Namibia. Executive Summary

Transcription

1 Namibia Executive Summary Overview Namibia has a population of 2.2 million people and a GDP of USD23.59bn. It is a net importer and a net FDI recipient. Mining accounts for 11.5% of GDP, but provides more than 50% of foreign exchange earnings. The Namibian economy is closely linked to South Africa, with the Namibian dollar pegged one-to-one to the South African rand. Namibia receives 30%-40% of its revenues from the Southern African Customs Union (SACU). Trade, Tourism and Investment Trends Namibian global exports reached ZAR60.86bn in 3, growing by 39%. Total imports grew by 25%, reaching ZAR72.74bn in 3. Due to the large export growth in 3, the trade balance declined by 17% to ZAR11.88bn. Namibia s top destination markets were: South Africa (ZAR16.2bn); Botswana (ZAR8.3bn); Switzerland (ZAR5.3bn); Angola (ZAR4.4bn) and France (ZAR2.2bn). Namibia s top source markets were: South Africa (ZAR44.9bn); Switzerland (ZAR4.2bn); Marshall Islands (ZAR3.0bn); China (ZAR2.6bn); Botswana (ZAR1.8bn) and Zambia (ZAR1.5bn). Diamonds (ZAR10.7bn) and zinc (ZAR4.4bn) were Namibia s top traded products in 3. Diamonds (ZAR5.1bn) and petroleum oil (ZAR4.5bn) were Namibia s top imported products in 4 based on mirror data. Between 2 and 4, South Africa was the more dominant trade partner recording consecutive trade surpluses. South Africa alone accounted for 68% of all of Namibia s imports (ZAR49bn) in 4. Namibia is South Africa s fifth largest destination market, with total exports reaching ZAR49bn in 4. The product categories in terms of exports are very diverse. The top exported product from the Western Cape to Namibia in 4 was refined petroleum oil, making up 12.5% of total exports. This was followed by cigars and cigarettes (ZAR373.7m) and wine (ZAR340m). Between January 2005 and July 5 a total of 4 FDI projects were recorded from Namibia to South Africa. These projects represent a total capital investment of ZAR5.45bn. Between January 2005 and July 5 a total of 34 FDI projects were recorded from South Africa to Namibia. These projects represent a total capital investment of ZAR10.82bn. The 93,074 arrivals from Namibia into the Western Cape make up 44% of South African arrivals from Namibia in 4.

2 Table of Contents 1. Country Overview Economic Overview Doing Business in Namibia Namibia s Risk Ratings Namibia Global Trade Trade in Services Namibia s Global Trade of Goods South African trade with Namibia Western Cape trade with Namibia Foreign Direct Investment Global FDI into Namibia Global FDI from Namibia FDI Relations between South Africa and Namibia Tourism Namibia s Tourist Arrivals into South Africa and the Western Cape... 16

3 1. Country Overview Namibia has a population of 2.1 million people and a stable multi-party parliamentary democracy. Given the presence of the arid Namib Desert, it is one of the least densely populated countries in the world. Namibia enjoys high political, economic and social stability. Population 2,198,406 Capital GENERAL INFORMATION Windhoek Head of Government President Hage GEINGOB (Since 21 March 5) Official Language(s) Ethnic groups Religion(s) Life expectancy Oshiwambo languages 48.9%, Nama/Damara 11.3%, Afrikaans 10.4% About 50% of the population belong to the Ovambo tribe and 9% to the Kavangos tribe; other ethnic groups include Herero 7%, Damara 7%, Nama 5%, Caprivian 4%, Bushmen 3%, Baster 2%, Tswana 0.5% Christian 80% to 90% (at least 50% Lutheran), indigenous beliefs 10% to 20% years Literacy rate 81.9% HDI (3) Sources: CIA World Factbook, 4, World Bank Data, 4 2. Economic Overview The table below gives an economic overview of Namibia. ECONOMIC INFORMATION GDP (PPP) (4 est.) USD23.59bn GDP growth (4 est.) (real) 4.3% Inflation (4 est.) 5.6% Commercial bank prime lending rate (4) 9% Unemployment rate (2 est.) 27.4% Doing Business 5 ranking (out of 189 countries) 88 Total Exports (4) ZAR60.9bn Total Imports (4) ZAR72.7bn Sources: CIA World Factbook, 5; World Bank, 5; TradeMap, 5 3 GDP growth in Namibia is forecast to be at around 4% in 5. This growth is expected to increase to around 10% in 9. Growth will be driven in the main by capital-intensive investment projects in the mining and infrastructure space, while key exports such uranium will benefit from robust Chinese demand (BMIResearch, 5). Namibia's current account deficit will widen to around 9.9% of GDP in 5 from an estimated 10.3% in 4, before narrowing to 8.6% of GDP in 6. The economy is heavily dependent on the extraction and processing of minerals for export. Mining accounts for 11.5% of GDP, but provides more than 50% of foreign exchange earnings. Rich alluvial diamond deposits make Namibia a primary source for gem-quality diamonds. Marine diamond mining is becoming increasingly important as the terrestrial diamond supply has dwindled. Namibia is the world's fourth-largest producer of uranium. It also produces large quantities of zinc and is a smaller producer of gold and copper. The mining and quarrying sectors employ less than 2% of the population.

4 Value ($Ibn) NAMIBIA GDP & GDP GROWTH, f 40,0 35,0 30,0 25,0 20,0 15,0 10,0 5,0 0, GDP at PPP: GDP at PPP ($Ibn) 13,2 14,6 15,6 16,7 16,9 18,1 19,3 20,5 22,6 26,3 27,4 29,1 31,4 34,2 37,8 % change 5,8 10,4 7,0 6,6 1,4 7,3 6,5 5,8 10,3 16,6 4,1 6,5 7,6 9,0 10, Growth (%) Source: BMI, 5 Namibia normally imports about 50% of its cereal requirements; in drought years food shortages are a major problem in rural areas. A high per capita GDP, relative to the region, hides one of the world's most unequal income distributions. A five-year, Millenium Challenge Corporation Compact ended in September 4. As an upper middle income country, Namibia is ineligible for a second Compact. The Namibian economy is closely linked to South Africa with the Namibian dollar pegged one-to-one to the South African rand. Namibia receives 30%-40% of its revenues from the Southern African Customs Union (SACU). Volatility in the size of Namibia's annual SACU allotment complicates budget planning. Namibia's economy remains vulnerable to world commodity price fluctuations, and drought. 4 The rising cost of mining diamonds, increasingly from the sea, has reduced profit margins. Namibian authorities recognize these issues and have emphasized the need to increase higher value raw materials, manufacturing, and services, especially in the logistics and transportation sectors (CIA WorldFactbook, 5). GDP OF NAMIBIA, 3 Other activities 41% Agriculture, hunting, forestry, fishing 6% Mining, manufacturing, utilities 22% Manufacturing 11% Source: UNCTAD, 5 Transport, storage and communications 4% Wholesale, retail trade, restaurants and hotels 12% Construction 4%

5 2.1. Doing Business in Namibia The table below shows Namibia s ease of doing business in 5. According to the World Bank s Doing Business 5 report, Namibia is ranked 88 th out of 189 countries in terms of the ease of doing business. Namibia s best ranking sub-categories are dealing with construction permits (25 th ), and enforcing contracts (53 rd ). NAMIBIA S EASE OF DOING BUSINESS, 5 SELECTED INDICATORS RANKING OUT OF 189 COUNTRIES, 5 Starting a Business 156 Dealing with Construction Permits 25 Getting Electricity 66 Registering Property 173 Getting Credit 61 Protecting Investors 87 Paying Taxes 85 Trading Across Borders 136 Enforcing Contracts 53 Resolving Insolvency 81 Doing Business 5 88 Source: Cost of Doing Business, Namibia s Risk Ratings Namibia s sovereign risk status and its capacity to meet its financial commitments is shown below. An obligation rated 'BBB' is more vulnerable to non-payment. Adverse business, financial, or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitment on the obligation. 5 NAMIBIA S COUNTRY RATINGS FITCH RATING Credit Rating BBB Source: Fitch, 5, TradingEconomics, 5 MOODY'S RATINGS Credit Rating Baa3 The table below shows Namibia s risk assessment in terms of export transactions and direct investments according to ONDD. Ratings are between 1 and 7, and between A and C, with 7 and C being the maximum risk indicators. The political risk in Namibia is 3 for all political risk. The highest direct investment category (4) is risk expropriation and government action, followed by transfer risk (3). NAMIBIA S RISK ASSESSMENT EXPORT TRANSACTIONS Short Term 3 Political Risks Medium-Long term 3 Special Transactions 3 Commercial Risk B DIRECT INVESTMENTS War risk 2 Risk of expropriation and government action 4 Transfer risk 3 Source: ONDD, 4

6 Value (ZARbn) 3. Namibia Global Trade 3.1. Trade in Services In 4 Namibia experienced the highest trade in services in terms of exports and imports over the ten year period. The exports of services in 4, grew by 26% to reach ZAR11.2bn. In terms of global imports Namibia grew by 38% in 4 to reach ZAR12bn. Namibia had a negative trade balance over the period, with a trade deficit of ZAR900m. NAMIBIA'S TRADE IN SERVICES, Exports (ZARbn) 5,0 5,3 8,8 8,9 11,2 Imports (ZARbn) 5,3 5,6 5,7 8,7 12,0 Trade Balance (ZARbn) -0,3-0,3 3,1 0,2-0,9 Source: TradeMap, 4 The table below shows Namibia s trade in services for 4, the most recent year for which the disaggregated data is available. Other business services was the largest services export valued at ZAR5.2bn. This was followed by travel and transport valued at ZAR4.4bn and ZAR1.4bn respectively. 6 Transportation was the largest import service into Namibia valued at ZAR5.4bn followed by other business services and travel valued at ZAR3bn and ZAR1.7bn respectively. TOP SERVICES EXPORTED BY NAMIBIA, 4 TOP SERVICES IMPORTED BY NAMIBIA, 4 SERVICE VALUE 4 % GROWTH 3-4 SERVICE VALUE 4 % GROWTH 3-4 Other business services Transport Travel Other business services Transport Travel Government goods and services Construction Telecommunications, computer, and information services Telecommunications, computer, and information services Financial services Insurance and pension services Insurance and pension services Charges for the use of intellectual property Government goods and services Financial services TOTAL EXPORTS TOTAL IMPORTS Source: TradeMap, 4

7 Value (ZARbn) 3.2. Namibia s Global Trade of Goods Namibian global exports reached ZAR60.86bn in 3, growing by 39%. This was the largest recorded level of exports over the previous decade, recovering fully from the impacts of the financial crisis. The high export growth in 3 was mainly due to the increased export of diamonds and zinc, which together accounted for a quarter of total exports. Total imports grew by 25%, reaching ZAR72.74bn in 3. Due to the large export growth in 3, the trade balance declined by 17% to ZAR11.88bn. NAMIBIA GLOBAL TRADE, ,00 70,00 60,00 50,00 40,00 30,00 20,00 10,00 0,00-10,00-20, Export (ZARbn) 48,69 42,62 42,43 43,98 60,86 Import (ZARbn) 51,49 43,58 46,43 58,33 72,74 Trade Balance (ZARbn) -2,80-0,96-4,00-14,35-11,88 Source: Trademap, 5 7 Namibia s top source and destination markets Namibia s top 5 export markets in 3 were: South Africa (ZAR16.2bn) Botswana (ZAR8.3bn) Switzerland (ZAR5.3bn) Angola (ZAR4.4bn) France (ZAR2.2bn) Namibia s top 5 import markets in 3 were: South Africa (ZAR44.9bn) Switzerland (ZAR4.2bn) Marshall Islands (ZAR3.0bn this comprised exclusively of ships, boats and floating structures) China (ZAR2.6bn) Botswana (ZAR1.8bn) Zambia (ZAR1.5bn) Namibia s top 5 global export products (HS4) in 3 were: 1. Diamonds non-industrial unworked or simply sawn, cleaved or bruted (ZAR10.7bn) 2. Zinc not alloyed unwrought containing by weight 99.99% or more of zinc (ZAR4.4bn) 3. Copper unrefined, copper anodes for electrolytic refining (ZAR3.3bn) 4. Natural uranium & its compounds; mixtures containing natural uranium/its compounds (ZAR2.9bn) 5. Frozen fillets, hake (ZAR2.5bn) 6. Uranium ores and concentrates (ZAR1.6bn) 7. Zinc ores and concentrates (ZAR1.2bn) 8. Diamonds non-industrial nes excluding mounted or set diamonds (ZAR1.1bn)

8 Value Namibia s top 8 global import products (HS6) in 4 were: 1. Diamonds non-industrial unworked or simply sawn, cleaved or bruted (ZAR5.1bn) 2. Light petroleum oils and preparations (ZAR4.5bn) 3. Copper ores and concentrates (ZAR3.3bn) 4. Diesel powered trucks with a GVW not exceeding 5 tonnes (ZAR2.0bn) 5. Automobiles with piston engine displacing >1500 cc to 3000 cc (ZAR1.8bn) 6. Electrical energy (ZAR956,056) 7. Medicines not elsewhere specific, in dosages (ZAR935,269) 8. Dump trucks designed for off-highway use (ZAR840,948) *the imported products for 4 are reported via mirror data. Hence the exported products were only available for South African trade with Namibia Between 2 and 4, South Africa was the more dominant trade partner recording consecutive trade surpluses. South Africa alone accounted for 68% of all of Namibia s imports (ZAR49bn) in 4. The Trans-Kalahari corridor is an important paved roadway linking the two countries and there has been a 16% increase in freight traffic between the two nations between 3 and 4 (CBRTA, 5) SOUTH AFRICAN TRADE WITH NAMIBIA, Imports Source: Quantec, 5 Exports Trade Balance Namibia is South Africa s fifth largest destination market, with total exports reaching ZAR49bn in 4. The product categories in terms of exports are very diverse with the largest export product of refined petroleum only making up 4.6% of total exports. Vehicles made up the largest export category worth ZAR8.7bn in total, followed by machinery (ZAR5bn) and mineral fuels (ZAR3.3bn). The highest growth in the top exports was seen for structures (98%) and diesel trucks (76%). South Africa s largest import from Namibia was beer, making up 14% of imports. These most likely include the Namibian Brewery brands of Windhoek and Tafel. Zinc bars, the fastest growing import became the second largest at ZAR652m.

9 RANK TOP 10 SOUTH AFRICAN EXPORTS TO NAMIBIA, 4 TOP 10 SOUTH AFRICAN IMPORTS FROM NAMIBIA, 4 PRODUCT VALUE 4 % GROWTH 3-4 RANK PRODUCT VALUE 4 % GROWTH Light petroleum oils and preparations 2, ,3% 1 Beer made from malt ,9% Diesel powered trucks with a GVW not exceeding five tonnes Automobiles with reciprocating piston engine displacing > 1500 cc to 3000 cc Gas powered trucks with a GVW not exceeding five tonnes 1, ,2% 2 Zinc bars, rods, profiles and wire ,3% 1, ,4% 3 Diamonds non-industrial unworked or simply sawn, cleaved or bruted ,2% ,7% 4 Sardines, sardinella ,8% 5 Motor vehicle parts nes ,9% 5 Other Live Cattle ,9% 6 Medicaments nes, in dosage ,5% 6 Frozen Jack and horse mackerel ,1% 7 Electrical energy ,5% 7 Bovine cuts boneless, frozen ,3% Diesel powered trucks w a GVW exc five tonnes but not exc twenty tonnes Raw cane sugar, not containing added flavouring or colouring matter (excl ) Structures & parts of structures, i/s (ex prefab bldgs of heading no.9406) ,5% 8 Sheep carcasses and half carcasses, fresh or chilled ,5% ,6% 9 Frozen Hake ,8% ,6% 10 Zinc ores and concentrates ,2% TOTAL EXPORTS 49, ,5% TOTAL IMPORTS 6, ,9% Source: Quantec, Western Cape trade with Namibia Western Cape trade with Namibia has been sporadic due to the SACU region s amendments to its customs statistics. In 4, SACU data was made available from the South African Revenue service which is shown below. The top three export destinations for the Western Cape were Namibia (ZAR10.3bn), Botswana (ZAR8.2bn) and the United Kingdom (ZAR8.13bn), accounting for a combined 24% of total exports 9 The top exported product from the Western Cape to Namibia in 4 was refined petroleum oil, making up 12.5% of total exports. This was followed by cigars and cigarettes (ZAR373.7m) and wine (ZAR340m). The largest export category was prepared foodstuffs (ZAR2.2bn), followed by mineral products (ZAR1.4bn). The largest imports were beer (ZAR857m) frozen fish (ZAR497m) and fish fillets and meal (ZAR221m). Unsurprisingly, the largest import category from the region was prepared foodstuffs worth ZAR1.2bn, followed by live animals (ZAR1.2bn).

10 RANK TOP 10 WESTERN CAPE EXPORTS TO NAMIBIA, 4 TOP 10 WESTERN CAPE IMPORTS FROM NAMIBIA, 4 PRODUCT VALUE 4 RANK PRODUCT VALUE 4 1 Refined Petroleum oils Beer made from malt Cigars & cigarettes, of tobacco or of tobacco substitutes 3 Wine of fresh grapes Undenatured ethyl alcohol frozen fish Fish fillets and other fish meat, fresh, chilled or frozen Prepared or preserved fish; caviar and caviar substitutes prepared from fish eggs 5 cider frozen meat of bovine animals Fruit juices & vegetable juices Meat of bovine animals, fresh or chilled Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps ect. 8 Other footwear Structures (excluding prefabricated buildings of heading 94.06) and parts of structures (for example, bridges Other articles of zinc Medicaments Tubes, pipes and hoses, and fittings of plastics Men's or boys' suits, ensembles, jackets, blazers, trousers, etc. Other footwear with outer soles and uppers of rubber or plastics Trailers and semi-trailers; other vehicles, not mechanically propelled Women's or girls' suits, ensembles, jackets, blazers, dresses etc Other prepared or preserved meat, offal or blood Flours, meals and pellets, of meat or meat offal, of fish or of crustaceans Leather further prepared after tanning or crusting, including parchment-dressed leather Fishing vessels; factory ships and other vessels for processing or preserving fishery products Meat of sheep or goats, fresh, chilled or frozen Wood charcoal (including shell or nut charcoal), whether or not agglomerated Meat and edible meat offal, salted, in brine, dried or smoked; edible flours and meals of meat or meat offal Ferrous waste and scrap; remelting scrap ingots of iron or steel TOTAL EXPORTS TOTAL IMPORTS Source: Quantec,

11 Value 4. Foreign Direct Investment 4.1. Global FDI into Namibia Between January 2005 and July 5 a total of 102 FDI projects were recorded into Namibia. These projects represent a total capital investment of ZAR94.62bn which is an average investment of ZAR927.99m per project. During the period, a total of 21,620 jobs were created. INWARD FDI INTO NAMIBIA, 2005-JUNE Projects Capex Projects Source: FDI Intelligence, 5 11 The figures below show global inward FDI into Namibia by sector, for the period January 2005 to June 5 by number of projects and CAPEX. Financial services accounted for 15% of FDI projects followed by metals, accounting for 18% of projects and 53% of CAPEX. Coal, oil and natural gas accounted for 14% of CAPEX. FDI INTO NAMIBIA (BY PROJECTS), JUNE 5 FDI INTO NAMIBIA (BY CAPEX), 2005-JUNE 5 Business Services 4% Food & Tobacco 5% Building & Construction Materials 4% Other 19% Financial Services 23% Metals 18% Chemicals 3% Food & Business Services 3% Financial Services 3% Real Estate 5% Tobacco 2% 2% Other 7% Metals 53% Communication s 5% Chemicals 6% Coal, Oil and Natural Gas 7% Minerals 9% Building & Construction Materials 8% Coal, Oil and Natural Gas 14% Source: FDI Intelligence, 4

12 South Africa was the largest source market for inward FDI into Namibia in terms of projects, with 34 investment projects, which accounted for 33% of projects. The United Kingdom and Canada are ranked second and third accounting for 11% and 8% respectively. Australia was the largest value investor, investing ZAR14bn over the decade, accounting for 15% of total CAPEX. TOP 10 SOURCE MARKETS FOR FDI INTO NAMIBIA, 2005 JUNE 5 RANK COUNTRY PROJECTS %PROJECTS CAPEX % CAPEX COMPANIES 1 South Africa United Kingdom Canada Australia United States Angola Russia Belgium France Netherlands Other countries TOTAL Source: FDI Intelligence, 5 Ecobank Kenya and Cummins Cogeneration Kenya were the largest source companies for inward FDI into Kenya in terms of projects, with 7 and 6 projects respectively. The company to invest the largest amount of capex was Delta Corp East Africa into the real estate sector in a joint venture with Indian-based reliance industries. TOP 10 SOURCE COMPANIES FOR FDI INTO NAMIBIA, 2005 JUNE 5 RANK COMPANY SOURCE COUNTRY SECTOR PROJECTS CAPEX 1 Standard Bank Group South Africa Financial services Weatherly International United Kingdom Metals extraction Efficient Group South Africa Financial services Banco Sol (Sol bank) Angola Financial services FirstRand South Africa Financial services Old Mutual Plc United Kingdom Financial services Areva France Manufacturing SASOL South Africa Chemical Manufacturing De Beers South Africa Mineral retail Verizon United States infrastructure Source: FDI Intelligence, 4 12

13 4.2. Global FDI from Namibia Between January 2005 and July 5 a total of 10 FDI projects were recorded from Namibia. These projects represent a total capital investment of ZAR8.46bn which is an average investment of ZAR845.97m per project. During the period, a total of 526 jobs were created. The majority of projects were in the communication sector in wireless telecommunication. Half of Namibia s investments were made into Africa. NAMIBIA S OUTWARD FDI, 2005-JUNE 5 PROJECT DATE Mar 3 Feb 3 Feb 3 Feb 3 Feb 3 Nov 2 Mar 2 Mar 2 Sep 2008 Apr 2006 INVESTING COMPANY Mobile Telecommunications (MTC) Telecom Namibia Telecom Namibia Telecom Namibia Telecom Namibia Walvis Bay Corridor Group (WBCG) Mobile Telecommunications (MTC) Mobile Telecommunications (MTC) Walvis Bay Corridor Group (WBCG) Walvis Bay Corridor Group (WBCG) Source: FDI Intelligence, 5 DESTINATION South East (United Kingdom) Gauteng (South Africa) Western Cape (South Africa) Hessen (Germany) South East (United Kingdom) Sao Paulo (Brazil) Western Cape (South Africa) Portugal Gauteng (South Africa) Lusaka Province (Zambia) INDUSTRY SECTOR Transportation Transportation Transportation SUB-SECTOR Wireless telecommunication Wired telecommunication Wired telecommunication Wired telecommunication Wired telecommunication Water transportation Wireless telecommunication Wireless telecommunication Freight/Distribution Services Freight/Distribution Services INDUSTRY ACTIVITY Sales, Marketing & Support Sales, Marketing & Support Sales, Marketing & Support CAPEX JOBS

14 4.3. FDI Relations between South Africa and Namibia Inward FDI into South Africa Between January 2005 and July 5 a total of 4 FDI projects were recorded from Namibia to South Africa. These projects represent a total capital investment of ZAR5.45bn which is an average investment of ZAR1.3bn per project. During the period, a total of 277 jobs were created. Three of the projects were in the communication sector, with one being in the transport sector. The investments made to the Western Cape are highlighted in grey below. NAMIBIA S FDI INTO SOUTH AFRICA, 2005-JUNE 5 PROJECT DATE Feb 3 Feb 3 INVESTING COMPANY Telecom Namibia Telecom Namibia Mar 2 Mobile Telecommunications (MTC) Sep 2008 Walvis Bay Corridor Group (WBCG) Source: FDI Intelligence, 5 DESTINATION STATE Gauteng (South Africa) Western Cape (South Africa) Western Cape (South Africa) Gauteng (South Africa) INDUSTRY SECTOR Transportation SUB-SECTOR Wired telecommunication Wired telecommunication Wireless telecommunication Freight/Distribution Services INDUSTRY ACTIVITY Sales, Marketing & Support CAPEX JOBS February 3 - Telecom Namibia (Subsidiary of Namibia Post and Telecommunications Holdings) invested in the city of Johannesburg (Gauteng) and Cape Town, South Africa in the communications sector in a ICT & internet infrastructure project. Telecom Namibia, planned to develop an international point of presence in Johannesburg, South Africa. The expansion will be connected to the west Africa undersea cable, which will assist in lowering the cost of telecommunications and internet access. The point of presence will be built by NewTelco South Africa for exclusive use by Telecom Namibia. The company plans further access points in London, Frankfurt and Cape Town as well as Johannesburg. March 2 - Mobile Telecommunications (MTC) is investing in the city of Cape Town (Western Cape), South Africa in the communications sector in an ICT & internet infrastructure project. Namibia-based mobile operator, MTC has set up a point of presence (POP) in Cape Town, South Africa. It was established following the live activation of the West Africa Cable System. It is connected to two other undersea cables and is one of several international POP s planed by MTC. 14 September Walvis Bay Corridor Group (WBCG) is investing in the city of Johannesburg (Gauteng), South Africa in the Transportation sector in a sales, marketing & support project. The Walvis Bay Corridor Group (WBCG) has opened a new office in Johannesburg. FDI from South Africa to Namibia Between January 2005 and July 5 a total of 34 FDI projects were recorded from South Africa to Namibia. These projects represent a total capital investment of ZAR10.82bn which is an average investment of ZAR318.7m per project. During the period, a total of 4,251 jobs were created. Over a third of the projects were in the financial services sector, followed by 5 projects in the chemicals sector. The largest value investment was made by Redefine properties in a construction project worth ZAR2.3bn. The investments made from the Western Cape are highlighted in grey below.

15 DATE INVESTING COMPANY OUTWARD FDI FROM SOUTH AFRICA TO NAMIBIA, JUNE 5 SOURCE STATE SUB-SECTOR INDUSTRY ACTIVITY CAPEX JOBS May 5 PSG Konsult Western Cape Investment management Financial Services ZAR128.88m 18 Nov 4 De Beers Johannesburg Sep 4 Syntech SA Cape Town Apr 4 Woolworths (South Africa... Cape Town Non-metallic mineral mining & quarrying Computer & peripheral equipment Miscellaneous storage retailers Extraction ZAR560.19m 64 Sales, Marketing & Support. ZAR15.23m 29 Retail ZAR432.36m 179 Jan 4 FirstRand Johannesburg Retail banking Business Services ZAR55.07m 11 Sep 3 FirstRand Johannesburg Retail banking Business Services ZAR4.80m 5 May 3 Standard Bank Group Johannesburg Retail banking Business Services ZAR128.89m 18 Mar 3 Standard Bank Group Johannesburg Retail banking Business Services ZAR128.89m 18 Mar 3 Atterbury Property Development Johannesburg Commercial & institutional building construction Construction ZAR1,646.95m 1,005 Aug 2 4most Centurion Software publishers Sales, Marketing & Support. ZAR67.96m 16 Jul 2 XON Midrand Data processing Sales, Marketing & Support. ZAR87.88m 16 Apr 2 SASOL Johannesburg Apr 2 SASOL Johannesburg Mar 2 Provantage Media Johannesburg Other chemical products and preparation Other chemical products and preparation Advertising, PR and related Sales, Marketing & Support. ZAR72.65m 14 Logistics, Distribution & Transportation ZAR154.67m 28 Business Services ZAR79.68m 15 Dec 1 Standard Bank Group Johannesburg Retail banking Business Services ZAR128.89m 18 Dec 1 Efficient Group Pretoria Investment management Business Services zar128.89m 18 Dec 1 Efficient Group Pretoria Investment management Business Services ZAR128.89m 18 Dec 1 Efficient Group Pretoria Investment management Business Services ZAR128.89m 18 Dec 1 Efficient Group Pretoria Investment management Business Services ZAR128.89m 18 Sep 1 FirstRand Johannesburg Corporate & investment banking Business Services ZAR128.89m 18 Aug 1 NMI Group Pretoria Animal food Manufacturing ZAR105.92m 40 Aug 1 NMI Group Pretoria Jan 1 KAAP Agrimark Western Cape Oct 0 Edcon Holdings (Propriet... Johannesburg Animal slaughtering & processes Building material and garden equipment and supplies dealers Clothing & clothing accessories Manufacturing ZAR814.69m 450 Retail ZAR432.36m 179 Retail ZAR139.43m 86 Apr 0 Belmet Marine Cape Town Steel products Manufacturing ZAR2,096.18m 342 Oct 2009 AECI Johannesburg Oct 2009 AECI Johannesburg Jan 2009 Bava Technologies Johannesburg Other chemical products and preparations Other chemical products and preparations Wired telecommunications Sales, Marketing & Support. ZAR72.65m 14 Logistics, Distribution & Transportation ZAR154.67m 28 Sales, Marketing & Support. ZAR87.88m 16 Oct 2008 Redefine Income Fund Johannesburg Real estate services Construction ZAR2,314.12m 1,412 Sep 2008 Standard Bank Group Johannesburg Insurance Sales, Marketing & Support. ZAR126.54m 91 Jul 2007 The Omnia Group Bryanston May 2006 Tarsus Technologies Johannesburg Mar 2006 Distell Group Stellenbosch Wineries Jun 2005 De Beers Johannesburg Source: FDIMarkets, 4 Other chemical products and preparations Software publishers except video games Other non-metallic mineral products Logistics, Distribution & Transportation ZAR27.77m 5 Sales, Marketing & Support. ZAR67.96m 16 Logistics, Distribution & Transportation ZAR17.58m 4 Sales, Marketing & Support. ZAR24.61m 24 15

16 Arrivals 5. Tourism 5.1. Namibia s Tourist Arrivals into South Africa and the Western Cape The graph below shows the total tourist departures from Namibia into South Africa and the Western Cape from in 3 and 4. Growth has been positive for South Africa (5%) and the Western Cape (30%). The 93,074 arrivals from Namibia into the Western Cape make up 44% of South African arrivals from Namibia in 4. Namibia is considered a land market by StatSA in that over 60% of tourists travel by land to visit South Africa, this is not surprising due to its geographical position ARRIVALS FROM NAMIBIA TO THE WESTERN CAPE, South Africa Western Cape Source: SATourism *Note: Statistics SA made changes to the release of its Tourism & Migration reports in 4 and now no longer report on transit arrivals. As a result of this change, the weighting methodology has been revised and the results are now not comparable to data prior to 3. 4 represents the beginning of a new series of data. 16 For more information on this publication and other Wesgro publications please contact research@wesgro.co.za or for more publications visit the Wesgro publications portal on our website at