Tses glass development_presentation update

Global Economic Goals
2

 Accelerate economic growth.
 Achieve full employment and sustained
prosperity, but without inflation.
 Realize equality of opportunities.
 Restore the balance of payment equilibrium.

Groot Group, Windhoek, Namibia 03/02/13

Namibia Economic Goals
3

 Transform Namibia into an industrialized
economy by 2030.
 Improve the quality of life for all Namibians, while
competing globally.
 Realize equal opportunities for income
distribution.
 Increased and sustainable economic growth.
 Increase the creation of employment
opportunities; and
 Increased partnership development between
government and private sectors.

Glass Industry
4

 Fundamental factors for rapid
industrialization.
 Creates sustainable economic

development.
 Ecosystem’s impact on a

macroeconomic level.
 Developed economies embrace glass

making factories as strategic
investments.

Namibia: Population
5 Comparison
Population (2009 est.)
(Millions)

Namibia 2.109
Slovenia 2.007
Kuwait 2.693


6
How’s Namibia Doing?
GDP
150
100
Item Namibia Slovenia Kuwait
50
0

GDP (2009 est.) Namibia Slovenia Kuwait
$Billion Real 9.145 50.13 116.2

60000
50000

GDP per capita 40000
30000
20000
10000
GDP per capita 0

(PPP) $4,336 $27,900 $54,100 Namibia Slovenia Kuwait


Where Are We?
7

70

GDP Composition (2009 est.) 60
50
Namibia Slovenia Kuwait 40

agriculture 9.2% 2.0% 0.3% 30
20
industry 34.8% 37.0% 48.3% 10
0
service 56.0% 61.0% 51.4%
Namibia Slovenia Kuwait

80

Revenue (2009 est.)
70
60
50
40

Revenue 30
20

($Billion) 2.45 20.58 70.23 10
0



8
Electricity Consumption
• Wealth creation of a country is directly proportional to
electricity production. Electricity usage is the key factor
that best measures any country’s aggregate economic
growth.
Electricity (Tera Watts)
(2009 est.)

Namibia 3.2
Slovenia 14.7
Kuwait 40.21
60
40
20
0


GDP Growth to 2030
9
at Present Rate (Est.)
500
450
400
$Billions

350
300 Namibia
250 Slovenia
200
150
100
50
0
1990

1998

2002

2006

2010

2014

2018

2022

2026
1994

2030

GDP Growth Needed
10
to Catch Slovenia (Est.)
500
450
400
$Billions

350
300 Namibia
250 Slovenia
200
150
100
50
0
1990

1998

2002

2006

2010

2014

2018

2022

2026
1994

2030

Comparative Advantage
11
150
Item Namibia Slovenia Kuwait 100
50
0
GDP (2009 est.)
$Billion Real 9.145 50.13 116.2 Namibia Slovenia Kuwait
 What are Namibia’s comparative advantages?
 How about Slovenia and Kuwait?
 How efficiently distributed and applied are capital,
technology, and labor in Namibia?
 How skilled is the Namibian workforce?
 Then what causes Namibia to lag far behind in production
output?


Needs and Problems
12

 No/limited SME development opportunities.
 Inadequate Rural-Urban development linkage.
 Income inequality and need for fair income
distribution.
 Inadequate value addition; lack of production
processing.
 Need for identifying resources and opportunities by
regions (comparative advantages).
 Developing and mentoring entrepreneurship.
 Lack of R&D.
 Inadequate business relationship between SMEs

Aggregate Labor Condition
13
 Current unemployment rate of approximately 54%, and
still rising.
 Continued graduation of students from secondary and
tertiary educational institutions with most of them adding
to long unemployment lines and crowded street corners.
 Current school dropouts at 50%, most vulnerable.


Monetary and Fiscal Policy
14

 Can the government impose fiscal conditions such
boosting government spending to stimulate the
economy and exponentially curb the current high rising
unemployment rate?
 How about cutting taxes? For who since over half of
the population is unemployed?
 How about increasing business tax incentives?
 How about imposing monetary conditions such as
cutting the interest rate to spur the economy?
 What other tools can the government use to help spur
the economy, create full sustainable and good paying
jobs, and still control the inflation?

Industrialization Ecosystem
15
 Ecosystem anchored by diverse industries to create a powerful,
perpetual self-sustained ecosystem.
 Economic community supported by a foundation of interacting
organizations and individuals - the organisms of the business
world.
 Producing goods and services of value to customers, who are
themselves members of the ecosystem.
 Organisms also include suppliers, lead producers, competitors,
and other stakeholders.
 Over time, they co-evolve their capabilities and roles, and tend to
align themselves with the directions set by one or more central
companies.
 Companies holding leadership roles may change over time, but
the function of ecosystem leader is valued by the community
because it enables members to move toward shared visions to
align their investments, and to Windhoek, Namibia supportive roles.
Groot Group, find mutually 03/02/13

History of Process
16

 Otavi Steel (Pty) Ltd, a Namibia-registered, majority
owned and based company for the development of
Africa’s largest steel mill in Otavi, Namibia.
 Fo und ing s ha re ho ld e rs , e a c h with 1 5 % s ta ke ;
- SDS Group
- Otavi Town Council
- Andre Neethling Family Trust
- Groot Group
 40% reserved for future strategic investors.
 Part of the Groot Group’s Rapid Industrial Ecosystem
Development in Namibia.

Otavi Steel (Pty) Ltd
17


Otavi Steel Phases
18

 Otavi Steel Nanomill, 300,000 tpa rebars
products, scrap metals for raw materials.
 Nanomill planned construction begins April
2013, commissioning in 22 months.
 Otavi Steel Megamill, 10 million tpa short, long
and flat products, iron ore for raw materials.
 Megamill planned construction begins 2 years
later, commissioning in another 2 years later.


Otavi Steel - Planning
19


What’s a Glass?
20

 One of the most useful materials in the world.
 Made chiefly from silicon dioxide, sodium
carbonate, and calcium carbonate; all which
are abundant in Namibia.
 Glass has countless uses; food preservation,
glass containers, homes, schools, and office
building, motor vehicles, eyeglasses,
computing and touch screen devices.
 Glass can take many different forms and
shapes. Groot Group, Windhoek, Namibia 03/02/13

Benefits of using Glass vs.
21
plastic
 Glass containers retain their crystalline attractiveness forever. Unlike plastic, glass’
non-porous surface doesn’t absorb dyes or colors.
 Keeps food safe. Glass is cleaner than plastic. Glass’ non-porous surface doesn’t
absorb food and germs and it can be safely washed at high temperatures in your
dishwasher.
 Enhances food flavor. Glass’ safe, glossy surface repels food odors and residual
flavors. And food reheated in glass—whether in a conventional oven or microwave—
tastes superior to victuals nuked in plastic.
 Helps clean-up the planet. Using glass rather than plastic significantly reduces
landfill. It also saves energy on plastic’s inefficient recycling process.
 Saves the consumer money. A move to glass storage marks a raised consciousness
—arguably glass’ most valuable environmental benefit. Your investment in glass
helps you move from a throw-away mind-set to a more sustainable sensibility.
 Eases food prep, serving and clean-up. Move effortlessly from freezer to fridge to
stove to table.
 R ecycling doesn’t compromise glass’ quality or structure and no toxins are produced
in it’s recycling.
Otavi Steel (Pty) Ltd, Otavi, Namibia

More Glass Benefits…
22

 Glass is the only packaging material certified generally “regarded as safe”
by the U.S. Food & Drug Administration.
 Glass bottles have a lwa y s be e n bis p he no l-A(BPA fre e . Hund re d s o f
)
s tud ie s ha ve linke d the BPAc he m ic a l fo und in m a ny p la s tic s to c a nc e r,
d ia be te s , he a rt d is e a s e a nd o the r he a lth p ro ble m s .
 Extensive heat – which is required for sterilization - does not harm glass
containers or release toxins into the water.
 Glass is nonporous, impermeable and air-tight. This means there are no
interactions between the glass packaging and products to affect the taste
of beverages.
 Glass bottles are made from natural, nontoxic raw materials such as silica,
sand, soda ash, limestone… making them one of the most pure containers
available.
 Glass bottles are 100% recyclable. Unlike plastic, glass does not require
the use of petroleum in its manufacturing process.

Otavi Steel & Danieli
23


World Market
24

 Most countries of the world have glass
industries.
 For many years, Germany was the major
world source for optical glass, laboratory
glassware, and glass Christmas tree
ornaments.
 Today, glass manufacturers in many
countries produce such objects on a large
scale.
 Major glass companies spend millions of

Otavi Steel - Technical
25


Tses Glass Manufacturing
26
Plant
 To become the largest dynamic glass
manufacturing factory in the world.
 To produce industry leading glass products
with the type of float glass, tableware glass,
container glass, fiber glass, and ultrathin
glass.
 To feed the local, regional, and world market
in the construction of residential and
commercial buildings as well as for
automobiles, kitchenware, bottles, touch
screen and smart phones devices.

Ownership
27

 Tses Glass (Pty) Ltd, a Namibia-registered, majority owned.
 For the development of the world’s largest dynamic glass
manufacturing plant in Tses, Namibia.
 Fo und ing s ha re ho ld e rs , e a c h with 1 5 % s ta ke ;
- Nissi Group
- SDS Group
- Tses Village Council
- Groot Group
 5% is reserved for the local Traditional Authority in the Berseba
area.
 35% is reserved for future strategic investors.
 Tses Glass is part of the Groot Group’s Rapid Industrial
Ecosystem Development in Namibia.

Background - Ownership
28

 Nissi Group, Natives of Tses; local entrepreneurs, led by
Rina da Cruz as Managing-Director, and Alphinius
Swartbooi as Director.
 SDS Group, a Namibia-owned and registered; strategic,
led by Danny Kamunoko as Managing-Director, with
Tulongeni Pohamba, Julia Nujoma, and Julius Hambyuka
as Directors.
 Tses Village Council, a local authority under the Ministry of
Regional and Local Government of the Republic of
Namibia, with Honorable Brian Gaoseb as Chairperson,
and Ivan Vries as CEO.
 Groot Group, Namibia based, majority-owned; technical
and management, co-founded and led by Simon Kapenda
as CEO and Chairman, and Rauna Haihambo as

Technical Team
29
 Selected Siemens AG, Germany-based, to provide
and supply the needed glass making technology,
equipment, and processes for the successful and
efficiently development and manufacturing operation
flow of the Tses Glass Manufacturing Plant.
 Appointed ghs|glass GmbH, Germany-based
engineering firm as EPCM for the Tses Glass
Manufacturing Plant.
 Signed an MoU with ghs glass along with; Siemens,
Zippe, Grenzebach and MSK as development
partners.
 To help rapidly transform the Tses community; to
make it one of theGroot Group, Windhoek, Namibia 03/02/13Southern
fastest growing areas in

MoU – Tses Glass & ghs
30
glass


Production Volume
31

 20 million net tons annually as the target goal.
 5,000+ construction workers for 4+ years.
 Average 430+ workers per ton (if not
automated).
 47,900+ permanent manufacturing workers in
Tses.
 240,000+ Indirect employment nationwide.
 Average US$525 per ton or US$8 per square
meter.
 About US$10.5 billion (N$89.3+03/02/13
Groot Group, Windhoek, Namibia billion) per

Target Market
32

 Tses Glass’ target market is Namibia, SADC, East and
West Africa, the Middle-East, Europe and the Americas.
 Namibia’s population is about 2.2 million while the
SADC’s population is about 258 million with more than
US$471 billion (N$5.38 trillion) (2010) of aggregate GDP
and a potential wealth value of more than US$65 trillion
(N$475 trillion) in natural resources.
 SADC is rapidly growing in infrastructure and properties
development, led by Angola, Mozambique and the DRC.
 About 15% or 21.3 million of the SADC population earns
more than US$100,000 (N$730,000) in wages with a
gross buying power of about US$2.1 trillion (N$15.5
trillion). Groot Group, Windhoek, Namibia 03/02/13

Partnership - Development
33


Target Capacity
34

 Currently fewer tableware glass factories in Africa.
 Fast growing regional and international market for
the next 30+ years.
 Opportunity for Namibia to become the #1 leading
glass producing country in the world.
 For that, Tses Glass will initially focus on float,
container, and tableware glass plants, all in Tses,
composed of;
 1200 tons per day of Float glass.
 1200 tons per day of Tableware glass.
 900 tons per day of Container glass.03/02/13
Groot Group, Windhoek, Namibia

Glass Containers in action
35


Transportation
36

 The Walvis Bay Corridor Group, a consortium of major
Namibian transportation companies and Government
Agencies is developing multi-trans highways in
Namibia.
 Walvisbay, about 600km from Tses is the 2nd best and
biggest port in Africa.
 Luderitz, about 334km from Tses is being developed
as Namibia’s 2nd best and biggest port authority.
 Well-developed highways, ports, and rail systems link
Namibia to the SADC countries and the world’s
market.
 Namibia is positioned toWindhoek, Namibia 03/02/13 the world
Groot Group, supply Africa and

Glass Production -
37
Experience


Tses Community - Impact
38

 47,900+ of new direct manufacturing jobs in Tses
 30,000+ new residential homes to be built in Tses.
 100 new (extensions) suburbs to be developed in
Tses.
 Making Tses the size of Walvisbay and
Swakopmund together combined.
 Effecting the Village of Tses to become the City of
Tses.
 More suppliers and developers such as retail
stores, banks, hospitals, clinics, tertiary schools,
and more to flock to the TsesNamibia to setup new
Groot Group, Windhoek,
area 03/02/13
businesses offering services and products to the

Glass Production -
39
W orkforce


Socioeconomic Impact
40

 An ecosystem budgeted at about US$5 billion
(N$41 billion) in development and construction.
 To create more than 47,900 of new direct
manufacturing jobs in Tses and more than 240,000
of new indirect jobs throughout Namibia.
 Similar to the Otavi Steel Mill in Otavi, Tses Glass is
a connected industrial, strategic project.
 More suppliers, providers, and developers are
expected to flock to the Tses area to setup new
businesses to provide services and products for the
Tses Glass workers.

Glass Production -
41
Technology


Financing
42

 Debt and equity project financing; 20%
equity and 80% debt.
 Financing by Southern Africa based

banks and foreign banks.
 International Economic Development

Agencies.
 Siemens Credit Finance offered

assistance for Tses Glass project
financing. Groot Group, Windhoek, Namibia 03/02/13

Development - Experience
43


Benefits
44

 A powerful ecosystem ripple effects.
 For our communities, economy, and

country.
 N$26+ billion in local spending; increased

cash circulation for high economic
activities.
 47,900+ direct sustainable employment in

Tses.
 240,000+ indirect employment nationwide.


Experience - Reliability
45


Macroeconomic Impact
46

 Part of the Groot Group Rapid Industrial
Ecosystem.
 Partnering with some of the world’s largest
companies, providers, and investment powerhouses
as well as local entrepreneurs, and the Local and
Central Government.
 More than 60 different planned industrial projects
which includes Groot (an industrial hub), Sitentu
Power Plant (a 900 MW CCGT Power Plant), Otavi
Steel, Wire and Cable Plant, and more related
industrial projects.
 To enable a creation ofWindhoek, Namibia 500,000 new
Groot Group, more than 03/02/13

Development - Relationship
47


Infrastructure
48

 Electricity.
 Water.
 Road.
 Sea.
 Railway.
 Entrepreneurship.
 Government.


Glass Production -
49
Experience


GDP Growth
50
as a Result of the Groot Group Ecosystem
500
450
400
350
$Billions

300 Namibia
250 Slovenia
200
150
100
50
0
1990

1994

2002

2010

2022

2030
1998

2006

2014

2018

Groot Group, Windhoek, Namibia
2026
03/02/13

Economic Growth
51
Post Groot Group Ecosystem?
GDP
400
200
Item Namibia Slovenia Kuwait 0


GDP (2017 est.)
$Billion Real 54.326 138.973 335.043
120000
100000

GDP per capita 80000
60000
40000
20000
0
GDP per capita
(PPP) $24,145 $64,639 $104,701 Namibia Slovenia Kuwait


Glass Production - Skills
52


Bank of Namibia
53
 As Namibia realizes full employment, the aggregate price
will rise as well.
 Bank of Namibia must act swiftly, perhaps to raise the
interest rates, to lower the inflationary pressure.
 Since Namibia’s currency is pegged to the South African
Rand, Namibia is somehow limited on enacting certain tools
to control the inflation.
 Working with other regional’s Central Banks could be the
solution for Namibia to mind the inflationary pressure, while
maintaining full employment.
 How far is the idea of integrating the regional monetary
union? May be Namibia delinks from the South Africa
Rand?

Glass Production -
54
Sufficiency


W Tses?
hy
55

 Strategically located in Southern
Namibia’s average dense population.
 Abundantly endowed with the needed

raw materials for the making of glass.
 Gateway to Namibia’s southern regions

en route to and from South Africa.
 Sparsely populated flat area with

abundant land suitable for any industrial
activities. Groot Group, Windhoek, Namibia 03/02/13

W Namibia?
hy
56

 Politically and economically stable.
 Democracy, free market enterprise system.
 Some of the best roads, industrial and institutional
infrastructures in Africa.
 Digital fiber-optic network links and
telecommunication tools for telephony.
 Cable and satellites television programming.
 Plenty of land and materials for building.
 Abundant mineral resources to meet any demand
for energy consumption.
 Adequate land space to meet consumption demand
in industrial produce. Windhoek, Namibia 03/02/13
Groot Group,

W is Groot Group?
ho
57

 Groot Group focuses on implementing applied
neuroeconomics and system dynamics solutions to
efficiently explore, develop, and manage self-
sustained ecosystems for the slow-developing and
stagnant economies.
 Highly experienced management and entrepreneurs,
scientists, engineers and researchers, analysts and
economists.
 Unmatched expertise in large scale project
development, implementation, engineering,
construction, and management.
 Better linked and Groot Group, Windhoek, Namibiaoutside world.
connected to the 03/02/13

Company
58

 G ro o t G ro up (Pty ) Ltd is a Namibia registered
privately owned stock company.
 Company Registration #2010/0669.
 VAT Registration #5303-362-016.
 Formed in February 2010 (registered in
October 2010) to plan, develop, and manage
the Groot Rapid Industrial Ecosystem in
Namibia.
 Based in Windhoek with satellite offices in the
US.

Groot Executives
59

• Simon Kapenda, Economist, PhD (Candidate) in
Economics, Serial Entrepreneur, Namibian-born.
• Robbie Jena, Engineer, Chemist, Strategist, and
former U.S. NASA Rocket Scientist, Indian-born.
• Robert Grier, Entrepreneur, Management,
American-born.
• Rauna Haihambo, Management, Namibian-born.
• Sakeus Kapenda, Economist, Namibian-born.
• Clement Nyirenda, PhD, UNAM Lecturer,
Malawian-born.

Swaziland - Prince Logcogco
60


Namibian Embassy in the USA
61


Robbie Jena, Chief Strategist
62

 Engineer, chemist, strategist, former NASA rocket scientist, and
current CEO of KMCI, Louisiana, USA.
 Invited to China in early 1980’s to setup the manufacturing
operations for ABB.
 Hired as Consultant in 1984 by the Chinese government through
China Council for the Promotion of International Trade to mentor
top Chinese Government Officials.
 China implemented Robbie’s manufacturing and engineering
strategies the same year.
 By end of 1985, China’s economy grew by 11.9%, continued to
grow at 8% (real) annually.
 China is today the 2nd world’s largest economy, the only country
with more than $3 trillion (N$23 trillion) in cash reserve, and it is
debt free. Groot Group, Windhoek, Namibia 03/02/13

Robbie Effects: China vs.
63 India
After China, Robbie went to India (his birth country) at end of 1985,
tried to teach them the same technique, but they ignored him. Per
indexmundi, the following is the results for China and India's GDP
(PPP) numbers in US$Billions.

Year India China
1980 $277 $247
1981 $322 $285
1982 $355 $330
1983 $393 $380
1984 $494 $454
1985 $461 $531
1986 $494 $591
1987 $530 $679
2009 $3,528 $8,734

People's Republic of China's Nominal Gross Domestic Product
(GDP) in Billions Rmb Between 1960 to 2009
40000

35000
64
33535 Billion in 2009

30000

25000
B MRf o s nolli B n P D G

20000
i

15000
i

10000

Mr. Jena’s
5000
Background: Work
Shanghai, China
0 1997 Asian
Financial Crisis


Successful Outcome
65

 In 1984, China listened to Robbie’s
strategy and it worked for them. Why not
for Namibia?
 In 2012 if Namibia follows suit, it will

create a fast growing, robust and self-
sustaining economic ecosystem.
 It will help reduce Namibia’s current 54%

unemployment rate to full employment
within 5 years of implementation.

Tses Glass - Government
66

 Needs government support and blessing
for the development of Tses Glass.
 Needs government support for

infrastructure development.
 Not asking the government for financial

support to develop the Tses Glass project.
 Government’s support and blessing

assures comfort and peace of mind for
partners and FDI.

Tses Glass – Made in Namibia
67


Forward Plan
68

 Government support and blessing.
 Technical Team; Feasibility Study, EIA

 Approval.

 Financing.

 Tendering.

 Construction.

 Commissioning.

 Production.

Sources
69

 U.S. State Department, Countries and Regions (
http://www.state.gov/countries).
 Grina Technologies LLC, Columbus, Ohio USA
(Proprietary Data) (http://www.grinatechnologies.com).
 Leticia Industries Ltd, West Hollywood, California USA
(Proprietary Data).
 Indexmundi (http://www.indexmundi.com).
 World Factbook, Economy and People (
https://www.cia.gov/library/publications/the-world-factbook
).


W e’re Tses Glass – Namibian
70 Pride


Contact
71

 Simon Kapenda, Managing-Director
Tses Glass (Pty) Ltd
PO Box 8991
Bachbrecht, Windhoek
Namibia

Cell: +264-81-250-9027
Email: simon@grootgroup.com
Facebook: facebook.com/tsesglass


72
Thank You

The problems that exist in the world today cannot
be solved by the level of thinking that created
them! - Albert Einstein

The most important weapon in the war for
economic supremacy in the 21st century will be the
organization of knowledge - Alvin Toffler


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