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Home / Opinion - MIT should not invest in unstable countries

Opinion - MIT should not invest in unstable countries

2023-02-21  Correspondent

Opinion - MIT should not invest in unstable countries

Seth !Nowaseb

It makes no sense for the Ministry of Industrialisation and Trade to invest taxpayers’ hard-earned money to construct trade and industrial estates in the Democratic Republic of Congo and the Republic of Congo. 

Namibian start-ups as well as several established companies struggle on a daily basis to access spaces to set up shop in Windhoek and elsewhere because of a lack of industrial parks (estates) and/or high rental costs. 

It is shocking to hear that the ministry wishes to set up industrial estates for business opportunities in foreign countries when there is so much need for such initiatives locally.

There may well be valid reasons for wanting to use donated land to create what looks like opportunities for Namibian products in those countries. 

However, concentrating on wanting to develop land in foreign countries cannot be a priority when local businesses are struggling because there are no similar spaces in Namibia. If such money is available, would it not be prudent to invest the funds in constructing similar estates in Windhoek, Walvis Bay, Keetmanshoop, Gobabis and Ondangwa, before funds are taken abroad?

The two countries in question are known for political and economic upheavals and constant conflicts, which would compromise any would-be business run by foreigners who have no understanding of the dynamics there. 

Who says that some strongman armed to the teeth is not going to claim the land that was serviced with Namibia’s taxpayers’ money, with us having no power or authority to do something about it? 

Many of us know that the ongoing political conflicts and turf wars between various warlords are certainly not ideal environments to invest one’s hard-earned cash. Furthermore, no guarantee is provided that such a risky venture will provide a return on investment soon.

Instead, the money earmarked for the construction of industrial parks in those countries could be better used to provide start-up capital plus places for doing business for hard-pressed Namibian businesses and start-ups. 

By building an industrial park with a specific focus on manufacturing, in any of the major cities and towns, Namibia will encourage industrialisation and growth at home initiatives. 

These initiatives will, in turn, provide products to be consumed at home, with excess products being sold to the markets in neighbouring countries such as Angola, Botswana, Zambia and Zimbabwe, such are close enough to address any logistic, business and other challenges. Since most of these markets are within easy reach, Namibian products can be sold there on a trial basis to understand demand, learn about the business culture, and calculate any return on investment in SADC countries.

With the instability and chaos that is the hallmark of the countries that are targeted, it looks like Namibia’s investment could end up with taxpayers’ money being poured down the drain.  

One has to ask the following questions to understand the rationale of the ministry’s strategy: when was a similar project tried in the local SADC markets? What type of research was done to inform the decision to embark on this project? What type of projections are being considered in terms of return on investment in wanting to place taxpayers’ money in such an unstable environment? 

What is going to happen to Namibia’s investment, if war reaches the town where the envisaged industrial estate is? What guarantees does the ministry have to ensure the return of funds generated, considering the volatility of those countries? 

What safety measures will be in place to protect Namibian businesses that set up shop in those places, should things go wrong?

Namibian taxpayers’ money should be used to provide job opportunities locally, industrial working spaces, add value locally, and industrialise locally, in the first instance. 

The fact that a piece of land is donated is not a valid reason to put Namibian people in harm’s way (in war zones), and/or invest our hard-earned money elsewhere when MIT can do the same thing locally. 

It is a well-known fact that charity begins at home. 

With that in mind, the ministry will be well-advised to first try to implement the strategy of constructing industrial estates in Namibia, by investing Namibian resources locally, building capacity, adding value, accessing markets (Pupkewitz Megabuild, Pick & Pay, Spar, Woerman & Brock, etc.) locally, and to make products locally for sale at home and in stable SADC countries abroad, before investing Namibian money in unstable, dangerous countries elsewhere. If Namibia wants access to markets in different African countries, that can be done from Namibia in the first instance, before wasting local money in war zones.

 

* Seth !Nowaseb is a pharmaceutical manufacturing teacher. He is interested in working with local business start-ups to find space to set up shop and add value locally. He can be contacted at: spnowaseb@yahoo.com


2023-02-21  Correspondent

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