Page 24 - Gondwana Value Creation Report 2020

GROWING OUR VALUE A MESSAGE FROM We also maintained our community investments. We do not The Board’s role in the crisis Looking forward

consider them luxury expenses based on our profits, we consider
Our key focus areas were to
Our key dependencies going forward will remain the same as in
them our responsibility – Namibia needs us, especially in a year
such as this one. This uncompromising attitude extended to all
2020. Our budget for 2021 is very conservative, with a positive
ensure Gondwana’s survival,
trend from April 2021 onwards.
of our governance behaviours.
STEVE GALLOWAY
No one could have predicted the pandemic and its economic
such as the global financial crisis in 2008, and if we can do so in
destruction, which is all the more reason for us to be proud of
preparing for recovery.
management’s cash management and revenue protection. We
one or two years, we will have a remarkable story to tell.
protected Gondwana’s future. while protecting our people and Historically, businesses bounced back within four years of crises
Unfortunately, we cannot be certain what our operating
Governance remains intact We were largely preoccupied with industry fallout, as many of our environment will look like. New waves and strains of the virus
suppliers and the airlines suffered their own crises. We realised the
Gondwana is a family that The King Report on Corporate Governance for South Africa, need and opportunity to become a bigger player in our industry, might bring further restrictions. We are considering options on
TM
how to diversify our products and locations to better withstand
as there were likely to be gaps to fill once the economy reopened
2
cherishes every employee. 2020 2016 (King IV) provides a formal framework for holistic value in earnest. To this end, we need to strengthen our national and potential risks.
creation. It was an easy fit for our business, as it focuses on
We are in a good position for the longer term as well. While we
regional partnerships to prepare for any further possible waves of
outcomes rather than compliance.
truly tested our principles, We have always prided ourselves Covid-19 infections. are likely to recover, it is not enough to be the only company
that does. We will engage with government to assist the whole
We refused to retrench any employee, which meant that we
and I am proud to say we on good governance because needed to find other avenues to save money, including salary cuts. industry to find its feet again. We also need to focus on social
programmes and bodies set up to protect our communities
Shareholders supported us at the annual general meeting (AGM)
never lost sight of them, our it is the right thing to do, not where we notified them that we would withhold a dividend. alongside other corporates. We will be a stronger national
player with more participation in our value chain. We will work
towards furthering Namibia’s role as a destination, building on
employees or our communities. because it is prescribed – good We remain focused on environmental, social and governance the country’s status as a Covid-19-resistant destination.
matters, and we believe that the social aspect is now more
governance is in our DNA. important than ever. More than 120 000 gainfully employed Thank you
Namibians stood to lose their jobs. Gondwana kept its head above
We have become a more active national player, and we embrace our water, and as such, we were able to help vulnerable Namibians do
new role as a moral and fiscal example of how businesses can be run. Our approach to governance is aligned to King IV’s four primary the same. As an inherently Namibian corporate citizen, it is our Our resilience this year was no small feat, and we owe it to each of
our internal and external stakeholders. I’d like to thank each of you
governance principles: ethical culture, good performance, duty to uplift our countrymen. for your role in our 2020 story:
The road had been difficult effective control and legitimacy, as outlined in the governance
report (page 87). King IV approaches value holistically in terms Moving towards a listing ○ Management navigated the company’s path to survival without
Even before the Covid-19 pandemic swept the world, Namibia of six capitals of value, being financial, manufactured, human, sacrificing our DNA. It led by example, and its selflessness was
struggled with a range of difficulties. A prolonged drought, intellectual, natural, and social and relationship capital. While our While 2020 was a setback, we continue putting everything in felt throughout Gondwana.
consecutive recessionary years and corruption scandals created a financial capital has been devastated this year, the other capitals place to position us to list if it would be a prudent move. We aim
challenging environment for business while lowering confidence in were not our first port of call for sacrifice in response. to ensure that our business case gives investors comfort that we ○ My fellow Board members supported and trusted management
public and private enterprises. are an attractive stock option even if there are further shocks to and constantly engaged all levels of government on a
As a Board, we were historically actively involved with operational the market. Our resilience to Covid-19 is a good example. sustainable and reasonable approach to tourism throughout
The pandemic itself could not have come at a worse time for matters but, with the establishment of our three committees the ongoing pandemic.
Gondwana – Namibia’s lockdown shut down our business just as in 2019, we were able to become fully focused on strategy. The Our DNA is our major ○ Our shareholders and funders were incredibly understanding
tourism entered its high season. In effect, this lockdown left us with audit, risk and opportunity committee, in particular, came into its of our situation, and have faith that we will bounce back. Your
our loss-making months while robbing us of the profitable ones. own during the 2020 crisis. It recognised the value of data and investment story. It defines our backing is essential to our sustainability.
Government promised to reopen the economy in July, August and information for the Fourth Industrial Revolution, which led us to ○ Our employees proved their loyalty and dedication to our
September. Each time, we took bookings and organised to restart focus on IT and appoint a Chief Information Officer. values, strategy and the way we brand. You have been brave in an uncertain year, and I am
our business, but on each of these occasions these freedoms were We have taken on a stronger advocacy role, beyond being the treat people. sincerely grateful for your contributions.
retracted or new restrictions were imposed. By the time government governing body of Gondwana. We are able to represent the ○ Government listened to us and began taking our voice into
and the private sector were aligned on how to responsibly manage industry to government. We felt that Namibia’s few cases of account in its decision-making around regulations. Thank
tourism, European countries’ own guidance to their citizens Covid-19 did not justify the severe restrictions that caused such By adopting King IV and inculcating it throughout our business, you for trusting us to manage and apply protocols for safely
prevented much of the business we would have had. serious harm to so many Namibians – a concern which our we are set to formally list. It allows us to apply its principles and reopening the sector.
Despite all this hardship, we were the only company in our sector Managing Director, Gys Joubert, publicly raised. While this might recommended practices proportionally, as appropriate for our
company and sector. We will apply the code, and, where necessary,
that did not retrench a single employee. This attitude created a be beyond our scope, and while it is never comfortable to have the Corporate Governance Code for Namibia (NamCode) principles
surge of loyalty among our people, and they universally bought in this kind of conversation, we believe it is our duty to raise our for listing on the Namibian Stock Exchange (NSX).
to voluntary 25% salary reductions from October, even going so voice when the stakes are this high.
far as to call it unfair that executive management was taking 40% We have already engaged in a Bond Programme (see page 35) in
salary cuts . 1 preparation for listing. Steve Galloway
Chairperson

22 VALUE CREATION REPORT 2020 1 With the 12% benefit cuts that executive management took from April 2020, its overall salary reduction was in excess of 50%. GONDWANA COLLECTION NAMIBIA 23
2 Copyright and trademarks are owned by the Institute of Directors in South Africa NPC and all of its rights are reserved.