Our value addition
As a major employer and purchaser of goods and services, Rössing makes a significant annual contribution to economic development in the Erongo region and to Namibia as a whole.
Rössing’s total spend for goods and services for operations was N$3.42 billion during 2022 (2021: N$3.01 billion).
As with previous reporting years, most of the procurement expenditure was on Namibian-registered suppliers. Rössing’s spend on local suppliers amounted to N$2.54 billion during 2022 (2021: N$2.25 billion), accounting for 74 per cent of our total procurement expenditure. The continued high percentage local spend reflects the company’s confidence to procure locally. N$386 million was spent on South African suppliers, representing 11 per cent of our procurement expenditure, while N$501 million was spent on international suppliers, representing 15 per cent of our total expenditure.
Rössing remains committed to supporting local suppliers, including spending on developing SMEs. The bulk of the Namibian spend remains in the Erongo (35 per cent) and Khomas (52 per cent) regions. Spend in other regions of Namibia amounted to 13 per cent, with the highest spend in the northern region due to the current Supply of Sulphuric Acid agreement with Dundee Precious Metals in Tsumeb.
Preferential procurement and enterprise development
We remain committed to supporting government development initiatives and the New Equitable Economic Empowerment Framework (“NEEEF”) through preferential procurement. As such, we support local suppliers and continue to enhance our data regarding supplier ownership and employment statistics, which we also report on a quarterly basis to the Namibia Competition Commission.
Of our Namibian spend, 60% (2021: 62%) came from suppliers that confirmed majority Namibian ownership, while 88% (2021: 90%) of the total Namibian spend came from suppliers that employ 75% or more Namibians in their workforce.
In the below-N$250,000 spend category, N$518 million (2021: N$474 million) was generated in Namibia, of which 68% came from suppliers with majority Namibian ownership, while 83% was from suppliers that employ 75% or more Namibians in their workforce.
During the reporting period, we purchased N$110 million (2021: N$86 million) worth of goods and services from previously disadvantaged Namibians and local small and medium-sized enterprises
Summary of Rössing Uranium’s value addition
Rössing’s activities in Namibia lead to a long chain of value addition throughout the economy. As a major player in the procurement of goods and services, Rӧssing makes a significant contribution to economic development and the creation of prosperity for communities. Our business provides a strong base for economic growth in communities located in the Erongo region and in Namibia as a whole. Our economic contribution comprises the value we add by paying wages, employee benefits and government taxes and royalties, as well as by making dividend and interest payments and retaining capital to invest in the growth of the mine.
In addition, we make significant payments to our suppliers for goods and services, both locally and nationally. The graphs below highlight some of the key socio-economic contributions we have made to Namibia over the last five years (2018 to 2022).