Outcomes from second NBF Ithuba Forum

18 Mar 2009

The second NEPAD Business Foundation (NBF) Ithuba Business Forum was held on Thursday, 12 March 2009, in Sandton. The forum is a platform created to stimulate interaction and discussion between project owners and promoters on the one hand, and other interested parties such as investors, contractors and service providers.

Through this forum, the private sector can interact directly with the key players and decision makers in African projects. The NBF's chairman, Dr Reuel Khoza highlighted this by saying, "The NBF is a results-orientated organisation and therefore the focus of the NBF's Project Management Office is on delivering projects along the Spatial Development Corridors in Africa."

One of the key Development Corridors in Namibia is the Walvis Bay Corridor Group - a network of transport corridors encompassing the Port of Walvis Bay, the Trans-Kalahari Corridor, the Trans-Caprivi Corridor, the Trans-Cunene Corridor, and the Trans-Oranje Corridor. These corridors aim to provide infrastructure connections between Namibia and its neighbouring countries, Botswana, Angola and South Africa, in an effort to facilitate regional trade and economic growth.

It has been established that the Port of Walvis Bay is set to serve Namibia and its neighbouring countries with an investment of N$1,7 billion, which has been committed to expand the port to accommodate future capacity, over the next three years. From the twenty infrastructure projects along the various Walvis Bay Development Corridors, some of these projects have already been delivered.

The following projects have been declared feasible: the Dry Port Development, which adds value to the Trans-Kalahari Corridor by allowing more systematic movement into the port; the Port of Walvis Bay Expansion, aiming to allow 500,000 containers into the port per annum; the Corridor Truck Stops, a one-stop for trucks that will deliver infrastructure that adds value; and the Trans-Kalahari Railway involving Namibia, Botswana and South Africa. One railway project in South Africa is in place already. A long term project, the Trans-Caprivi Railway is undergoing a feasibility study which is anticipated to be completed later this year.

While the Namibian government has been supportive of the abovementioned growth, there is a need for private investment. Despite the lack of public-private partnership legislation at this stage, private investors are being encouraged to approach projects freely and the Namibian Chamber of Commerce and Industries advised on a number of investment incentives available to private sector investors.

Johny Smith, business development executive of the Walvis Bay Corridor Group, stressed the adequacy of the Namibian government in dealing with private investment. Continuing, he states, "It's worthwhile that investors come on board as the project adds value to regional corridor development and serves as an alternative trade route into Southern Africa."

The second component of the forum focused on the Sungate property development project, the brainchild of Accolade Properties Namibia.

Sungate is a 408ha mixed-use infrastructural development, situated directly opposite the Hosea Kutako International Airport, in Windhoek, Namibia. The project is driven by a vision that seeks to establish a hub of trade and industry at strategically located sites along trade corridors in the SADC region. The project is a partnership between South African and Namibian entrepreneurs, with the support of the Government of Namibia.

Marketing director of Accolade Properties Namibia, Peter Collins, conveys that, "Sungate is the key to unlocking commercially viable infrastructural development on trade corridors in Namibia and sub-Saharan Africa". This project is viable because of the expected growth in trade, facilitated by the Walvis Bay Corridor.

Focusing on sustainability and functionality, Sungate will host light industrial space; commercial enterprises; hotel and entertainment facilities; warehousing and service industries as well as residential amenities.

The total value of the initiative is projected at a value of N$11 billion, and the influx of job opportunities for locals with the necessary expertise is anticipated. As feasibility studies are complete, the operation of the Sungate project should start by mid 2009.

Key milestones include: township proclamation by October 2009; tender for bulk services by mid-2009; light grading of roads by mid-2009; provision of basic infrastructure such as water and electricity by January 2010; and construction of the B6 highway to be completed by January 2011.

Notable interest in these projects was fostered, with about 30 senior business people having attended and showed particular interest in the potential of these projects including discussions around the structuring and financing of the projects.

Said Lynette Chen, NBF CEO: "These are Africa's golden opportunities. Investors are currently looking for markets to invest in, which will yield quicker returns than the traditional markets. If African projects are packaged properly, there are so many opportunities on offer for investment".