Africa’s Largest Glass Manufacturing Plant Coming to Tses, Namibia

Our next exciting industrial project in Namibia is Tses Glass, a glass manufacturing plant being planned and organized for development in Tses, Southern Namibia.

This glass manufacturing plant is expected to become the largest dynamic glass manufacturing factory in Africa focused on producing glasses for your home, office, car, glass bottles, touch screen computing (for Apple’s iPad, Microsoft Surface, etc), and smart phones devices (for iPhones, etc).

Tses Glass seeks to partner with some of the world’s largest glass manufacturing equipment makers and technology providers such as Siemens for its planned dynamic glass manufacturing plant, which aims to help rapidly transform the local and regional economy of the Tses community, to make it one of the fastest growing areas in Southern Namibia.

Tses Glass is a joint-venture between Groot Group, Nissi, the Tses Community, and partners and is expected to employ more than 3000 new employees at its planned manufacturing plant in Tses. Tses Glass is part of the Groot Group ecosystem development in Namibia.

Please follow Tses Glass on its Facebook Page for the live updates and information and to learn more how we are doing in setting up this innovative glass manufacturing factory in Tses, Namibia.

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Groot Property Group (Pty) Ltd Authorizes to Issue 10 Million Shares

FOR IMMEDIATE RELEASE

WINDHOEK, Namibia – October 1, 2011 — /GPG/ — Groot Property Group (Pty) Ltd is developing a new township namely, Groot, an upscale multifarious community to be comprised of more than 2,100 commercial retails with light and heavy industrial parks and more than 160,000 residential housing units on a private land near Etosha National Park in Namibia.

In an effort to help finance its initial green scheme projects for the development of Groot, the Company has authorize to issue 10 million shares, which is comprised of 5 million shares of ordinary (common) stock and 2 million shares of preferred stock, of which 80,000 shares of ordinary stock have been issued.

The Company hopes to raise more than US$9 million (N$65 million) from the sale of the issued stocks, for which is by invitation only. The capital from the sale of the issued shares will finance the needed preliminary technical work for the green scheme projects as required for the successful development of Groot.

The total budget for the complete planning, development, engineering and construction of Groot is about N$6 billion. The Company plans to raise the total budget through a combination of debt and equity financing through a network of connected financial institutions in the US and Europe, while Standard Bank will finance 50% of the total budget for the development of Groot.

“The market scope for Groot and all of business-cum-industrial entities it will create will inevitably be not just Namibia with its limited population size but also the various Southern African Development Community (SADC) member countries bordering on Namibia.” Says Simon Kapenda, Chief Economist of Groot Property Group.

Groot is poised to become one of the fastest growing and largest towns in Namibia, an innate character, a center of attraction for the concentration of a multitude of essential socio-economic activities with supportive and complementary relationships. A corollary of this will be applied necessity to mobilize a diversity of professional inputs in areas of engineering, socio-economic research, entrepreneurial development, social services and others for the greater good of Namibia.

About Groot Property Group (Pty) Ltd
Groot Property Group (Pty) Ltd is a premier rapid industrial development and foreign direct investment management company which focuses on implementing applied neuroeconomics and systems dynamic to efficiently explore, develop, and manage self-sustained ecosystems for the slow-developing and stagnant economies. Learn more about Groot Property Group (Pty) Ltd at www.grootgroup.com/investor.

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Source:
Groot Property Group (Pty) Ltd
Web site: www.grootgroup.com

Can Namibia Realize Full Employment Without Foreign Direct Investment?

Have you ever actually looked at the can fish for Pilchards by Seawork? It reads: “Packed by: ABD Khan Co., Ltd, Thailand. Packed for: Seawork Fish Processors Pty (Ltd), Ben Amathila Ave, Walvis Bay, Namibia. PRODUCT OF THAILAND”.

So, what’s wrong with this?

They catch the fish in Namibian water by a Namibian-based company by a few Namibian employed fishermen, and then they ship the fish to Thailand for processing and packaging, and then ship the same fish in packaged Can, back to Namibia for sale to the Namibian consumers.

Again, what’s wrong with that picture?

There’s no value-added to the Namibian produced fish; instead of creating employment by allowing the fish to be processed and packaged in Namibia by the Namibians, they ship the fish to a foreign country and then allow the creation of more jobs there by those who process and package the fish.

Also, the cans are probably also produced in Thailand, so they enable the buying of Thailand produced cans to package Namibia’s produced fish. And that’s the missing value-added factor.

Because when ABD Khan Co orders cans from another company to package the fish, the Can manufacturer will likely creating more jobs and then increasing demands for more raw material, the raw materials that are used to make cans. The process goes on like that with further value-addition. By the time they ship the packaged Cans to Namibia; probably more than 10 people, employees, have contributed to the packaging of just one Can Fish to package fish for Seawork in Namibia.

Now imagine if Seawork were to process and package their own can fish products right here in Namibia. How many Namibians would be employed to process, and package the fish? Also, how many Namibians would be employed in manufacturing the Cans that are used to package the fish?

It’s nearly like that with almost all industries in Namibia; from uranium, diamonds, chicken, etc. The uranium in Namibia is mined and shipped overseas raw for processing, same as with diamonds, they are mined, some are cut and polished in Namibia, but more are processed and sold by NDTC outside Namibia in London.

Actually, and I stand for correction, De Beers pays the Namibia Government an average of about US$300 per carat for a diamond, and then De Beer resells them in London at the market value of about US$1,500 per carat, that’s a good fat profit for De Beer. In 2009, Namdeb produced about 2.1 million of carats, and then De Beers paid for an average US$300 per carat for those diamonds and went to resell them in London at the market value. You do the math, how much does the Government of Namibia actually make annually from the sales of its diamond to De Beer and how much does De Beer make further in London from the same diamonds they pay for in Namibia?

How about the chicken we buy and eat in Namibia? It is grown in Namibia but then it is shipped to Brazil for processing and then shipped back to Namibia for sale to the Namibian people.

Namibia has a high rate of unemployment; the rate used is 51% which is a 2008 rate. The actual unemployment rate for Namibia for 2010/2011 is about 54%.  This is just because we are letting this unemployment to keep rising; we chose to let it continue climbing. But we can actually create full employment for all the Namibian people just through the current industry and investment projects in Namibia right now, but only if we review and restructure the current factories and production facilities currently in Namibia.

Why is there a high rate of unemployment in Namibia? It’s because we all chose to let it be, not because of lack of it.

But then again, there’s a nasty flip side to this case.

Why would Seawork outsource to do their fish processing and packaging in Thailand? Why would any other Namibian made, grown and produced products be sent overseas for processing and packaging?

This is very simple; because of lack of entrepreneurship by Namibians. Namibians are becoming more and more alcoholics. They spend too many evenings and nights on Eveline Streets in Windhoek and other similar shebeens all throughout Namibia, just drinking and talking nonsense, instead of spending more time trying to venture out into creating businesses that would offer the service such as fish processing and packaging for such as Seawork and other fishing companies, right in Namibia.

Namibian entrepreneurs could establish chicken processing and packaging plants to provide chicken producers with the services they outsource to Brazil. Namibia already has cheap labor; these companies don’t outsource their raw materials for processing and packaging to overseas because labor in Namibia is too expensive.

It’s simply because Namibians spend too much time drinking and less time learning and developing their own skills to know how to do some of these things. And those who might want to venture out into their own businesses, they spend too much time crying foul over government tenders and over the BEE scheme, and not venturing out to develop and provide the needed services and solutions to add great value to what producers in the country are producing.

Seawork is not in the business of processing and packaging can fish, they are in the business of catching and selling fish. Hence the need for some Namibian entrepreneurs to step up and offer the service that Seawork and other producers need.

All this should be done by and between private enterprises, not the government. As an entrepreneur, you discover and seek out opportunities to make money, but as a “tenderpreneur”, you simply focus on what the government can feed you. There’s no spirit and gut to innovate and venture out on your own to offer the needed skills and services for such as Seawork.

The government should only step in to create an environment conducive to encouraging innovation and entrepreneurship mentorship and development. Also, one of the biggest issues the government of Namibia does is hiring foreign consultants to do the jobs that Namibians themselves could do.

Nearly every little thing, such as research, development, and written instruments in Namibia are done by foreign consultants, but yet, the Government of Namibia employs more than 80,000 of Namibians, who most of them are graduates of the Namibian institutions of high learning, such as the University of Namibia, The Polytechnic of Namibia, and IUM.

Most of these graduates are graduating without any real practical skills and knowledge. Mostly because these institutions are not developing and producing world-class students, they graduate with no jack-knowledge, just theory-based but no real life experience and or application. Why? Because some of those students spend too much time partying and drinking alcohol, and simply study to pass the exams. Also, because there’s no greater link and networking partnership between Namibia based enterprises and these institutions to offer practical learning environment and skills for the students.

Nearly the whole Namibian institutions need to be reviewed and refocused in order to realize full employment for the Namibian people. Hence even the recent N$14 billion budget that has been passed and allocated to help create employment in Namibia will not help much unless these fundamentals have been studied, reviewed and reformatted.

A development of the Groot Town Center ecosystem will help eliminate most of these issues, because we are developing it having considered, formatted and constituted interlink projects and programs to help encourage entrepreneurship mentorship and development, creation of innovation, and the development of cutting-edge production and manufacturing plants, right here in Namibia.

Invite me to talk to you, your employees today to lecture them on efficiency and productivity, or attend my next “Innovation, Entrepreneurship, and Leadership Meetup Series” for more real life experience training, entrepreneurship development and mentorship. It’s free and open for anyone.

Contact me now.

Simon Kapenda: Innovation, Entrepreneurship and Leadership Meetup Series

My next Meetup Series on Innovation, Entrepreneurship and Leadership is on Saturday, February 19, 2011 at Protea Turinger Hof on Independence Avenue in Windhoek from 16h00 – 19h00. This is something you don’t wanna miss if you’re inspired to do bigger and greater things in your life. Search Facebook for this event to RSVP now. It’s free and is open to the public.

Consider Including Southern Africa in Your Investment Portfolio, It’s the Next Best Emerging Market

Africa’s combined population is more than one billion; with a combined GDP (real) of $2.2 trillion and GDP (PPP) per capita is $2,200.

However, Africa’s combined potential wealth value, based on its endowed natural resources, is more than $100 trillion, which is bigger than the aggregate wealth value of South and North America and Europe, but 65% of the African population still lives on less than $2.00 a day, while only about 15% of the population earns decent salaries of more than $100,000 a year.

We are developing Groot Town Center (GTC) in the Tsumeb, Namibia area, which is being developed as an upscale multifarious community with a development budget of $800 million. GTC is being developed to be the next best place to shop, work, live and play in the Tsumeb area.

While we estimate to have a great number of overseas tourists as the prospective patrons for GTC, the majority of GTC customers are expected to come from the SADC region, whose combined population is 257.7 million (2010) with more than $471.1 billion of aggregate GDP and a potential wealth value of more than $65 trillion. While still 45% or 116.0 million of the SADC population lives on less than $2.00 a day, 15% or 21.3 million of them earns annual salaries of more than US$100,000 with a gross buying power of about $2.1 trillion.

According to Namibia Tourism Board, Namibia’s tourist industry is growing at an average rate of 13% annually. In 2008, 981,111 tourists visited Namibia, while in 2009, the number decreased to 980,173, with 73% of them coming from Africa, namely from Angola, South Africa, Zimbabwe and Zambia. German tourists also ranked high in number.

Angolan tourists alone spent an average of $417 million in retail outlets in Namibia. Based on the historical inflow of tourists, within three years of the GTC opening, we project more than 55,000 visitors each day at Groot Town Center.

Since GTC will be composed of only retail store outlets and facilities that offer superior quality and luxurious products and services, our targeted customers are generally 15% or 21.3 million of the SADC population plus overseas tourists, which would make up about 55,000 daily visitors to GTC.

The individual annual incomes of the stated number are in the income bracket of $100,000, and their combined annual income is about $2.1 trillion.

Out of that number of visitors, we estimate each visitor to GTC to spend an average of $250 per visit, which comes to about $13.8 million a day or $5.0 billion a year, that’s the estimated total revenue for the GTC tenants.

Some of the wealthiest and highest paid individuals with a combined annual average income of about $2.1 trillion generally travel to foreign countries outside Africa where they own properties.

They generally do not spend their time and money in Africa with the exception of South Africa, where they also own properties. Therefore, the need for the development of GTC as an alternative to the foreign investment destination is paramount. With our global connections, anchor partners, and investors, we plan to develop GTC in order to exceed their selective expectations.

For Africa to realize a robust and sustained economic growth equivalent to that of the US and Europe, it needs to grow at least by 600% annually within the next 10 years.

We are at the forefront of leading to a robust economic revolution with a rapid industrial ecosystem model that will create powerful economic ripple effects to spread throughout Namibia’s and each of the target economies.

Consider setting up your retail shop and or invest at GTC in Namibia. Visit our company at grootgroup.com for more information.