The Namibian Manufacturers Association (NMA) has condemned the decision by the government to repeal current manufacturing incentives, saying it will be a crippling blow to the industry.

In a statement on Monday, NMA said by repealing these incentives, the already struggling manufacturing sector and the economy at large would be dealt a crippling blow.
“The NMA strongly condemns this decision and requests that Government rather support the private sector, especially the manufacturing industry, in the form of incentives and thereby give them the necessary room to do business,” the statement reads.
It noted that to grow the economy and the manufacturing sector is a slow and painful process.

“It all starts with an enabling environment, which includes the necessary incentives to attract investments, however, if the political will is not there to create this enabling environment, then we are in great trouble,” NMA said.
Government Gazette No. 7249, published on 22 June 2020 informed that the “sector-specific special income incentives granted to registered manufacturers” will be phased out by the end of the 2020/2021 tax year.
“This despite the huge potential of the manufacturing sector to create jobs and thereby supporting the Namibian economy,” said NMA.

The association noted it would continue to advocate and engage with the government and all other stakeholders to maintain its efforts of raising awareness of the need to support local manufacturers, as manufacturing has a positive spill over effect to other economic sectors. – Nampa