David Junias
Industrialisation as a key economic indicator reminds Namibia that economic independence and excessive dwelling in primary industries slow it down.
Emerging in tertiary industries fuels economic development.
The lack of manufacturing industries in developing economies triggers importing routines.
Developed economies delight in the competitive advantage of owning one-third of tertiary industries in the global village.
Corporate subtle dark tricks such as not teaching clients how to perform services that they seek. Clients stop transactions with businesses when they can perform services for themselves.
Industrialising economies need to build indigenous secondary industries, to deter the local plight of high-priced imported goods.
Developing economies take importing for granted. They have the mindset that, products that cannot be produced locally, will be imported. There is a need for import substitution with local industrialisation.
Namibia’s economic independence is my battle. I am advocating for mindset shifts in society to realise local manufacturing benefits such as minimised import routines.
Last year, I wrote a piece titled, ‘Liberating Namibia from economic dependence’. The piece was influenced by chaos and upheaval in South Africa sparked by events surrounding former president Jacob Zuma.
At the time, Namibians feared the economic impact it could have here. The same fear is still emerging in Namibia for the economic impacts of the Russia-Ukrainian conflict, such as the likability of oil prices increasing.
Economies can remain unshaken from external disruptions when there is minimal economic dependability between markets. Emerging global online transactions discourage industrialisation.
Online ordering is just a devious terminology for importation. Normally it is the state that imports. But now individuals are importing too, or in other words, ordering online.
Indigenous manufacturing then declines. Individuals recourse to ordering online because some valuable products are not within reach locally.
Online buying means inclusive importation of both the state and citizens. Namibia has longer arms that always reach developed markets to import. Taller trees catch a lot of wind.
Our economy spends fortunes due to its import routines.
Countries like South Korea industrialised using their comparative advantage of technology and design.
In 2016, a piece, titled ‘Why has Africa failed to industrialise’ by Masimba Tafirenyika, outlined that African countries such as Ethiopia, Rwanda, and Tanzania are gradually showing progress in industrialising.
The common thread among them is that they have embraced policies that target and favour their manufacturing industries.
There are policies encouraging industrialisation in Namibia too such as the recent introduction of the public sector innovation policy in 2020.
At least supporting innovation, aids the development of industries, and as well converting Small and Medium Enterprises (SMEs) into corporates and industries.
The Harambee Prosperity Plan two (HPP2), had also retained the economic advancement pillar. However, it does not pro-actively encourage industrialisation.
Industrialisation should be the basis of economic development to employ more despondent youths. Namibia has extensive comparative advantages in raw minerals, fish and beef.
The Namibian population is small too, hence manageable. However, still lack secondary manufacturing industries to create value and capitalise on our blessings.
Namibia’s comparative advantage is a blessing in disguise at the moment when lacking secondary industries.
David Junias holds an honours degree in business management from Nust. He is currently a member of Global Links and Consulting CC.
– davidjunias@gmail.com