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Government Urged to Accelerate Manufacturing Sector Growth

Home Archived Government Urged to Accelerate Manufacturing Sector Growth

By Mbatjiua Ngavirue

WINDHOEK

The Namibia Chamber of Commerce and Industry (NCCI) seriously recommend that Namibia redouble its efforts to facilitate faster growth of the manufacturing sector, says NCCI President Inge Zaamwani.

The NCCI also called on the country to pay more attention to the tourism sector particularly with regard to funding and capacity building in tourism promotion.

Zaamwani was speaking at the launch of the NCCI’s Annual Economic Review for 2006, held last week in Windhoek.

“The review once again confirms that our economy is heavily dependent on the primary sector which can prove to be problematic if this sector was exposed to a shock of whatever nature,” she warned.

She urged the country to move very quickly and efficiently to diversify its economic activities and capitalise on its competitive advantages.

“Our manufacturing members require increased assistance from the Government in order for them to be able to compete with their competitors from across the Orange River,” she appealed.

The NCCI urged the Government to establish the Competition Commission as soon as possible to level the playing field in the market and eliminate anti-competitive practices.

She said these anti-competitive practices are experienced on a daily basis and are putting most of the NCCI’s smaller members at a disadvantage, thereby slowing the country’s growth.

From time to time, the NCCI picked up reports of foreign and locally owned businesses that did not adhere to the country’s laws.

Some of these businesses, she charged, did not even pay taxes to the government or bothered to register for VAT.

Others used tactics to avoid personnel costs through “perpetual” use of casual workers, some of whom are allegedly not even Namibian citizens.

“These are not just examples of anti-competitive practices but also a clear violation of our laws. The NCCI cannot condone such practices and therefore urges our Government to crack down on any culprits,” she asked.

The NCCI noted that Namibia lacked the skilled human resources needed to accelerate growth.

“We therefore recommends that we make it easier and faster to import skills into our economy as a short to medium-term solution, while vigorously implementing demand driven training and skills development programmes,” she urged.

Zaamwani congratulated Minister Saara Kuugongelwa-Amadhila for a “very good budget indeed”.

The NCCI further commended Kuugongelwa-Amadhila for achieving a budget surplus for a second consecutive year.

The private sector lobbying group however urged government to work hard towards strengthening revenue collection and identifying future sources of revenue.

This is in case SACU windfalls and the sale of shares are no longer available as options in the future.

The Finance Minister on her part remarked that the NCCI’s Economic Review always makes an interesting read.

“I took note of many valid points in the review and I am happy that we agree on many of the issues facing our country,” she added.

Minister of Agriculture, Dr Nickey Iyambo, who also attended the launch, was keen to correct a misstatement in the report concerning the live goat export levy.

Iyambo said that although Cabinet initially resolved to impose a 16 percent levy on the export of live goats, it later agreed to defer the levy and government has so far not implemented it.

Interviewed afterwards, he said that generally speaking the NCCI’s Annual Economic Review was very positive and set the tone for how Government and industry can work together to achieve the same objectives.