Namibia PDNA 2009 - GFDRR

Needs
Many businesses indicated that they are struggling to repay their loans and to meet other obligations. In addition, a number of
businesses indicated that stocks had been lost because of the flooding, which further damaged their positions. These businesses
could be helped by way of soft loans; soft loans are typically preferred to grants because they force the business to promote higher
productivity in order to return the borrowed money. Where possible, the Government could simply act as guarantor for the business
to access loans in the financial markets for immediate assistance where collateral is lacking.
There is also need to establish a fund, which could provide either grants or soft loans, for the reconstruction of businesses that
suffered damage to premises and equipment. The exact amount of the fund should be based on an assessment of the actual
damage to premises and equipment to each beneficiary. Where necessary, expert guidance should be provided to supervise the
reconstructions or repair.
Business located in areas that are completely damaged, where the infrastructure will take time to rebuild or where the damage in the
area is too big to repair, should be relocated immediately. A business relocation fund can be set up with criteria and procedures on
how it should be used.
Following clear meteorological studies, areas prone to flooding should be identified and businesses in those areas should be relocated.
Of course business activities follow where people reside. This means that people residing in flood-prone areas will need to be resettled.
No one should be allowed to build in areas designated as flood-prone. Funding for this exercise need to be determined and obtained.
Given the frequent floods and droughts over the last few years, it is important that the Government sets up contingency plans in case
flooding recurs. A reserve fund can be set by levying businesses or by any other method. The fund should be allowed to grow and
be used when disaster occurs. Other contingency plans should include how to respond during the very time of the disaster. Many
businesses indicated that the Government response to the floods was delayed. This preparedness may require training of key staff to
handle various aspects of a disaster, in addition to the availability of funds. The Government should enforce the development of flood
contingency plans by all key ministries, including the Ministry of Trade and Industry, as well as Regional Councils.
Needs/ Timeline
Table 18: Summary of industry and commerce needs
Value
(N$ million)
Value
(US$ million)
Early Recovery 80.0 9.8
Soft credit lines for SMEs to restart production 80.0
9.8
Possible temporary tax relief to SMEs
Medium to Long-Term Recovery 250.0 30.7
Financing to rebuild premises and replace
equipment and machinery
250.0 30.7
Source: Estimations by PDNA Team
3.2.3
Tourism
The 2009 floods also had an adverse effect on tourism in the country. Structural
damage to tourist facilities was relatively infrequent and most of the costs
of damage involved numerous small jobs such as cleaning floors, re-painting,
replacing doors, clearing drains, replanting grass and gardens.
On the other hand, damaged roads, power, access to clean water, sanitation
facilities and telecommunications hampered several tourist facilities from
functioning normally; of around 45 private operations in the affected areas, 24
were assessed to have been impacted, of which 18 were lodges, three small
lodges and three campsites. Although many businesses managed to avoid the
Figure 24: Flooding near tourism lodges
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