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Opinion –  Namibian digital cross border trade blueprint

Opinion –  Namibian digital cross border trade blueprint

Initially launched in 2016 in Hangzhou China, Electronic World Trade Platform (eWTP) is a private sector-led stakeholder initiative to promote public-private collaboration and dialogue in support of inclusive global trade.

The eWTP has been working with partners to share experiences and deploy advanced technology and policy consultation in support of global trade. 

By doing so, the eWTP seeks to support small and medium enterprises all over the world to participate meaningfully in the global economy and global online trade. Learning the best practices from China is a good deed to practice for emerging developing economies that want to digitalise and leverage China’s e-commerce business models so that they can develop their cross-border trade by investing in logistics facilities and establishing sustainable public services for their people.

The dynamic comparative advantage of joining the Alibaba joint venture agreement with countries such as Rwanda and Ethiopia in Africa has enabled them to apply highly digitalised effective customs clearance processes and high overseas revenue generation, reducing the average time for cross border clearance process in both countries.

Business forums

Africa, which has already been trading with China, has the best opportunity to leverage cross-border trade through business forum initiatives such as Forum on China-Africa Cooperation (FOCAC), which is multi-lateral.

Namibia and China held their high-level bilateral business forum last year, where discussions were mainly tailored to investment, tourism and infrastructure development.

Namibia’s local business community needs to reciprocate their trade cooperations by focusing on how they can set up sustainable business solutions for the Chinese consumer market and take part in the supply value chain of all export products the country is exporting to China.

This is to ensure Namibians can introduce these products into China’s e-commerce ecosystem platforms and become business owners, thus changing the status quo and creating new frontiers of job opportunities and wealth creation in China the same way the Chinese see sustainable business opportunities in Namibia.

The World Economic Forum meeting for this year has highlighted an important need for nations to collaborate for the intelligent age, with a strong new world order coming from the Donald Trump administration. 

This is the right time for a country like Namibia to strike the iron while it is hot by using our diplomatic relations with the United States of America and China to position ourselves well for an integrated economic growth.

These business forums are all important platforms that governments should take into consideration to explore avenues of cooperation for sustainable development, especially for Africa’s free trade area project, which is gradually being implemented to achieve one economy and a free trade policy on goods and people migration.

Digital economy-related trade policies

Enabling the e-commerce initiative to take place in Namibia will provide multi-stakeholders a clearer understanding of practical global trade. 

SMEs can benefit from a series of preferential policies provided by eWTP in areas, including customs clearance, global training programmes, settlement exchanges and tax refunds.

As highlighted in a few political parties’ manifestos for the 2024 national election campaign, it is envisioned that the establishment of digital free special economic trade zones is a key strategic economic development, where small and medium-sized businesses can easily access global trade via e-commerce. 

The zones would offer straightforward regulations, lower barriers for entry into new markets and provide SMEs with easier access to financing. 

Digital free trade zones are an important milestone in cross-border trade, as they enable direct data connection with customs, making the entire process traceable and interconnected than the traditional B2B trade and logistics.

Call to action, engagement

The Namibian trade board, line ministries and the embassies need to establish an agreement, and conduct a feasibility study by setting up a business technical committee of technocrats with expertise in e-commerce and international trade to assist the government to be able to collaborate effectively with Alibaba. 

This is for the country to join the eWTP like Rwanda and Ethiopia have done. As a graduate scholar of the Namibian Presidential Revitalisation Plan in Jiangsu, China, my team and I have taken this initiative very seriously in spearheading this idea with relevant key stakeholders so that our innovative ideas can be turned into an action-based approach implementation.

Our goal is to advocate and support the development of e-commerce education, nurture skill sets that will accelerate Namibia’s vision to become also a digital hub, and foster a generation of talented and passionate young entrepreneurs who can help bring new innovations, create jobs opportunities transform the global commerce landscape in the country.

*Willy Munenguni is an Internet of Things Technician and graduate scholar of the Namibian Presidential Revitalisation Plan in Jiangsu, China.