2/2/2011 1Groot Property Group (Pty) Ltd
Nearly every economy in the world ultimately wishes to:
Accelerate economic growth.
Achieve full employment and sustained prosperity, but without inflation.
Realize equality of opportunities.
Restore the balance of payment equilibrium.
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Global Economic Goals
Groot Property Group (Pty) Ltd
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.
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Namibia Economic Goals
Groot Property Group (Pty) Ltd
Population Comparison
Population (2009 est.)(Millions)
Namibia 2.109
Slovenia 2.007
Kuwait 2.693
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How’s Namibia Doing?
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Namibia Slovenia Kuwait
Item Namibia Slovenia Kuwait
GDP (2009 est.)$Billion Real 9.145 50.13 116.2
GDP
GDP per capita(PPP) $4,336 $27,900 $54,100
0
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20000
30000
40000
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60000
Namibia Slovenia Kuwait
GDP per capita
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Where Are We?
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Namibia Slovenia Kuwait
agriculture 9.2% 2.0% 0.3%
industry 34.8% 37.0% 48.3%
service 56.0% 61.0% 51.4%
GDP Composition (2009 est.)
Revenue($Billion) 2.45 20.58 70.23
Revenue (2009 est.)
Namibia KuwaitSlovenia
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70
Namibia Slovenia Kuwait
Groot Property Group (Pty) Ltd2/2/2011 6
Electricity Consumption
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40
60
Namibia Slovenia Kuwait
Electricity (Tera Watts)(2009 est.)
Namibia 3.2
Slovenia 14.7
Kuwait 40.21
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• Wealth creation of a country is directly proportional to electricity production.
GDP Growth to 2030at Present Rate (Est.)
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GDP Growth Neededto Catch Slovenia (Est.)
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Comparative Advantage Analysis?
What are the 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 labor force?
Then what causes Namibia to lag far behind in production output?
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Item Namibia Slovenia Kuwait
GDP (2009 est.)$Billion Real 9.145 50.13 116.2
Groot Property Group (Pty) Ltd
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Namibia Slovenia Kuwait
Needs and Problems 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 and large businesses.
2/2/201111Groot Property Group (Pty) Ltd
Aggregate Labor Condition 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.
2/2/2011 12Groot Property Group (Pty) Ltd
Monetary and Fiscal Policy 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? For what industry sector?
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?
2/2/2011 13Groot Property Group (Pty) Ltd
Solutions
Rapid Industrial Development: develop Groot Town Center, a $5 billion (N$35.6 billion) value upscale mixed-use community in Grootfontein.
To be anchored by diverse industries to create a powerful, perpetual self-sustained ecosystem.
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Grootfontein After (Planned)Grootfontein Before
Groot Property Group (Pty) Ltd
Composition
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Groot Town Center to be composed of; Over 2-million square feet (185,800 square
meters) of exceptional interior shopping mall and entertainment space.
An upper-class urban lifestyle featuring a classic American main street with pedestrian-friendly streetscapes, open-air gathering spaces, fountains, children’s parks, theme parks, etc.
Over 2100 best-in-class retail, entertainment and medical facilities, educational institutions, hotel and dining restaurants, office spaces, and residential properties.
Making it the #1 destination to live, work, shop and play in the tri-town area of Grootfontein, Tsumeb and Otavi.
Groot Property Group (Pty) Ltd
Ecosystem
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Groot Town Center anchor tenants will; Include first-class hotels, manufacturing plants,
hospitals, engineering college, restaurants, etc. Supported by major infrastructure projects and
anchor industries. Create more than 50,000 directly and more than
500,000 indirectly of good paying jobs in Namibia within 3 years.
Cause more than 160,000 of new housing construction in the Grootfontein area.
Boost the Grootfontein Municipality’s current operating budget of about N$38 million to more than N$3.8 billion within 5 years.
Fast track to realize Namibia’s Vision 2030 within 5 years instead of 20 years.
Groot Property Group (Pty) Ltd
Benefits
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Economic ripple effects spreading throughout Namibia and neighboring countries.
Creating an annual cash transaction value of more than $10 billion (N$75 billion) in Namibia within 3 years.
Helping to reduce Namibia’s current unemployment rate of 54% to about 4% within 3 years.
Increasing Namibia’s GDP (PPP) Per Capita from the current $4,336 (N$32,520) to over $24,145 (N$176,259) within 5 years.
Boosting Namibia’s GDP (real) from the current $9 billion (N$68 billion) to more than $54 billion (N$397 billion) within 5 years.
Groot Property Group (Pty) Ltd
Production The mall tenants and patrons will increase
consumption in agricultural produce.
Demand for local agricultural produce will increase exponentially, further boosting economic
activities in rural area and beyond.
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Industry Sector Analysis
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Category Revenue ($Million) Employees
Apparel 150 560
Beverage 221 600
Building Material 167 410
Chemical 140 600
Chemical2 180 700
Chemical3 300 1050
Computer Services 138 206
Outsourcing 181 1450
Electrical Equipment 224 2122
Groot Property Group (Pty) Ltd
Industry Sector (Cont.)
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Category Revenue ($Million) Employees
Entertainment 178 920
Food Production 226 1600
Food Services 151 2900
Wood and Paper 299 650
Furniture 199 1603
General Merchandise 131 1260
Hospitals 157 3500
Home Builders 180 350
Hotels, Resort 173 1928
Household Products 146 380
Groot Property Group (Pty) Ltd
Industry Sector (Cont.)
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Category Revenue ($Million) Employees
Industrial Equipment(Copper Cable) 197 630
Small Engine 165 507
Small Engine2 191 2170
Insurance 260 433
Medical Products 140 610
Metals – Steel 1137 1060
Metals – Aluminum(from Thorium Power) 2396 11900
Auto Parts 218 1100
Packaging/Container 158 826
Groot Property Group (Pty) Ltd
Industry Sector (Cont.)
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Category Revenue ($Million) Employees
Pharmaceuticals 183 1010
Retailers in Mall etc 1782 30,616
Telecom 219 637
Transportation Logistics 274 1020
Utility 1012 1442
Waste Management 270 1340
Misc Services 3275 5600
Groot Property Group (Pty) Ltd
GDP Growth as a Result of Groot Property Group Ecosystem
$B
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Namibia Post Groot Property Group Ecosystem?
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Namibia Slovenia Kuwait
Item Namibia Slovenia Kuwait
GDP (2015 est.)$Billion Real 54.326 138.973 335.043
GDP
GDP per capita(PPP) $24,145 $64,639 $104,701
GDP per capita
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0
20000
40000
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120000
Namibia Slovenia Kuwait
Bank of Namibia
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As Namibia realizes full employment, the aggregate price rises 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?
Groot Property Group (Pty) Ltd
Why Grootfontein?
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Strategically located within Namibia’s average dense population.
Gateway to Namibia’s northern regions en route to and from Angola, Botswana, Zambia, and Zimbabwe.
South Africa on the southern region is just a few hours of flight time.
Less than an hour of driving from Etosha National Park, Africa’s 3rd largest wildlife for tourists.
Sparsely populated flat area with abundant land suitable for any industrial activities.
Groot Property Group (Pty) Ltd
But, Why Grootfontein?
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The Municipality Council supports the development of Groot Town Center.
Unanimously voted and have allocated 2,000 acres (800+ hectares) of land for the development of Groot Town Center and its anchor projects.
Groot Property Group (Pty) Ltd
Why Namibia?
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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 Agricultural produce.
Groot Property Group (Pty) Ltd
Why Not Windhoek?
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Lagos was once one of the most thriving cities in Africa.
But, a heavy rural-to-urban migration led to an overcrowded and overpopulated Lagos.
Lagos Municipality succumbed, became unable to meet the demand for water, electricity, and sewage.
Lagos lost its capital city status, the central government relocated its headquarter offices to Abuja.
Nairobi has the world’s worst and largest housing slums due to rural-to-urban migration.
Similar thing could happen to Windhoek.
But, with lots of good paying jobs in Grootfontein, migration will instantly shift to Grootfontein.
Effecting to balance the population-migration equilibrium in Namibia, leaving Windhoek less overcrowded, thus cleaner.
Groot Property Group (Pty) Ltd
Who Are We?
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Groot Property Group (Pty) Ltd 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 in the world.
Highly experienced management and entrepreneurs, scientists, engineers and researchers, analysts and economists.
Unmatched expertise in large scale project development, implementation, engineering, construction, and management.
Groot Property Group (Pty) Ltd
Company
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Groot Property Group (Pty) Ltd is a Namibia registered privately owned stock company.
Formed in February 2010 for the sole purpose to successfully plan, develop, manage, and market Groot Town Center.
To be headquartered in Grootfontein with satellite offices in the US.
Groot Property Group (Pty) Ltd
Our Values
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Goal: To help improve the well-being of the people in the world while generating value of our shareholders, expands profitability, and promotes rapid growth and industry leadership.
Mantra: Shaping economies for better living.
Mission: To solve economic challenges others seem to ignore.
Vision: To create long lasting economic impacts that equally benefit the people of the world while creating superior value for our shareholders, partners and customers.
Groot Property Group (Pty) Ltd
Executives
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Company founders and executives include;
Simon Kapenda, Economist, PhD (Candidate) in Economics, Serial Entrepreneur, Namibian American.
Robbie Jena, Engineer, Chemist, Strategist, and former U.S. NASA Rocket Scientist, American.
Robert Grier, Entrepreneur, Management, American.
Cllr. Joseph N. Auala, Former Deputy Mayor of Windhoek, Administration and Leadership, Namibian.
Peter Gwarada, Operations and Management, Namibian.
Brian Patoko, Leasing, Marketing, Sales, Namibian.
Clement Nyirenda, Lecturer, PhD (Candidate) in ICT, Japanese resident, Malawian by birth.
Groot Property Group (Pty) Ltd
Robbie Jena, Chief Strategist
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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$23 trillion) in cash reserve, and it is debt free.
Groot Property Group (Pty) Ltd
Robbie Effects: China vs. India
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After China, Robbie went to India (his birth country) at end of 1985, tried to teach them the same technique, but they ignored him. Per indexmundi, the following is the results for China and India's GDP (PPP) numbers in US$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
Groot Property Group (Pty) Ltd
GD
P in
Bil
lio
ns
of
RM
B
Mr. Jena’sWork
1997 Asian
Financial Crisis
33535 Billion in 2009
Background:
Shanghai, China
People's Republic of China's Nominal Gross Domestic Product (GDP) in Billions Rmb Between 1960 to 2009
Financing
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Company raising more than US$800 million (N$5.8 billion) in equity and debt funding for the construction of Groot Town Center after implementing the development of the needed infrastructures; Power systems, roads, etc.
Funds are coming from a well connected network of companies and investors in the US, Europe, and Asia.
Additional capital may be needed for additional Phase to Phase project development.
Groot Property Group (Pty) Ltd
Shareholders Benefits
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Company conservatively projects;
More than $1.2 billion (N$8.8 billion) in net profit within 5 years of operation.
Opportunities for investors to cement their presence in rich African resources and fast growing markets.
Groot Property Group (Pty) Ltd
Timeline June 1, 2011 currently slated for the official
groundbreaking for Groot Town Center.
Hiring of construction employees slated to begin in May 2011.
More than 2,500 construction employees get hired between May 2011 – December 2011.
Construction continues through 2012.
Phase 1 of Groot Town Center opens for the general public on December 1, 2012.
More than 30,000 people working at Groot Town Center by December 2014.
2/2/2011 40Groot Property Group (Pty) Ltd
Successful Outcome
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In 1984, China listened to Robbie’s strategy and it worked for them. Why not for Namibia?
In 2010 if Namibia follows suit, it will create a fast growing, robust and self-sustaining economic ecosystem.
It will help reduce Namibia’s current high unemployment rate to full employment within 3 years.
Groot Property Group (Pty) Ltd
Otherwise Outcome
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China was behind India before 1984. Robbie's strategy worked to push China ahead of India in 1985.
India didn’t listen to Robbie, and as a result it’s lagging behind China in economic growth.
With the support of the Namibia government, the Groot Town Center ecosystem will develop.
The development of Groot Town Center ecosystem will contribute to the Government’s effort towards the realization of Vision 2030 but within 5 years.
Otherwise, with an escalation of socioeconomic problems, who knows.
Groot Property Group (Pty) Ltd
Otherwise at Present GDP Growth Rate
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Perhaps?
What Do We Want?
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Political Support: Approval from central government.
Competition: Namibia has a free market system, let the market equilibrates itself.
Regulations: Strictly allow fair trade systems.
Property Rights: Keep private property ownerships.
Rule of Laws: Maintain favorable institutions that govern and strictly adhere to the rule of laws.
Consumer Rights: Namibia Consumer Commission to monitor and protect the rights of the consumers.
Border Protection: Ease border crossing for foreign visitors and tourists, purchasing power.
Infrastructure: Planning and design, national data access, letters of interest, infrastructure support, etc.
Groot Property Group (Pty) Ltd
This is Groot Town Center, Grootfontein.
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Contact
Simon Kapenda, VP, Development OperationsGroot Property Group (Pty) Ltd.
PO Box 8991Bachbrecht, WindhoekNamibia
Cell: +264-81-653-3603Email: [email protected] site: grootgroup.com
Facebook: facebook.com/GrootTownCenter
2/2/2011 46Groot Property Group (Pty) Ltd
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, Columbus, Ohio USA (Proprietary Data) (http://www.leticial.com).
Indexmundi (http://www.indexmundi.com).
CIA World Factbook, Economy and People (https://www.cia.gov/library/publications/the-world-factbook).
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Sources
Groot Property Group (Pty) Ltd
Thank You
The most important weapon in the war for
economic supremacy in the 21st century will be
the organization of knowledge - Alvin Toffler
The problems that exist in the world today
cannot be solved by the level of thinking
that created them! - Albert Einstein
Groot Property Group (Pty) Ltd2/2/2011 48