Namibia: Africa’s economic gateway
With vast experience in deploying soft power and in fostering trade, Namibia’s strategic position affords international investors intelligent access to markets within the Southern African Development Community (SADC)
Blending impressive transparency with enviable political and social stability, Namibia is often described as ‘Africa’s Optimist’, with the ambitious republic’s geo-strategic position offering international investors intelligent access to many markets in southern Africa and beyond.
Since independence almost 30 years ago, Namibia has enjoyed impressive socioeconomic growth compared to some of its larger peers on the continent, and is a proud and forward-looking nation that deeply values a partnership approach to economic cooperation.
President Dr. Hage G. Geingob is the vastly experienced and pro-business politician guiding this remarkable journey to economic prosperity. With the help of foreign investors and enterprises active in various sectors, his administration is striving to achieve a comprehensive development strategy that sees the private sector as the key catalyst for growth.
“On the southern tip of the continent, with a well-developed harbor at Walvis Bay, and a long coastline, we serve as a connection for landlocked countries, availing a route to the coast to facilitate their exports and imports,” President Geingob states.
The highly-respected statesman describes Namibia as a springboard and service centre for neighbors Zimbabwe, Botswana, Zambia, along with Angola. As a member of SADC—OF which President Geingob is Chairman— and SACU (Southern African Customs Union), his country is certainly ideally placed to become the destination of choice for leading investors.
Guiding the ambitious socioeconomic development strategy is the Harambee Prosperity Plan (HPP): a comprehensive blueprint for change designed by President Geingob himself. The HPP supports vital national initiatives like Vision 2030 and NDP5 (National Development Plan 5).
Spearheading efforts to increase industrialization and boost prosperity is the manufacturing sector, with the industry identified as pivotal for sustained growth, employment, income inequality, and poverty reduction.
Ambitious economic development plans given green light to growth
With foreign investors and enterprises offered a range of incentives to establish operations in Namibia, it was no surprise to see automobile giant Peugeot Opel launch a modern assembly plant at Walvis Bay late last year.
During the official opening ceremony, President Geingob said the $14 million facility boosted Namibia’s national development aspirations and signified to the international community the country’s intent to become a premier destinations for foreign direct investment (FDI) in Africa.
“This is a significant event for the development of the Erongo region, most notably for Walvis Bay,” he said. “We have intensified efforts to promote local value addition and the strengthening of forward and backward linkages within the Namibian economy.”
As part of HPP and NDP5, certain business targets have been set by the government, including becoming more competitive and creating an environment that is more conducive to conducting business. “In reports that rate countries on ease of doing business, competitiveness, institutional stability, corruption and so on, Namibia is rated pretty high compared with other African countries and in some instances, we are even above the global average,” says Minister of Finance, Calle Schlettwein.
“The public sector can create an environment that is more competitive for business, but we must also look at how we engage the private sector, how we have partnerships with the private sector not only through dialogue, but real partnerships that bring about a gain in efficiency.”
Vast mineral wealth offers investors access to buried treasures
Traditionally, Namibia has been heavily dependent on the extraction and processing of rare minerals for export. The recent slowdown in the global mining sector has prompted the government to target increased FDI in other key sectors, such as the tourism and hospitality industry.
Officials are particularly eager to focus on industrial and manufacturing activities that add value to raw materials domestically, rather than falling into the trap of exporting precious minerals and natural resources and then having to buy them back at a higher price in finished form.
“Value addition is the key,” continues President Geingob. “Africa’s problem is things go out in their raw form. If you go to the port, you will see big stones such as marble heading to Italy. They cut and polish it there and then
“Namibia is ready for business and looks forward to entering into win-win partnerships with all prospective investors. I welcome you to this gem which is truly worth discovering.” Hage G. Geingob, President of the Republic of Namibia
send it back to us at higher prices. We are open to the mining of diamonds and the resources we have in order to create jobs here, and push for transfer of technology for domestic value addition.”
Namibia welcomes FDI across its economic and social spheres, with the country’s Minister of Public Enterprises, Leon Jooste, highlighting opportunities in infrastructure development, particularly energy, and openings in mining, agriculture, and tourism, among others.
“Our mobile telecommunications company MTC, is a cash cow, we had an annual return on assets of 48 percent—it’s really printing money,” he says. “Nampower, our power utility, is doing well, as is our port authority Namport. The Development Bank of Namibia is regarded as a state-owned enterprise and is doing extremely well. These are wonderful success stories that can be attributed to the quality of people and corporate governance.” Safaris in sun-soaked savannahs promise adventures of a lifetime Second only to mining in terms of foreign revenue generated, the Namibian tourism and hospitality sector offers tremendous potential, with the industry projected to be a major part of future economic development.
Namibia’s vast array of natural resources include some of the best game parks in the world, and the country has many game lodges, including those offering five-star accommodation right on the doorstep of stunning savannahs. Ecotourism is becoming big business and the environmentally aware country is enjoying an uptick in international visitors wishing to enjoy small-scale and boutique tourism offerings and activities.
Supporting this drive to increase tourism numbers and broaden the tourism product offering, international airlines are expanding route networks to include more flights to airports at Windhoek and Walvis Bay.
In addition, flag carrier Air Namibia flies to Ghana and Nigeria, opening up to Africa so more Africans can experience and enjoy its colorful history and wonderful natural and cultural assets.
“Namibia is where the sea meets the desert, it’s unique: open spaces and peace and safety where you have facilities, and roads you can drive yourself. If you come from a big city, you want peace and open spaces,” President Geingob says.
Turning his attention to Namibia’s fortunate strategic position and the development of fast and efficient logistics networks and operations for various transport modes, the country’s leader adds: “Our harbor is being extended and we will commission it this year, as well as a new container terminal.
“It’s a world class harbor connecting landlocked countries, but making them sea-linked by offering them a dry port. Zambia,
Botswana and Zimbabwe have dry ports, and these countries are connected with our excellent road infrastructure.
“The phase we are focusing on now is rail connectivity, linking the coast to the near northern region of the country.
“Meanwhile, our banking system is one of the best and we rank about 40th in the world. So our banking system is foolproof. What more does an investor need to succeed? We have laws that protect you, and we provide peace and stability.”
Clearly, FDI is extremely welcome in Namibia, as are major new infrastructure projects, although President Geingob emphasizes such significant investments must be on Namibian terms.
With countries from several continents already reliant on their goods and services, officials confirm they are in a strong position to cherry pick the best partners. “Since China became so active on the continent, many countries say Africa is being recolonized and that China is using loans to capture Africa. But when they come to Namibia, Chinese investors as well as investors from elsewhere, must come on our terms,” President Geingob underlines.
“If China offers us $60 billion of FDI, why doesn’t someone else come and offer $70 billion so we can choose? Namibia is a credit worthy country. We have access to cheaper loans and rates that suit our purposes.”
“Namibia is a country that offers both beauty and abundance. We have opened the doors to investors, and whoever comes in, appreciates they are welcome to embrace a partnership approach to growth and prosperity.” Hage G. Geingob, President of the Republic of Namibia