Bidvest Namibia

Strategic dynamics

Namibia was slow to participate in the world financial crisis. The economy continued to grow until the end of calendar 2008, but slowed dramatically early in the new calendar year.

The mining industry – in expansion mode for most of 2008 – was hit by lower commodity demand, resulting in the temporary closure of certain diamond mines.

However, prospects for uranium mining appear promising. Despite uncertainty early in 2009, new uranium mines are in development and the mining industry appeared set for a comeback towards our year-end as commodity prices firmed.

The slowing economy drove down business and consumer confidence. Government responded by increasing its infrastructure spending. Many state agencies launched new projects, including the army which expanded military installations.

  

The windfall provided by strong growth in neighbouring Angola has become a strategic factor. The oil-rich nation is fast developing a new middle class with a sizeable disposable income. Many consumer goods are still in short supply. Namibia is the closest source of supply. Fly-in shopping tourism is taking off among Angola’s new elite while at a lower level cross-border traffic involving retailers and hawkers (some bicycle-powered) has become evident.

Industry dynamics

Lay-offs in some sectors and the economic downturn led to down-trading and reduced consumer spending. Some customers ran down inventories. However, these developments occurred late in the period and the impact on overall performance was limited.

Catch rates were high and fish prices were close to record levels in the first half of the year. When the correction set in during early 2009, it was dramatic with fish prices falling by 40%.

Brand dynamics

Fish from Bidfish is synonymous with high quality. The Namsov name is strong. The company has become the preferred supplier in many markets.

Bidcom brands are well established and trusted by consumers. They are leaders in their respective sectors and derive added credibility from their association with strong South African sister companies of the same name.

Operational dynamics

In growing businesses the chief operational concern tends to be recruitment and talent retention. Fishing operations focused on optimisation of favourable factors – higher fish prices in 2008, improved catch rates and softer fuel prices.