By Emma Kakololo
WINDHOEK
South African President, Thabo Mbeki, will arrive today to co-chair the International Investment Conference. South Africa is Namibia’s largest trading partner.
Mbeki and Namibia’s President Hifikepunye Pohamba are to co-chair the two-day conference, which starts tomorrow at the Windhoek Country Club Resort and Casino with the aim to attract foreign direct investment to the country.
Namibia, a former South African colony, is heavily economically dependent on South Africa. Almost all consumables and machinery have to be imported from South Africa.
In addition, Namibia’s currency is linked to the South African rand (1:1), and Namibia has to follow the high-interest strategy of the South African Reserve Bank.
According to the International Monetary Fund (IMF) the relatively large economic size of South Africa and its growing linkages with other African economies suggest that South African economic growth could have a significant influence on the rest of Africa if only those countries could expand their export volumes to that country.
Currently, direct impact of net exports to South Africa represents only part of the overall impact of South African growth on growth in other countries.
In particular, even if they run bilateral deficits, countries may benefit from trade with South Africa as a result of factors such as greater efficiency, economies of scale, and technological gains associated with such trade.
Also, according to the IMF, the effects of South African economic growth are likely to extend beyond just the trade effect, including through such channels as economic sentiment and financial linkages.
At a press conference recently, Minister of Trade and Industry, Immanuel Ngatjizeko, could not agree more and emphasised the importance of the conference as an essential marketing tool for Namibia as “a premier business investment destination”.
“Apart from the plenary phase, the conference will also feature a business-to-business matching component, aimed at securing investors for identified projects in key sectors such as agri-business, aquaculture, energy, transport and infrastructure, IT and telecommunications, manufacturing, mining and minerals, tourism and services,” said Ngatjizeko.
According to Liza Kanji, Operations and Retail Manager Investec Asset Management Namibia, in keeping with the spirit of the SADC and Common Monetary Area, which requires the more developed members to help the smaller economies, Mbeki’s presence at the conference underlines the commitment South Africa has in helping to develop regional economies.
“The conference will afford Namibia an opportunity to showcase its merits as an investment destination and for Namibian businesses, in particular, to find a match for their investment initiative. We as Investec Asset Management Namibia are honoured to be associated with such an exciting initiative.”
Minister of Foreign Affairs, Dr Nkosazana Dlamini-Zuma, Minister of Trade and Industry, Mandisi Mpahlwa, Minister of Public Enterprises, Alex Erwin, Minister of Home Affairs, Nosiviwe Mapsisa-Nqakula, Minister of Minerals and Energy, Buyelwa Sonjica, Minister of Agriculture and Land Affairs, Lulu Xingwana, and Deputy Minister of Environment and Tourism, Rejoice Mabudafhasi, will accompany Mbeki.
During his visit Mbeki will hold a closed door meeting with President Pohamba at State House as well as sign agreements and hand over birth, death and marriage records of Namibian nationals held by the government of South Africa.
President Mbeki is also expected to address a joint session of Parliament, lay a wreath at the Heroes’ Acre and meet Dr Sam Nujoma, Founding Father of the Namibian Nation.