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Succession Planning Importance

05 Feb 2023

TIME REALLY FLIES. It is hard to believe, but Harold Pupkewitz, Namibia's highly admired, widely respected, and fondly remembered iconic entrepreneur passed away a decade ago.Since his passing, the diverse business empire that Pupkewitz built from a small trading enterprise started by his father, continues to thrive and grow. Their building material and hardware, motor vehicle, and electrical divisions, have opened branches in towns where they previously had no presence, while divisions upgraded branches and expanded operations.Many Namibian family-owned enterprises falter and go out of business after the founder's demise, yet the Pupkewitz business empire goes from strength to strength. Conducting business in the exemplary manner set by the late Pupkewitz and brand building has contributed to this, but his succession plan is surely the cardinal reason for the firm's continued existence.In the United States, family-owned firms employ two thirds of all people in jobs and contribute over half of the country's gross domestic product (GDP). It is no different in Germany, Europe's most industrialised economy, where collectively, family-owned firms are the biggest job providers and contribute the lion's share of the country's GDP. And it is no different in Namibia. Just take a closer look at any town and you will see that family-owned businesses in the informal and formal sector are by far, collectively, the job providers and wealth creators in the local economy.Family-owned businesses are important creators of wealth and jobs in any economy, so it is important for them to come, stay, and not go when the founder is no longer around. As for family-owned enterprises in Namibia, most fail to outlive the founder, with only a smidgen surviving into the second, or beyond the third generation.In our routine work with entrepreneurs, we see the firm's owner is preoccupied with running and building the business, and that most tend to pay scant attention to succession planning. Resultantly, when the second-generation owners, usually the founder's offspring, assume ownership in the absence of a succession plan, things swiftly go wrong.To safeguard the firm's future a structured succession plan provides for the employment of competent management.And guards against the enterprise becoming a sheltered haven for family members with little interest in the business other than drawing a monthly salary. It is more complicated in the absence of a plan that guides on conflict resolution when family members of different generations are involved in the decision-making process, as the dynamics of the business and those of the family are often not aligned. Rifts develop, then some family members want to sell their stake, but in the absence of guidance on how this should be handled, it inevitably hastens the demise of a family-owned enterprise. A well-crafted succession plan will guide on managing sibling rivalry to avoid squabbles, and on how to deal with family wanting to exit the business.Although not many, there are other Namibian family-owned firms, who like the Pupkewitz group, continue operating, with their existence important to the country's economy. Examples include Olthaver & List, Wecke & Voigts Group and Metje and Ziegler Limited. Also, the Rehoboth-based firm founded by the late oom Land Benade.One hopes that soon these family-owned firms will generously share their much-needed business succession strategies. * Danny Meyer is reachable at danny@smecompete.com

Principals to focus on performance of grades 8 and 9

05 Feb 2023

PRINCIPALS of secondary schools in the ||Kharas region have resolved to strengthen learning and teaching of grade 8 and 9 pupils to improve the academic results at grade 11 and 12 levels.This was said during a school principals' gathering at Karasburg recently which reviewed and examined the impact of teaching on the region's examination results. The meeting also provided a platform for the school principals to analyse the grade 11 and 12 class of 2022's examination results, as well as those of grades 1 to 10.Principal of Garibams Secondary School Darta Alughodi said they reviewed the recurring weak performance of Grade 11 and Grade 12 pupils, including those doing Advanced Subsidiary level. “We are starting to revisit the basics with the Grade 8s and looking at uniformity, so that whatever we do with the Grade 8s, we do with grades 11 and 12 because we tend to focus so much on grades 11 and 12 teaching and learning that we neglect grades 8 and 9, only to realise the kids we neglected in grades 8 and 9 are now the ones struggling in grades 11 and 12,” said Alughodi. Education inspector for the Kalahari circuit Ryan Assegaai said plans are underway to introduce a regional annual examination for students from grades 4 to 10 in August, and a school for Grade 11 and AS students.“These examinations will be set by different sectors in August, so we can see that teachers are completing the syllabus and so that we can have quality papers to give to our children for studying purposes,” said Assegaai. In an interview with the Namibian Broadcasting Corporation on the sidelines of the gathering, the chairperson of the ||Kharas Education Forum, Katrina Elizabeth /Goagoses, urged churches to make space available to pupils in the evenings for study purposes.The forum's main aim is to encourage parental involvement in schools, as well as the monitoring and evaluation of teaching and learning. “Most pupils come from poor backgrounds and struggle with finding conducive places to study, while others do not have access to electricity. Therefore, churches must open up their premises for studies in the evening for pupils,” said /Goagoses.During the Namibia Senior Secondary Certificate Ordinary examinations for grades 11 and 12, the region performed poorly.||Kharas education director Johannes ||Hoëseb said the two years of Covid-19 affected the learning and teaching of pupils adversely, especially those in grades 8 and 9 during 2020 and 2021, as there was hardly any teaching and not all pupils had access to online platforms.||Hoëseb said it was best to analyse the results and come up with strategies to improve performance instead of apportioning blame to either the community, pupils, teachers or the entire education system.“I am convinced that all of us gathered here are feeling sad about it and are equally concerned about this undesirable situation. My take, however, is that we should rather not join the bandwagon of self-exoneration and resort to apportioning blame on someone else, or even the education system.”Karasburg East constituency councillor Anseline Beukes thanked the teachers for their commitment and encouraged them to implement the strategies they would design.“Teaching requires passion and joy, we know passion is contagious, energy is contagious, and ambition is contagious. We are grateful for the positive motivation you as teachers bring to each school year,” said Beukes.

Storm destroys Aroab houses

05 Feb 2023

A HEAVY rainstorm, which broke out on Tuesday afternoon, destroyed several houses at Aroab, leaving 84-year-old Petrus Kooper, who has been living in a one-bedroomed house for the past 42 years, without shelter.“I want my house to be rebuilt, otherwise where will I go? I don't have a place. Now I have to move around when I had my own house,” says Kooper.Kooper has been living alone for years. He is now sheltered by another family in the town.At the time of the incident, he was not at home.He is appealing for help to rebuild his house.Another resident, Andrew deJay (59), and five members of his household also had to find alternative shelter after the storm blew off the roof of their house.“My kids are at my fathers' house until I restructure. I now live in the Aroab town lands where I have a small farm, but it does not really provide a lot of income...,” said DeJay.His house is still under water and he fears his furniture, which is still in the house, could suffer further damage or could be stolen.“Yesterday (Wednesday) there was rain again. When it rains, the whole house is under water. So, afterwards we will test the electrical equipment and see if anything is still in working condition. I know the wood on the beds will swell because of the amount of water. I know it will not be the same again,” he added.At the time of the incident, DeJay was attending a council meeting and the rest of the members of his household were not home.“In the meeting, I told the chief executive officer of the village council that a storm was going to break out, and just 20 minutes after that, someone came and told me my roof was [blown] off. I asked them if there was anyone there and they told me no one was there. I said thank God because losing someone's life is something one can never regain,” he said. Vera Golly (45) said the rain destroyed part of her wall and, since she is living alone, the damage will be heavy on her pocket.Keetmanshoop Rural constituency councillor Gertjie Witbooi said they would do an assessment and submit it to the regional disaster management committee.“We as the community, businesses, leaders and council would have to stand together to bring the situation back to normal,” he added.

Dear founders, returning to the office is a numbers game

04 Feb 2023

Welcome to Startups Weekly, a nuanced take on this week’s startup news and trends by Senior Reporter and Equity co-host Natasha Mascarenhas. To get this in your inbox, subscribe here. Toward the end of 2022, a number of entrepreneurs, some citing Elon Musk, told me that they’re bringing back an in-person work culture in the […]

Dear founders, returning to the office is a numbers game by Natasha Mascarenhas originally published on TechCrunch

Netflix crackdown, monetizing ChatGPT and bypassing FB’s 2FA

04 Feb 2023

Happy weekend, folks, and welcome back to the TechCrunch Week in Review. Henry here, standing in for a vacationing Kyle Wiggers, who is standing in for a parental-leaving Greg Kumparak. Listen, we’ve got a deep bench, and both blokes will be back very soon. Until then, check out just a few of the top stories […]

Netflix crackdown, monetizing ChatGPT and bypassing FB’s 2FA by Henry Pickavet originally published on TechCrunch

Does usage-based pricing call for a new growth infrastructure stack?

04 Feb 2023

"It's not either usage-based or subscription pricing,” VC firm OpenView wrote in its second State of Usage-Based Pricing report. These hybrid approaches call for new tools, but which ones?

Does usage-based pricing call for a new growth infrastructure stack? by Anna Heim originally published on TechCrunch

When the government is the customer (some things to keep in mind)

04 Feb 2023

Five years ago, Google backed away from a Pentagon government contract because thousands of employees protested that its tech might be used for lethal drone targeting. Today, however, Silicon Valley has far fewer qualms about developing tech for the U.S. Department of Defense. So said four investors — Trae Stephens of Founders Fund, Bilal Zuberi […]

When the government is the customer (some things to keep in mind) by Connie Loizos originally published on TechCrunch

Man dies in head-on crash near Tses

04 Feb 2023

A SEDAN and a truck on Saturday morning crashed head on about 15km south of Tses on the B1 road.The driver of the sedan was declared dead at the scene. The truck driver is unharmed.//Kharas crime investigations coordinator deputy commissioner Nicodemus Mbango has confirmed the incident. “According to the truck driver, he was driving in his lane in a northern direction when a sedan approached from the opposite direction at a fast speed, and they collided head on,” Mbango said on Saturday.The deceased has not been identified yet.Police investigations continue.

LPM wants CPBN to cancel medical tender

04 Feb 2023

THE Landless People's Movement (LPM) on Friday called on the Central Procurement Board of Namibia (CPBN) to set aside its decision to award a multibillion-dollar medical suply tender and restart the entire tender process.This comes after public pressure to cancel the tender. The CPBN on Friday issued a statement addressing various issues leading to the public outcry. "We are committed to delivering on our man-date within the prescripts of the Public Procurement Act," the statement reads.Over 20 bidders submitted requests for reconsideration last week. The CPBN says it is in the process of reconsidering applications based on merit. "Any bidder who is aggrieved after the board has made a final decision may approach the review panel for a review of the procurement process . . ," the statement reads.The CPBN says media reports stating Amnics Trading (Pty) Ltd, which has been awarded tenders while the company is less than two years old, is incorrect."The documentation in the CPBN's possession indicates that the company in question was first registered as a CC in 2012, before it con-verted to a Pty on 23 September 2021," it says.Amnics is owned by businessman Shapwa Kanyama, who stands the chance of being awarded a tender worth over N$280 million.

Tax and communications authorities getting strict on imported electronics

04 Feb 2023

THE Communications Regulatory Authority of Namibia (Cran) and the Namibia Revenue Agency (Namra) will soon be enforcing control measures on the importation of all telecommunication equipment.The two authorities signed an agreement on Thursday to implement and enforce the provisions of Section 80 of the Communications Act, and the Type Approval Regulations relating to the importation of communications equipment into the country. The agreement is a follow-up on the one between Cran and the Ministry of Finance signed in 2016. Cran chief executive officer Emilia Nghikembua on Thursday said this regulation is put in place to ensure that imported electronics are within the prescribed standards and laws of the country to protect the country's networks, as well as public health and safety. “The purpose of Type Approval is to ensure that telecommunications equipment used in Namibia comply with international standards, and that substandard equipment, which may present health and safety hazards to consumers, and which are incompatible with local networks, are not operated in the country,” she said.She said the regulation ensures that the general operating frequency of telecommunications equipment, in particular radio apparatus, conform with the national frequency band plan to avoid interference with essential services.Namra commissioner Sam Shivute said the signing of the agreement is an opportunity to promote coordination in the importation of these equipment. The two institutions further intend to collaborate on research and capacity building initiatives, which are aimed at facilitating the lawful and efficient importation of telecommunications equipment and international ordinary mail.Importers, vendors, patent owners and equipment manufacturers of telecommunications equipment are advised to obtain a Type Approval certificate before importing goods.

CPBN promises to handle tender award fairly

04 Feb 2023

THE Central Procurement Board of Namibia (CPBN) has reassured the nation it is handling the medical supply tendering process fairly and consistently.This comes after public pressure to cancel the tender. The CPBN on Friday issued a statement addressing various issues leading to the public outcry. "We are committed to delivering on our man-date within the prescripts of the Public Procurement Act," the statement reads.Over 20 bidders submitted requests for reconsideration last week. The CPBN says it is in the process of reconsidering applications based on merit. "Any bidder who is aggrieved after the board has made a final decision may approach the review panel for a review of the procurement process . . ," the statement reads.The CPBN says media reports stating Amnics Trading (Pty) Ltd, which has been awarded tenders while the company is less than two years old, is incorrect."The documentation in the CPBN's possession indicates that the company in question was first registered as a CC in 2012, before it con-verted to a Pty on 23 September 2021," it says.Amnics is owned by businessman Shapwa Kanyama, who stands the chance of being awarded a tender worth over N$280 million.

Security company rehires employees on probation

04 Feb 2023

SECURITY guards at the Southern Cross Security Services in Windhoek were rehired yesterday after they were fired for questioning their pay. They have, however, been placed on probation.The more than 50 security guards demanded a salary increase after learning that only seven employees received an increase.A letter signed by senior operational manager Herman Nortje, and given to workers yesterday, says the employees' services were terminated with immediate effect for not adhering to the company's request.“We have given you enough time and a warning letter that if you do not start working within 10 minutes, steps will be taken accordingly. We hereby give you notice that your services are terminated with immediate effect. You did not adhere to our request. Please leave the premises with immediate effect,” he said.Employee Paulus Tuhafeni said they are back at work for now and have signed a contract of six months.“With this contract, if you do something wrong you will be fired with no warning. Although we are happy that we are back, there's no freedom. You can't complain about anything at all, you will be kicked out,” he said.Tuhafeni said their freedom as employees is still being threatened if they are not allowed to complain or at least get warnings from their employers.DEJECTEDMeriam Shalunda, who has worked for Southern Cross security company for more than 10 years, said even after working for more years in the company she receives N$2800 per month, the same salary as a person who started yesterday.“The issue I have is that even if you work hard for more than 10 years you will still be paid the same amount, there is no difference. Only seven people got an increment, that's not fair. We all work very hard here,” she said.Shalunda said in the past they received a salary increase, but it has decreased lately.“I was told that even if I've been with them for 10 years what do I have when I don't have a certificate or driving licence. Apparently, why do I deserve a salary increment. But there's nothing you can do. I have a family and school kids tofeed,” she said.Security officer Mathew Shikongo said they are not protesting and they did not strike. All they asked was why only certain people received an increment.“They promised us they will give an increase to everyone, but only seven people got it. Others are unhappy because we all wake up early in the morning coming to work,” he said.Shikongo said they like their job, but the only issue is how the management is treating them.Another employee, Muhepa Petrus, said after they asked why only seven employees were given an increment, Nortje told them they had 10 minutes to leave the premises.“We did not strike, we just wanted an answer, but they do not respect us as employees. They look down on us not knowing that we risk our lives for this job. Norjte was very rude to us and even insulted us. We are not free and they make double deductions if you go on sick leave even after providing the doctor's proof,” he said.Petrus said they would like to work again and be given a fair salary.The company's chief executive officer, Johan Janeke, said employees did not get the same salary because of differences in work performance.Janeke said if employees want to come back, they will have to go through a three-month probation regardless of how many years they have been with the company.He later told The Namibian that employees are back at work and have taken up the issue with the labour commissioner.“I would like to inform you that the matter was amicably resolved between the company and the employees in the presence of the labour inspectors.” The employees resumed working at 14h00.

PSUN awaits strike rules date for NHE workers

04 Feb 2023

THE Public Service Union of Namibia (PSUN) has requested an arbitrator from the Office of the Labour Commissioner to set a date to establish the strike rules for workers from the National Housing Enterprise (NHE).This was announced by PSUN secretary general Matthew Haakuria yesterday at a press conference in Windhoek. Haakuria was providing feedback on the looming action after 90% of NHE workers voted in favour of a strike last Friday. He said PSUN is not deterred by the threat of the no-work, no-pay policy or that of retrenching workers.“The message is loud and clear to the board of directors of the NHE that the strike will continue, lest they change their attitude and engage in social dialogue with the union. We are still open for negotiations,” he said. Haakuria said the approach of the board instructing NHE management to write to the union will not work, and until they come to the negotiating table to explain themselves, the strike will continue. If the strike is the only thing that will cause the NHE board to sit down and talk to workers, then so be it, Haakuria said. “So, we are doubling down. We are not going backwards. The strike will continue until our demands are met or until we sit around the table and work out a win-win solution for everyone,” he said. Last week, NHE workers voted overwhelmingly in favour of a strike following requests for a once-off payment of N$15 000, which was later reduced to N$10 000, which was not granted by the NHE. The board indicated that it will only consider the once-off payment once financials for 2019, 2020 and 2021 are audited. After the vote results were released, the NHE issued a statement to note that if employees go on strike, the organisation will evoke a no-work, no-pay policy during the strike period. The NHE maintained that a strike would disrupt service delivery. “The fact remains that the industrial action will negatively impact NHE's operations and disrupt the normal scheduled services for the duration of this planned industrial action of which the end-date is not known.”The NHE also said the organisation would endeavour to work to resolve the matter with the urgency it rightfully deserves.A letter sent to PSUN and seen by The Namibian, dated 1 February 2023, from NHE chief executive officer Gisbertus Mukulu, read that the once-off payment in lieu of salary and wage increases for the 2021/22 financial year was declined. “And the following factors were taken into consideration, the sustainability and performance of the organisation and the financial position of the organisation.”

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