NAMIBIA MINEWORKERS INVESTMENT HOLDINGS COMPANY (PTY) LTD
20 YEARS OF NAM-MIC AND WEALTH DISTRIBUTION
VISION – To be the leading broad-based organization that strives to make a significant impact in the socio-economic development of Namibia
MISSION – To optimize shareholder’s value through diligent investments
VALUES – Care, Equality, Excellence, Integrity, Innovation & Prosperity
To review 20 years of growth and success at the Namibian Mineworkers Investment Holding Company Pty Ltd (Nam-mic), means a walk down memory lane with committed board members, management, employees, and union officials. Other permanent structures on that lane are the contributions of various Government ministries and agencies that assisted in Nam-mic’s rise over the years.
Nam-mic has parlayed an initial N$600,000 worth of investments in 1997 to N$149 million in 2013, N$248 million in 2015 and N$315 million in 2016. 2017 projections offer an even higher total asset base. By any measure, this epitomises a major measuring stick for corporate success. Nam-mic was incorporated on 15 July 1997. The company, which is involved in various businesses covering several sectors of the Namibian economy, is 100 percent owned by the Mineworkers Union of Namibia (MUN) through the Namibian Miners Investment Trust or NAMIT.
The Trust’s subsidiaries are vast and viable. They include Namprop, which is a property investment company, Preferred Management, which is involved in infrastructure and property development as well as Tall Grass Ranches, an agriculture and tourism industry firm. Nam-mic also has stakes in B2Gold Namibia, through its company, the Walvis Bay Refinery company, and a stake in Enviroserv, a waste management company. Other stakes are in Primehealth Namibia, Trip Travel, Crossroads Distribution, SkyNet Worldwide Express and Avis Namibia. In the financial services sector, Nam-mic has interests in Bank Windhoek, Sanlam Namibia and the short-term insurance company, Santam. The group also owns Nam-mic financial services, financial solutions and payment solutions.
Nam-mic’s second Managing Director, Sackey Aipinge, details the company’s entry into various businesses, showing the viability of the business and the commitment to the needs of the workers whose funds they were charged with investing and growing. “Nam-mic’s first investment was in property where we built houses for the mine workers in Oranjemund. The aim of this was to address the housing needs of the workers. “We later went into transport, Ituyeni Transport services. We brought seven buses for the transportation of our members. They were faced with challenges of travelling long distances and we wanted to give direct relief to our members while making an investment that could return revenues to the company.”
According to Aipinge, Nam-Mic was not profitable in the first five years of operations. “The first company profit of N$3 million was earned in 2002. The value of Nam-mic investments in that year grew from N$27 million to N$36 million. We then saw the scope for growth and additional profits by going into the food industry, so we set up a Catering company, Nutrifood. “We began doing the catering services for the defence forces, schools, hostels and also hospitals. Through tenders we were able to give out the food supply to downstream companies owned by previously disadvantaged Namibians (PDNs). We owned 30 percent of this business. “Later, Nam-mic expanded more into transport and brought shares in Crossroads Namibia (a road transport, logistics and forwarding company). Nam-mic owns 25 percent in Avis Namibia (a car rental company) that brought its percentage of the company through Ekuya Investments; a subsidiary company owned 100 percent by Nam-mic.
As part of our mission statement, to improve the lives, not only of its mine worker constituency, but black Namibians in general, Nam-mic responded to a need to help improve the health sector.
The company went into medical aid health administration through a company called Prime Health, which was 45 percent owned by Nam-mic. In a bid to address the vision of Nam-mic, which is to be the leading Namibian broad-based economic empowerment company, creating opportunities for and building and distributing wealth to all its stakeholders, the board approved the company’s entry into the mining sector through the acquisition of a 10 percent stake in B2Gold Namibia, 49 percent in Enviro, a waste management company and 10 percent in Salt Refinery. But, the skillful diversification of Nam-mic’s wealth-generation portfolio did not stop there. “As a believer in offering top-class tourism and business travelers’ hospitality, Nam-mic today also own shares in a number of accommodation facilities within the hospitality sector such as Tall Grass Ranch (Umti Lodge),” says Aipinge.
Further investments in the booming tourism industry led Nam-mic to invest in the tailor-made tour operator, Namibia Exclusive Safari. Nam-mic has also undertaken various projects such as the 129
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Outapi water reticulation facility, roads infrastructure services and the much-needed land servicing industry. Furthering its vision and mission and making soundly profitable investments in the growth and development of all parts of Namibia, Nam-mic acquired a part of the business side of the Karibib sewage pond relocation; Rundu, Oshakati, Ondangwa and Eenhana water upgrading and sewage ponds upgrading. All of these services were done under the Government’s fast track program working with the Ministry of local and regional government housing. Aipinge noted that Nam-mic’s interest in financial services bloomed “with the establishment of Nam-mic financial services holdings by acquiring 34 percent of the company.” Nam-mic today owns 10.5 percent in Bank Windhoek, 16.4 percent in Sanlam Namibia and 12 percent in Santam Namibia.
Current Nam-mic Managing Director, Joshua Kaitungwa, says there is a strong interdependence amongst these sectors in which the company is invested in.
“Therefore, it is important to strengthen the value chain through backward and upward linkages that exists. In this way, we can increase the wealth of the union, our members and the country at large,” Kaitungwa says.
The company’s 2014/2015 Annual Report shows that there has been an upward trend in revenue and profit since its inception. Revenues increased from N$5,8 million in 2011 to N$16 million in 2015, while profit increased from N$1,2 million in 2011 to N$9,4 million in 2015. As at 31 December 2016, the value of Nam-mic investments stood at N$305 million. Considering the initial investment of N$600,000 in 1997, Nam-mic’s performance and growth in the last 20 years have been nothing short of phenomena.
Nam-mic Holdings CEO, Joshua Kaitungwa, has been at the helm of the company for 10 years during which time he has witnessed tremendous growth from the asset value of N$54.1 million in 2007 to a N$314,557,431 at 31 December 2016 financial year end. By the end of 2016 financial year the gearing ratio (debt/equity) of the company was 10%. We have interests in the financial intermediation, real estate, mining and quarrying, hotels and restaurants, health and travelling, transportation and communication sectors.
Kaitungwa was shaped by his trade union experiences to focus on worker concerns and priorities while he was working for Namdeb, where he worked for 20 years.
“I was groomed into the trade union leadership,” he says as he recounts how he became associated with Nam-mic. “Some of my efforts helped to steer Nam-mic to what it is today. The level of growth and the investment performance of the company are self-explanatory. The seed capital injected was refunded to the shareholder.”
Kaitungwa says the company is now self-sustaining and is financially independent. “It has not been capitalized by the by its shareholder again. This is testimony that the company had been strategically and operationally well managed during the past 20 years.”
The CEO praises NAM-MIC’s pioneering leaders (the Board and Management for setting a strong foundation on which the current growth is based.
To date Nam-mic has paid 13,333,614 to its shareholder (Nam-mic) as dividends. Included in the amount above is dividend of N$3,789,177 declared and paid in 2017, related to the profit of 2016.
Dividends of the 20th year of the existence of the company would be considered based on the 2017 financial year end.
“Creating value. Growing your future”