Ref: 13/6/26
29 February 2008

MEDIA BRIEFING FROM CABINET CHAMBERS

Cabinet took the following decisions at the 3rd ordinary Cabinet meeting held on 19 February 2008:

The electricity shortages being experienced in southern Africa are expected to persist for many years. New electricity generation capacity installation appears to have become the trend worldwide towards achieving energy self-sufficiency, of which the Southern African region and Namibia in particular should be no exception.

Namibia has significant uranium reserves and the country can gain more if these reserves could have value added to them prior to export.

Beneficiated uranium product (BUP) is currently selling at US$3000/kg compared to roughly US$100/kg for yellowcake. The cost of producing BUP depends on the processing level and electricity cost, but a net profit margin of at least US$1000/kg can be expected.

Energy produced by nuclear power stations is considered carbon free, especially if its fuel is processed using nuclear generated electricity. Products made or mined using this power qualifies for special consideration in terms of carbon credit.

Before Namibia can build either nuclear power stations or uranium processing plants, it requires a nuclear regulatory framework to be in place and to be developed in conjunction with the International Atomic Energy Agency (IAEA).

Experts will have to work together with legal drafters from the Office of the Attorney General to develop a regulatory framework that provides for:
- nuclear safety to cover the duties and responsibilities of the nuclear regulator; and
- nuclear energy that will clearly state the government’s requirements for the licensing, building, commissioning, operation and decommissioning of all nuclear establishments and facilities. The Bill will also have to include the procedure for the transport and storing of irradiated waste. A statement on the restrictions and accountabilities associated with nuclear non-proliferation will also be included in the Bill.

The beneficiation of uranium involves its conversion from yellowcake to uranium hexafluoride and further processing.

Against this background, Cabinet granted approval to the Ministry of Mines and Energy to develop a Nuclear Regulatory Framework and to pursue the nuclear power and uranium beneficiation strategy to provide for a long term solution to the shortfall in electricity generation capacity and to enable the vast uranium resources of the country to be processed to the benefit of the country.

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

During the official state visit of President Dennis Sassou Nguesso in July 2007 to Namibia, his Minister of Commerce and Industry extended an invitation for a Namibian trade delegation to visit Congo-Brazzaville.

Consequently, a 28 member business delegation visited Congo-Brazzaville from 24 to 28 September 2007. The business delegation had representatives from a variety of sectors, such as agriculture, mining, import and expert, pharmaceutical products, transport, fishing, manufacturing, petroleum and gas, timber, hotels, beef/meat products, beer and warehousing.

The objective of the visit was for delegates to acquaint themselves with business opportunities in Brazzaville and Pointe Noire in terms of rules and regulations and scope for local partnership.

The Republic of the Congo has a population of close to 4 million people, a GDP of US$4.585 billion (2005 estimate), a per capita income of US$1 369 and a land size of 342 000 square kilometres. Its main exports are cut diamonds, petroleum products, lead products, timber, saw mill products, cocoa and sugar. Import commodities include chemical products, machinery, food products, iron, steel and metal products.

It transpired from the visit that Namibians can get involved in the construction of hotels, houses, shopping centres and office blocks, construction material, agricultural production, banking and insurance, tourism, electricity generation, cement, fish processing, education services and trade in goods, such as beer, beef and meat related products.

In Brazzaville, the Namibian delegation interacted with over 150 Congolese businesses at a roundtable meeting organised by the Chamber of Commerce. One Memorandum of Understanding was signed between the Trustco Group and a Congolese pharmaceutical company for trade in pharmaceutical products. Information was also obtained on the registration of companies, tax breaks and duty exemptions.

The delegation also spent a day in Pointe Noire as a guest of the President of the Chamber of Commerce, Industry and Agriculture of Pointe Noire.

The delegation agreed that the Republic of Congo has immense untapped business opportunities and that it is in need of vast investments in new infrastructure. Similarly, the tropical climate lends itself to the growing of all sorts of fruit and vegetables for local and export purposes, but due to the war the agriculture sector is under-developed.

In light of the above, Cabinet gave in principle approval to the Ministry of Trade and Industry to continue spearheading the process of trade and investment with Congo by commissioning a market study to identify the prospects and opportunities for doing business with Congo. Cabinet, furthermore, instructed the Ministry of Trade and Industry, the Ministry of Works, Transport and Communication and other relevant Ministries to speedily conclude and ratify all legal instruments, such as the /Reciprocal Investment Promotion and Protection Agreement, Agreement on Maritime Transport and Aviation and other relevant agreements for the promotion of trade and investment with Congo.

Cabinet also directed the Ministry of Trade and Industry to obtain relevant information on the costs of constructing Namibia trade warehouse facilities in Brazzaville and Pointe Noire to facilitate Namibian exports to the Congo and Central African markets. Cabinet also advised the Namibia Chamber of Commerce and Industry to accelerate the signing of the Memorandum of Understanding with its Congolese counterpart institution at the earliest opportunity.

Cabinet, furthermore, instructed the Ministries of Trade and Industry, as well as Agriculture, Water and Forestry to obtain relevant information from their Congolese counterparts on the requirements, customs charges and duties for the exportation of beef and related meat products, diary products and other exportable products. Cabinet also directed the Ministry of Trade and Industry to convince Namibian businesses to participate in trade fairs in the Congo or to establish an annual Namibia trade fair event in the Congo, while Cabinet directed the Ministry of Trade and Industry to invite their Congolese counterparts for a reciprocal visit to Namibia in 2008.

Lastly, Cabinet gave approval to the Ministry of Trade and Industry to establish a commercial office in Congo with the aim of assisting Namibian companies, goods and services to penetrate the Congolese market. The office must also serve the entire central Africa region.

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

Namibia participated in the fist and second International Conference on Cooperation with the MICs in Madrid, Spain in March 2007 and San Salvador, El Salvador in October 2007. More than 80 donor and recipient countries and 20 international organisations participated in the Madrid conference, while 57 donors, recipient countries and international organisations participated in the San Salvador conference.

About 40% of the world’s poor live in MICs, while these countries have been neglected by the international community hence the possibility that they won’t be able to meet the internationally agreed Millennium Development Goals. This forced MICs to work together as a united front and put forward their case.

The feeling is that the United Nations should have a specific agenda on MICs, just as it has for other groups of countries, such as Least Develop Countries.

If the MICs hope to bridge the gaps in development aid and other development assistance related to trade, a demonstration of solidarity among them is key. Thus hosting a MICs conference in Namibia will be a golden opportunity to support and achieve this objective.

Cabinet, therefore, approved Namibia’s continued and active participation in activities aimed at enhancing development assistance to the MICs. Cabinet also gave the green light for Namibia to host the 3rd International Conference on Cooperation with MIC in 2008, before the 63rd Session of the United Nations General Assembly in September 2008 to allow the outcome of the conference to be transmitted to the UN in the form of a draft resolution. Cabinet also approved the formation of an inter-ministerial committee to organise the 3rd International Conference on Cooperation with MIC in Namibia in 2008.

Further information can be obtained from the National Planning Commission at telephone number 2834111.

Cabinet noted the above-mentioned report and authorised the Minister of Works, Transport and Communication to table it in the National Assembly.

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

WILMA DEETLEFS
ACTING PERMANENT SECRETARY