WINDHOEK – Great concern about the declining growth in agriculture was expressed by Minister of Trade and Industry, Calle Schlettwein, yesterday when speaking at the opening of the second Namibian Agricultural Outlook Conference in Windhoek.
“It worries me that the growth in agriculture between 2002 and 2011 was merely 1.4 percent per annum while the national economy grew by 4.6 percent in the corresponding period. For a sector that underpins the livelihood of 70 percent of the population this trend must be cause for concern. Overall contribution to Gross Domestic Product (GDP) dropped from about 7.4 percent in 1980 to just 3.2 percent in 2013 while for the same period the GDP contribution from manufacturing increased from 8.4 percent to 12.1 percent,” he noted.
Addressing the topic of Growth at Home – expectations of the agricultural sector to achieve the objectives of the industrialisation policy – Schlettwein said very few countries managed to industrialise without a strong agricultural base. “This worries me as minister responsible for industrialisation, that our agricultural base seems to be shrinking,” said Schlettwein.
Stressing the importance that the outcome of the conference should encourage major players in the sector to invest more in value addition, Schlettwein said the trade ministry, in consultation with key stakeholders, has developed the Namibia Industrial Policy, which is aimed at achieving Vision 2030. “Hence we adopted a ‘Growth at Home Strategy’ with emphasis on reinforcing the importance of accelerating economic growth, reducing income inequality and creating employment. Value addition and creating value chains are the key priorities,” he stressed.
He said reliance on primary production and exports of raw materials is unsustainable as it entails huge forgone economic gains and income through the lack of value addition, the exportation of jobs to countries where value is added, and the exposure of risks due to the dependence on exhaustible commodities and fluctuations in demand and prices.
“Namibia is endowed with significant human and natural resources that can be used to advance industrialisation and structural economic transformation through value addition strategies in all sectors, but particular in agriculture and agro-processing, fish processing and in mining and mineral beneficiation.”
Schlettwein stressed the importance of identifying all constraints and finding solutions and providing targeted support to the private sector to rise up to the challenges, complimenting private sector investment.
He emphasised the importance of infant industry protection and import restrictions, saying agro-processing industries in Namibia have greatly benefitted through this intervention by Government.
“Although Namibia has been one of the more stable economies in Africa, its ballooning import bill could in the long-term pose a major threat to Government expenditure. Namibia could double its manufacturing output from six percent per annum and reduce its rising import bill by ten percent if focus is put on growing secondary and tertiary industries to,” Schlettwein added.
Touching on the ever-increasing uncertainty regarding livestock exports to SA on the hoof, Schlettwein said Government will reinstate the 30 percent export levy on the slaughter ready cattle in order to discourage exports of live cattle. This should therefore create employment at home through value addition of Namibian products and should ensure beneficiation by developing downstream industries.
“We have gone through highly intensive and sometimes worrying negotiations for market access to the EU, but we have reached agreement for market access with the Russian Federation concerning exports of beef, China concerning beef and fish, and we are continuing to pursue access into the USA for all red meat products in addition to the fish and table grapes that we already export there. Considerable progress has also been made in the free trade area negotiations amongst 26 African states,” concluded Schlettwein.