WALVIS BAY DEVELOPMENT CORRIDOR AND SUNGATE PROJECT

The second NEPAD Business Foundation (NBF) Ithuba Business Forum was held on Thursday, 12 March 2009, in Sandton. The Ithuba Business Forum is a platform created to stimulate interaction and discussion between project owners and promoters on the one hand, and other interested parties such as investors, contractors and service providers. Through this forum, private sector can now interact directly with the key players and decision makers in projects across Africa. The NBF’s chairman, Dr Reuel Khoza highlighted this by saying, “The NBF is a results-orientated organization and therefore the focus of the NBF’s Project Management Office is on delivering projects along the Spatial Development Corridors in Africa.”  

One of the key Development Corridors in Namibia is the Walvis Bay Corridor Group - a network of transport corridors encompassing the Port of Walvis Bay, the Trans-Kalahari Corridor, the Trans-Caprivi Corridor, the Trans-Cunene Corridor, and the Trans-Oranje Corridor. These corridors aim to provide infrastructure connections between Namibia and its neighbouring countries, Botswana, Angola and South Africa, in an effort to facilitate regional trade and economic growth.

It has been established that the Port of Walvis Bay is set to serve Namibia and its neighbouring countries with an investment of N$ 1,7 Billion, which has been committed to expand the port to accommodate future capacity, over the next three years. From the twenty infrastructure projects along the various Walvis Bay Development Corridors, some of these projects have already been delivered. The following projects have been declared feasible: the Dry Port Development, which adds value to the Trans-Kalahari Corridor by allowing more systematic movement into the port; the Port of Walvis Bay Expansion, aiming to allow 500 000 containers into the port per annum; the Corridor Truck Stops, a one-stop for trucks that will deliver infrastructure that adds value; and the Trans-Kalahari Railway involving Namibia, Botswana and South Africa. One railway project in South Africa is in place already. A long term project, the Trans-Caprivi Railway is undergoing a feasibility study which is anticipated to be completed later this year. The NBF will keep you informed of developments in this regard.

While the Namibian government has been remarkably supportive of the abovementioned growth, there is a need for private investment. Despite the lack of public private partnership  legislation at this stage, private investors are encouraged to approach projects freely and the Namibian Chamber of Commerce and Industries advised on a number of investment incentives available to private sector investors. Johny Smith, Business Development Executive of the Walvis Bay Corridor Group, stressed the adequacy of the Namibian government in dealing with private investment. Continuing, he states “It’s worthwhile that investors come on board as the project adds value to regional corridor development and serves as an alternative trade route into Southern Africa”.

The second component of the Forum focused on the Sungate property development project, the brainchild of Accolade Properties Namibia. Sungate is a 408ha mixed-use infrastructural development, situated directly opposite the Hosea Kutako International Airport, in Windhoek, Namibia. The project is driven by a vision that seeks to establish a hub of trade and industry at strategically located sites along trade corridors in the SADC region. Situated along the Trans-Kalahari Corridor, Sungate is underpinned by a spirit of entrepreneurial innovation and leadership, thereby, representing a key characteristic of what should constitute a NEPAD project. The project is a partnership between South African and Namibian entrepreneurs, and enjoys the support of the Government of Namibia.

With Sungate strategically associated with the Walvis Bay Corridor sites, it is of added long-term economic benefit to the region. Marketing Director of Accolade Properties Namibia, Peter Collins, conveys that, “Sungate is the key to unlocking commercially viable infrastructural development on trade corridors in Namibia and sub-Saharan Africa”. This project is especially viable because of the expected growth in trade, facilitated by the Walvis Bay Corridor. Sungate is envisioned as a gateway to business, especially as the designated property has been awarded with mixed-use rights. Focusing on sustainability and functionality, the project will host light industrial space; commercial enterprises; hotel and entertainment facilities; warehousing and service industries as well as residential amenities.

The total value of the initiative is projected at a value of N$11 billion, and the influx of job opportunities for locals with the necessary expertise is anticipated. As feasibility studies are complete, the operation of the Sungate project should start by mid 2009. Key milestones include: Township proclamation by October 2009; Tender for bulk services by mid 2009; light grading of roads by mid 2009; provision of basic infrastructure such as water and electricity by January 2010; and construction of the B6 highway to be completed by January 2011.
Notable interest in these projects was fostered, with about 30 senior business people having attended and showed particular interest in the potential of these projects including discussions around the structuring and financing of the projects.

The evident growth within the SADC region proves that investment is always plausible. The Walvis Bay Corridor and Sungate Project are evidence of such and are viable, even in the current global economic crisis. As Lynette Chen, NBF CEO, supports “These are Africa’s golden opportunities. Investors are currently looking for markets to invest in, which will yield quicker returns than the traditional markets. If African projects are packaged properly, there are so many opportunities on offer for investment”.