News from Namibia 15 May 1999 Via NY Transfer News Collective * All the News that Doesn't Fit NAMIBIA NEWS ONLINE/NAMIBIA NEWS ONLINE/NAMIBIA NEWS ONLINE Edition #21 15 May 1999 Subscribe to Namibia News Online A bi-monthly update of news from Namibia! NAMIBIA NEWS ONLINE is written by Namibian journalists in Namibia and brings you the news from their point of view. It is assembled and edited by Africa News Network, part of South Africa Contact, the former anti-apartheid movement in Denmark. NAMIBIA NEWS ONLINE is one of our individual newsletters and together with those from Mozambique, Zambia, Angola, Malawi, Zimbabwe, Lesotho, Tanzania and Swaziland, provides up to date news through our established network of journalists in Southern Africa. These newsletters will be followed, in the very near future, by news updates from other countries in the region. NAMIBIA NEWS ONLINE is brought to you through a co-operation between Africa News Network, South Africa Contact and Inform, Denmark's leading alternative information network. ************************** In this edition: FEATURE 1. MEDIA FREEDOM BAROMETER READS... 2. AFRICA'S TELECOMMUNICATIONS ICON STORIES 1. NUJOMA TURNS 70 2. MUYONGO TO SETTLE IN DENMARK 3. READYING FOR THE Y2K BUG 4. KASIKILI VERDICT SET FOR THIS YEAR 5. MEDIA UNDER GROWING PRESSURE 6. OVERSPENDING WORRIES 7. 'NAMIBIA HAS AN ALIEN PROBLEM' 8. DEFENCE IMPORTS RISE 9. JUSTICE SYSTEM IN CRISIS FEATURES 1. MEDIA FREEDOM BAROMETER READS... 2. AFRICA'S TELECOMMUNICATIONS ICON Telecom Namibia bears witness to what can be done in Africa. It has without any doubt the most modern backbone and switching infrastructure in Africa which compares well with the best in the world. These remarks are contained in the Telecom's Annual Report which ostensibly brags of the state-of-the-art customer infrastructure and services not found in most of Sub-Sahara Africa. Telecom Namibia released its 1998 Annual Report this April. A 39 page document tells of the Corporation's performances amid socio-economic woes at home and those caused by external forces. In the Chairperson's words: "I am pleased to report that despite the harsh economic environment, Telecom Namibia has maintained positive growth in all key areas." The Corporation's Chairperson, Mr. E. Angula, notes that the positive financial and service performances were also in spite of the inherited antiquated telecommunications network and amid demands to develop an efficient, effective and economically viable system, as its mandate. This mandate aims at effecting commercially reliable and adequate services, and with effective utilisation of modern communications technologies in order to meet customers' ever growing needs. "Inherent in that mandate is the social responsibility to provide telecommunications services to about 60% of economic inactive population with little or no expectations of returns on such investments," adds Angula in the report. The good news, says the report, is that the Corporation has successfully carried out that mandate and has achieved its objectives within a period of five years. "The alternative," Angula says, "would have been to forsake our social responsibility and show profit." In measuring its achievements, the report says the Corporation's total assets grew from N$731 million as reported the preceding year, to N$922 million in 1998. The Chairperson ascribed this growth to the substantial investment made in the building and modernisation of the Corporation's infrastructure. Further, the Corporation recorded a turnover of N$454.4 million, an increase of 21,69 per cent to the previous year's turnover. The Corporation however fronted a tremendous loss as a result of the 66.94 per cent depreciation of the value of the local currency in the first quarter of 1998. This adversely marked a low key in the operating profit. A substantial part of the Corporation's equipment is purchased from overseas and owing to the devaluation, the Corporation lost a chunk of N$44 million in interest levied on both local and foreign loans. Angula bemoans this depreciation saying: "It is a high price we paid in the execution of our mandate." Another devastating blow came from the closure of the Tsumeb Corporation Limited (TCL) mines which also forced the closure of retail businesses in the town. This, the report says, also resulted in the loss of revenue for Telecom. TCL was one of the major Telecom's corporate customers, but abruptly folded its operations. The 1998/99 tax increases in sales on goods plus an increase in sales levies, as well as an increase in the marginal income above N$100,000 annually in addition to the corporate income tax increase from 35 to 40 per cent, were viewed as "a retrogressive step" from the then reduced investor friendly rates. Although being considered for possible review, these government tax increases remain murky waters to investor confidence and micro-economic growth, ultimately reducing growth in operations and customer base for any other business, and especially Telecom. The financial and economic historic link between South Africa and Namibia has far reaching performance consequences for huge Corporations like Telecom in times of market tumbles. In terms of GDP, inflation and interest rates, both countries' economies have been on a par. The combination of these factors did not, therefore, leave Telecom Namibia unscathed when the financial markets nose-dived. The sudden and dramatic depreciation of the Rand pushed the interest rates in Namibia because of this direct monetary link between the two countries. But the smart partnership between the private sector and the government, above the stable socio-political atmosphere, gives Namibia an age over most countries in the region with Namibia placed fourth, ahead of South Africa, in terms of the World Economic Competitiveness Report. South Africa is on position seven. Be that as it may, confident Angula believes the ensuing financial year will be the harvesting one for Telecom Namibia. "Our projections for next year show that we will be able to pay a dividend to our shareholder," predicts Angula. Also echoing on the Corporation's 1998 highs and lows is the Managing Director Theo Mberirua. In his review, Mberirua breaks down revenue growth as follows: Telephony rocketed to 30.56 per cent, Telematics hit a 33. 07 mark, customer premises equipment registered 12.00 per cent, while directory sales were up by 13.33 per cent. He explains that although the Corporation's operational costs - before depreciation, interest and taxes - increased by 17.03 per cent and income from operations improved by 34.03 per cent, interest paid shot to 58.42 per cent. This was coupled with foreign currency losses plus an unprecedented write-off of an outstanding debt-related amount of N$25.7 million. The year also met a number of equally costly challenges and activities all aimed at keeping the Corporation afloat with the fast advancing technologies and the ever increasing customer needs and demands. Capacity building and human resource development was therefore imperative to keep staff abreast of all developments in the industry. Only then can staff deliver customer-tailored services with efficiency and proficiency, so believes Mberirua. To this end, a sum of N$2 million was spent on staff training and development. Corporation restructuring as well as the introduction of new business units to six were successfully effected. In terms of services, the Corporation implemented, in record time, a new billing system further enabling a firm hand on debtor's book, hence a one-off write-off of N$25.7 million. More other services not there before were introduced alongside the on-going expansion of the network country-wide. Even more, was a major expenditure on capital projects for the supply of solar power and stand-by generators in case of power failure. This includes rural areas and those outside main towns. However, by October, and having met a number of demands, the trend began to reverse. "... and with the interest rate and currency swap that was done after year-end, we expect to have the... scenario behind us by the end of the next financial year." As it stands now, and before tax, the Corporation already reported N$25.4 million proceeds. In a class of its own The report says while its capabilities are grossly under-utilised, Value Added Services (VAS) is expected to grow considerably during this financial year and beyond. As an instance, and in addition to other services, Telecom Namibia installed a Customer Management and Billing System, the first of its type on the continent. The prime role of the new business unit is to focus on the national customer segment analysing their communication and information needs and to provide innovative solutions. This, it says, requires considerable upgrading of existing skills in order to meet the demands of the information age. Telecom also established in 1998 a new business unit called the National Services & Product Sales. The Unit is responsible for sales of data, public phones and value added services, among others. The report says over the years, customer requirements have become sophisticated integrated services. Services normally should have value for money. The report claims the support data services in 1998 were at a consistent response time of 97 per cent within three hours. But adds that even with such advanced technology in use, Telecom's tariffs can still be said to be one of the world's cheapest compared to most telecommunications providers in the world. The report however acknowledges that Namibia has a low public tele-density of 0.13 in every 100 compared to South Africa which has 0.3. The figure for Namibia is considerably low given the equally low rate of penetration for fixed lines of 6 in every 100 inhabitants. This makes Namibia fail to meet the ITU's recommendation for universal service obligation in terms of universal accessibility of 6 for every 100. The report says that for Namibia to reach a penetration figure of 1 person in every 100, it requires massive investment by the year 2000. This will require an additional 8,000 public phones to be installed during the next two years. In all, Telecom Namibia has a surprise package services for its customers. The most notable however is the Integrated Service Digital Network (ISDN). ISDN was launched during 1998 throughout the major centres in the country. It provides end-to-end digital connectivity, eliminating the need for separate dedicated voice and data access lines. With ISDN, businesses are able to transmit voice, data and other information simultaneously over one pair of wires while taking advantage of advanced communications features. The main attraction for this feature is probably the Internet where the ISDN modems could make dial-up of 128 kb/s Internet access possible, compared to the present 56kb/s with the fastest modem available. Further, with the two telephone lines on ISDN only one telephone number is necessary whilst up to eight different services of telephone, fax equipment, computer terminals with modems, etc., can be connected to the ISDN network terminal unit. Multiple telephone numbers are also possible for all these services. Another surprise service is the Telecom Management Network. Having completed its second phase of N$22 million investment, the system is expected to increase operational efficiency for 200 Telecom network sites across the country. This technology will improve network fault-detection, handling and management, ultimately satisfying virtually all customer demands. With this technology in place, performance monitoring will be shortened and reaction time will improve tremendously. It will also afford the Corporation to consistently manage information across widely differing technologies. These attributes will enhance the infrastructure management, lower the operational costs and boost customer care. Again, the creation of a centralised, 24-hour control centre will ensure that technicians constantly supervise the performance of the network. And by interpreting early signals, Telecom Namibia will be able to identify approaching problems at an early stage which will follow swift advance preventative action to eliminate possible failures in the network. Latest on the offer is the voice mail service. The report claims the installation of voice mail equipment will overcome present restriction that only real time telecommunication services can be offered by public means. The report says the service is considered a platform for increasing telephony penetration in the country as it will be available even to those without a telephone. The sale of Voice Mailbox to persons without a telephone will give them access to some form of telecommunication. Mailbox owners will be able to dial in to their Voice Mailboxes from any telephone to retrieve messages. In this way, Namibians without a telephone line will have access to what may be viewed as virtual telephones, says the report. Existing customers on the network can use voice mailbox as an answering machine drastically reducing the chance of missing a call. In all, value-adding, customer centred services make Namibia's Telecom one of the few most efficient and reliable telecommunications providers in the world. Both, Angula and Mberirua take hats off to the staff for the unflinching dedication despite working under considerable strain, to make Telecom Namibia what it is today! ends STORIES 1. NUJOMA TURNS 70 As Namibia celebrated its ninth independence day March 21, 1999 amid a number of social, political and economic challenges, its founder President Sam Nujoma celebrated his 70th birthday April 12. With 1.6 million people, Namibia gained her independence in 1990 under incumbent Nujoma after about a century of colonial repression first by the Germans and second by apartheid South Africa. A semi-arid to arid country, Namibia is a multi-party, multi-racial, multi-lingual nation which boasts of mineral diamonds deposits for its economic life-line. Conflicts in the neighbouring countries put to test Nujoma's pragmatism. At 70, Nujoma looks fit and is abreast with his country's political and socio-economic on-goings. ends 2. MUYONGO TO SETTLE IN DENMARK The state radio reported leader of a group of secessionists Mishake Muyongo has been granted refuge in Denmark. The move has sparked debate in the country with many saying he did not deserve granting refugee status anywhere. Earlier reports said he, with Chief Milima were to settle in the US. The US Embassy here denied it had interest in granting Muyongo refugee status. There are however claims by those willing to return that thousands of Namibians at Dukwe Refugee Camp in Botswana are effectively being held hostage by those advocating the secession of Caprivi. The first group of returnees out of the 2 500 Namibians who poured into Botswana following separatist troubles in the Caprivi, arrived in Namibia a two months ago. The first five to return responded to the Government's call for Namibians who fled to Botswana to return as no action would be taken against them. The five fled the country on December 14. They allege others willing to return are being discouraged from filling in repatriation forms. The number of refugees now stands at over 2500 and about 2200 have been granted political asylum in Botswana. Meanwhile, Botswana is to facilitate the return of 60 Namibians. ends 3. READYING FOR THE Y2K BUG Computer experts warn that Namibia could be in for a major crisis come midnight December 31, 1999. Under a government initiated effort to rid of the Y2K bug, major corporations are doing everything in their power to ready themselves for the turn of the century. However, it is the smaller businesses which together account for over half the country's economy that are a bother. Few are seen doing something about the bug. Experts also say that far from a technical issue, the Y2K is rather a business problem with extensive legal, logistical and technical connotations. 4. KASIKILI VERDICT SET FOR THIS YEAR The International Court of Justice's judgement on the Kasikili-Sedudu case is expected to be announced at a public hearing before the end of the year. The case between Namibia and Botswana, which started on February 15, ended March 5, 1999. The judges will now start their deliberations on the case and a press release said judgement was expected this year in the northern hemisphere's Autumn - September, October or November. The World Court has been requested by the disputing countries to determine the boundary between Botswana and Namibia around Kasikili-Sedudu island and the legal status of the island situated in the Chobe River. Meanwhile, judges who wish to prepare a separate or dissenting opinion may do so. 5. MEDIA UNDER GROWING PRESSURE There are growing signs of intolerance among Namibia's political leaders of editorial criticism in newspapers despite Constitutional provisions for freedom of speech and of the press. This is stated in the latest United States annual country report on Human Rights in Namibia which was released in Windhoek by the American Cultural Centre. The report said that despite the fact that Government generally respected freedom of speech and of the press increased pressure was being put on reporters working for state-owned media. It said reporters for independent newspapers continued to criticise Government openly and did not engage in self-censorship. Of late, state media reported interference by authorities on reports about opposition parties. Authorities have denied these allegations. 6. OVERSPENDING WORRIES The Namibian government is said to be losing its grip on financial control leading to calls for the Prime Minister to step down. According to the Auditor-General's report, ministries are spending amounts way over their budget limits to nearly N$193 million in 1997 compared to N$141 million the previous year. The Auditor-General listed damning findings concerning financial mismanagement and irregularities which permeate the different branches Government. The endless list of negative findings casts a pall on Government's oft-prophesied determination to handle taxpayers' money more responsibly. Among the list of irregularities in the Auditor-General's report for the 12 months to March 1997 are: over-expenditure, giving loans to non-existent companies, failure to submit financial statements to the Auditor-General and diverting money intended for development. The situation prompted the main opposition DTA to call on Prime Minister Hage Geingob to resign. 7. 'NAMIBIA HAS AN ALIEN PROBLEM' Namibia is experiencing a surge in the number of illegal immigrants coming into the country, mostly young people fleeing war-torn Angola, according to official reports. The government says a large number of illegal immigrants are scattered all over Namibia. Although the bulk of the illegal immigrants are from Angola, nationals from Rwanda, Burundi, Ethiopia, Zambia, South Africa, Liberia and China are among those arrested for being in violation of the Immigration Control Act. Records kept in Oshakati, Rundu and Windhoek indicate that the majority of illegal immigrants are Angolans. In all, 71 Angolans, 23 Zambians, four South Africans, two Chinese, a Sudanese and a Zairean were arrested in recent swoops. In equally recently clean-up operations in Windhoek police had netted five illegal immigrants among them a Chinese, a South African, a Liberian, a Tanzanian and an Angolan. 8. DEFENCE IMPORTS RISE Namibia is said to have imported war material worth N$5,2 million from South Africa last year alone - a two-fold increase in the last three years. This was released in a report of statistics released by the South African government. The released statistics showed that six countries fighting on both sides of the civil war in the Democratic Republic of Congo bought significantly more arms from South Africa in 1998 than in the two preceding years. According to export statistics released by South Africa's National Conventional Arms Control Committee (NCACC), Namibia acquired "sensitive major significant equipment" costing N$2,7 million in 1996. This 'A' category includes explosives, large calibre arms, bombs, tanks, fighter aircraft, attack helicopters and naval vessels "that could cause severe casualties and/or major damage and destruction". The amount for purchases slumped to N$56 000 in 1997 only to go over the N$5 million mark last year. But the Namibian Government says it is baffled by South Africa's figures on its arms exports to Namibia. "I do not recall any defence procurement project to acquire material from South Africa," Erastus Negonga, Defence Permanent Secretary, told the media recently. "How they arrived at that figure ... I don't know." According to Negonga, Namibia had received only logistical equipment, such as motor vehicles, from South Africa last year. "We don't buy military equipment from South Africa," he added, but admitted to buying arms and ammunition from countries other than South Africa. 9. JUSTICE SYSTEM IN CRISIS Justice minister admits his country's criminal system is collapsing. The minister says, to begin with, the money allocated to his ministry is not enough to ensure that justice is carried out accordingly. "It is really a sad day for me... to paint a bleak picture, but I am afraid that is the reality. We have the last chance to rescue the situation, said Ngarikutuke Tjiriange in the national assembly this week. ************************** NAMIBIA NEWS ONLINE/NAMIBIA NEWS ONLINE/NAMIBIA NEWS ONLINE A bi-monthly update of news from Namibia! If you would like to receive more information about NAMIBIA NEWS ONLINE, or about our other newsletters or upcoming newsletters, please send an e-mail to: AfricaNN@inform-bbs.dk We can also be contacted by fax and by phone at: Fax: + 45 35 35 43 32 Phone:+ 45 35 35 96 32 Letters to the editor can be sent to: editor@inform-bbs.dk (Mary Tingay) If you know of anyone else who might be interested in subscribing to NAMIBIA NEWS ONLINE, please let us know and tell them about us! 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