HE President Dr Hage Geingob Wednesday commissioned the Peugeot-Opel assembly plant located in Walvis Bay.
The car assembly plant with an initial investment of over N$190 million was the result of an agreement by the Ministry of Industrialisation, Trade and SME Development and Group PSA.
Due to the provision of the land and building valued at N$ 140 million, as part of the agreement between the two parties, Namibia holds 51% per cent equity in the plant while Group PSA holds 49%.
Speaking at the launch, Geingob underscored industrial development, regional value chains and the country's potential as a regional gateway to Southern Africa.
"It is our hope that the Peugeot Opel Assembly Plant will be a project that will bolster the diversification strategy set out in our Growth at Home Strategy. We expect our local small and medium enterprises to incur benefits from this investment, further enabling Namibia to realize the positive externalities and spillovers from FDI," Geingob said.
According to the president, the automotive industry is one of the sectors identified in Namibia's Growth at Home Strategy as a priority sector.
"We believe, that by attracting investment into the automotive sector, we will help diversify our economy and support our ambition to become a regional gateway that offers a stable political and economic environment for multinationals," he added.
The commissioned facility will in the initial stage create 50 direct jobs, and will generate several opportunities for the local economy of the Erongo Region, including local SMEs.
The plant will have an annual production capacity of 5000 vehicles.