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Annual Report Integrated INTEGRATED ANNUAL REPORT Cementing the future of Namibia’s water supply TABLE OF CONTENTS ABOUT THIS REPORT 1 CHAIRPERSON’S MESSAGE 3 ABOUT NAMWATER 5 2019/20 YEAR AT A GLANCE 6 NAMWATER’S OPERATIONAL MODEL 8 OUR SIX CAPITALS 10 NAMWATER’S GOVERNANCE STRUCTURE 11 BOARD OF DIRECTORS 12 CORPORATE GOVERNANCE 14 EXECUTIVE TEAM 18 CEO’s REPORT 20 PERSPECTIVE ON OUR BUSINESS 24 2019/20 PERFORMANCE 34 Financial perspective 38 Internal processes perspective 42 Customer perspective 58 Talent and technology perspective 64 Stakeholder perspective 74 ANNUAL FINANCIAL STATEMENTS 78 APPENDIX A 152 ii NamWater - 2019/20 ABOUT THIS REPORT In the spirit of our long-standing concise and honest assessment of our Approval by the Board commitment to good corporate performance for the financial period between Responsibility for the integrity of the 01 April 2019 and 31 March 2020, focusing on integrated annual report rests with the governance, transparency and material issues that impact on our business. Board of Directors, which is assisted by the accountability, NamWater presents Audit and Risk Committee and Executive this Integrated Annual Report for the The principle of materiality has been applied Management. financial period 2019/20. in order to determine the content and extent of disclosure in the Integrated Annual Report. NamWater’s Board of Directors has To all our stakeholders who have an interest accordingly applied its collective mind and, in in NamWater, this report provides an overview Reporting principles its opinion, this integrated report addresses all of our governance, strategy, performance This report is compiled and presented material issue and offers a balanced view of and activities, all of which aim to generate in accordance with the requirements of its strategy and performance. lasting value for Namibians across the the Namibia Water Corporation Act 12 length and breadth of the country. NamWater of 1997 (as amended), the Code of Good We, as the Board, believe that this report strives to improve the quality of information Governance Principles for Namibia 2014 has been prepared in accordance with the on the supply of bulk water available to its (NamCode) and the IIRC’s International International Integrated Reporting Framework. stakeholders and an integrated report is Integrated Reporting Framework (2013). the most efficient approach to corporate NamWater has implemented these codes as The report has been approved by the Board on reporting. far as practicable and will work to improve 30 November 2020. implementation continually. As such, the report provides insight regarding BOARD OF DIRECTORS: NamWater’s resources, the relationships and Approvals and assurance Mr T. Maswahu - Chairperson risks inherent in running our business, and In accordance with the Public Enterprises Dr A. Matros-Goreses - Vice Chairperson explains how NamWater interacts with the Governance Amendment Act (Act 8 of 2015), Mr S. Haihambo - Non-executive director environment to create value over time. read together with the Companies Act (Act 28 Ms L. Ashipala - Non-executive director of 2004) as amended, the consolidated annual Mr J.R. Kaumbi - Non-executive director Embarking on a journey of integrated thinking, financial statements were audited by the Dr P. Mushendami - Non-executive director NamWater will strive to continuously improve Corporation’s independent external auditors, Ms V. Kinyaga - Non-executive director its use of integrated reporting. The report itself Grand Namibia. is prepared in accordance with the framework Mr M. Gaweseb - Non-executive director and guidelines of the International Integrated Ms A. Nsinano - Executive director Reporting Council (IIRC) and provides a Ms H. Jesaja - Non-executive director Annual Report - 2019/20 Integrated Annual Report - 2019/20 1 2 NamWater - 2019/20 CHAIRPERSON’S MESSAGE the practicality of bringing water from the Kavango River to central Namibia. Though the study is in an advanced stage of preparation, lockdown measures associated with COVID-19 have prevented the study’s team from completing it in the course of the reporting year. It is with keen anticipation that results are expected during the coming financial year. As COVID-19 became a reality in Namibia towards the end of the reporting year, the impact of the pandemic, and the crucial importance of running water for hygienic purposes, will certainly continue to be felt by NamWater in the coming financial year. A crucial dimension of the attendant challenges will be local authorities’ ability to secure payment for water supplied. We foresee this becoming a major challenge, one that will need to be addressed at national Water is life, without which no man, The Khomas and Erongo regions will level. animal or vegetation can survive. In a remain the hub of the country’s industrial drought-prone country such as Namibia, development. In both areas, naturally available Overall, NamWater was able to fulfil its securing the water supply is a crucial and water resources will not be able to meet the mandate during the reporting year. The continuous challenge. demand. coming financial year shall witness the launching of several major infrastructural Having fulfilled its mandate to provide water In light of these realities NamWater projects aimed at securing water supply. of a high quality and to the satisfaction of all spent much time and effort during the These projects should also help stimulate the stakeholders—with regard for the environment, reporting year to initiate planning and to construction industry by creating jobs. and the scarcity and dependency of everyone investigate options for securing water on this precious resource—NamWater closed resources in the long term. In conclusion, I wish to express my the 2019/20 financial year on a resounding appreciation to the former Minister of then note. As the driving force on the Technical Agriculture, Water and Forestry, Hon. Alpheus Committee of Experts for the Cabinet !Naruseb, for unwavering support and The Corporation succeeded in supplying water Committee on water-supply security, strategic guidance during his tenure as line to all its customers, noting particularly those NamWater worked hard to cement the future minister. A word of appreciation is also due to who suffered from three consecutive years of of Namibia’s water supply. The committee’s Deputy Minister, Hon. Anna Shiweda, and the drought. In our northern regions, NamWater recommendations to Cabinet led to the Executive Director, Mr Percy Misika, for their needed to implement emergency measures approval of over N$1.8 billion to fund critical valuable support during the reporting year. to address the water shortage experienced by water-supply projects over the next five years, man and animals. a long-overdue investment in the growth and A word of welcome to the new Minister of prosperity of the country. Agriculture, Water and Land Reform, Hon. However, our work is never finished. Though Calle Schlettwein. We look forward to the NamWater must provide water to Namibians A key area of the committee’s work is benefits we will surely accrue from his on a daily basis, its primary challenge lies in development of the desalination option. Much extensive experience. securing the water supply for future access, has been said and discussed concerning especially in those areas where natural desalination, and given Namibia’s 1,500-kilometre I would also like to thank fellow members water resources are constrained or scarce, coast line, it appears to be a logical solution to of the Board of Directors, NamWater’s such as the central and southern regions the problem of scarcity. Desalination would be management team and our employees for of the country. Water is also a driver of the one way to secure the water supply over the long their hard work, as well as our customers for economy—nearly all industries depend heavily term. However, desalination technology is neither their continued loyalty. on water. simple nor cheap. NamWater will continue to provide quality For these reasons, the committee has water to Namibians, while cementing the studied desalination as a supply option security of long-term water supply. for the Khomas Region, comparing it with THADDIUS MASWAHU Chairperson: Board of Directors Integrated Annual Report - 2019/20 3 4 NamWater - 2019/20 ABOUT NAMWATER NamWater is mandated to provide water of a high quality and to the satisfaction of its stakeholders, as well as provide all water-related services, taking the environ- ment, the issue of scarcity and universal dependency on water into consideration. Our vision Water For All, Forever! Strategic values • We serve NamWater’s interests as a priority. • We are performance driven. • We are unique. • We embrace diversity. • We build on synergy. • We practice discipline. • We are accountable. What we do NamWater is Namibia’s bulk supplier of water and water-related services to industries, government institutions, municipalities, local authorities and commercial entities such as mines. NamWater also supplies water to secondary rural pipelines, serving communities through the Division of Water Supply and Sanitation Coor- dination within regional councils, in accordance with delegation by the Department of Water Affairs within the Ministry of Agriculture, Water and Land Reform. In terms of Article 100 of the Namibian Constitution, land, water and natural resources belong to the State. As custodian of the natural water resources of Namibia, Government is responsible for providing water as a
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