Degree in Management from the NOVA – School of Business and Economics.
Field Lab in Entrepreneurial Innovative Ventures
INTERNATIONALIZATION OF RESUL TO NAMIBIA
ANNEXES
Ânia Cárin Martins Ruivo Correia
Student Number 600
A project carried out on the Management course, under the supervision of:
Glossary
AEP - Associação Empresarial de Portugal
AICEP - Agência para o Investimento e Comércio Externo de Portugal
Common Monetary Area
Members: Namibia, South Africa, Swaziland and Lesotho. PACs: Production Associated Companies
RESUL: RESUL, Equipamentos de Energia SA
Southern African Customs Union (SACU)
Members: Namibia, South Africa, Botswana, Swaziland and Lesotho. Southern African Development Community (SADC)
It is the largest trade and co-operation pact in Africa providing its members with privileged access to each other, through transport infrastructure and customs-free trading. Members: Angola, Botswana, Democratic Republic of the Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe.
Southern African Power Pool (SAPP)
Annexes
Annex 1 - Electricity Industry Value Chain
Source: REN (http://www.ren.pt/vPT/Electricidade/CadeiadeValor/Pages/electricidade_cadeia-valor.aspx)
Annex 2 – Africa’s Electricity Industry
“Almost 71% of the total population does not have access to electricity”.
“Africa has the lowest electrification rates globally. While the world average for electrification is more than 70%, for Africa it is only 23%.”
“Africa also suffers from poor electricity transmission and distribution networks. More than 10% of the electricity generated in Africa is wasted. Rural electrification levels are very low due to dispersed populations, low financial support and high operating costs.”
Power Pools in Africa
Source: GBI Research, “Power Market in Africa to 2020”
Annex 3 – Associated Companies and Subsidiaries
Source: RESUL and Conservatória do Registo Comercial
Annex 4 – Namibia
The capital city, Windhoek (about 365,000 inhabitants), contains highly modern facilities (internationally rated hotels, restaurants, conference amenities, cafes, etc.) and public infrastructure par with the best in the world: well-maintained roads, first-rate medical services, education and reliable municipal services.
Source: PwC - Namibia 2010 and beyond
Annex 5 - ENFORCING CONTRACTS -
Doing Business (Namibia)
DB 2012 RANK 40 | DB 2011 RANK 41 | CHANGE IN RANK 1 (TOTAL: 183 Economies – 1 is the best rank, 183 the worst)
The ranking is the simple average of the percentile rankings on the indicators described below (procedures, time and cost).
Enforcing Contracts Indicators Measure:
“Procedures to enforce a contract through the courts (number): any interaction between the parties in a commercial dispute, or between them and the judge or the court officer; steps to file and serve the case; steps for trial and judgement; steps to enforce the judgement.”
“Time required completing procedures (calendar days): time to file and serve the case; time for trial and obtaining judgement; time to enforce the judgement.”
“Cost required to complete procedures (% of claim): no bribes; average attorney fees; court costs, including expert fees; enforcement costs.”
Procedures, time and cost for resolving a commercial lawsuit (enforcing a contract)
Source: http://doingbusiness.org/data/exploreeconomies/namibia#enforcing-contracts
Annex 6 - Custom T
ariffs for a sample of RESUL’s products
Product Code Tariff 85369010
85371099 39219090 85369010 85354000 85399010
0%
39269097 10% of the FOB value 85043300 1,3% of the FOB value 85444995 1,95% of the FOB value
Source: Market Access Database
Annex 7 - TRADING ACROSS BORDERS - Doing Business (Namibia)
DB 2012 RANK 142 | DB 2011 RANK 142 | CHANGE IN RANK 0 (TOTAL: 183 Economies – 1 is the best rank, 183 the worst)
“Excessive document requirements, burdensome customs procedures, inefficient port
operations and inadequate infrastructure all lead to extra costs and delays for exporters
and importers, stifling trade potential.”
The ranking is the simple average of the percentile rankings on the indicators described below (documents, time and cost).
Trading Across Borders Indicators Measure:
*Assumption: standard container of goods - dry-cargo, 20-foot full container load.
“Documents required to export and Import (number): bank documents; customs clearance documents; port and terminal handling documents; transport documents.” “Time required to export and import (days): obtaining all the documents; inland transport and handling [to the largest business city]; customs clearance and inspections; port and terminal handling; does not include ocean transport time.”
“Cost required to export and import (US§ per container): all documentation; inland
transport and handling [to the largest business city]; customs clearance and inspections; port and terminal handling; official costs only, no bribes.”
Ranking of Namibia and comparator economies on the ease of trading across borders
Procedures and documents relevant for this internationalization Plan
Annex 8 - Corruption Perception Index, 2011 [0.0: Most corrupt; 10.0:
Least corrupt]
Source: www.transparency.org (last update: December the 1st, 2011)
Annex 9 – Macroeconomic Indicators
2008 2009 2010 2011a 2012a 2016a
GDP (US$ millions)2 8,959.9 9,397.2 12,238.8 - - -
Real GDP Growth (%)1 4.3 -0.7 4.8 3.6 4.2 4.3
Inflation Rate1 10.4 8.8 4.5 5.0 5.6 4.5
a) Projections; 1Source: IMF –“World Economic Outlook “(September 2011); 2 Source: Euromonitor - “Namibia: country profile” (18 November 2011)
Namibia’s Export countries (2008): 1st South Africa (31.8%), 2nd UK (15.5%), 3rd Angola (8.6%)… 17th Portugal (0.6%), etc. (AICEP, 2011)
Namibia’s Import countries (2008): 1st South Africa (67.8%), 2nd UK (8%), 3rd India
(3.5%)… 41th Portugal (0.1%), etc. (AICEP, 2011). According to INE – Instituto Nacional de Estatística, there were 63 portuguese companies exporting to Namibia in
Annex 10 – Exchange Rate Analysis
Date Exchange rate % Change
ZAR/€
Dez-06 9,3
Dez-07 10,0 7,85% Dez-08 12,9 29,23% Dez-09 10,7 -17,60% Dez-10 8,9 -16,91% Nov-11 11,4 28,14%
Min 8,9 30,71% ---> Total Cumulative Change
Max 12,9
Annex 11 - Namibia’s Transport Infrastructure
Rankings from the World Economic Forum’s 2011-12 Global Competitiveness Report, [scores: 0.0: least competitive – 7.0: most competitive]
Quality of overall Namibian Infrastructure: scored 5.3
2nd ranked in Sub-Saharan Africa (after Mauritus); at 58th out of 142 countries
Road Network: 64,189 km (5,477 km paved, 58,712 km unpaved)
- Road’s quality scored 5.4 (top-ranked in Africa)
Main Ports: WalvisBay (principal)and Lüderitz - Port infrastructure scored 5.5 (top-ranked in Africa)
Airports: 129 (21 with paved runways, 108 with unpaved runways); 2 international (Windhoek and Walvis Bay)
- Air transport infrastructure scored 5.0 (59th worldwide) Rail Network: 2,615km of narrow gauge
- Scored: 4.0 (top-ranked in Africa)
Extensive and generally well-maintained roads link the majority of towns and communities, as well as the country with Angola, Zambia, Zimbabwe, Botswana and South Africa. The Walvis Bay Port positions Namibia as a western gateway to SADC and it is considered one of Africa’s most efficient, with no single lost of cargo during the last 15 years of operation, characterized also by low crime and low congestion. There are daily
international flights between Namibia and Frankfurt, as well as direct air links to Luanda (Angola); Cape Town and Johannesburg (South Africa); Maun (Botswana), etc.
Sources:
PwC Namibia. 2010. “Namibia 2010 and beyond”
PwC Namibia. 2008. “A business and Investment Guide for Namibia”
AfDB, OECD, UNDP, UNECA. June 2011. “African Economic Outlook 2011 –Namibia” CIA – World factbook
U.S. Commercial Service. “Doing Business in Namibia: 2011 Country Commercial Guide for U.S. Companies”, www.buyusainfo.net
Annex 12 – Namibia’s Power Market
Namibian Electricity Supply Industry Structure
Source: ECB "Annual Report 2010"
GENERATION and power IMPORTS
Installed Capacity
Power Station Plant Type Capacity [MW]
Ruacana Hydro 249
Van Eck Coal 120
Paratus Diesel 24
Anixas Diesel 22
Total 415
constructed Caprivi Link (transmission infrastructure) connects Namibia with Zambia, Zimbabwe and the Eastern members of SAPP, opening alternatives for electricity imports, thus decreasing Namibia’s dependence on power imports from South Africa, whose rapid economic growth is boosting power needs and putting export ability at risk.
Sources:
Namibia Trade Directory. “Electricity - Meeting Changing Needs - Namibia’s Electricity Supply Sector”, www.namibiatradedirectory.com
U.S. Commercial Service. “Doing Business in Namibia: 2011 Country Commercial Guide for U.S. Companies”, www.buyusainfo.net
Power Supply Outlook (July 2009 -June 2010)
Source: Nampower’s Annual Report, 2010
Total Annual Power Generation (GWh)
CAGR (2000-2010) 2010 [GWh] CAGR1 (2011-2020) 20201 [GWh]
16.9% 1,598 GWh 29.8% 4,633 GWh
CAGR = Compound Annual Growth Rate; 1 = Expected Source: GBI Research, “Power Market in Africa to 2020”
Upcoming projects:
Project Owner Plant Type Capacity [MW] Deadline
Nampower Thermal 800
Expansion in 800
2012 2015
- Coal 400 MW 2015
Electrawinds NV
(2 plants: at Luderitz and Walvis Bay) Wind
50MW + 50MW
2020
Source: GBI Research, “Power Market in Africa to 2020”
CONSUMPTION
Power Consumption (GWh)
CAGR (2000-2010) 2010 [GWh] CAGR1 (2011-2020) 20201 [GWh]
10.9% 11,545 5.4% 19,622
TRANSMISSION
Transmission Lines in Namibia (Km)
Source: GBI Research, “Power Market in Africa to 2020”
DISTRIBUTION
Distribution Lines - 66 kv and below (Km)
Source: GBI Research, “Power Market in Africa to 2020”
Annex 13 - Power market attractiveness
GBI Research used the following methodology to arrive at the 13 focus African countries in what regards the power industry:
Country level parameters:
Business viability
Ease of Doing Business (World Bank) –ranks 183 nations averaging the country’s percentile rankings on the following 10 categories. 1 is the highest rank (higher ease of doing business) and 183 is the lowest rank (lower on ease of doing business).
Operational Risk (Economic Intelligence Unit – EIU) – evaluates 150 markets for
operational risks on a scale 0-100. The overall score is an aggregate of the score for following 10 categories of risk. 1 is the highest rank (lowest operational risk) and 150 is the lowest rank (highest operational risk).
Risk Categories for Business
Source: GBI Research, Economic Intelligence Unit (EIU)
Industry Specific parameters (power industry growth drivers):
Annual power generation in the country
Electrification ratio =
Consumption Growth rate
Weighing the parameters appropriately, GDI arrived at the following winning countries:
Annex 14 – Competitor Assessment
Competitor: KEY ATTRIBUTES VALUED BY THE TARGET Product
diversification
Cost & Price
Innovation Service + Technical Assistance + follow up
Physical presence in the market / Proximity Co n clu si on
RESUL Multi-category (+)
Low Medium
(leading brands)
High Locally
(Agent)
SICAME Few categories High (source: RESUL)
High (R&D) High Nearby (South Africa)
2
CAHORS INT Multi-category High (e) High (R&D) Low. With 1 commercial manager for 15 African markets I suppose it is not able to give such attentive service and follow-up
Far away (France) 3
Siemens Southern Africa
Mono-category High (e) High (R&D) High Nearby (South Africa)
3
EBM Few categories Low (source: RESUL)
Medium (leading brands)
N/A Nearby
(South Africa)
1
ADC ENERGY Multi-category Medium (e) Medium High Nearby (South Africa), already doing business with NORED 2
ARB Multi-category Low Medium Medium Nearby
(South Africa) 1 Schneider Electric Few categories (source: RESUL)
High (e) High (R&D) Low
(distributors)
Locally
(distributors) 3
ACTOM Electrical Products
Few categories High (e) High (R&D) Medium Nearby (South Africa)
3
Powertech Transformers
Mono-category High (e) High (R&D) High Nearby (South Africa)
3
SICAME (France, subsidiary in South Africa)
Vision “Sicame, under the guidance of the EDF (the French utility), has gained a reputation for the originality of its products connected with advanced techniques for the electrical power supply.”
Products Wide range of accessories (connectors, cable joints, surge arresters, LV ABC
accessories, etc.) and installation tools.
Service “After-sale service (repairs under guarantee, spare parts, routine maintenance, collection and delivery of equipment); Training (presentations on client’s site) and technical assistance (recommendations for the use of their products, assistance in preparation of specifications and choosing products according to application requirements).”
Markets The Group has 45 subsidiaries worldwide. Target/market
presence
Supplier of Nampower.
Capabilities Designs, manufactures and sells.
production facility in South Africa since 1990.
Value Proposition
High quality products directed at system efficiency; solutions tailored to client needs due to the synergy with the whole Sicame Group; high product and service quality and focus on customer satisfaction. Through direct competition with Sicame in other markets, RESUL classifies its products as expensive, which makes it difficult for Sicame to compete with largest competitors from South Africa such as EBM (Eberhardt Martin).
Source: http://www.sicame.co.za/Home.aspx
GROUPE CAHORS (France) - subsidiary Cahors International (France), markets all Group’s products everywhere in the world.
Key figures 17 subsidiaries worldwide (8 in France and 9 abroad), 1700 employees, €213M
turnover (2009), 6% of turnover invested in R&D.
Products Accessories (ABC, MV/LV connections, cable termination, etc.), switchboards,
metering boxes, MV/LV electrical transformers and equipments for street lighting (boxes and cubicles for the protection of standard or specific equipment; and custom made equipment).
Capabilities R&D, production (France, Morocco, Spain, China, Uruguay, and Tunisia) and
high investment in staff training (created its own training institute).
Value Proposition
Siemens Southern Africa (South Africa)
Vision “Creating long term value for our shareholders and customers, while acting
responsibly and in the spirit of excellence and innovation.”
Key figures 3,000 employees in the Southern African Region and 88,000 employees
worldwide. In 2010 the energy sector (wider than the electricity sector) provided it with total revenues of €25.5 billion and €3.6 billion of profit.
Markets The Group is established in over 190 countries and this subsidiary is focused on
countries in the Southern Africa.
Products Transformers and switchgear.
Capabilities Global engineering and manufacturing capabilities for MV and LV switchgear (global investment of 7% of sales in R&D; 47,000 researchers and developers worldwide – more than 10% of total employees).
Value Proposition
Innovation, unique assortment of products tailored to the regional conditions and requirements, 75% of products and services sold have been developed in the last 5 years; cost-effective, turnkey end-to-end solutions and customer focus.
Target / Market Presence
Business unit Power Transmission and Distribution (PTD) equipped sub-stations in Namibia.
Source: http://www.siemens.com/entry/za/en/ http://www.saeec.org.za/members/siemens-southern-africa
Eberhardt-Martin cc (EBM) - South Africa
Products Wide range of fittings (E.g.: connectors for underground cables, Aerial Bundle
Conductors, etc.), tools, surge arrestors and switchgear.
Value Proposition
Innovative and cost effective products (EBM’s range of products and
representation of several leading European and American Manufacturers - WH Salsbury, Joslyn, Hastings, Klauke, etc.
Target / Market Presence
Supplies the Southern Africa.
ADC ENERGY (South Africa)
Products Switchgear, Circuit Breakers, Surge Arresters, Mini-subs, Bulk Metering
Units, Transformers and cable accessories (LV, MV, HV Cable Accessories; Heat Shrink; Cold Shrink; Cold Applied Connectors - Lugs, Ferrulles, Connectors, Torque Shear Connectors; etc.)
Capabilities Manufacturing. Value
Proposition
The company states that it provides only the best quality and tested products, it is customer oriented, has strong technical expertise and customer service, works close to customers in order to better satisfy their needs, keeps up with technology and provides training to customers for them to make the best use of their equipments.
Target / Market Presence
It targets utilities, municipalities, distributors, wholesalers and contractors.
ADC has already completed a contract with NORED Namibia, Exhibited at the African Utility Week in 2011 and provided training to NORED Namibia in 2010.
Source: http://www.adcenergy.co.za/
ARB (South Africa) – Electrical Wholesalers Size 15 branches in South Africa.
Markets Over 5 000 customers throughout South and sub-Saharan Africa (probably
resellers).
Products Stocks all products necessary to complete any electrical project (produced in
South Africa or imported): Aluminum conductors, Aerial Bundle Conductor, Transformers & Mini-subs, Voltage Regulators, Insulators, Low voltage aerial bundle accessories, House connection accessories (Passive bases, ready boards), Surge Arrestors, Compression fittings, Circuit Breakers, Distribution Boards, Earthing Materials, Light Fittings and Lamps, Switchgear, Tools, etc.
Value Proposition
Competitive pricing and product variety.
Target / Market Presence
No evidence of presence in Namibia but corporate objective of geographic expansion into sub-Saharan Africa
Schneider Electric (Office in South Africa and 4 distribution partners in Namibia: one in Walvis Bay, three in Windhoek).
“A global, innovative and responsible company”
Key figures €19.6bnin sales and €1.72M of Net Income in 2010; 110,000+ employees in
100+ countries; 200+ production sites worldwide.
Markets Present in 190 countries and serving more than 11,000 utility customers. Products Circuit Breakers and Switches, Fuse Switches, LV and MV Switchboards,
Switchgear and surge arresters.
Capabilities Backward integrated; Customer Care Centre taking calls from clients;
e-commerce and online information on products and services; worldwide network of training centres; R&D (€818M investment – 4/5% of sales, 386 patents registered in 2009, 8,600 employees in 25 countries and 70 sites worldwide; partnerships with qualified players and universities in each region).
Distribution 15,000+ outlets worldwide. It relies heavily on distributors to supply its products (electrical equipment distributors represent 50% of total sales and 70% of catalogue product sales).
Value Proposition
It “supplies the best-in-class equipments to all markets”.
High-quality and innovative products incorporating leading-edge technologies, adapted to the standards applicable in their markets, meeting or exceeding customer expectations. It promises to make energy safe, reliable, efficient, productive and green. Highly committed to customer satisfaction, providing specialized training to the sales force and monitoring this indicator through customer satisfaction surveys.
Source: http://www.schneider-electric.com/site/home/index.cfm/za/
ACTOM Electrical Products (South Africa, Subsidiary Actom Namibia – 60% share). Key figures The largest manufacturer and distributor of electrical equipment in
South Africa; with about 6000 employees, 27 production facilities, 28 distribution centres and annual order intake in excess of R5bn.
Markets Southern African region.
Products ACTOM products and representation of other leading brands - Distribution transformers, MV Switchgear, smart and pre-payment meters, lighting equipment, circuit breakers, mini-substations and fuse gear.
Capabilities Manufacturing (transformers) and product designing. Value
Proposition
Supplying equipments that meet the highest international technical and quality standards.
Powertech Transformers, the largest and most sophisticated distribution transformer manufacturer in the Southern Africa, 80% owned by Power Technologies (Pty) Ltd, (known as Powertech).
Vision “To be the preferred supplier of power and distribution transformers and
related services for our targeted markets”.
Products Distributiontransformers from 16kVA to 20MVA and miniature substations. Capabilities R&D and production.
Transformers supplied in Africa are produced at the Powertech Transformers’s world class plants in Pretoria West, Cape Town and Johannesburg, South Africa; the first being the largest and most sophisticated transformer production facility in the Southern Africa and one of the biggest in the world.
Value Proposition
Products tailor-made to customer requirements, leading-edge technology, installation, customer centric (first finding out what client’s need and then make efforts to achieve it), and updating customers on new products and market trends.
Source: http://www.pttransformers.co.za/
Annex 15 – RESUL’s financial position
Balance sheet, 2010
EQUITY 5,193,417
Non Current Liabilities 1,064,580 Non Current Assets 1,875,920 Current Liabilities 8,544,896 Current Assets 12,926,974
LIABILITIES 9,609,476
ASSETS 14,802,894 TOTAL EQUITY +
LIABILITIES 14,802,893
Source: Sabi - Iberian Balance Sheet Analysis System, 2011
Ratio Analysis:
Annex 16 – Business Model Analysis
Source: Model used in the course of Internationalization & Implementation Analysis
Annex 17 – REDs
Business Structure
Company Structure
Source: ECB (Detailed RED Model)
NORED(1st RED to be established) received a 25 year distribution and supply licence, starting in 2003.
Regions: Omusati, Oshana, Ohangwena, Oshikoto, Caprivi, Kavango and part of Kunene.
Head Office: Ondangwa.
Regional Offices: Katima Mulilo, Rundu, Ondangwa, Ongwediva, Divundu, Nkurenkuru, Omuthiya, Eenhana, Helao Nafidi and Outapi. Board of Directors: Mr. E.I. Negonga Independent Director (MRLG & H)
RC Electricity Company
Mr. B.W. Mwaningange Independent Director Mr. S. Kayone
LA Electricity Company Mr. L.S. Negonga
Shareholding:
Source: http://www.nampower.com.na/pages/nored.asp
Erongo RED (2nd RED to be established) received a distribution licence for 25 years and a supply licence for 5 years, starting in 2005.
Region: Erongo
Size: 47.959 customers (22.075 in Walvis Bay, 14.723 in Swakopmund, 3.183 in the remaining towns, 7.095 clients of pre-paid electricity and 253 in rural areas).
Head Office: Walvis Bay Board of
Directors:
Walvis Bay: 2 seats (vacant)
Swakopmund: Mr. W. Rencs and Mr. C. B. N. Botha Nampower: Mr. I Tjombonde
Henties Bay: Mr. P. F. Hamman Omaruru: Mr. W. Lita
Arandis TC, Karibib and Usakos Municipalities, Uis VC and Erongo RC: Mr t. Kaimbi
Shareholders: Municipality of Walvis Bay: 49.87% Municipality of Swakopmund: 28.49% Nampower: 10.14%
Municipality of Henties Bay: 4.63% Municipality of Omaruru: 1.84% TC of Arandis: 1.66%
Municipality of Karibib: 1.44% Municipality of Usakos: 1.26% VC of Uis village: 0.35% Erongo RC: 0.32%
CENORED - Central-North Electricity Distribution Company (Pty) Ltd (3rd RED to be
established) received a 10 years Distribution-and Supply Licence, starting in 2005. Region: Otjozondjupa and part of Kunene
Size: 40.000 customers over an area of about 120.000 sq Km. Head Office: Otjiwarongo
Board of Directors: NamPower: Ms Foibe Louise Jacobs (Chairperson),Mr Horst Dieter Mutschler, Mr Siegfried Schneider, (Mr Simson Haulofu)
Tsumeb: Mr Oscar Norich,(Dr Ndapandula Jacobs) Grootfontein: Mr Dirk Hugo,(Mr JJ Oxurub)
Small S/H: Mr Joseph Abel /Urib, (Mr Jhosua E Shilungu) Otjiwarongo: Mr Manfred /Uxamb, (Mr Burgert A
Liebenberg) 11 Shareholders: Nampower: 50,2%
4 Municipalities: Otjiwarongo, Grootfontein, Outjo and Tsumeb
2 RCs: Otjozondjupa and Kunene 2 TCs: Khorixas and Okakarara 2 VCs: Otavi and Kamanjab
Sources: http://www.cenored.com.na/, http://www.nampower.com.na/pages/cenored.asp, http://www.afdevinfo.com/htmlreports/org/org_68416.html
Central RED – will be established in the future.
Shareholders: Nampower: 14%
Windhoek, Witvlei, Gobabis, Okahandja, Ojozondjupa Region, Khomas Region and Omaheke.
Source: ECB
Southern RED (SORED) – will be established in the future.
Shareholders: Nampower: 37.1%, nominating 2 out of 7 Directors
Stampriet, Mariental, Keetmanshoop, Karasburg, Luderitz, Rehoboth, Hardap Region, Karas Region, Omaheke Region, Aranos, Aroah, Berseba, Bethanie, Gibeon, Goohas, Kalkrand, Koes, Leonardville, Maltahoehe and Tses.
Annex 18 - RESUL’s PORTFOLIO – Categories with Product
examples (Source: catalogue)
Overhead Bare Lines Accessories
HV and MV Accessories for Underground Cables
Aerial Bundle Conductors (ABC cables) Accessories
Underground Networks Accessories
String Accessories
Terminals, Splices and Tap-Off Connectors
Generators, Transformers and Regulators
Metering
Protection and Disconnection
Band and Buckles
Earthing Equipments
Iron Fittings LV and MV Safety
Switchboards, Distribution Cabinets and Components Surge and Lightning Arresters
Annex 19 – Organizational Structure
Annex 20 - SWOT
Strengths Weaknesses
S1: Well-diversified Portfolio S2: Cost Advantage
S3: Highly qualified and motivated sales engineers with experience dealing with African markets
S4: Proximity: Delegation in Angola;
Assembling unit in Mozambique; 2 future assembly units in Angola and Mozambique (SADC members)
S5: Good quality-price ratio S6: Quick customer response
W1: Not being a Namibian company W2: Lack of local presence, business contacts within the industry and knowledge
W3: Lack of cultural affinity like with the
PALOP
W4: Lack of installation capabilities
Opportunities Threats
O1: Small electrification ratio: 34% and Namibia’s planned investments in distribution network expansion and upgrade RESUL’s portfolio matches the products with immediate need or potential in Namibia.
O2: Market needs present similarities with other African countries where RESUL operates
O3: Potential clients value the price over
the latest innovations
T1: High internal rivalry and price
competition triggered by clients with high power and price sensitivity
T2: Corruption and importance of lobbying power
T3: Expected Fierce competition from
South African competitors (benefiting from low trade barriers, geographical and cultural proximity)
T4: Culture: Importance of presence and relationships
T5: Tender preferences given to local
companies
Annex 21 – The RED’s buying process
Purchasing orders up to N$75k [€6.8k] can be handled by the business units, provided they are approved by the Manager of Financial Administration, who must document proofs that effort has been made to guarantee a competitive price and satisfactory quality (e.g.: by obtaining 3 quotations in writing).
Business) prepares the tender documentation and sends the application to the Secretary of the Tender Committee stating the need for the supplies in question. Then the Secretary of the Tender Committee advertises the tender (stating opening and closing date, cost of participation, product specifications and delivery requirements, details of tender collection, etc.).
On the defined date and time, the sealed bids ought to be opened by the Secretary of the Tender Committee, in the presence of the tender participants attending to the opening (names of tender participants and prices submitted should be announced), tenders should be numbered and details registered in a schedule. A copy of the schedule with details of tender bids and supporting documentation is sent to the Business Unit requiring the products for evaluation and comparison. The first phase of the assessment consists of verifying the accuracy of tender prices and ability to meet the technical specifications and the conditions defined in the tender documents. The second phase places the remaining tender participants in order of merit, having in consideration: “efficiency and compatibility of the equipment; operating cost where applicable, availability of after-sales service and spare parts and financial resources” available to the tender participant. Subsequently, the Business Unit shall prepare a detailed report with the assessment and comparison of tenders, mentioning the specific reasons for the awarding of the contract or refusal of all tenders. The Manager of Financial Administration should communicate the outcome to the Tender Committee, for its approval.
Decision Making Unit
USER: installers and engineers responsible for the electrification projects.
BUYER: the Head of the Business Unit procuring the goods (Wires Business) and staff
from its purchasing department.
ANALYSER (examines and evaluates information and alternatives): The Business unit
requiring the products, the Manager Financial Administration, Tender Committee and/or Board as is appropriate.
INFLUENCER (supply information for the evaluation of alternatives and sets product
specifications): External consultants hired to evaluate tenders, those in technical departments, engineers, quality control, etc.
GATEKEEPER (controls information to be reviewed by others): Secretary of the Tender Committee and the assistants of the important decision makers.
DECIDER: The award of a contract shall be made by majority vote of the Tender
Committee subject to ratification by the Board as is appropriate.
Annex 22 -
Head Offices of the REDs and the country capital (where the
technical seminars will take place)
Annex 24 - MINUTE
Before Entering the market Dependency of
Activities
Activity 1: Accommodation of Eng. Mesquita e Carmo in Angola (5 months before)
Activity 2: Fine tune Strategic Approach to Namibia (5 months before)
Activity 3: Extend Brands Representation Agreements to include Namibia (4 months before)
Activity 4: Contact AICEP (4 months before)
Activity 5: Site Assessment Due Diligence (4 months before) Activity 6: Contract CCIPN’s services (4 months before) Activity 7: 1st visit to Namibia - approaching the agent (2 months before)
Activity 2 Activity 8: Signing contract with the Agent (1 month before) Activity 2 and 7 Activity 9: Agent’s visit to Portugal (1 month before) Activity 8
After Entering the market Dependency of
Activities
Activity 10: Visits of Eng. Mesquita e Carmo to Namibia (1st month onwards: 3 visits /year)
Activity 2 Activity 11: Visits to Potential Clients – Agent (1st month
onwards)
Activity 2 and 8 Activity 12: Get the products included in the potential clients’
supplier list (when applicable) (during the 7 first months)
Activity 11 Activity 13: Tender Participations (2nd month onwards) Activity 8 and 11 Activity 14: 1st
participation in the Ongwediva Annual Trade Fair (3 months after)
Activity 15: 1st
participation in the Power & Electricity World Africa (10 months after)
