13 November 2009
Windhoek — Namibia is not only an important market in its own right, it is becoming a strategic platform for regional growth.
This broader view of Namibia's attraction as a market for expansion-minded business has been spotlighted by the successful listing of Bidvest Namibia, the diversified commercial services and fishing company.
One of the largest and most significant listings on the Namibian Stock Exchange in years was completed in late October when an offer of 50.7 million shares to Namibian investors reached N$313 million. The listing came after a year of strong growth by Bidvest Namibia and amid expectations that its operational companies were well-placed for continued expansion.
"Growth has been driven by positives within Namibia itself, supported by the prospect of higher demand from a neighbouring country such as Angola," said Sebby Kankondi, chief executive officer of Bidvest Namibia.
"Within our Bid Commercial division, companies such as Waltons have achieved strong local growth and benefited from a wider Namibian footprint, with store openings in Oshikango, Rosh Pinah, Oshakati and Tsumeb. At the same time, Waltons has also developed a strong customer-base for its stationery range in Angola and Zambia.
"Local growth complemented by cross-border sales can help you entrench important gains."
Local success plus Angola 'add-ons' is also characteristic of Bidvest Namibia companies such as Kolok (the specialist supplier of computer consumables) and Globe Electrical (distributor of electrical equipment and cabling).
Within Namibia, the commercial businesses within Bidvest Namibia enjoyed unprecedented revenue growth in the 2009 financial year that ended on June 30. Operations benefited from government spending on infrastructure and other projects, supplies to the mining industry and the growing potential of the tourism industry. Kankondi added: "Some diamond mines may have closed last year, but new uranium mines are in development and in the long term the Namibian resource sector is well positioned.
"Tourism growth holds lots of positive spin-off for many of our companies. We have seen the development of fly-in shopping tourism from Angola as a result of the rapid growth of a new middle class to our north.
"Developments such as this confirm our strategic assessment - Namibia holds significant potential and our listing will leave us perfectly positioned to derive maximum advantage."
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