Novanam Limited III

completed

The projects consists of the acquisition and upgrade of additional trawlers and upgrading of the processing plant in NovaNam. The investment in trawlers will enhance the company''s ability to catch its full quota. Improving layout of the plant will improve processing capacity, efficiency, yields, quality, and margins. The project follows a US$13.5 million expansion that the company undertook in 1994, partially financed with an IFC loan of US$6.5 million. In 1996 a further US$10 million expansion attracted a US$5 million IFC loan. Repayments of loans I and II have been timely.By establishing the operation in Lüderitz, the company has contributed to the revival of the town and significantly increased its population (c 25,000) following declining economic activities of on-shore mining and crustacean fishing. New fishing operations are now also based in Lüderitz and the town has become an economic center for Southern Namibia. IFC provides long term financing that is not available in Namibia and will thereby ensure that the company maximizes its opportunities within a Namibian quota system that prioritizes allocations to successful, profitable enterprises who maximize on-shore value added production and employment. The project will strengthen profitability and the employment of 1,900 local workers. Employment opportunities in Novanam are highly prized by floor and management staff. Staff is paid above market rates in the area. IFC also seeks to contribute to NOVANAM’s efforts of combating the HIV/AIDS virus.