Sharing its borders with the Kalahari Desert and the South Atlantic Ocean, Namibia is one of the youngest countries in Africa and as such enjoys vast potential for future prosperity. Since gaining independence in March 1990, Namibia has successful transitioned into a multiparty democracy with an estimated annual GDP per capita of $5,828.
Despite the remote nature of the much of the country, Namibia is unique in comparison to other developing African nations in that it boasts world-class aviation facilities, with airports, admittedly many of them unpaved, in almost every major city.
In the pursuit of building one of the continent’s most efficient and advanced aviation sectors, Namibia Airports Company Limited (NAC) was created. A 100 percent state owned enterprise, which functions autonomously under a Board of Directors, appointed by the Minister of Works and Transport in his capacity as the portfolio Minister, the vision of the NAC is to recognised as a world-class service provider in airport operations and management.
Today the NAC owns and manages eight airports, Hosea Kutako International Airport, Eros Airport, Walvis Bay Airport, Lüderitz Airport, Keetmanshoop Airport, Ondangwa Airport, Rundu Airport and Katima Mulilo Airport. Hosea Kutako International Airport is the country’s only international airport serving more than 640,000 passengers and handling 14,000 aircraft movements a year. Each of NAC’s other airports all contribute something special to Namibia’s economic growth, with Eros Airport recognised as the country’s hub for general and leisure aviation, Keetmanshoop Airport being the home of the Namibia Aviation Training Academy (NATA) and Katima Mulilo Airport representing the gateway to the tropical Caprivi region, a huge area of interest for tourists, to name a few examples.
Among its key responsibilities the NAC oversees the provision and maintenance of all terminal buildings, check-in counters, flight information display boards, baggage conveyor belts and sorting systems, airfield navigational and visual aids equipment, baggage trolleys and even public car parking.
The company’s revenue streams come from two basic sources, these being aeronautical revenue and non-aeronautical revenue. The former refers to the airside and aircraft related revenue that is derived from landing and parking fees, passenger fees and ground handling fees. Meanwhile, non-aeronautical revenues come from landside and commercial activities such as property and land leases or rents, concessionaires and motor-vehicle parking charges.
The NAC develops and manages its airports on sound business principles with due consideration paid to the interest of its stakeholders. Its main operational partners and clientele comprise airlines or aircraft operators, ground handling agents, government agencies, private retailers and concessionaires licensed to operate at its airports.
A member of the International Civil Aviation Organisation (ICAO), Airports Council International (ACI) and the International Air Cargo Association (TIACA), the NAC is also a national corporate member of the Namibia Chamber of Commerce & Industry (NCCI), and given its central role in the tourism sector, the NAC has representation on the Marketing Committee of the Namibia Tourism Board.
The NAC recognises the need for a strategic corporate focus to better enable it to serve its clients and improve its financial sustainability. The company is guided by a high standard of ethics and integrity in dealing with its stakeholders. Consequently the Airports Company Act, Act 25 of 1998, Namibia’s Vision 2030 and Performance Agreement with the shareholder guide its strategy, in addition to other industry benchmarks and guidelines.
Key focus areas for the NAC now and for the immediate future include the on-going modernisation of its infrastructure and technologies, achieving both aeronautical and commercial revenue growth, bringing in cost efficient processes and the continuous development of human capital.
The coming months and years will no doubt also see the company improving further still its impressive corporate social responsibility (CSR) efforts. The NAC has long recognised the considerable role it has to play in the socio-economic growth of Namibia as a whole and as such it has initiated a comprehensive CSR programme targeting a number of key themes. These include environmental protection, the promoting of tourism, providing educational improvement, industry-related social investment and nation building endeavours.
The NAC values the importance of developing and maintaining good infrastructure and facilities at its airports to maintain world-class standards. In line with its long-term growth strategy, the company has been undertaking several strategic infrastructure and commercial development projects with the aim of improving its overall service delivery. As these projects are completed they will add yet another dimension to the upward growth of one of the country’s more important industries.
Written by Will Daynes, research by Robert Hodgson
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