MEDIA BRIEFING FROM CABINET CHAMBERS

Cabinet took the following decisions at the 8th 2007 meeting of the 4th Government held on 22 May 2007:

1.REPORT OF THE PRIME MINISTER ON THE WORLD TRAVEL AND TOURISM COUNCIL SUMMIT, LISBON, MAY 10 – 12, 2007:

Prime Minister Nahas Angula led a Namibian delegation to the 7th Summit of the World Travel and Tourism Council, held in Lisbon, Portugal van 10 to 12 May 2007. At the meeting, the Namibian delegation proposed ways of collaboration with Portugal and the World Travel and Tourism Council for the development and growth of the tourism and hospitality sector in Namibia.

The World Travel and Tourism Council brought together business leaders in the airlines, shipping, hotel, tour operators and hospitality industries. The theme of this year’s summit was Breaking Barriers and Managing Grow, indicating a consolidation of travel and tourism on a global scale, allowing operators in the sector to reap the benefits.

Namibia is one of the fastest growing tourist destinations in sub-Saharan Africa. Namibia is also listed as one of the top ten destinations in the world in a report by the World Travel and Tourism Council and it is estimated that tourism to the country will grow by 7.1% between 2007 and 2017. This illustrates the potential for growth in the sector.

Namibia is in the process of developing an Integrated National Strategy for Tourism and Travel and private investors, the World Tourism and Travel Council and Portugal have offered assistance to Namibia to develop its tourism sector.

Cabinet, therefore, noted the report on the World Tourism and Travel Council Summit and encouraged the Namibia Tourism Board to engage potential investors to invest in accommodation establishments or a convention centre. Cabinet also mandated the Ministries of Environment and Tourism and that of Education to develop a strategic plan for human resource development for the tourism and hospitality sector. Cabinet also gave the green light to the Office of the Prime Minister and the Ministry of Environment and Tourism to engage the World Travel and Tourism Council to assist Namibia with the development of a comprehensive and integrated strategy for tourism development.

Further inquiries can be directed to the Office of the Prime Minister at telephone number 2879111.


2.ANNUAL REPORTS: MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION FOR THE FINANCIAL YEAR 2004/2005; NAMIBIA POST LTD FOR THE FINANCIAL YEAR 2005/2006:

Cabinet considered the above-mentioned reports and gave approval to the Minister of Works, Transport and Communication to table the reports in the National Assembly.

Further information can be obtained from the Ministry of Works, Transport and Communication at telephone number 2088111.

Cabinet took the following decisions at the 9th 2007 meeting of the 4th Government held on 5 June 2007:


1.STATUS OF THE GOVERNMENT-FUNDED NORTHERN TANNERY PROJECT AT ONDANGWA:

In November 1997, the Namibian Government borrowed the equivalent of US$6 million from the Export-Import (Exim) Bank of China and on-lend the money to the Northern Tannery through an agreement signed between the Ministry of Finance and the Offshore Development Company who entered into a loan agreement with the Northern Tannery as the end-user.

More than half of the loan was directly paid to China’s Shanghai Corporation for Foreign Economic and Technological Cooperation as payment for machinery, equipment and related services provided to the Northern Tannery. The remaining N$18.5 million was transferred to Namibia for the construction of the tannery buildings and related physical infrastructure at Ondangwa.

The 25 shareholders of Northern Tannery contributed less than N$1 million equity capital into the project, instead of the N$10 million needed to allow the project to successfully take off. Since the shareholders failed to raise the necessary capital, the company was never able to run as envisaged.

Northern Tannery could also not meet its financial obligations on the loan fund, and the Government, as the borrower assumed the repayment of the loan capital and interest fees to Exim Bank China in 2004.

To rescue the situation, the Ministry of Trade and Industry proposed options to Cabinet to allow the Government to recover the loan to the extent possible and to allow the tannery to resume operations.

In the light of the above, Cabinet noted the precarious situation facing the Government-funded Northern Tannery project. Cabinet, furthermore, approved the ring-fencing of the shares of the current shareholders and to give them a choice to either be bought out or to be absorbed into any new tannery company to be, while it also approved the leasing of the tannery facility as a temporary measure pending a decision on and execution of the proposed restructuring.

Further information can be obtained from the Ministry of Trade and Industry at telephone number 2837111.


2.REPORT ON THE ASSESSMENT OF OPPORTUNITY FOR INCREASED VALUE ADDITION AND IMPROVED MARKETING OF NAMIBIAN MARINE FISH PRODUCTS:

The Ministry of Fisheries and Marine Resources commissioned a study entitled Assessment of Opportunities for Increased Value Addition and Improved Marketing of Namibian Marine Fish Products, which was done during November 2006 to January 2007.

The Cabinet Committee on Trade and Economic Development made inputs to the study.

The main findings of the study were that:
Namibia is an exporter of raw fish materials, but that the country is beginning to see more value addition done by a number of Namibian processing companies;
More could be achieved with regard to value addition to ensure employment creation and foreign exchange earnings if the seafood industry is accorded Export Processing Zone status and if an export promoting agency is established;
Increased Government support is made available for export promotion; and
Government encourages companies to add value to reducing quota levies proportional to value added production and by rewarding performance with additional quota.

Although there is a downward trend in jobs in the fishing industry, it is estimated that between 3000 and 7000 jobs could be created through value addition in the Namibian fisheries sector.

Cabinet, therefore, resolved that at a policy level, the process of encouraging the development of value addition and improved marketing by Government should be both incentive and regulatory based. Cabinet directed the Ministries of Finance, Trade and Industry and Fisheries and Marine Resources to work out incentives which shall also include fishing and aquaculture industries to encourage value addition.

Cabinet also directed the Ministry of Trade and Industry to expedite the establishment of the Namibia Export Promotion Agency. Cabinet directed that funds should be made available to the Ministry of Fisheries and Marine Resources to support market research into producing value added products, particularly where economic benefits and employment creation are significant. Cabinet also mandated the Ministry of Fisheries and Marine Resources to develop an internet website to promote Namibian fish species for the international market, while the Ministry should also review quota levies to encourage value addition.

Cabinet, furthermore, directed the Ministry of Trade and Industry to work with the Namibian seafood industry to ensure that value added products are also included during negotiations with the European Union on an Economic Partnership Agreement. Cabinet also directed that training to promote value addition and marketing in the seafood sector should be prioritized by the Government and the fishing and aquaculture industries. Cabinet also recommended an investigation into a mechanism for a portion of annual fish landings to be supplied by the fishing industry to the local market, while also investigating the regulatory format for implementation.

Cabinet appointed a Technical Committee comprising of the Ministries of Fisheries and Marine Resources, Trade and Industry, Finance and the National Planning Commission to investigate its recommendations and to report its findings to the Cabinet Committee on Trade and Economic Development.

Further information can be obtained from the Ministry of Fisheries and Marine Resources at telephone number 2053911.


3.RE-APPOINTMENT AND APPOINTMENT OF THE BOARD MEMBERS – ZAMBEZI WATERFRONT (PTY) LTD:

The tenure of the Board of the Zambezi Waterfront (Pty) Ltd expired in May 2007 and Cabinet, therefore, approved the re-appointment of the following board members for one year:

• Ms. Erica Shafudah;
• Mr. P Thobias;
• Mr. A. Mwazi;
• Ms. T.M. Sikopo; and
• Mr. A. Kambimbi.

Cabinet also approved the appointment of Ms. Shareen Thude to the Board of Zambezi Waterfront (Pty) Ltd.

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


4.ANNUAL REPORTS: NAMIBIAN PORTS AUTHORITY FOR THE PERIOD ENDED 31 AUGUST 2006;BANK OF NAMIBIA ANNUAL REPORT 2006; MINISTRY OF FINANCE FOR THE FINANCIAL YEARS 2003/2004 AND 2004/2005; SOCIAL SECURITY COMMISSION FOR THE YEAR 2004/2005:

Cabinet gave approval for the tabling of the above-mentioned annual reports in the National Assembly.

5.DRAFT BILL FOR THE NAMIBIAN PLANNING AND CONSTRUCTION INDUSTRY COUNCIL:
SADC member states agreed to establish National Construction Industry Councils in their respective countries by an Act of Parliament. Four SADC countries, namely Zambia, Tanzania, Malawi and South Africa have already established their councils and Namibia is in the process of establishing its council.

The purpose of the Construction Industry Council is to promote, develop, regulate and control the construction industry in the country. The Council will be responsible for capacity building of persons involved in the construction industry. Consultations on Namibia’s draft Planning and Construction Industry Council Bill was concluded in December 2006.

The Bill provides for the establishment of the Namibian Planning and Construction Council for the promotion, regulation and development of the construction industry, for the registration of persons engaged in the construction industry and matters incidental thereto.

Cabinet mandated the Ministry of Works, Transport and Communication, as the custodian of construction activities in Namibia, to table the draft Bill in the National Assembly.

Further information can be obtained from the Ministry of Works, Transport and Communication at telephone number 2088111.

LOINI-NYANYUKWENI KATOMA
PERMANENT SECRETARTY