Russian business in Namibia set to boom

LAST week’s visit by Russian President Dmitry Medvedev has ushered in a new era of business between the two countries, with a host of deals expected to follow soon.

‘We want to further our interests and promote our companies here,’ Medvedev said during talks hosted by Namibian President Hifikepunye Pohamba.Russian energy giant Gazprom already signalled its intention when its banking unit struck a deal with Namibian energy company Namcor to build a new power plant in Namibia.Under the deal, Russia will build a power plant generating energy for both Namibia and South Africa, getting a foothold in the lucrative Kudu gas field.Boris Ivanov, head of Gazprom International, said Namcor has approached his company to organise a financing scheme to exploit the gas resource.He said the cost would be around US$1 billion to US$1,2 billion and includes a power station, a pipeline and other infrastructure, with construction taking up to four years.Gazprombank said in a statement that much of the power generated would be exported to South Africa, which is struggling to meet its growing energy needs.Medvedev’s visit resulted in Namibia’s Ministry of Fisheries and Sea Resources signing a memorandum of understanding with the Russian Federal Fisheries Agency to open the door for that country’s fishing ships to operate in Namibian waters.Dmitry Dremlyuga, an adviser to the agency, said the document is ‘extremely important’, as Russian fishermen will have access to up to 150 000 to 200 000 tons per year of predominantly hake and mackerel once they receive licences.Russian ships had fished in Namibia since the 1960s but left after 2001.’We are talking about investing billions of dollars,’ Russian Minister of Natural Resources and Environment Yury Trutnev said after the signing.On Friday the two presidents issued a joint communiqué promising to deepen and broaden bilateral relations.They said there is a ‘need to increase exchanges in the fields of trade and economics, science and technology and humanitarian and cultural matters that would correspond to the excellent political relations and existing opportunities for the development of a mutually beneficial partnership’. ‘Development of natural resources, infrastructure, energy, fisheries, military-technical co-operation, and co-operation in the field of tourism, education and public health services were identified as priority areas of bilateral cooperation,’ they said.In the joint communiqué the two presidents stressed that the reform of key UN organs should be achieved through the widest possible international consensus.They said the global financial and economic crisis demands the formation of a new international financial system, which should include the active participation of all members of the world community.

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