Clemens H. Kashuupulwa
5 September 2008
analysis
Windhoek — Local Small and Medium Entrepreneurs are under threat, as it is now becoming tough to compete with foreign business investors in Namibia.
Some Small and Medium Enterprises [SMEs] have already closed, lending their business complexes to potential foreign business competitors of transnational manufacturing companies of South Africa, European Union and Asia-Pacific traders who are attracted by Namibia's laissez-faire economic order, an international acceptable economic system of free market enterprises that currently dominates the global business market under the capitalist way of development the world over.
Free market economy, also known as mixed economy, is a social economic order in which "government intervention is kept to a minimum and market forces are allowed to prevail", on which Namibia's economic system is based under Namibia Constituency's Article 98, subsection 1.
This opinion mindset is an attempt to delve in the business sector to enlighten SMEs to find amicable shortcuts to survive competitive challenges in the business sectors, build on strength and opportunities while using business demand to innovate the growth of SMEs, addressing the existing threats, and gaining strength by using the existing business structures set up by the government to engage in joint venture and mergers to interact in the revamp of the economic growth and industrial drive of Namibia without compromising the government policy of foreign investors and principles of laissez-faire market in Namibia.
Laissez-Faire Market
The laissez-faire economic system is a constitutional provision in Namibia that allows foreign business companies to invest in Namibia, subject to the provisions of Namibia's Investment Policy "of securing economic growth, prosperity and life of human dignity for all in Namibia". However, this policy is also encouraging local business owners to interact in the business sector.
SMEs need to enter into joint ventures with potential foreign investors with immovable and movable assets for industrial development, job creation and economic growth. This process started long back with many foreign investors establishing themselves well economically in all spheres of business sectors in partnership with the public and private sectors in the country.
However, there is still much to be done to bring former disadvantaged local business entrepreneurs into the mainstream of the business sector to benefit and contribute to the economic growth of the country.
In any country, behind the economic growth in the struggle for economic independence, local people must be involved as the forces for economic drive of that country.
Namibia's struggle for economic emancipation cannot be an exception.
Local SMEs have a critical role to play in the steering process of economic independence just as they participated in the political independence of this country.
The demand of some existing and the new business entrepreneurs for inclusion in the business sector is justifiable. The government has already put in place mechanisms for potential local business entrepreneurs to be in the system to meet the demands of former disadvantaged local business people for inclusion in Namibia's business sector.
Many of them have been already potential entrepreneurs who dominated the market on competitive business advantages with foreign business competitors.
Others have climbed already the business ladder with successes, while a few of them are facing serious challenges in the global business competition that led to their businesses closed for numerous reasons that can be identified through strength, weakness, opportunities and threats [SWOT] marketing analysis to be actively engaged again in thebusiness sector.
The Government
The Government of Namibia has created the Ministry of Trade and Industry [MTI] "to be responsible for the development and management of Namibia's economic regulatory regime on the basis of which the country's domestic and external economic relations are conducted".
Accountable for the economic growth
It is also accountable for the economic growth by ways of formulating and implementing regulatory policies "to attract investment, increase trade and development and expand the country's industrial base" under investment promotion, manufacturing venture, growth and development of SMEs in line with the Namibian Government's Policy of Free Enterprises for economic diversification and growth.
MTI's central role is "to strive to facilitate development of the private sector through the creation of a business friendly environment and stimulation of private sector development" by ways of putting regulatory legislation, industrial infrastructure, export and import investment promotion as well as affordable credit facilities for potential entrepreneurs under its system of the Namibia Investment Centre, Directorate of Industrial Development, Internal Trade and International Trade to meet the government's economic independence.
This shows that the government has created an enabling business environment that is beneficial to local business entrepreneurs and foreign investors.
Namibia's Investment Centre [NIC] in particular has been in existence since 1990 with the promulgation of the Foreign Investment Act of 1990 that calls for foreign investors to come to Namibia "to help stimulate economic growth and expedite industrial transformation of Namibia".
The Act provides liberal foreign investment conditions, equal treatment of foreign and local investors, and openness of all sectors of the economy to foreign investment, full protection of foreign investors and granting certificate status of investment under the economic policy zone [EPZ] while excluding local participation in the EPZ system.
The Directorate of Internal Trade in particular is responsible for "the promotion, regulation and facilitation of domestic trade" and mandated to promote all local entrepreneurs in the business sector by ensuring quality and corrective trade transactions as it administers registration of companies, close corporations, designs and trademarks.
Being responsible for internal trade, MTI initiates and reviews appropriate legislation in the area of legislation and industrial properties.
Namibia Chamber of Commerce and Industry
Government through the Namibia Chamber of Commerce and Industry [NCCI] has created an enabling business environment that is beneficial to local business entrepreneurs and foreign investors.
It started with the Namibia National Chamber of Commerce and Industry [NNCCI] as a central structure chamber that was transformed into the Namibia Chamber of Commerce and Industry in 1998, as a credible business organization.
It serves the interests of local entrepreneurs at regional level by way of representing them and rendering services to SMEs targeting to create an environment that is conducive to encouraging and stimulating the private-sector growth and development in Namibia under its long-term strategic objective to promote prosperity for all SMEs in Namibia by "ensuring a balanced private sector growth enterprise development and global competitiveness".
Private Sector
NCCI is mandated "to represent the interests of the private sector, while advocating and lobbying to an enabling environment, by influencing policy legislative debates and providing relevant services for facilitating business growth and development".
It established its regional offices closer to its members in Windhoek, Rehoboth, Walvis Bay, Rundu and Ongwediva that are organized through local and regional councils and business forums.
Local entrepreneurs who are members of NCCI have greater opportunities "to remain informed on issues and development which affect their businesses and the economy of the country".
Among many of its main duties are to link business information and facilitation with larger corporate institutions and rendering advisory services on small business planning, development and referrals as it is the authentic voice of organized, commerce and industry in Namibia.
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