A Rare Lucrative Investment Opportunity in Clean Energy for Tses Glass

We are preparing our Solar Power Purchase Agreement (SPPA) to be signed for a 25-year period between Tses Glass (Pty) Ltd, Tses Village Council, and Tses Solar (Pty) Ltd.

Tses Solar is an off-grid 60MWac Solar (PV) Power Plant being developed to supply clean and sufficient electricity to Tses Glass and the Municipality of Tses. Namibia-based HopSol Africa (Pty) Ltd, part of the Switzerland-based HopSol AG is our appointed turnkey technical engineer for the development, engineering and commissioning of the Tses Solar (PV) Power Plant in Tses.

For your info; a Solar Power Purchase Agreement (SPPA) is a financial arrangement in which a third-party developer (Tses Solar) owns, operates, and maintains the photovoltaic (PV) system, and a host customer (Tses Glass and Tses Village Council) agrees to site the system on its roof or elsewhere on its property and purchases the system’s electric output from the solar services provider for a predetermined period.

This financial arrangement allows the host customer to receive stable, and sometimes lower cost electricity, while the solar services provider or another party acquires valuable financial benefits such as tax credits and income generated from the sale of electricity to the host customer.

Tses Solar (Pty) Ltd is a joint-venture between a Namibian-based and owned Omoni Investment CC and Groot Management Systems (Pty) Ltd each with 40% percent. The other 10% is owned by a group of minority Namibians, while 10% is reserved for future investment.

It will cost about US$150 million (N$1.6 billion) for the development and construction of the 60MWac Tses Solar (PV) Power Plant in Tses starting around early 2016.

So our 60MWac Tses solar power plant project, 40MW of this is for the Tses Glass factories and 20MW is for the Tses Municipality. This will become the biggest off-grid connected solar power plant in Namibia and this 20MWac will produce about 54 million kWh per day and thus it will supply about 10,000 residential houses in Tses with clean, stable and environmentally-friendly electricity.

Our SPPA is fixed at N$1.96 per 1kWh for 25 years adjusted on inflation.

20MW per day equals to 54 million per day. Hence Tses Solar will be profitable for self-sustained. If we sell 1 kWh for N$1.96 (US$0.20), then 20MWac will generate about N$105.8 million (US$10.6 million) per day. This is what we will generate by selling that 20MWac to Tses Municipality. And 40MW per day equals to 108 million kWh per day for the Tses Glass factories. And at N$1.96 (US$0.20) to Tses Glass for 108 million kWh per day equals to N$211.7 million (US$21.2 million) per day; for a total of about N$317.5 million (US$31.8 million) per day or about N$1.2 billion (US$120 million) per year for a fixed guaranteed period of 25 years as per the SPPA.

This is good and less risky for an investment to take up the remaining 10% stake in Tses Solar (Pty) Ltd.

Email: simon@grootgroup.com

Connecting to Move Africa Fastest, Creating Over 25 Million Permanent Jobs, Serving Over One Billion Paying Customers Each Month

We’re happy to appoint a Canadian engineering company to conduct a bankable feasibility study for our next massive infrastructure project, Grootrain, a high speed passanger rail system to connect Sub-Sahara Africa, from South Africa to South Nigeria via in-between countries such as Botswana, Namibia, Angola, Zambia, DRC, to Kenya, and back to South Africa via Tanzania, Malawi, Zimbabwe, Mozambique, Swaziland, Lesotho. Grootrain is poised to make travel between cities and countries in Sub-Sahara Africa fastest, safe, and affordable.

According to a quick preliminary feasibility study by a US based independent accounting firm, Grootrain will create a total of more than 25 million permanent jobs in Sub-Sahara Africa and serve more than 1 billion paying customers each month.

Estimated to cost over US$100 billion, this is the largest infrastructure project in Africa.

Grootrain is a project by Groot Railways (Pty) Ltd, part of Groot Management Systems (Pty) Ltd.

Namibia, Why Buy Local, When Local is Overpriced?

So Namibia is experiencing a downtown economic activities in the dairy industry? I seriously believe that Namibian producers and marketers don’t know how to properly price their locally produce. I don’t even know if the local producers know how to calculate their gross margins per unit basis. Because, with everything locally produced, it’s always overpriced.

Let’s look at an example, the US auto markets which face extreme stiff competition from foreign automakers, Germany, Japan, etc., but the US auto market is able to effectively compete against these foreign automakers. They do so by being innovative, efficient and most importantly, they use better accounting methods, LIFO mostly, in their production, pricing and chain-supply management. Hence this excuse of encouraging the local Namibian consumers to buy local even though the local products are most of the time overpriced just to save the locally produced, is not a good excuse.

Let the market’s invisible hand regulate and dictate the market price and production outputs based on the demand and supply capacity. The local producers need to become more lean, more efficient and most importantly, focus on good accounting methods and the law of diminishing returns. I’m honestly glad that the international market is giving the local Namibian producers this much needed competition.

Overall, it’s the well organized, managed and innovativeness who will survive during this downturn economy for the dairy produce. And in the end, the local consumers also benefit in terms of the market price versus their income level. Because now in Namibia, the market or prices of consumer goods exceed the average pay rate for the majority of Namibians.

Africa has been politically ruled since the beginning of time, it has never been market-driven. But where is Africa still stands in today’s global economy? Firstly I’m not a politician and until when I was in Nanso during my school days, I’m not interested in politics. But I studied politics, the history of Africa and the world’s economy as part of my economic degree’s education, so my interest is in economics as I am an economist. Secondly, I’ve been an entrepreneur since 1995, so I know a thing or two about these areas. And as long as Africa is not market driven but by politics, Africa will never develop economically to its fullest to benefit all of its people but a few.

Even this land issue in Namibia, it’s not for everyone, no matter the 200,000 plots being serviced, they will never solve the real issue but make Namibia worse, because still only the haves will afford to buy the plots and the have nots won’t get none, and also in the end, it will cause to dilapidate the housing market in Namibia and Namibia’s housing market in terms of shape and value will become like Zimbabwe, Zambia etc., and no bank will issue housing bonds. So let the market system drive the market price, but this too is not good enough if Namibia doesn’t focus on creating better paying jobs.

If we focus on better paying job creation, then local commercial banks would be happy to issue more loans or housing bonds. Also depends on the Bank of Namibia, banks may even lower their interest rates on their housing bonds. This is because the market would have more customers looking to buy houses, cars and other tangible things, so banks would be forced to go with the market; customers would look for better rates and services. And if banks won’t compete to improve their offerings, then under Namfisa, there would be rooms for more financial institutions to come in the market to compete for these customers.

This is true since the market demand for houses and tangible assets would be ripe and profit will be larger, so this would call for more market entry by other financial institutions to be established and offer better rates and best customer services. In the end, you, the consumer will benefit more, as your demands will surpass the market supply. So it’s a smart thing for the government to do to pump money in job creation projects in order to help improve the market, and hence increase or improve the better living condition for nearly every Namibian.

Remember that when more people are employed and getting decent salaries, the more the government will recoup more income from tax income in order to increase social programs such as the pension schemes for the senior citizens, medical welfare and more. So let’s create better paying jobs, let’s focus on increasing vocational training to produce more qualified manpower.

Let’s develop mentorship programs to help infuse self development for many Namibians, let’s focus on hosting public seminars and workshops to help instill value and self confidence in entrepreneurs. We can do more, we can do better, to benefit all of us. And this is what is called economic inclusion.

Our Aim is Job Creation, Poverty Reduction, Strengthen Economy, Better Living

“Ask not what your country can do for you but what you can do for your country,” JFK

Likewise, as private citizens, our Tses Glass’ project timeline might have changed a little but our aim for Tses Glass remains the same and achieving our goal as originally set is our only priority.

As long as our government and honorable political leaders give us their blessing to give our technical partners and financiers a peace of mind, then we should be able to start with the construction of our two different factories; 250tpd Tses Glass container glass and 600tpd Tses Glass float glass factories this year.

We are honored to have the continued full support of our German, Italian, Ukrainian, Chinese and South African engineers and suppliers. We only now need the blessing of our government and we are working to compile all the documents as requested by our political leaders for us to be compliant.

Obviously, the permanent and long-term effects which Tses Glass is expected to cause are; creation of thousands of better paying jobs in Tses and Namibia, help industrialize our country, help contribute to the economic development of Tses, the //Karas Region and Namibia at large, help boost our country’s GDP by over N$100 billion, and effect a better living standard for many Namibians.

Most of those who already have, whose minority population still controls the Namibian economy who now feel threatened by Tses Glass as it empowers more previously and still disenfranchised Namibians and those who don’t have their hands in Tses Glass are usually the ones who write negative about Tses Glass or cause to delay processing of certain documents for Tses Glass.

When more Namibians have better paying jobs, they would have more money to afford buying a land and build a better home, have better food, and more; a better life reduces chronicle illnesses and diseases, deaths and help boost the birth rate to increase the population and improve the education system, basically to create and effect a healthy population.

These are our aim at Groot Systems to develop and put Tses Glass in operation. We can’t do it alone, we need your support, after all this is for all of us, our country.

Namibian Housing Market to Collapse

Within the next two years, Namibia would likely experience low investment in housing market that no investor would want to continue investing in real estate. Currently, real estate investment in Namibia is the safest due to its high return on investment (ROI), due the current high price of housing. Namibia is currently ranked as one of the most expensive in residential real estate properties. But after these 200,000 plots have been serviced, as announced this week by the government and the AR movement, it would cause prices in housing to drop extremely to their lowest, further causing investors to pull their money away from real estate properties investment as well as making banks not willing to issue mortgage loans. And this would cause severe dilapidation in residential properties value.

Large cities and towns will be hit the hardest, especially due to the high migration of people from large cities and towns to rural areas such as Tses with high economic development where more jobs are slated to be, causing large cities and towns to have ghost houses.

The ideal solution would be that the housing price should be market driven. By this I mean, let’s focus on job creation and not just jobs but good paying jobs, so that more Namibians can have high income to afford decent houses. When the demand for housing increases due to adequate income, then the price of houses would drop steadily as driven by market in proportion with the high demand in houses but supported and sustained by adequate income. The supplying of houses will increase as investors would have confidence in the housing market hence they would continue investing in real estate as the demand of houses skyrockets at an acceptable price due to many people with high income to afford to buy decent homes.

Now with these 200,000 new houses/plots thrown into the market which exceed the demand and below the income level, it is like having Bank of Namibia to print more money which basically devalues the currency.

I hope that when our esteemed political leaders and land activists make and take actions such as this to flood the market with more houses than the demand, I hope that they first do research in order to have quantitative data to enable them make well informed decisions.

Many Economic Benefits by Tses Glass, No Need for the Land Grabbing in Namibia

When we get our government guarantee within the next few weeks, which is needed by our financiers, a lot of great things would happen in Tses and //Karas Region quickly.

We will start with the construction of our first two glass manufacturing factories; 250tpd container glass and 600tpd float glass factories in Tses soonest, the other three different ones will follow on later.

As such, Tses Glass would cause to create over 7,000 better paying new permanent fulltime jobs in Tses within 2 years. As such, more investors and developers would flock to Tses to grab the many business opportunities there, causing to create more better paying new jobs in Tses.

More than 14,000 new houses would be needed to be built in Tses within 2 years. Retail stores and grocery stores such as Spar, Shoprite, Checkers, Pick ‘n Pay, Woermann block and more, financial institutions such as FNB, Nedbank, Standard Bank, SME Bank, and Bank Windhoek would be forced to open their branches in Tses due to the expected high demands by their customers. New hospitals and clinics as well as schools would be built in Tses to accommodate thousands of the new population of Tses.

Tses would need to have shopping malls, car dealerships, hardware stores, barbershops and hair salons and more, all within the next two years. And Windhoek and other municipalities would be relieved as more people would leave Windhoek and other towns to Tses in search of better jobs, leaving Windhoek and other towns less crowded and hence able to provide basic services to its much reduced residents, and more land will become available as more people would leave their kambashus and houses as they migrate to Tses, leaving plenty of land space in Windhoek and other towns. And as more land becomes available in Windhoek and other towns, then the land automatically becomes less expensive due to less demands.

Hence the need for all of us to work together and develop infrastructure projects such as Tses Glass throughout Namibia to help lower the cost of the land, boost the economic well being of all the Namibian people and grow our country’s economy while making our lives better and well off, for all of us.

Namibia-based News Media Hate the Country and Its People?

I wished that Namibian news media write more news articles that promote Namibia in a good and positive way. There’s so much, many great things, that happen each day in Namibia, and the beauty of the country is so inviting… and if the Namibian news media would write more about these good things, then you’d see a more great impact in the country’s economy.

In the US, my home in Beverly Hills, California is just about 10 kilometers away from Hollywood’s Walk of Fame in Hollywood. And even Hollywood itself, it’s not that as extravaganza as the US based news media promote it. It’s really a dirty, old looking place but those outside Hollywood would never know until you visit Hollywood to your own surprise how the US media hype up Hollywood.

If the Namibian news media could do more, write and publish more about the good things that happen in Namibia and the beauty of Namibia, then this could really help make a change. Namibia is even to be said the “Garden of Eden”, the birthplace of modern humanity, according to some of the world’s leading research Universities including Oxford University, Stanford University, etc., (just google this) and the Namibia-based news media don’t grab on this to write and exploit to promote Namibia in this sense, as the cradle of life, the birthplace of modern humanity, and this could exploit people from all over the world to come and visit Namibia.

When foreign people come from wherever to visit Namibia, they would spend their money, lots of money, in Namibia, and that’s just great for the Namibian economy.

Namibian news media, please write more stories to promote the country and its people’s efforts, right now you focus more on stories that depress the readers and demote the country, which simply deters more prospect visitors to Namibia.