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JUNE 2013

Consumer News
ISSN 2026-710X

your voice

NWR launches the Nam Leisure Card Local weapons and ammunition supply companies merge

Advancing towards a transparent tourism market and training sector

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Consumer News

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Editors Note
Willem Gariseb
ccording to David Suzuki, a famous Canadian environmentalist activist and author, Our personal consumer choices have ecological, social, and spiritual consequences. It is time to re-examine some of our deeply held notions that underlie our lifestyles. It is of paramount importance to know that society has become consumerist as a result of advertising and this result in the creation of false consciousness in the minds and lives of consumers. We now identify ourselves with the products we buy and thus our brands are now symbols of who we are. As some scholars have said, we are what we consume and this being the case, it implies that we need to buy in order to become. Consumer News Magazine is there not only to protect the needs of consumers by alerting and informing consumers on such subliminal aspects targeting their money, but we want to create a space for the producers and policy makers to respond to certain questions and issues of concern amongst consumers. Needless to emphasize that everyone, regardless of our societal positions and qualifications, is a consumer at a point in time. Thus we are the public sphere for the discussion of all consumer related issues of any nature. In this edition, we thus retain our regular columns and introduce a new initiative in the tourism industry in Namibia, which will enable Namibians to understand the importance of tourism to their standard of living and to the economic, social and environmental development of the country. May you enjoy reading the pages of our magazine. Until we meet again..

General Manager/Editor
Willem Gariseb 081 249 8161 085 551 9337 consumernews@iway.na

Editorial Photos

Freelance Journalists Freelance Photographers

Contents
Advancing towards a transparent tourism market and training sector P4-5 NWR launches the Nam Leisure Card P5 More on Genetically Modified Organisms P8 Designed To Fail P10 Will the Govt be able to walk the talk? P10-11 Bank Charges and Bad Customer Service P11 Whole of State aviation policy alignment critical to aviations efficiency and economic contribution P12-13 Tips on the public offer to buy shares of Bank Windhoek P15 Local weapons and ammunition supply companies merge P16 Point of View P18 Motherhood P18 Solar Geyser vs. conventional geysers P18 Where Do Human Hair Extensions Really Come From? P20-21 Namibia has lost its godliness P22 The New BMW Series Sedan P23

If there is a book you really want to read but it hasnt been written yet, then you must write it.
Toni Morrison (US novelist)

Our mission is to create a platform for you the Namibian consumer, who strives to see improvement in the value of goods and services and are savvy enough to spot misleading advertising and poor quality products and services. You deserve more, and together we have power in numbers, so we welcome your contributions, feedback, acknowledgements and your voice on products and services that need our investigation.

You deserve more ...

Contact details
Namibia Consumer Protection Group: Milton Louw. E-mail: miltonlouw@gmail.com Namibia Customer Service Institute: Jon Allen. E-mail:csinstitute@iway.na Website: www.namibiacsi.com Namibian Consumer Lobby: Bob Ziekenoppasser. Te: 064 - 46 1461 or 081 284 8000 Namibian Standards Institution: Tel: 061 38 6400 / Queries: query@nsi.com.na Website: www.nsi.com.na

For all your advertising needs contact: Willem Gariseb at: Cell: +264 (0) 81 249 8161/+264 (0) 85 551 9337 Fax2mail: +264 (0) 886 44443 Email: consumernews@iway.na/willemgariseb@yahoo.com

Chairperson of the NWR board Mrs Lea Namoloh, Deputy Minister of Environment and Tourism, Honorable Pohamba Shifeta and the Acting Managing Director for NWR Zelma Hengari.

Advancing towards a transparent

tourism market and training sector


HE Deputy Minister of Environment and Tourism, Honorable Pohamba Shifeta, has depicted Namibias tourism sector as an engine for economic growth, as it has been placed at the centre stage of the road towards true economic independence through job creation, empowerment and poverty alleviation as outlined in the fourth National Development Plan. Honorable Shifeta said these sentiments at the recent launch of the Online Tourism Training Platform, launched by the Ambassador of the Federal Republic of German, His Excellency, Mr Onno Hueckmann at the Safari Conference Hotel in Windhoek. The Online Tourism Training is an initiative intended to provide an innovative tourism training platform for Namibia in order to ensure both the creation of a transparent tourism market and training in the sector. According to Shifeta, the Online Tourism Training also targets the capacity development of the various stakeholders involved and brings together major and smaller players from within the tourism industry and the education sector.

One of the primary functions of the Ministry of Environment and Tourism, according to Shifeta, is to develop programs which can assist Namibians in understanding the importance of tourism to their standard of living and to the economic, social and environmental development of the country. The Ministry of Environment and Tourism will actively seek to make training in the tourism sector more accessible to previously disadvantaged Namibians and vulnerable groups through liaison with relevant stakeholders, he said, adding that, there is a need for well qualified tourism human resources at all levels that are able to understand the needs of the visitors and the vitality of efficient and friendly customer service which makes training a priority. It is against this background, that GIZ and the Ministry of Environment and Tourism together with other relevant stakeholders have initiated the development and establishment of the Online Tourism Training Platform. The Tourism Training Namibia web-platform is designed to answer the training needs of the tourism industry in Namibia.

The project will have different components, ranging from gathering of tourism training and employment info, pilot course development, marketing and process concept development, stakeholder networking and training of stakeholders and partners and the training platform aims to meet the needs of the end consumer/user / Employer. TheMinistry of Environment and Tourism belives that through this kind of tourism training platform, the ministry could address elements contained in NDP4 and specific focus on tourism. All in all the platform can be seen as a clearing house mechanism for the Namibian tourism sector in that it will make information about training and job opportunities available on line. This becomes important especially for learners and job seekers as they will have a one stop shop where they can find all information regarding training and job opportunities in one place. Speaking at the Launch, the Ambassador of the Federal Republic of German, His Excellency Mr Onno Hueckmann said well trained staff is a basic require-

Consumer News

Honorable Pohamba Shifeta with NWR Board

Mr Evans Simataa, Miss Namibia and Hilma Johannes Acting Assistant to the Managing Director.

NWR launches the Nam Leisure Card


ment for all enterprises in the sector, adding that well trained people are the foundation of success of tourism establishments resulting in a growing tourism industry. Commenting on the Online Training Platform, Mr Hueckmann said the platform will link all players from the tourism industry and the education sector. Through this linkage, the platform will add value to existing vocational training activities and improve the quality of teaching. In a vast country with a sparse population density the platform will also help to qualify people easier and at lower cost, even at the remote places where Namibia is particularly attractive. It is simply sensitive that we build on what we have and develop the capacity of individual professionals and stakeholders. Through that we might achieve a sustainable and broad impact on the quality of tourism training in Namibia, create employment and increase equality. In a nutshell, we will directly contribute to NDP4, said Ambassador Hueckmann. Honorable Shifeta concluded by saying, The Ministry of Environment and Tourism and relevant stakeholders involved in the implementation of the project stand to gain additional human skills in training management, training development and technical skills. The platform shall be a quality assurance mechanism intourismtraining in cooperation with the Namibia Training Authority (NTA) & Namibia Qualifiaction Authority (NQA).

Capacity development of stakeholders within the tourism industry, a necessity

amibia Wildlife Resorts recently launched the Nam Leisure Card during the Namibia Tourism Expo. The Chairperson of the NWR Board, Ms Lea Namoloh introduced the membership card which offers Namibian members a 50 % discount at any of the 19 NWR facilities. Sadc and international independent travelers can also apply, qualifying for discounts of 25 % and 10% respectively. Mrs Namoloh said the benefits of being a member go beyond the discounts as 5 percent of the value of any member booking towards conservation projects, including the NWR Enviro-Kids programme and joint projects with the Ministry of Environment and Tourism- providing a double feel good experience. She also indicated that NWR is looking to expand the benefits of membership over time this is just a beginning. Speaking at the launch, the Deputy Minister of Environment and Tourism, Honorable Pohamba Shifeta said Namibias protected areas offer ideal opportunities for relaxation and leisure and quality family time to relax and replenish but acknowledged that peoples budgets are often stretched due to the demand of essential expenses. The NamLeisure Card would make it a whole lot easier, helping to enhance the physical and emotional well-being of our people. Hon Shifeta indicated that stimulating domestic and regional tourism has long been a subject receiving close attention in his Ministry and NTB, as in the Tourism sector it is widely acknowledged that countries with healthy domestic tourism numbers are less susceptible to the impact of unpredictable global events. This initiative will encourage and assist Namibian and SADC residents to become more regular travelers and to reap the benefits from recreational travel.

Consumer News

Consumer News

Consumer News

GMOs, or Genetically Modified Organisms, are plants or animals that have been genetically engineered with DNA from bacteria, viruses or other plants and animals.

More on Genetically Modified Organisms

uring the past few weeks, the local media have written a lot of articles on Genetically Modified Organisms (GMOs) and the various protests staged around the world against the company Monsanto which manufactures GMOs. A number of consumers contacted the Consumer News Namibia Magazine to find out more about the issue. GMOs, or Genetically Modified Organisms, are plants or animals that have been genetically engineered with DNA from bacteria, viruses or other plants and animals. These experimental combinations of genes from different species cannot occur in nature or in traditional crossbreeding. Most commercial GMOs are engineered to withstand direct application of herbicide (weedkillers) or to produce an insecticide (to kill insects that eat them). Despite biotech industry promises, none of the GMO traits currently on the market offer increased yield, drought tolerance, enhanced nutrition, or any other consumer benefit. In contrast, there is growing evidence that connects GMOs with health problems, environmental damage and violation of farmers and consumers rights. Are GMOs safe? Most developed nations do not consider GMOs to be safe. In more than 60 countries around the world, including Australia, Japan, and all of the countries in the European Union, there are significant restrictions or outright bans on the production and sale of GMOs. In developing countries such as Namibia where

there is little or no consumer protection, the governments have largely been ignoring the problem. Are GMOs labelled? Unfortunately, even though polls consistently show that a significant majority of consumers want to know if the food they are purchasing contains GMOs, the powerful biotech lobby has succeeded in keeping this information from the public. Recently, the Namibia Consumer Trusts has sent samples of Namibian consumer products to be tested in South Africa. What are the effects of GMOs on the environment? Over 80% of all GMOs grown worldwide are engineered for herbicide tolerance. As a result, use of toxic herbicides like Roundup has increased 15 times since GMOs were introduced. GMO crops are also responsible for the emergence of super weeds and super bugs: which can only be killed with ever more toxic poisons like 2,4-D (a major ingredient in Agent Orange). GMOs are a direct extension of chemical agriculture, and are developed and sold by the worlds biggest chemical companies. The long-term impacts of GMOs are unknown, and once released into the environment these novel organisms cannot be recalled. How do GMOs affect farmers? Because GMOs are novel life forms, biotechnology, companies have been able to obtain patents with which to restrict their use. As a result, the companies that

make GMOs now have the power to sue farmers whose fields are contaminated with GMOs, even when it is the result of inevitable drift from neighbouring fields. GMOs therefore pose a serious threat to farmers sovereignty and to the national food security of any country where they are grown, including the United States. Namibia is planning on testing for GMOs It is thus with great pleasure that we take note that the Namibia Consumer Trust (NCT) received an official invitation to witness the inauguration of the Ministry of Agriculture, Water and Forestrys Genetically Modified Organism (GMO) testing facility recently. NCT informed us that they are delighted that the expert who will be doing the demonstration of how GMO testing is done is the same Professor NCT had asked to do the GMO tests on Namibian popular maize. NCT intends to continue with these tests; with hope that these may be done locally in the near future. That is if the lab can also do tests for independent civil society. With pressure from the civil society, such as the Namibia Consumer Protection Group (NCPG), Namibia Consumer Trust (NCT and the Consumer News Namibia Magazine, we hope to continue to pressure the government and state agencies to do more to ensure the foods we eat are not doing us harm in the long run.

Consumer News

THE NAMIBIA TOURISM BOARD FACILITATES THE TOURISMXCHANGE WEEK FOR SMEs

The Namibia Tourism Board is a statutory body created through an Act of Parliament, Act No. 21 of 2000. Its main mandates are; 1. To market and promote Tourism by encouraging persons to travel to and within Namibia 2. To promote the development of the Tourism Industry and environmentally sustainable tourism by actively supporting the long-term conservation, maintenance and development of the natural resource base in Namibia 3. To regulate the Tourism Industry in Namibia by putting measures in place to ensure that services rendered and facilities provided to tourists comply with the prescribed standards. 4. To promote adequate training of persons engaged or to be engaged in the tourism industry In order to fulfil the fourth mandate, NTB always initiates training programmes aimed towards improving skills in the hospitality and tourism sector. As part of the drive to improve the skills of the entrepreneurs from the Previously Disadvantaged Namibians, in 2010 NTB contracted the University of Witwatersrands Business School to provide a course on Entrepreneurship and New Venture Creation. At the end of the training graduates receive a Certificate of Competence. Those entrepreneurs who successfully complete the training programme are then assisted to have access to the market. Ten (10) entrepreneurs

www.namibiatourism.com.na
who recently graduated from the training were taken to Johannesburg and North West Province in the Republic of South Africa for a week long TourismXchange programme. The primary objectives of this exchange week are to; 1. Provide participating Namibian emerging entrepreneurs with adequate training and support, enabling them to develop their enterprises into fully independent tourism companies. 2. Ensure that the participating Namibian emerging entrepreneurs build business links and exchange ideas and experiences with their South African counterparts in order to achieve increased market share. 3. Promote market linkages with global entrepreneurs www.namibiatourism.com.na in the tourism industry, trade buyers and investors so as to boost the South African and Namibian tourism, trade and investment potentials. 4. Provide an integrated platform for South Africa and Namibia to showcase their products, services, tourism destinations and cultures to the domestic market and a large cross section of the travel trade and consumers across the globe. 5. Increase cooperation between African states, working closely with stakeholders, with a view to facilitating global movement of tourists, addressing restrictive travel barriers, and fostering mutual understanding and collaboration. The TourismXchange week takes place in April with 10 emerging tourism and hospitality entrepreneurs every year.

Consumer News

www.namibiatourism.com.na

Designed

To Fail

JULIA HANGO ave you ever wondered why your DSTV remote control only lasts 6 months and your cell phone only a year? The consumer electronics market is changing at a fast pace, thus after you rush out to buy the latest gadgets, always bear in mind that a better model is often introduced shortly thereafter. The producers want to make sure their customers buy the newest version as shorter times between sales equal more sales overall. According to listverse.com, marketers have found ways to convince us to buy a new gadget even though our old gadget is still fully or mostly functional. Selling a phone to a single customer every 18 months is far more profitable than only selling him one every five years. Therefore, producers are interested in shortening the time between sales. The processes of becoming out of use, discarded, obsolete is called obsolescence. To sell more products, producers are interested in speeding up this process, which is where the scenario gets nastier: Its called planned obsolescence when products are deliberately designed to fail after a certain time. Planned obsolescence occurs where the process of engineering meets the theories of capitalism. Products arent designed to last a long time; theyre designed for the dump. In this situation, engineers dont aim to create the best possible machine. They aim for maximum profit through steady sales. Very often, when putting a new gadget on the market, commonly available features are being deliberately omitted. Many customers will upgrade to the succeeding gadget with slightly better features once it is introduced. This is a very good example: the first iPhone didnt support 3G internet bandwidth, MMS, universal Bluetooth, not even video recording, all of which were considered to be standard features. Customers stormed the stores when the iPhone 3G came out: It had all that! But the poor 2 megapixel camera resolution remained the same. Style obsolescence happens when the gadget works totally fine and the only flaw is that it isnt popular anymore. The customer who doesnt want to be unpopular will buy a stylish new gadget. Thats because, unlike hipsters, having popular gadgets will make a customer feel popular. According to Elias Chaves at listverse, marketers employing style obsolescence are able to set new trends so customers can buy more popular gadgets, and kill old trends so customers notice that their gadget is outmoded and therefore consider getting a newer one.

President Hifikepunye Pohamba

Will the govt be able to

walk the talk?


n Namibia, the Government is an important service provider and one of the biggest single employers, providing services in all sectors of the economy. As noted by the President of Namibia, His Excellency Cde Hifikepunye Pohamba at the launch of the reviewed Namibian Public Service Charter last year, there is a growing international trend for governments, in both developed and developing countries, to focus on the need to provide greater value for money in the delivery of public services. This has led to greater awareness that public services must improve the quality of the service being rendered to the customers: citizens, tourists and visiting businessmen and

There is a growing international trend for governments, in both developed and developing countries, to focus on the need to provide greater value for money in the delivery of public services.

women, adding that, In order for Namibia to realise Vision 2030, we must walk to talk and sharpen our commitment to improve the quality of services delivered to all who live in or visit our country. The Charter was first launched by the Founding President, Dr Sam Nujoma in 1997 and had nine general principles. After the review, accessibility was added as a principle, making the principles ten. These include Standards, Information, Courtesy and Helpfulness, Consultation and Participation, Accountability, Transparency, NonDiscrimination, Quality of Service, Value for money, Accessibility. Let me try to elaborate on these principles:

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Consumer News

What does this mean for us consumers of the Government of the Republic of Namibia?
Standards This means each ministry; organisation or state owned enterprise must set, publish and monitor clear standards of service that a public servant should uphold. Information The state organs should provide information about the public services they offer in a prompt straightforward and open manner that is readily understandable to all consumers. Courtesy and Helpfulness Each public servant (GRN employee) must provide a courteous and helpful service suitable to the convenience of those entitled to the service. Consultation and Participation Ensuring that there is regular consultation with those who use the services of the public sector and, having taken their views and priorities into account, provide a choice wherever possible to the benefit of the consumer. Accountability Provide details of performance against targets and identifying who is responsible. Such services are being provided by public servants who can be identified readily by their customers as they should be wearing name badges. This is to ensure that public servants are accountable for their actions at all times. Transparency Disclose how public services are managed together with the cost and performance of specific services which are open to public scrutiny in all actions taken in public office. Non-Discrimination Ensuring that services are available and provided equally and fairly to all. Quality of Serivce Publicize straightforward feedback procedures. Provide where errors have been made, an apology, full explanation and early correction of the error. Value for Money Provide efficient, effective and affordable public services. Accessibility Ensure accessibility to public service by accommodating the service needs of our service users. It is interesting to note that at the launch in 1997, the Founding President stated, It is also my hope that parastatals and the private sector will follow this example and helps make the delivery of services in Namibia as efficient, cost-effective and consumer-focused as possible. Let us hope that will come to pass

Bank Charges and Bad Customer Service

any people complain about banks customer services especially during the paydays and end of the month. This is something which is easy to pick up as a consumer because we are physically experiencing the frustration of standing in a queue. However there is another problem which we do not often notice and yet costs us some money, the problem about bank charges. Sometimes the bank charges us and we complain but not very often do we actually realise that the bank charges were incorrectly calculated. Recently a consumer complained about a bank mistake that costed him more money than expected. I have been a customer of a certain bank for over twenty years and generally consider their service to be the best of all the banks in the country. Recently however, I had to reevaluate my opinion. By chance I had been asked to provide a copy of my bank statements of the past six months for a business deal I wished to conclude. Upon glancing through the statement, I noticed an amount of N$ 10,000 that had been deposited in my account. Having a reasonably good memory, I could not recall that any client had paid me such a perfect round number for any work undertaken. After careful scrutiny, I noticed the amount was deposited on a Friday, and then reversed the following day, indicating an incorrect deposit. Thus it was a clerical error of the bank with the account number or something. However the next line in my bank statement had me sitting up straight. There was a charge of N$ 185 for Cash Handling Fees. The bank had reversed the incorrect deposit of cash into my account, but charged me for their mistake. To the concerned consumer my advice is for you to contact the complaints department of your bank. If you still feel unhappy with the service, then you can contact the Bank of Namibia (BoN). The Guidelines for Lodging Complaints have been developed by the Bank of Namibia to guide clients of commercial banks to lodge complaints with the BoN. The guidelines further establish complaint handling procedures at the BoN to ensure a consistent approach in complaints resolution. As consumers we often complain, but do not follow up and allow the company involved to correct their mistakes. The Bank of Namibia has opened up a new chapter in getting banks to change their consumer culture, but it is still up to us as the consumers to make use of these complaint mechanisms.

Consumer News

11

Whole of State aviation policy alignment critical to


ape Town, Monday, 04 June 2013.Successful state owned airlines critical success factors include clarity of mandate and a harmonised Whole Of State aviation policy framework. Global air services drive almost all economic sectors, delivering trade, employment, tax revenues, job creation, skills development and a substantial direct and indirect contribution to Gross Domestic Product and, along with the catalytic demand impact on related sectors such as tourism, the importance of an aligned whole of state aviation policy in developing economies cannot be underestimated. SAA continues to answer its mandate vis--vis national development, says the SAA Groups Nico Bezuidenhout, in South Africa alone the value of SAA extends well beyond its balance sheet with

Increased growth will lead to a far greater catalytic contribution to domestic and continental GDP, job creation, skills development and tax base growth.

the airline functioning as a substantial economic enabler. As measured by a recently commissioned Oxford Economics Study the group comprising SAA, SAA Technical, low cost airline Mango, SAA Cargo, Air Chefs and SA Travel Centre, collectively contributes 3,6 billion Rand through direct output to the South African economy, 4 billion indirectly through its supply chain and 1,6 billion Rand through spending employees and respective supply chains. In addition there are 12,4 billion

Rand in catalytic benefits through tourism bringing a total contribution to the South African economy to 21,6 billion Rand. Equal to SAAs contribution to GDP is the fact that the Group supports 34000 jobs in South Africa, says Bezuidenhout. 11 500 of these are directly supported by the Group while 16400 jobs lie in the SAA supply chain and a further 6300 jobs are supported through the spending of Group employees and its supply chain. The study shows a tourism benefit of a further 51400 jobs as an effect from the

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Consumer News

aviations efficiency and economic contribution


two passenger airlines operated SAA and Mango carrying 6.2 million passengers and 144275 tonnes of cargo during the past fiscal. This is equivalent to 36 percent of all passenger traffic to, from and within South Africa. Bezuidenhout believes that a sound policy framework is a critical success factor for a state owned airline and it allows the aviation sector optimise its economic contribution. Infrastructure development such as airports, the growth of airlines, air traffic management and bilateral air service agreements among others must be optimised and efficiencies improved to facilitate the growth of a states aviation sector. Increased growth will lead to a far greater catalytic contribution to domestic and continental GDP, job creation, skills development and tax base growth (VAT, income tax, aviation taxes etc). Examples

outside South Africa, where Whole Of State aviation policies have succeeded include Singapore, the United Arab Emirates and, closer to home, Ethiopia. This position was very much supported at the IATA (International Air Transportation Association) Annual General Meeting in Cape Town. Association Director General Tony Tyler noted the African opportunity. In a statement he noted that

Global connectivity enabled by aviation has a very powerful role to play in integrating the 54 national economies of Africa and connecting them to the world. With a few kilometres of tarmac, even the most remote destination becomes part of the global community. African aviation already supports an estimated US$ 67 billion in economic activity annually and 6,7 million jobs.

Consumer News

13

NAMPOWER TARIFF ADJUSTMENT FOR THE PERIOD 2013/2014


1. TARIFF APPLICATION REVIEW OUTCOME 4. It is my honour to announce that the Board of the Electricity Control Board (ECB) approved NamPower tariffs for a 12-month period effective from 1 July, 2013. NamPower made an application to the Electricity Control Board (ECB) in terms of section 27 of the Electricity Act, 4 of 2007, for an annual effective tariff increase amounting to 13.17%, for the period 2013/2014, to meet its costs and remain cost reflective. The ECB Board, after a thorough review process, awarded a 13% effective tariff increase to NamPower for the period 2013/2014. The ECB, a statutory body established under the 2007 Electricity Act, has amongst other obligations and functions, the mandate to regulate and control electricity generation, transmission and distribution tariffs in Namibia. The mandate includes developing electricity tariff methodologies as well as independently reviewing and approving electricity tariffs. As part of the review process leading to the award of the 13% tariff increase, the ECB: analysed NamPowers submission in accordance with the approved ECB Tariff Methodology; closely scrutinized and made use of provisions of relevant documentations such as the White Paper on Energy Policy of 1998; took into consideration expectations of key stakeholders including Government and the possible impacts that the tariff could have on the end consumers and the Namibian economy at large. REASONS PROVIDED AND CITED BY NAMPOWER TO JUSTIFY THE REQUESTED TARIFF INCREASE NamPower is pursuing various transmission and generation projects at present, all aimed at securing reliable power supply to Namibia in the short and long term. NamPower remains forced - ... - to generate from high incremental cost thermal power stations, which include Van Eck, Paratus, Anixas and other new expensive imports, significantly contributing to high tariff increase requirements. To recover the year-on-year required revenue, while accounting for any over and under recoveries incurred in the year preceding the current financial year and special conditions like the recovery induced by the re valued Transmission asset base. Furthermore, extensive capital investment to address the supply shortage and security of supply locally shows that high tariff increases are necessary to balance the revenue requirement of NamPower in the short to medium term. To not breach NamPowers Debt Service Cover Ratio and Net Debt to EBITDA minimum thresholds and ultimately avoiding defaulting on its loan covenants. The proposed tariff increases make provision for the year-on-year revenue requirement of NamPower, taking only actual costs and losses into account with no planned windfall gains for future investments, which is consistent with the tariff methodologies of generation and transmission. 3. PRINCIPAL FACTORS CONSIDERED BY THE ECB The tariff review process that led to the approval of the 13% tariff increase considered a number of factors, including the following: 1. The Cabinet, by decision number 21/20.09.05/006, resolved in September 2005 that NamPower tariffs should reach and remain cost reflective by the period 2010, but reviewed in 2009 to 2011. The Electricity Control Board, by virtue of its commitment to this decision, granted NamPower real increases that ensured that tariffs reached cost reflective levels by 2011/2012 and have stayed cost reflective since then. 2. The N$ 1 billion provided by Government to subsidise the construction of Caprivi HVDC transmission link brought relief to the consumers by reducing the anticipated increase in tariffs. Affordability is a key requisite in Governments effort to increase connectivity from the current 35 % to 100% in line with the objectives of Vision 2030. It is therefore the Regulators hope that the Government will continue to provide capital contribution for major projects to ensure affordability while maintaining cost reflective tariffs for the utilities. It has become clear that tariffs alone cannot fund electricity capital projects such as, power stations and transmission lines. It is common practice in many countries, that consumers only pay for use and consumption after Government has constructed the infrastructure. 3. The need to conduct information sharing sessions with key industry stakeholders: The purpose of these sessions was to share information on NamPowers application with key industry stakeholders. 7. The challenges posed by import tariffs on cost reflectivity and the resultant electricity tariffs volatility. ELECTRICITY SUPPLY FUTURE OUTLOOK One of the objectives stated in the White Paper on Energy Policy of 1998 is that tariffs should reflect long run marginal cost of supply. In view of this, tariffs will continue to increase above inflation at least until 2019/2020 to reach this objective and to ensure new investment in generation capacity. There is a substantial shortage of energy in the Southern Africa region at this stage and this situation will prevail over the next several years until enough new generation capacity has been built; thus putting pressure on energy tariffs not only in Namibia but in all countries of the SADC region. The prevailing power shortages in the Southern Africa region underscore the need to streamline generation strategies to adequately address security of supply. Currently, Namibia is a net importer importing 50% to 70% of its energy requirements from the region depending on the availability of water at the Ruacana Power Station. Although the capacity at the Ruacana Power Station has been increased with an additional unit of 92 MW to a total installed capacity of 332 MW, electricity output in 2013 remains extremely low due to drought and increased use of water upstream by Angolan stakeholders. Although several generation plants are planned, most of these plants are expected to start generating only after 2017 due to construction lead times. In addition to that, there are also several risks that might lead to delays in having these plants coming on line. These risks include, amongst others, financial and political. In the event of these risks not being properly addressed, this may have serious negative implications on the contribution of energy towards the achievement of vision 2030. The current ZESA contract will expire in 2014 leaving Namibia with a capacity shortage of 150MW. If no alternative supplier is found in the short run, Namibia will have to buy this energy on the emergency market from the region at emergency tariffs, which are very high. This will create price shocks for the Namibian consumer and economy if not mitigated. The approved tariff increase will ensure that NamPower remains on the long run marginal cost path to enable them to build up sufficient reserves to protect the Namibian consumer against price shocks in the future for instance, when a new power station is brought on line. It is important that the ECB, as the industry regulator, takes a long term view and not only focus on the current year to ensure that the economy, the consumer and utilities as well as investors are protected over the next number of years which have been identified as being critical in respect of generation. The Cabinet decision that NamPower should be cost reflective by 2011/2012 implies that NamPowers tariffs must remain cost reflective and the ECB must plan according to that directive. Reaching the long run marginal cost of capital to be able to fund future investment in the electricity industry as per the Government Energy policy also requires that tariffs remain cost reflective 5. IMPACT ON THE END CONSUMER The ECB economic model shows that a 13% effective tariff increase on NamPowers bulk tariff will lead to an increase of the distribution tariff by an average of 12%. The maximum increase is expected for those utilities that are not yet cost reflective to reach cost reflectivity. The increase will ensure that distribution utilities reach and remain cost reflective. On average, it is expected that the distribution utilities that have reached cost reflective tariffs will need an effective increase of 12%. 6. CONCLUDING REMARKS

PRESS RELEASE

2.

Electricity tariffs in Namibia, just like in most other SADC countries, will continue to rise over the next five years. However, the Electricity Control Board in consultation with Government is embarking on a support tariff study to address the issue of affordability of electricity by vulnerable members of the society. Various capital projects need to be undertaken in generation and transmission in order for Namibia to become self-reliant in meeting its electricity needs and move away from being a net importer. Importing power perpetually is not a sustainable option for Namibia since the country has no control over the energy import tariff escalations which can have a negative impact on NamPower, the customers and the economy as a whole. However, Namibia will continue to pursue projects promoting regional integration for mutual benefit. New generation capacity would address the power supply gaps and enhance security of supply to ensure continued investment in the energy dependent sectors of the economy.

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There is a need to provide for the costs of future network and generation expansions in order to avoid price shocks to consumers in the future. 4. The N$ 20 million made available from the National Energy Fund Electricity Levy through the Ministry of Mines and Energy and the N$ 40 million reduction The approved effective tariff adjustment of 13% for the year 2013/2014 is intended to in the long run marginal cost (LRMC) contributed to reducing the anticipated ensure that NamPower can sustainably provide for the future electricity needs of the nation. The approved tariff adjustment is effective from 01 July 2013. increase in tariffs. 5. The need to create and maintain a favourable environment for investment in the energy sector to stimulate economic growth by ensuring cost reflective tariffs. 6. The need for NamPower to sustain its operations and service delivery in the short, medium and long term; Siseho C Simasiku - Chief Executive Officer

Promotions

Consumer News

Tips on the public offer to buy shares of Bank Windhoek


here has been a wide interest amongst the public concerning the offer to apply for Bank Windhoek Holdings Limited shares since it opened in May 2013. According to the Head of Corporate Communications Services, Riaan van Rooyen, a number of questions have been received by the Bank by concerned clients and the public about the public offer. Thus Bank Windhoek Holdings Limited has compiled the questions and has responded to the questions asked by the public in relation to the public offer. The following are the questions and answers pertaining to the public offer: What is the minimum number of shares that I can apply for? And the maximum number of shares? The minimum number of shares that you can apply for is 500 shares. Thereafter you can apply for shares in multiples of 100 shares, e.g. 500; 600; 700; 800 etc. There is no upper limit to the number of shares that you can apply for. Will the shares be allocated on a first-come-first-served basis? The final allocation of shares will only take place after 13 June 2013. All applications received by the closing date will be considered for an allocation of shares and the actual date of receipt of the application during the open period will not influence the allocation of shares. Can I apply for shares on behalf of my children? No, you cant apply for shares in the names of your children. You need to be 21 years of age to apply for shares. You can however transfer shares to your children after the listing date of 20 June 2013. Can I apply for a loan from the Bank to buy shares? Yes, you can apply for a loan from the Bank to purchase shares. The Bank can finance the purchase of listed shares by clients at the normal credit criteria. In terms of the Banking Institutions

12h00 noon. Where can I get a prospectus with an application form and reference number? Any of Bank Windhoeks full-service branches countrywide; Any stockbroker registered with the NSX; The Namibian Stock Exchange (NSX); or The Bank Windhoek Holdings website: www.bwholdings.com.na or Bank Windhoeks website: www. bankwindhoek.com.na. What documents do I need to bring when I apply for shares? Required documents for individuals Identity document (certified copy) Proof of bank account Required documents for nonindividuals Registration certificate (certified copy) Proof of bank account Resolution specifying signatories Identity documents of signatories (certified copies) How do I pay for the shares that I applied for? Pay for the shares in one of the following ways: Cash and cheque deposits in Bank Windhoek branches (use the special deposit slip for the listing). Quote your reference number on the special deposit slip. For internet transfers, please quote your reference number. Who can I contact for more information on the public offer? Email: info@bwholdings.com.na HelpDesk: (061) 299 1322; (061) 299 1324 or (061) 299 1343.

Christo de Vries
Act, the Bank may however not recognize the shares as security for the loan. Can a Trust apply for shares? Yes, a Trust can apply for shares. The Trustees of the Trust would need to sign the application for the shares. When will I know if I will get all the shares that I applied for? The allocation of shares will commence after 13 June 2013. You will be informed before 20 June 2013 if you have been allocated all the shares that you applied for. The official results of the public offer will be announced on 20 June 2013. When will I get my share certificate and when can I start trading these shares? Share certificates will be issued to Bank Windhoek Holdings shareholders from 27 June 2013, but you can trade your shares before that date. Contact your stockbroker, who will be able to assist you in this regard. Can anyone apply for these shares or do you have to be a Bank Windhoek client? Yes, if you have a bank account at any financial institution you can apply. You do not have to be a Bank Windhoek client or a Namibian citizen to apply for shares. What is the deadline to apply for shares? The public offer closes on 13 June 2013 at

Consumer News

15

Local weapons and Ammunition supply


Companies merge
amibia Competition Commission recently held a conference in terms of section 46(1) of the Competition Act of 2003 in relation to the acquisition of A. Rosenthal (Pty) Ltd & Kalahari Arm & Ammunition (Pty) Ltd T/A Safari Guns & Outfitters by Agra Limited (Safari Den). The transaction entails Agra acquiring ownership of Rosenthal and Safari Guns & Outfitters and is a merger as defined in terms of section 42 of the Competition Act and is accordingly notifiable to the Commission. Speaking at the conference, the Secretary for Namibian Competition Commission, Mr Heinrich Mihe Gaohab II said, The Commission would like to ensure when adjudicating on the proposed merger it is well informed on how stakeholders and competitors view the merger, especially in terms of section 47(1) of the Competition Act for the examination of its competitive effects in the relevant market. The Commission, thought it necessary to hold a stakeholdName Market ShareFirearms 14 2 17.5 35 MS Squared

ers conference to give merging parties a chance to address any concerns that other stakeholders may raise. Agra is a public company registered in accordance with the laws of Namibia with shares being held by numerous individual shareholders. One of Agras branches is called Safari Den, an undertaking controlled by Agra, which is engaged in the importing, wholesaling and retailing of weapons and ammunition and related products as well as outdoor products. On the other hand, Rosenthal is a private company incorporated in accordance with the laws of Namibia and involved in importing, wholesaling and retailing of weapons, ammunition and related products and, to a lesser extent, outdoor products. Safari Guns & Outfitters, also one of the primary target undertakings, is a private company incorporated in accordance with the laws of Namibia with its primary business activities including the importing, wholesaling and retailing of weapons, ammunition and related products and, to a lesser extent, outdoor products. Market Share - Related products 16.5 2 15 35 MS Squared

Market Share MS - Ammunition Squared 15 2.5 15 30 225 6.25 225 900

Rosenthal Kalahari Agra (Safari Den) Ahrens Guns & Ammunition CC Safari World Arms CC (The Gun Shop & Outdoor Centre) Totals

196 4 306.25 1225

272.25 4 225 1225

31.5

992.25

37.5

1406.25

31.5

992.25

100

2723.5

100

2762.5

100

2718.5

Estimated market shares in the wholesale market for firearms, ammunition and related products based on revenue for the period January to December 2012.

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Consumer News

Consumer News

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My Point of View
recently travelled to Windhoek for business and had the pleasure of staying at Hillside Executive Accommodation. And what a pleasure it was. Hillside Executive accommodation is located in Klein Windhoek, one of the upmarket eastern suburbs of Windhoek. Entering Windhoek from Hosea Kutako International Airport, Hillside is situated on 93 A Nelson Mandela Drive and is quite easy to find as the building is very attractive with a sign on the durawall nicely labeled Hillside. Hillside offers various apartment rates ranging from Studio Apartments which can take two adults and one child at a cost of N$650.00 for a single and

The opinion expressed for the articles are not from Consumer News but are the opinions of the writer. N$700.00 for a double. The one bedroom apartment is charged at N$850.00 for a single and N$900.00 for the double room. Two bedroom apartments are charged at N$1300.00 and can sleep up to 6 people and all children under 6 stay for free. I stayed in a studio apartment, and they only have baths tabs, which I am not a fan of, but I can do with it for a few days. The other apartments have showers and each apartment is equipped with a kitchen, as they do not offer breakfast. Their kitchen has a stove and oven microwave, toaster, glasses, cutlery, crockery, a kettle and even coffee, tea and milk sachets. They also provide dish clothes and dish washing liquid too. The apartment is cleaned every morning and the coffee and tea filled up. They have flat screen TVs with approximately 12 channels, much more than some establishments I know, but no NBC though. You have 24hour secure shaded parking, free wireless access, and even braai facilities. In my opinion, not offering breakfast is what will make me go back to them time and time again. There are so many restaurants in the area which gives one a choice every morning. It is always the breakfast that puts me off. I rate Hillside Executive Accommodation 10 out of 10. Need I say more

Motherhood

y little muffin is 8 months old and so incredibly cute. He has been crawling for more than a month now, and motors around in his walking ring everywhere in the house. Yes, my son has a walking ring. Initially we were not going to get one, but this was a gift and once we started using it, we realized how easy and safe it is. We do however only put him in there for very short periods at a time and he lets us know when he has had enough too. We did a lot of research on walking rings, and found the following interesting

bit: walking rings are banned in the UK and Jolly Jumpers are banned in Canada. The reason for them being banned is more as a safety risk than anything else, but they are not good for certain developmental areas, like baby should be crawling on his or her tummy or rolling around to improve co-ordination and to strengthen their hips and legs. I personally feel that if it is in moderation for a few minutes a day, not necessarily every day, and your baby is safe - make sure stairs are closed (assuming you have stairs and that you have gates on them)

and that your baby cannot reach certain places where he or she can get hurt, or pull over heavy things like book shelf. A walking ring can do more good than bad. I put my son in the walking ring when I am cooking and put obstacles in strategic places so he can still move around but not get into trouble whilst I keep an eye on him. We never put our son is gadgets, or equipments to enable him to do something like sit up if he could not do it by himself. The walking ring was the exception

Solar Geyser vs. conventional geysers

y father first came with the idea to install a solar geyser instead of a conventional geyser. Regardless of the fact that it is green to do so and it reduces your carbon footprint, it will also save you some money on electricity. I did some research to give you facts: Solar radiation is a free, clean and inexhaustible source of energy. In a split second the sun radiates more energy than is converted and stored by plants in fossil fuel over millions of years. Solar radiation is converted efficiently into a usable form of energy that heats water which we can use in our homes, factories and offices. Your solar geyser has the greatest return

on investment and is the most efficient form of solar energy currently available. It is an affordable product and basically pays itself off over two to three years. The geyser can be operated efficiently and affordably in any climate. Currently the purchase & installation of 150L Electric water heater is around N$6 000 where as a purchase & installation of a 150L solar geyser is around N$12 000. The difference between the electric geyser system and the solar geyser system of the same capacity is N$6 000. If your house holds an electricity bill of N$1 200, by switching to a solar geyser you can save 50% of your electricity bill, which means that

what you will be paying for electricity will be N$600. One of the questions I had was, will our water be heated on a cloudy day especially considering we live in Swakopmund? The answer is yes. Although the heat output of the solar collector is reduced on overcast days, it will still be able to provide heating through the infrared rays which passes through the clouds to maintain water at the required temperature. So you do not have to worry about running out of hot water on a rainy day. I cannot complain about our geyser and I can tell you this, we saw a difference in our electricity bill from month one!

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Consumer News

INTRODUCING ISO:9001:2008 CERTIFICATION SERVICES BY NSI

Benefits: Increases productivity Maximizes quality Increases revenue Improves employee morale and satisfaction Saves time and money Enhances ability to attract new customers that have adopted requirements for certification Improves accountability of management Increases employees understanding of their roles in success of their work and the company. Creates greater motivation and dedication

Every Namibian company (large enterprise and SME) would like to improve the way it operates, whether that means increasing market share, driving down costs, managing risk more effectively or improving customer satisfaction. ISO 9001 is designed to help your organizations to ensure that quality management system (QMS) and processes meet the needs of their customers and other stakeholders. A quality management system gives framework needed to monitor and improve performance in the organisation.

For more information contact: Lorna T. Shikongo-Kuvare certification@nsi.com.na Tel: 061 386400 http://www.nsi.com.na

Consumer News

19

Where Do
Linda Kozlowski

There has been a huge upswing in hair and the celebrity culture has made hair extensions more popular, and everyone wants hair from India.

JULIA HANGO

air extensions have become the it accessory lately, from Brazilian hair extensions or simply human hair as women love to add some length for a special occasion. According to the Head of International Business Development at Alibaba.com, Linda Kozlowski, There has been a huge upswing in hair and the celebrity culture has made hair extensions more popular, and everyone wants hair from India. It is widely perceived that the best quality hair comes from Asian or Eastern European countries, where poverty tends to be high and work is poorly paid. For these people, selling their hair can be the best way to feed their families. The newfound value attached to hair has led to the emergence of a phenomenon known as a hair farm, whereby husbands have forced their wives into selling their hair, slum children being tricked into having their heads shaved in exchange for toys and women with long hair have been targeted in movie theatres and in one case, held down by a gang and had their hair forcibly cut. Hair factories give women contracts to grow their hair to a certain length under strict conditions in which the hair must grow. The women, and sometimes whole families, must keep their hair away from any contact with pollutants such as cigarette smoke and make sure it is kept in top condition. Some factories even

provide nutritious food for its workers to ensure that the hair is of high quality. When the hair is harvested, the women line up at the factory before their heads are shaved completely bald and they are sent out to start the whole process again. With hair extensions becoming so common these days, people care more about acquiring them than knowing their origin and a few number of people really takes time to think about where human hair extensions come from. Hair comes from every nation but there are a few who are dominant in the market. India and Brazil are the core suppliers, but there are also poor women living in the Ukraine, and prisoners in Russia who have been shorn for profit. There are also

Hair comes from every nation but there are a few who are dominant in the market. India and Brazil are the core suppliers, but there are also poor women living in the Ukraine, and prisoners in Russia who have been shorn for profit. There are also women who sell their hair in the UK and USA but this tends to be for higher prices and under better circumstances.

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Consumer News

Human Hair
Extensions Really Come From?
women who sell their hair in the UK and USA but this tends to be for higher prices and under better circumstances. According to a New York Times story, small operators tour villages in rural India and pay paltry sums for the hair of women who have few choices. There seem to be few if any, men selling their hair. Commenting on hair extensions, Sophie Makonjo, a media student at Katutura College of the Arts says, I wear extensions and I know lots of people who do and although I feel for these people who shave their heads it will not stop me from buying or wearing them. Its hair and it grows back. It is not like they scalp people. Imani Shoombe, a naturalist who advocates for both hair extensions and natural hair, also says I believe I can express myself in different ways and feel totally natural. The only hair I cant stand is Brazilian or Indian hair. The thought of wearing somebody elses hair is quite disturbing for me.

For all your advertising needs call Willem Gariseb 081 249 8161 OR 085 551 9337

Consumer News

21

Namibia has lost its

godliness
culture since we embraced our Independence. By this I refer to the feeling that as individuals we are aware that our deeds on earth will be judged when we pass from this earth. This feeling is the one that makes you look around when you are about to do something wrong. That feeling that makes you come to the defence of those more vulnerable in our community, that feeling that makes us gives of our time, money and even possessions to make life a little easier for those around us. This feeling of fraternity, or brotherhood, is not natural to being human. At birth, we are naturally self-centred and believe ourselves to be the centre of the universe and that everyone around us is there to serve our needs. As we grow our parents and community teach us that we are part of the human race, and need to invest into our relationships with those around us to also receive something in return. This education is part of growing up and provided by our parents. It starts with our Mothers teaching us to no longer drink from her breasts but to eat on our own and eventually be able to earn our own living to enable us to purchase our own food. In the same way, our parents have to teach us that we are not the centre of the universe in terms of possessions or earthly goods but rather that we should love others as we love ourselves. This is what gives us human beings our godliness: Our ability to understand that we must respect and cherish all that is around us on earth. This includes our partners, our children, our institutions and even our natural world. If we can teach this awareness of godliness from birth we will soon end up with a society that we can all be proud of. Godliness is thus not about a specific religion, or book, but the universal teaching of us treating each other as the gods we all are. A sense of godliness in each of us will see less need of laws stopping the abuse by companies of consumers, abuse by men of women in relationships, abuse by those in power of the trust of those who put them there; and abuse of the very earth and its natural surroundings that is the Land of the Brave.

he discussion on bible studies at school is a reaction to our realising that we have lost our moral compass as a nation. Because we remember the days of preindependence as being without this type of lawlessness, it is easy to point to a single change, such as the removal of bible studies

from schools, and say we should reinstate this and then things will become better. Unfortunately this is too simple an argument and might even detract us too long while these things continue to occur in our communities. We need to tackle the root of the problem directly; there is a lack of godliness in our

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Consumer News

The New BMW Series Sedan

a contest of style and stylish


he New BMW Series Sedan is a winner in every respect as it is punctuated by some breathtaking dynamics and impressive technology embodied in an unmistakable design, whose uniqueness is further enhanced by the three new BMW lines. Exclusive interior and exterior design elements, from the expressive BMW kidney grille and air inlets to the light-alloy wheels, lend the vehicle an absolutely distinctive look. The BMW 3 Series Touring invites you to discover the world as it blends versatility and innovative technologies for a sporty and confident appearance. Its BMW Twin Power Turbo petrol and diesel engines offer high dynamics with markedly reduced consumption. Interior design The interior of the new BMW 3 Series Sedan impresses with its high-quality selection of materials. It encloses the driver with classical driver guidance, creating a cockpit feeling. Skilful space design gives optimum access to all the important control functions on the instrument display. The car is also equipped with instrument panel which opens up to the driver and allows convenient access to the controls. All the design lines converge in one point behind the steering wheel, thus directing the drivers view fully onto the road. On the drivers side of the deliberately asymmetrically designed centre console, a change from decorative surface and grain optically highlights the drivers section of the interior. On the front passenger side, an elegant atmosphere is created by the instrument panel that displays the decora-

tive trim giving it an ornamental effect. Exterior design The new BMW 3 Series Sedan systematically continues the design tradition and features of the BMW brand. The sportingly elegant exterior creates the effect of coming from one single mould and conveys aesthetics and dynamics at first sight. Even in its sixth generation, the most frequently sold BMW vehicle in the world sets standards. Inspired by a rich model history, the heart of the BMW brand appears in a modern and powerful design always convincing with its BMW-typical proportions. Combined with the headlights, the striking BMW kidney grille forms a harmonious unit and follows on from the front design of earlier models, thus

emphasizing the breadth and sporting character of the vehicle. Extended, ascending lines stretch the vehicle optically, giving it enhanced dynamic character. In this way, the forward-striving front end transforms into the bonnet in one striking move. As a result, the vehicle appears as if in motion and very agile. Like its predecessors, the BMW 3 Series Sedan has the classical three-box design in a modern interpretation. Long bonnet, short front overhang, long wheelbase and rear-seat greenhouse promise pure dynamics. The flowing transition from the curving roof line to the flat standing rear window lends the vehicle a coup-like appearance and a sportingly elegant lightness.

Lions scoops the NPL Champions


Black Africa recently won their match with the Mighty Gunners, being crowned Namibia Premier League Champions for the third time in a roll at a match played at the Mokati Stadium in Otjiwarongo. Black Africa won by a margin of 3-0 to retain their league crown and finished the season on 47 points, three more than Stars and became only second side to win the NPL title three years in a row besides the Civics who won the title from 2005 to 2007. The BA owner, Ranga Haikali was quoted in the local media saying that there were some worrisome moments during the season, like his teams loss to Tigers which left the players a bit low, but the players managed to recover from the loss and deserved to get the reward for their efforts. Haikali also commended his rivals for giving his team tight competition which made the league one of the most enchanting leagues in the Namibian football history. He said, We all take our opponents seriously. They really pushed us all the way and this shows the league was competitive. I dont want to win the league by more than five or even 10 points. Let us keep improving the standard of the league.

Consumer News

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