey Iyambo refused to comment, while a spokesperson information minister Nangolo Mbumba, said the claims were false. Minister Mbumba had just bought a farm with no house on it and not even a borehole drilled. Two of his relatives had moved there and lived in tents, Lucky Gawanab, personal assistant to the minister, told PLUS. The deputy minister of agriculture, Paul Smit told AFP, he was unaware that union representatives had visited his farm. His labourers had houses with running water and electricity and got paid according to the requirements and received rations on top of that", he said.

NamPower declared a dividend of N$ 6,5 million during its AGM, last week, half of the dividend of 2002, which was N$ 13 million. Announcing their financial results, the power utility noted that profits before tax this financial year, stood at N$ 132,7 m, up 20,4 % from N$ 110,2 m. This NamPower attributed to increased returns on its investment income, which want up by 40%. Gross revenue rose by 21,9% from N$ 664 to N$ 784,8 m. However, profits after tax came down almost 50%, being N$ 77,1 m, given NamPower’s capital interest programme, which came to N$ 436,3 m. Operating and administrative expenditure increased by 16,2 %. Cash reserves increased by 17,1% to a stunning N$ 1,34 billion. Borrowings for the entire NamPower Group increased by 56,7% to just over N$ 1 billion due to increase capital expenditure, bringing the detb ration to 40.2%. Shareholder equity remained steady at N$ 3,8 billion. Despite the continued investment in electricity infrastructure, the NamPower Group remained financially sound, the company state. Price increases for electricity transmission customers were increased 13,9%. In 2002, electricity prices to bulk customers were increased only by 9,4%.