29 July 2008
Windhoek — Namibia's garment and textile industry might soon be revived, with Government on the lookout for new investors after the closure in March of the Malaysian company Ramatex.
Minister of Trade and Industry Hage Geingob said at the Corporate Council on Africa (CCA) Namibia Business Forum on Friday that new investors in the industry were needed for Namibia to fully benefit from the African Growth and Opportunity Act (Agoa).
Ramatex, which took advantage of Namibia's duty-free import quotas under Agoa and the Multi-Fibre Agreement (MFA), was the only textile plant exporting clothes to the US under these agreements.
"This is a setback.
We are hard at work to bring in new investors to start the textile industry again," Geingob said.
The textile factory earned about N$488 million in exports to the United States in 2004, of which it only spent 11 per cent on wages, according to trade data published on Agoa's official website.
Close to 3 000 workers are jobless following the closure of the factory.
The textile plant consists of four garment factories, two knitting mills, two spinning mills and two dyeing mills.
The plant has the capacity to produce about 45 000 tonnes of yarn, 36 000 tonnes of fabrics and 8 million dozen garments a year.
The City of Windhoek spent over N$60 million on developing the 65-hectare site.
Government exempted Ramatex from corporate taxes under the Export Processing Zone (EPZ) scheme.
Geingob urged an extension of Agoa, which extended its Generalised System of Preferences (GSP) status to qualifying African countries to September 2008.
Currently, Namibia exports grapes and crafts to the USA under Agoa and according to Geingob, Namibian beef will soon hit the American market with the finalisation of negotiations between the two countries.
Agoa, which was promulgated in October 2000, is aimed at moving Africans from poverty to prosperity by increasing their economic opportunities.
At the same occasion, international financier Maurice Tempelsman, a former Chairman of the Corporate Council on Africa, underscored the importance of Aga, saying that by reducing barriers to trade, this law has increased exports, created jobs and expanded opportunity for Africans and Americans alike.
It has given American businesses greater confidence to invest in Africa, he said He commended the Bush Administration for all the measures taken during the last eight years toward Africa's policies.
"The focus on issues of Africa is remarkable," he said.
Tempelsman indicated that about 80 per cent of companies in the USA wanted to do business with Africa.
Key sectors that drew interest during the forum included finance, energy, power, telecommunications, mining, tourism and agribusiness, especially the meat industry.
The CCA, established in 1992, works closely with governments, multilateral groups and business to improve the African continent's trade and investment climate, and to raise the profile of Africa in the US business community.
Members of the CCA include more than 170 US companies doing business in Africa.
CCA's members range in size from large multinational corporations to small and medium-sized businesses.
CCA members represent nearly 85 per cent of total US private-sector investments in Africa.
Nampa
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