Cabinet took the following decisions at its 9th ordinary meeting held on 13
May 2008.

1. INTRODUCTION OF A SOLIDARITY LEVY ON AIR TICKETS

Namibia is a signatory to the UN declaration on Innovative Sources of
Financing for Development and it is also a member of the leading group on
Solidarity Levies. This membership comes with the obligation of finding
innovative mechanisms for raising supplementary funding for development.

In 2006, the Namibian Government started consultations to identify possible
sources of innovative financing in Namibia. A workshop on solidarity levies
was held in August 2007 and several government institutions, State Owned
Enterprises, foreign embassies, international organisations and the
Federation of Namibian Tourism Associations attended.

The French Embassy shared their country experience on its air ticket levy.
Besides France, seven countries, namely Chile, Gabon, Cote d' Ivoire, Niger,
Madagascar, Mauritius and Korea have implemented air ticket levies.

Based on the outcome of the workshop and the work done by a technical
committee following the workshop, it was proposed that an air ticket levy be
imposed on passengers travelling to and from Namibia by air on scheduled and
chartered flights in the form of departure tax. The levy would apply to
regional and international flights and the Namibia Airports Company should
collect the levy.

Income from the levy would be administered by the Ministry of Finance for
development programmes.

Cabinet, therefore, approved the implementation of an air ticket solidarity
levy based on air passenger levy on regional and international flights.
Cabinet instructed the Ministry of Works and Transport to amend the Namibia
Airports Company Act to accommodate the collection of this levy. Cabinet
also authorised the Ministry of Finance to administer the levy proceeds for
development programmes as determined by Cabinet.

Further information can be obtained from the Ministry of Finance at
telephone number 2099111.


2. CONSTRUCTION OF A BRIDGE AT KAZUNGULA

The Republics of Botswana, Zambia and Zimbabwe agreed to the construction of a bridge at Kazungula after feasibility studies were conducted in 2001 and
2006. The mentioned countries signed a Memorandum of Understanding, but it
has not been implemented because of a border problem between Botswana and Zimbabwe. The African Development Bank, as funding agent for the project, is unwilling to continue with the project if the border dispute between
Botswana and Zimbabwe is not resolved.

To avoid loosing the money because of the delayed border dispute, Botswana
and Zambia opted for an alternative route that traverses into Namibian
waters for a distance of less than 100 metres

A meeting of SADC Minister of Works and Transport held in April 2008
indicated that the bridge will be a SADC project from which all SADC
countries, except Mauritius and Madagascar, will benefit.

Namibia has meanwhile proposed to explore the possibility of linking the
Impalila Island to the Kazungula Bridge and indicated willingness to finance
Namibia's part of the study if consultations indicate that the linkage to
the bridge was necessary.

Cabinet, therefore, approved that the Republics of Botswana and Zambia be
allowed to carry out the feasibility and detailed design studies of the
bridge and its alignment, which could traverse the Namibian territorial
waters. Cabinet also approved that Namibia explore the possibility of
linking the Impalila Island to the Kazungula bridge and approved that
Namibia finance its component of the study if consultations concluded that
the linkage to the bridge was necessary.

Further information can be obtained from the Ministry of Works and Transport
at telephone number 2088822.


3. APPOINTMENT OF MR. GEORGE SHINYALA AS DIRECTOR TO THE
BOARD OF NAMGEM

Ms. Vicky Niku-Paavola, who represented the Namibian Government on the
NamGem Board, resigned after taking up a similar position at the Namibia
Diamond Trading Company to avoid any possible conflict of interest.

In terms of the shareholders' agreement between the Namibian Government and De Beers, the Government is entitled to appoint three members to the NamGem Board. The two current serving Board members are Mr. Kennedy Hamutenya, the Diamond Commissioner and Mr. Erasmus Shivolo, the Mining Commissioner. Both are employed by the Ministry of Mines and Energy.

In light of the above, Cabinet approved the appointment of Mr. George
Shinyala on the Board of NamGem to replace Ms. Niku-Paavola. Mr. Shinyala is
the Personal Assistant to the Minister of Mines and Energy.

Further information can be obtained from the Ministry of Mines and Energy at
telephone number 2848308.


4. ANNUAL REPORTS:

- NAMIBIAN PORTS AUTHORITY FOR THE PERIOD ENDED 31
AUGUST 2007

- 2007 ANNUAL REPORT OF NAMIBIA POST LTD

Cabinet noted the two above-mentioned reports and authorised the Minister of
Works and Transport and the Minister of Information and Communication
Technology respectively to table the reports in the National Assembly.

Further information can be obtained from the Ministry of Works and Transport
and telephone number 2089111 and the Ministry of Information and
Communication Technology at telephone number 2839111.


5. SECTIONAL TITLES BILL, 2008

The Sectional Titles Act, 1971 (Act 66 of 1971) of the Republic of Namibia
is still applicable in Namibia. South Africa has since repealed this Act
and replaced it with the Sectional Titles Act, 1986 (Act 95 of 1986).

The 1971 Sectional Titles Act, that is still applicable in Namibia, has
defects and shortcomings.

The new proposed Sectional Titles Bill provides for the division of
buildings into sections and common property and for the acquisition of
separate ownership in sections coupled with joint ownership in common
property; the control of certain rights attached to separate ownership in
sections and joint ownership in common property; the transfer of ownership
of sections and the registration of sectional mortgage bonds over, and real
rights in, sections; the conferring and registration of rights in, and the
disposal of, common property; the establishment of bodies corporate to
control common property and for that purpose to apply rules; and the
establishment of a sectional titles regulation board.

Cabinet gave approval in principle for the Bill to be tabled in the National
Assembly.

Further information can be obtained from the Ministry of Lands and
Resettlement at telephone number 2965000.

MBEUTA UA-NDJARAKANA

PERMANENT SECRETARY