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Team Namibia Newsletter - August 2019

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Team Namibia Newsletter - August 2019 J U N E 2 0 1 9 TEAM NAMIBIA NEWS LETTER AUGUST/SEPTEMBER 2019 TTHEE TRAUE NAMMIBIA N T- A cAompilLatioKn of n ewNs seleEctedW for youS by TLeamE NamTibiaT ER President Dr Hage Geingob further stated that Namibia is a country governed by the rule of law and the right to private property is guaranteed by Namibia's constitution. At the moment, both domestic and international investors may, by law, acquire land in the municipal areas, either through outright purchase, rent or leasehold agreement. "I have no doubt that with this Economic Growth Summit; we are rising again, crafting a better tomorrow, today. Together, we are starting a beautiful journey of creating a Members of the HLPNE with H.E. President Dr. Hage Geingob confident and brighter future of inclusive prosperity for our nation”,Geingob stated. ECONOMIC GROWTH SUMMIT SEEKS (Source:http://www.economicsummit.com.na/#objectives INVESTMENT According to Johanes Gawaxab, the chairperson of the The summit, ran from 31 July to 1 August 2019, is the first of High-level Panel on the Namibian Economy, Namibia its kind in the country, where the private sector held hands secured pledges worth about N$20 billion from various to grow and revive the dead sectors of the economy with the businesses at the economic summit that was held in major aim of creating jobs. Windhoek to help grow the struggling economy. The private-led summit had sought for U$1 billion in The summit is the brainchild of the High-Level Panel on the Namibian Economy (HLPNE) - appointed by President Hage investments to boost economic growth over the years, but Geingob earlier this year, which includes academics and managed to raise U$1,4 billion (N$20 billion), 40% more private sector executives - to assist with the revival of the than the target. Gawaxab said additional pledges were economy, and raise made tallying to about N$46 billion in total pledges and investments of about N$14 billion in Namibia. “We had a commitments. budget of N$3, 5 million for the summit, but have received (Source:https://www.namibian.com.na/81382/read/Economi pledges of about N$4 million,” said chairperson of the panel, c-summit-pledges-hit-N$4m.little Johannes Gawaxab. The President expressed his sincere gratitude and appreciation to all stakeholders for gracing the milestone event. “We are gathered here as leaders, investors, experts and bureaucrats, to exchange views and ideas on Namibia’s response to the economic headwinds, as we forge a path WHAT'S INSIDE THIS ISSUE: towards recovery and growth,” said president of Namibia, H.E. Dr. Hage Geingob. 1- Economic growth summit seeks investment 1 - Businesses pledges N$20 billion As a precursor to the summit, the High-level Panel on the 2- Support local despite price Namibian Economy worked tirelessly to identify initial policy 3- Namibia is the right destination and regulatory bottlenecks that are prohibiting Namibia's 3- Geingob inaugurates container terminal economy from progressing at the desired pace of 4-Local procurement directive development. The panel made several subsequent 4-Pushing for increased fish consumption recommendations to assist policymakers to turnaround the 4-GIPF commences campaign to educate members current economic situation. Of the several recommendations 5 -Team Namibia donor event tabled, six (6) key issues emerged, namely: 6-8 Team Namibia Members News 9- Etosha excels at gender inclusivity The National Equitable Economic Empowerment Bill 10- SunCylces win National Globe Award Namibia (NEEEB); 11 Penduka Trust The Namibia Investment Promotion Act of 2016 (NIPA); 12 -Pupkewitz Foundation Central Procurement Board of Namibia; Loan-to-Value Regulations; Domestic Savings Application; and VISA regulations. 1 TEAM NAMIBIA NEWSLETTER - AUGUST 2019 SUPPORT LOCAL DESPITE PRICE Even though Team Namibia encourages consumers, It's important that Namibians have an understanding of the businesses and government authorities to buy and procure main reason why local products and services are more local to support local manufacturers, producers and service expensive. In case, where Namibia is not price-competitive, providers, it also recognises that consumers and it often can be attributed to high input costs, but also institutional buyers often use the argument that some local mostly to the disadvantage of operating in a minute market, products and services are too expensive and not price- as well as unfair practices by foreign competitors. competitive. However, it is important to consider that Namibian With a small population of only 2.4 million and not enough businesses have to contend with small markets and people buying local, the domestic demand is not sufficient therefore are disadvantaged due to low economies of to achieve benefits of economies of scale, and save on scale. Equally, Namibian producers are also faced with very production cost. If one were to consider the size of the high input costs. This calls for conscious and deliberate populations of 56.7 million in neighbouring South Africa support by all Namibians. It also requires industry and related economic benefits, it explains it why South protection initiatives, in order to effectively compete and to African products find their way into the Namibian market address unfair practices, which allow cheaper alternatives – and compete with Namibian products. products or services -being imported to Namibia. Whilst recognising the need to maintain a balance between The need for the support by all players in our economy - protecting or opening up a market, it is critical that one from the consumer to the procurer of public and private considers the opportunity costs for all, if local producers, sector entities therefore remains critical. Special protective manufacturers and suppliers were not to be supported. measures by the government are also needed, to support respective Namibian industries in order for them to Most patriotic Namibians are likely to support local compete on a level playing field and to survive. businesses, unless they are faced with severe financial constraints and therefore influenced by price Naturally, market size is important, it therefore remains considerations. This is despite the fact that there is a wide critical that despite the need for protection in respective range of quality Namibian products and services that Namibian industries, Namibia remains conscious of the Namibian buyers can choose from. opportunities of the regional and international markets, which require Namibia to maintain a balance between Bärbel Kirchner, account director of Team Namibia says: protectionism and the liberalisation of trade in goods and “Authorities should support Namibian businesses, whether services. we are talking about the supply of locally manufactured uniforms, construction services, or local food and Buying locally can contribute greatly to the community or beverages. Namibia has also professional printing services, country at large. Namibians and institutional buyers, IT services, marketing, advertising and research services, as including government authorities can have a positive well as training services and of course this is not limited to impact. that”. TEAM NAMIBIA NEWSLETTER -August/September 2019 3 ‘NAMIBIA IS THE RIGHT DESTINATION TO VENTURE INTO Geingob inaugurates container terminal BUSINESS’ – TWEYA Accompanying him at the inauguration ceremony held on the 40- hectare platform reclaimed from the Atlantic The Minister of Industrialisation, Trade Namibia is the right destination to Ocean was former president Hifikepunye and SME Development, Tjekero Tweya venture into business,” he added. Pohamba, who officiated at the said that the country is the right groundbreaking ceremony of the destination to venture into business Tweya said that the forum offered great terminal in May 2014. and for new investment, more potential for local businesses to tap and pertinently from foreign investors. extract experience and expertise from Chinese businesses which will come-in The terminal not only increases Minister Tweya said this when he quite handy when the African Namport's assets to N$7,6 billion, addressed a visiting Chinese Continental Free Trade Area is in full according to Namport director Nangula delegation, who was in the country swing. Hamunyela, but it also launches the exploring and seeking investment company's goal to become a logistics opportunities. Tweya added that for trade or hub for the southern African region, as investment relations to flourish well as become a development engine The forum was attended by a number of between the two nations, a reciprocal for the national economy. local business people, who had the approach is needed, ideally a trade opportunity to engage their Chinese relationship whereby if Namibia buys According to Chinese ambassador to counterparts and discuss different from China, Namibia must also sell to Namibia Zhang Yiming. China Harbour areas of investments which include the China. Engineering Company's vice president construction, energy, infrastructure, Li Ye said his company, which was education, tourism, agriculture,tourism, Namibian Investment Centre Director, tasked with the construction of the terminal with the help of about 2 000 manufacturing and mining sectors Dolly Amoomo in a presentation to the amongst others. Namibian employees, is as proud as attendants, outlined the vast "we participated in Namibia of the opportunities that the country has, According to Tweya one of the main project.more than 100 projects in 90 highlighting the country’s advantaged focal points of his ministry is to lure countries, but this was one of the most geographic location, political stability foreign direct investments to Namibia. challenging,”he noted. and abundant mineral resources as well “We are aggressively looking for as its tourism potential. prosperous export markets for local The container terminal will double and products and services and this forum eventually treple Namport's current The delegation led by the chairperson has created an ideal platform to do so. container handling capacity of 350 000 of the China Council for Promotion of units to over a million.
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