“Environment of doing business in Namibia – perspective of a local

investor”

by Sven Thieme

WSDI/Namibia International Investment Conference Safari Conference Centre

Windhoek, 31 October 2007

Topics:

1. Who we are

2. History/establishment era

3. Growth phase

4. Way forward and future

5. Namibia – Good Investment Destination

Who we are

• Proud history of investing into our own country

“As pioneers in in their related industries, the Ohlthaver & List Group, is synonymous with Product innovation and the enhancement of socio-economic wealthin Namibia.”

• Largest privately held group outside the mining sector• 80% of the total turnover is value adding • Over 4000 employees• Epia as empowerment partner• Subdivided into seven industry-related Focus Groups

Who we are: a truly Namibian company

1. Focus group: Beverage

Who we are: a truly Namibian company

2. Focus group: Food

Who we are: a truly Namibian company

3. Focus group: Leisure

Who we are: a truly Namibian company

4. Focus group: Retail

Who we are: a truly Namibian company

5. Focus group: IT

Who we are: a truly Namibian company

6. Focus group: Property

Who we are: a truly Namibian company

7. Focus group: Services

Who we are: Vision and mission programme (Mwenyopaleka)

• Implemented during 2004

• Aims to communicate vision, mission and values to all employees

• Encourages value driven culture

Vision:

To create wealth by building innovative and sustainable businesses and thereby enhancing living conditions and socio economic wealth.

Mission:

Everyday we challenge our past to improve the future for everyone.

History: a long established business…

• 1923 founded by Carl List and Hermann Ohlthaver in Windhoek

• Started as a banking establishment

• 1964: Werner List, Carl List’s son, takes over chairmanship

• Growth through acquisitions and vertical integration

Growth phase:

Year 2002 • Appointment of new management early 2002

Understand global competitive forces (Globalisation)• Lack of skills and expertise (global dynamics)• Lack of economies of scale• Lack of access to best practice• Lack of access to marketing best practice• High costs base• Lack of proper systems, processes and techniques• Import increasing & export decreasing

Growth phase (continued):

1. Changed Management• Change Management Programme• Develop own Management & Talent Programmes• Exchange programs • Rotation programs

Benefit• Identify and build future talent• Build future management capacity

Growth phase (continued):

2. Entered into various strategic partnerships• Heineken (Heineken brand – most international) • Diageo (largest beverage co in the world)• Broll (within top two in SA property management)• Pick ‘n Pay (one of the largest retailers in SA)• Dimension Data (of the top network co in the world)

Benefit• Access to best practice• Access to latest technologies & expertise• Access to top people• Exchange of people• Promotion of export opportunities• Access to brands

Growth phase (continued):

3. Execution of an aggressive plan (learned fromthe world and adopted to Namibia):

• Clear financial goals• Critical success factors identified• Clear enablers identified• Clear initiatives taken to support to above

Benefits• Clear alignment• Timeous execution

Growth phase (continued):

4. Key initiatives undertaken• Implementation of state of art business systems• Best practice in whatever we do• Investment (about N$ 1 bn) in value add facilities & businesses, retail & commercial building, leisure etc.• Investment into people• Rationalized businesses• Streamlined operations• Value-adding focus (from commodity)

Benefit • To be as cost effective and efficient as possible • Producing value add – maximise sales value• To be sustainable

Growth phase (continued):

5. Innovation • Part of our corporate vision• Learned from the world - Adopted to Namibia• Participation in worldwide trade-fairs• Participation in most know-how & expertise forum

in the world

Benefits• to become (if possible) a leader in what we do• to be in the know of all latest technologies

Growth phase (continued):

6. HR is the agenda (People)• Substantial investments in people• Mwenyopaleka improved organisational culture &

climate, enhanced labour productivity • Performance management system (Appraisal and development plan)• Employee health (comprehensive HIV testing, treatment and support)

Benefits• Nothing more then obvious what this will do

Results

• Doubled Turnover to 2.4 billion• Doubled Asset base to 2.4 billion• Despite restructuring the businesses – employment increased to 4200 - 4300• Close to 1 billion invested over the last three years• Dramatic increase in exports • New businesses created • State of art systems & processes implemented• Major Value adding production facilities• New innovations launched

Way forward & the future

• New Joint Venture created with Kempinski/IFA - establish a 5 star portfolio in Namibia to the value of N$ 550 million,• Expand into Southern Africa using current bilateral, multilateral and similar agreements,• Use the access to 190 million customers and consumers in Souther Africa

Namibia – Good Investment Destination

• Macroeconomic conditions (Free Market Economy, Stable political environment, Good legal system, Stable tax rates and regime)• Physical infrastructure (Roads, Rail, Flight services, ports, telecommunication, etc.)• Major trade agreements (AGOA, SADC, SACU, preferential treatments for Namibian products)• Foreign Investment Act (Special incentives for manufacturers/exporters)• Life style/social infrastructure (quality of life, medical services, education etc.)

Namibia – Good Investment Destination

• Industry Sectors of potential• Mining• Tourism• Agriculture• Aquaculture• Fishing (value adding)• Value adding manufacturing• Services

End