As the world economy is facing a tough situation in 2023, with probably tougher prospects for 2024, China’s economic outlook carries global significance.
China’s modernisation stride will inject more certainty into the global economy. As Namibia’s projected economy to 3.9% expansion in 2023 and a 3.4% growth in 2024, according to the Bank of Namibia’s Economic Outlook, the smart partnership with China will elevate Namibia’s anticipation to exceed the desired economic growth.
This will materialise through policy coordination, cultural exchanges and targeted investments in infrastructure and many other fields as China has implemented various bankable projects in Namibia.
Therefore, with a broader range and greater depth and actively participating in the reform, Namibia will stand a great opportunity to benefit from China’s new journey to enjoy win-win results and common prosperity.
If Namibia fosters a strong relationship with China, this means that Namibia’s industrial structure will continue to realise economic growth, which will be driven by consumption, investment and export.
At the same time, Namibia will increase foreign reserves in the country. Despite the anticipation in Namibia’s economy, which is projected to slow down due to weakened global and domestic demand, influenced by high inflation and elevated interest rates negatively impacting consumer spending, China’s initiative presents an opportunity for Namibia to remain resilient and an opportunity to increase economic scale.
Furthermore, China is the main trading partner of over 140 countries and regions, making US$320 million in direct investment around the world each day, and attracting over 3,000 foreign businesses every month.
Over the past decade, China has contributed more to global growth than all the G7 countries combined. In the context of Namibia, China will do its best to enhance connectivity and further integrate its industrial, supply and value chains for unimpeded economic circulation, which will increase new opportunities for Namibia. China will foster an open, fair and non-discriminatory business environment, and expand mutual investment. China will continue to implement more joint projects that deliver real benefits to the people. In this atmosphere, Namibia has a very strong relationship with China.
This will help seize opportunities together with China from the new round of technological revolution and industrial transformation to step up cooperation in infrastructure construction, industrial, trade and investment cooperation, digital economy, e-commerce, artificial intelligence, and smart cities, amongst others.
Additionally, as Namibia stays on the path of peaceful development and continues to pursue a mutually beneficial strategy with the government of China, it will not only develop but also highlight its responsibility for and contributions to the world, and Namibia will not only benefit the Chinese people, but also benefit the people of Namibia.
The realisation of the Chinese dream will bring peace to the world, instead of turbulence; it will bring opportunities, instead of threats. To build a community with a shared future for mankind is a beautiful goal, and it is also a goal to be realised through the endeavours of young people, generation by generation.
China is ready to work together with Namibia, international organisations and institutions to jointly promote the great process of building a community with a shared future for mankind.
Therefore, the world will develop in a fairer, more reasonable and more inclusive direction.
China will seize development opportunities, strengthen international cooperation, shoulder corresponding international responsibilities, and become the advocator, promoter and leader of the reform of the world governance system. Moreover, we need to recognise that China now has at its disposal a resource that no other country has, such as a vast population which has lived through unprecedented amounts of change and, consequently, has developed an astonishing propensity for adopting and adapting to innovations, at a speed and scale that is unmatched elsewhere on earth. China has been the main reliable supplier of technology, and agro-equipment and projects for the Green Scheme Project of Namibia. China is now the world’s workshop. As the labour-intensive strategy based on cheap labour has run up against its limits, policymakers have devised plans which focus on industrial upgrading, promoting indigenous innovations, and establishing national brands. This way, China would avoid the middle-income trap, and eventually become an innovative powerhouse. Therefore, Namibia needs to cement a mutual agreement with China, which will enhance digital literacy. Namibia needs to embrace the Fourth Industrial Revolution and do so quickly, and use China’s best practices to enable us to embrace the Fourth Industrial Revolution, which will have a positive impact on economic transformation.
The opportunity for a Namibia that shows courage and adopts the Fourth Industrial Revolution is immense. China has made significant strides in technology innovation and industrial structural upgrades. China’s humanitarian assistance has undergone significant changes, such as substantial increases in humanitarian spending and institutional reforms vis-a-vis promoting regional cooperation.
China’s timely assistance has substantially improved and enhanced the regional and global outreach.
China is seen as a responsible and active participant in global governance. China played a role in assisting countries around the world in tackling common challenges with a shared approach and enhancing economic connectivity. Furthermore, building a community with a shared future for mankind and dialogue among civilisations, along with the Belt and Road Initiative, have provided new impetus to the idea of global assistance and helping weak states. Hence, these are just a few examples of cooperation between Chinese companies and Namibian companies. The participation of Chinese companies will help Namibia’s economy to transform, upgrade and enhance its competitiveness.
In conclusion, while the recent US–China trade tensions are likely to die down, the emerging world order is sure to create more frequent risks for companies engaging in international business, making risk management a priority, going forward. Therefore, promote the strategic alliance between the Chinese community and Namibians, raise the core competitiveness of Namibian sectors, and ensure the smooth and effective transition of development stages.
On the other hand, we should accelerate the implementation of reforms in various sectors, improve the efficiency of capital utilisation, and stop acts of monopoly and profiteering by a portion of companies, and speed up the construction of a multi-layered funding system, matched with the real economy.
Hence, to establish diversified economic systems and vertical service systems, integrate various forms of financial resources, speed up market-oriented economic reform, and effectively bring down the cost of funding for enterprises, particularly small and medium-sized enterprises. * Josef Kefas Sheehama is an independent economics and business researcher.