By Twiihendeni Israel
ETUNDA – The new trade mantra launched some few months ago by the Ministry of Trade and Industry is indeed a good initiative for the country, as far as national objectives such as the 4th National Development Plan (NDP4), which recognises that the private sector is the engine of the economy and an epicentre for job creation.
Seventeen years before the country attains its overall national goal Vision 2030, I personally believe that government development programmes such as the above serve as stepping stones for all relevant stakeholders to make sure that government is met half way to ensure full implementation of its initiatives, especially those aimed at accelerating economic growth. According to the recent World Bank report, Namibian economic growth has not generated jobs as the structure of economic production and trade has remained essentially unchanged. According to my own analysis of the World Bank report, our country is an exporter of raw materials and our economy experiences jobless growth, where the unemployment rate, abject poverty and the gap between rich and poor continues to widen. Having said the above, this opinion piece is an in-depth analysis of the recent article that appeared in The Namibia Newspaper of 03 September 2013, under the heading ‘Black Diamonds’ departure for Copenhangen.
The main content of the article was the consignment of 55099 Swakara pelts to Copenhangen, in Denmark to be auctioned and which is estimated to be worth N$39 million. In his book: How Rich Countries Got Rich …Why poor country stay poor? Erik Reinert, argued that between raw materials and the finished products, there is industrial knowledge that implies the application of science and technology. What Reinert tried to argue or emphasise is the fact that when exporting raw materials, a country is exporting employment by creating jobs and wealth in importing countries and other multipliers that go hand in hand with exporting raw materials. I personal believe that we cannot achieve ‘growth at home’ and the required economic growth by being primarily an exporter of raw materials and an importer of finished consumer goods. Therefore, ‘growth at home’ will not be exploited to its full potential if all players in all sectors of the Namibian economy do not come on board on the country’s journey towards achieving real ‘growth at home’. A ban on all raw materials for export that do not add value to resources, such as the Swakara products and others should be introduced so that goods are manufactured in our country. We need to attract the best foreign direct investment that will help us to add value and manufacture goods that will accelerate or sustain economic growth, thereby creating employment opportunities and wealth for the country. Furthermore, economic history records that no country has ever developed without a manufacturing industry.
Aspiring manufacturers should be encouraged with the necessary incentives to support their initiatives that are tailor-made to boost mass production. Despite the fact that there are several incentives in place to stimulate and encourage manufacturing in Namibia, I personal believe that more needs to be done. For example the time it takes for the equipment aid to small and medium size enterprises (SME’s) to reach the beneficiaries is a worry, because it takes too long before it reaches the beneficiaries. My suggestion is that a fund should be created to assist aspiring manufacturers to acquire manufacturing equipment and special training opportunities that are crucial for manufacturing and processing. Government should continually pump more money in the manufacturing and processing sectors, especially in value addition of raw materials to encourage students to enrol in these fields of study. Also, government should strengthen its procurement policy as this will encourage and motivate local industries to produce more for the domestic and export markets. Finally, I would like to call upon research institutions and other stakeholders to work together with government to ensure the flourishing of the manufacturing sector. I believe our country is heading in the right direction, all we need as countrymen and women is to together as a team striving to achieve common goals and objectives.
Views and opinion are expressed in my own capacity and aimed at contributing towards the realisation of our national objectives, such as the 4th National Development Plan (NDP4) and Vision 2030.
Twiihendeni Israel, a member of the Swapo Party Youth League (SPYL) Central Committee, Leader of SPYL assigned to the //Karas Region, is also a farmer based at the Etunda Irrigation Scheme in the Omusati Region. Can be reached at e-mail: oshimana.plants2030@yahoo.com