Namibia think global

NAMIBIA will have to relook at its economic policies and bring them up to date in view of globalisation and increasing international trade, where local businesses can no longer claim protection based on their nationality or origin, Deputy Trade and Industry Minster Tjekero Tweya has said.

“Globalisation will bring heightened competition and the question is whether we are ready to face this type of competition. It is increasingly a realistic assertion that Namibia cannot grow unless it is well integrated with the regional and global world,” Tweya said during the budget debate in Parliament last week.

“We have to increase our national competitiveness by exploiting our natural resources, create demand for national products and services, create supporting industries to drive the main economic sectors and to align our different strategies.” He said Namibia was endowed with abundant resources and the challenge was to harness them for the benefit of the nation, especially the youth and women. Over the past years, mining activities had increased in Namibia, particularly uranium mining, Tweya said.

“We must recognise the volatility of the international markets and the limitations of the mining sector. To grow and expand the economy further and to offset the market fluctuations, we have to diversify our economy and stimulate growth in other or related economic sectors such as mineral beneficiation or processing, agro-industry, tourism and services.

“We cannot be good in all areas and must therefore identify our niches and exploit them for maximum gain. We need to identify sectors which give us a competitive edge, instead of competing in sectors which are cornerstone industries for more advanced economies.” Attracting foreign direct investment would was important, but such investments should be in line with national policies and should benefit the country.

“There is nothing wrong to exploit natural resources in partnership with investors, but it is criminal for those entrusted with that to alienate them for individual and short-term gains,” Tweya emphasised.

He said the Trade Ministry did not yet have an explicit trade or industrial policy, but had recently commissioned “renowned experts” to help draft a national industrial development policy.

“We are also now refining our legal and regulatory framework on investment to ensure a business-friendly environment, and to protect and encourage domestic investment, while ensuring that we are globally competitive as an investment destination. We need to ensure efficient and timely services to investors including immigration and customs services,” Tweya urged. These policies were crucial for the Namibian economy, which had suffered from slow or subdued growth over the past years, he added. The causes of slow economic growth had been identified as low investment relative to domestic savings, skills gaps and lack of entrenched entrepreneurial culture, he concluded.

Credit: www.namibian.com.na