By Catherine Sasman
ONGWEDIVA
Public and private sector procurement of locally produced products is critical to stimulate economic growth and to empower small and medium enterprise (SME) development in the country, said Ignatius Mutilitha, Deputy Director for Small Scale and Informal Industry in the Ministry of Trade and Industry (MTI).
The ministry addressed SME entrepreneurs at the Ongwediva Trade Fair yesterday, on promoting the concept of “Made in Namibia”.
Namibia imports more than 80 percent of its goods, and from a still-to-be released Government procurement report, it was established that the Government is importing most of its products amounting to millions of dollars each year.
“We should explore all possibilities to diversify our economy and add value to local products. There are a lot of things we can do without having to rely on shebeens for an income,” he said.
Critical to the production of local products, he said, are the SMEs, which employ about 20 percent of the workforce with a contribution of 12.11 percent to the Gross National Product (GDP) in 2004.
More importantly, said Danny Meyer of SME Compete, is that the production of local goods contributes towards the development of the economy, hence the development of the country.
“We should start buying Namibian products to support the development of an enterprise culture and promote entrepreneurship,” said Meyer.
“This will help to expand the local market and create economies of scale, and help to develop local skills and expertise.”
He said it would equally make a positive contribution towards employment creation and increase revenue through taxes and VAT that in turn can be applied to develop the country’s industry.
The way to grow Namibia’s economy, said Meyer, is to buy “made in Namibia” products.
In the absence of a significant manufacturing economy in the northern regions, the area is awash with countless shebeens.
Economist Shali Amwele said the Government and in particular the MTI is concerned about the role shebeens play in the country.
He said although people’s efforts to create employment tend to turn to erecting shebeens due to a largely unskilled workforce, it is important that they adhere to the Liquor Act that came in force in December 2001. The shebeen industry, said Amwele, is threatened by practically non-existent hygiene standards and noise pollution.
Other threats, he said, are drug and alcohol abuse, HIV/AIDS, violence and crime, as well as prostitution.
Since the implementation of the Liquor Act, the ministry has visited all 13 regions in the country to inform and educate stakeholders on the implementation and procedures thereof, with very little compliance.