…Needs N$300 million to turn fortunes around
The RCC board said it is confident that the Roads Contractor Company could be transformed from a historic liability to a shareholder’s investment within 3-5 years provided everyone made constructive contributions.
Board chair, Fritz Jacobs, stressed that: “RCC is a BUSINESS CASE. As opposed to how it is perceived today.”
To work towards that goal, a number of initiatives, plans and strategic efforts have to be developed and put into place, such as board governance structures, a 5-year strategic business plan and restructuring the organisation.
“In addition, we put in motion the process of modernising plant, equipment and fleet,” Jacobs said.
He said the company commenced the process of strengthening its financials, especially the balance sheet, as well as the pursuit for interim cash requirements for operational turnaround.
He also mentioned that it has identified the need to enhance the company’s human resource base in order to realign it to its new strategy.
Jacobs also elaborated on the historical challenges and added that one could not simply wish the situation away but had to face and overcome this.
To achieve the goal of a net asset base of N$900 million, Jacobs said, the organisation needed a one-off capital injection of N$300 million from its shareholder. He added that the contribution could also be split into 12 equal payments to ease fiscal strain on the government.
About N$800 million worth of projects have been awarded, while the balance of N$1.8 billion is under consideration.
Additional staff would be recruited, as revenue grows to ensure that skills are deployed in the right areas of business for sustainable company-wide performance. RCC would make a significant and positive milestone towards the achievement of Vision 2030 the Harambee Prosperity Plan, he said.