global economic goals - groot group · 2016-08-31 · nearly every economy in the world ultimately...

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.

2/2/2011 2

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.

2/2/2011 3

Namibia Economic Goals


Population Comparison

Population (2009 est.)(Millions)

Namibia 2.109

Slovenia 2.007

Kuwait 2.693

Groot Property Group (Pty) Ltd2/2/2011 4

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

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Where Are We?

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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



Electricity Consumption

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60


Electricity (Tera Watts)(2009 est.)

Namibia 3.2

Slovenia 14.7

Kuwait 40.21


• 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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0

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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.


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?


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.

2/2/2011 14

Grootfontein After (Planned)Grootfontein Before


Composition

2/2/2011 15

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.


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.


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.


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.


Industry Sector Analysis

2/2/2011 20

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


Industry Sector (Cont.)

2/2/2011 21


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



2/2/2011 22


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



2/2/2011 23


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


GDP Growth as a Result of Groot Property Group Ecosystem

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Namibia Post Groot Property Group Ecosystem?

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GDP

GDP per capita(PPP) $24,145 $64,639 $104,701

GDP per capita


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Bank of Namibia

2/2/2011 26

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?


Why Grootfontein?

2/2/2011 27

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.


But, Why Grootfontein?

2/2/2011 28

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.


Why Namibia?

2/2/2011 29

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.


Why Not Windhoek?

2/2/2011 30

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.


Who Are We?

2/2/2011 31

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.


Company

2/2/2011 32

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.


Our Values

2/2/2011 33

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.


Executives

2/2/2011 34

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.


Robbie Jena, Chief Strategist

2/2/2011 35

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.


Robbie Effects: China vs. India

2/2/2011 36

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


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

2/2/2011 38

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.


Shareholders Benefits

2/2/2011 39

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.


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.


Successful Outcome

2/2/2011 41

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.


Otherwise Outcome

2/2/2011 42

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.


Otherwise at Present GDP Growth Rate

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Perhaps?

What Do We Want?

2/2/2011 44

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.


This is Groot Town Center, Grootfontein.


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


mailto:[email protected]

http://www.grootgroup.com/

http://www.facebook.com/GrootTownCenter

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).

2/2/2011 47

Sources


http://www.state.gov/countries

http://www.grinatechnologies.com/

http://www.leticial.com/

http://www.indexmundi.com/

https://www.cia.gov/library/publications/the-world-factbook





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

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global economic goals - groot group · 2016-08-31 · nearly every economy in the world ultimately...

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