Introduction

Bidvest Namibia became a fully fledged division of Bidvest, and listed on the Namibian Stock Exchange. Key elements of the business are Bidvest Fisheries Holdings and Bidvest Commercial Holdings. The Namibian equivalents of various South African Bidvest operations are housed within Bidvest Commercial Holdings.

Acting on Bidvest Namibia’s business sustainability objective to position the company as an empowerment leader, we concluded the Ovanhu transaction, effective June 30 2009, securing local ownership for 14.8% of the shares in Bidvest Namibia. Three shareholder groups (lead partner, union investment company and Women for Action and Development) and various community groups participated in the transaction.

By broadening local participation in our business operations, we can now attract the best and most highly skilled staff. We anticipate growing marketplace demand and goodwill in view of our reputation as a company that is truly integrated with the local economy. Early indications are that this strategy is strongly promoting the awareness of Bidvest and its underlying brands in the Namibian market.

Sustainability at Bidvest Namibia is closely aligned to the Bidvest Group’s philosophy of increasing social and environmental awareness. Our target for this year is to intensify communication, encouraging employees to find innovative solutions to business challenges. Our enduring goal is to ensure that every initiative makes business sense for all our stakeholders, increases profits and improves the company’s reputation for environmental and social responsibility. We are working to raise the level of strategic thinking, and a programme for managers across the business challenged them to consider sustainable development as an opportunity rather than a cost. Awareness also requires improved transparency. Some of the steps taken are to include sustainability as a standard agenda item in senior management meetings, and to report utility consumption by business entities. 

We engage actively with government through the relevant ministries associated with our operations, and have joined the Namibian Chamber of Commerce and Industry (NCCI) where a variety of economic, social and environmental issues are raised.

Business ethics in society

More rigorous local reporting requirements in wake of our listing helped to drive more formal governance processes. New structures include separate risk, audit and sustainability committees, dealing with fraud and corruption, as well as the risks of anti-competitive behaviour.

Bidvest Fisheries Holdings

Material sustainable development issues

• Dependence on natural fish resources, especially shared stocks, which can be affected by natural disasters and poor resource management
• The welfare of our crews and of the local communities affected by our operations
• HIV/Aids in the workplace related to high health-related absenteeism

Resource management

Fish stocks worldwide are under pressure and even well-managed Namibian resources are highly sensitive to any number of factors. However, both operating ports (there are only two along our entire coast) and the 200-mile exclusive economic zone are strictly monitored by the Ministry of Fisheries. A new minister has been appointed and we have no doubt that the ministry will continue building on the stable foundation laid by the previous minister, and pursue the sustainable management of our marine resources.

Namsov complies with the fishing and environmental regulations of the Namibian Ministry of Fisheries and Marine Resources and the International Maritime Organisation’s pollution prevention standards.

Horse mackerel

Upwards of 90% of our fishing business is in the harvesting of horse mackerel for markets within Africa. We supported government’s sharp reduction in the total allowable catch to 230 000 tons two years ago, and are now seeing a strong recovery in the resource, resulting in outstanding fishing seasons for two years running. The horse mackerel biomass has recovered substantially and we expect an upward adjustment in the horse mackerel total allowable catch (TAC) for 2011. TACs are determined on solid scientific grounds with consideration of social, environmental and economic factors.

Namsov continues to support National and regional initiatives aimed at improving the management of the horse mackerel resource. We have taken the initiative to investigate Marine Stewardship Council (MSC) certification for Namibia’s horse mackerel resource, possibly a first for this species worldwide. We anticipate the process to reach fruition in 2012.

Pilchards

The pilchard resource, like horse mackerel, is shared between Namibia and Angola. The pilchard biomass was reported as significantly up from the previous year. Although the biomass estimates are still well below the maximum sustainable level, the increase was sufficient to boost the pilchard TAC from 17 000mt to 25,000 mt for 2010. We support the conservative management approach applied by government.

Illegal, unreported and unregulated fishing remains a major challenge for sub-Saharan Africa. Fortunately, this is well controlled in Namibia.

The company plays an active role in local management bodies, sitting on the Midwater Trawl Association and the Pelagic Association. We have two representatives, including CE Jan Arnold, on the Minister’s Advisory Council.

Collateral environmental impact

Many fishing methods, particularly bottom trawling, inflict serious collateral damage on the environment through damage to coral and sea bed. Collateral damage is minimised at Namsov through targeted mid-water trawling and gear restrictions designed to avoid excessive harvesting of juveniles. Gear losses are minimal and our by-catch remained around 1% of total catches; still amongst the best percentages internationally.

Our vessels consume approximately 28 000 tonnes of fuel a year. Although fuel prices remained relatively stable and with the introduction of heavier intermediate fuel types, fuel still accounts for almost a third of operating costs. The conversion of the fleet to run on cheaper fuel grades, while overdue owing to delays in the delivery of key components, is expected to be complete by 2011.