As a major employer and purchaser of goods and services, Rössing made a significant annual contribution to economic development in the Erongo Region and to Namibia at large.
Rössing’s total spend for goods and services for our operations was N$3.88 billion during 2023 (2022: N$3.42 billion).
As during the previous reporting years, most of the procurement expenditure was on Namibian-registered suppliers. Rössing’s spend with local suppliers amounted to N$2.86 billion during 2023 (2022: N$2.54 billion), accounting for 74% of our total procurement expenditure. The continued high percentage of local spend reflects the company’s confidence in procuring locally. N$487 million was spent with South African suppliers, representing 12% of our procurement expenditure, while we spent N$531 million with international suppliers, representing 14% of our total expenditure.
Rössing remains committed to supporting local suppliers, including spend on developing small and medium-sized enterprises (“SMEs”). The bulk of the Namibian spend remains in the Erongo (41%) and Khomas (50%) Regions. Spend in other regions of Namibia amounted to 9%, 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, 57% (2022: 60%) came from suppliers that confirmed majority Namibian ownership, while 86% (2022: 88%) 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$594 million (2022: N$518 million) was made in Namibia, of which 67% came from suppliers with majority Namibian ownership, while 80% were from suppliers that employ 75% or more Namibians in their workforce.
During the reporting period, we purchased N$140 million (2022: N$110 million) worth of goods and services from previously disadvantaged Namibians and local SMEs.
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 by 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 tables and graphs below highlight some of the key socio-economic contributions we have made to Namibia over the last five years, 2019 to 2023.
