Industrialisation and trade minister Lucia Iipumbu has reaffirmed that Namibia is ready to tap into the massive single market of about 1.3 billion people in Africa. She added that this "readiness" can be improved through the Growth at Home strategy by industrialising the local economy to produce goods and services for export markets.
Namibia's readiness for Africa's free trade was given the go-ahead after the country's tariffs offer through the Southern African Customs Union was approved by the African Continental Free Trade Area (AfCFTA). This means Namibia is in the process of preparing to participate in the Guided Trade Initiative.
"We will send off the first consignment for Namibia under the AfCFTA in October 2024, to signify the commencement of trading under the AfCFTA," said the minister.
She noted this last week at the Government Information Centre.
AfCFTA is the world's largest free trade area, bringing together the 55 member countries of the African Union (AU) and eight regional economic communities
(RECs).
Minister Iipumbu added that the AfCFTA agreement commits AU member states to removing tariffs on 90% of goods, with 10% of "sensitive items" to be phased in later.
The key objective of the AfCFTA is to boost intra-Africa trade, designed to achieve a single continental market; with zero or lower trade tariffs; simplified rules of origin and customs procedures; harmonised regulations for trade in services; and trade remedies made available to economic players.
"It also liberalises services and aims to tackle non-tariff barriers which hamper trade between African countries, such as long delays at the borders. Prospects are that free movement of people and even a single currency could become part of the free trade area," said Iipumbu.
According to the Namibia Statistics Agency (NSA), during the month of July 2024, Namibia exported goods worth N$4.4 billion and imported N$5.7 billion to and from the entire Africa.
During the same period, Namibia imported instruments and appliances for medical, surgical, dental or veterinary purposes valued at N$16 962 from Burundi. On the supply side, Namibia did not export any goods to Burundi during the period under review.
Investment Bill
The minister also touched on the much-awaited Namibia Investment Promotion and Facilitation Bill.
The Bill has gone through Cabinet, following extensive public consultations and is currently undergoing legal drafting alignment before tabling in Parliament.
The Bill provides for the promotion and facilitation of foreign and domestic investments to enhance sustainable economic development and reduce unemployment.
Earlier this year, Namibia Local Business Association (Naloba) met with President Nangolo Mbumba and questioned the delay in the implementation, and at this event the President assured he will push to sign this important legislation before he leaves office.
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"The absence of this Bill is creating anarchy in the country. Who is delaying this important piece of legislation? I believe the Bill will protect local businesses against foreign investors," Naloba vice president Peter Amadhila stated at the time.
He advised that foreign investors should not come to Namibia to sell 'vouchers', saying this is akin to taking bread out of Namibians' mouths.
He, therefore, advocated for foreign investors to focus on larger opportunities beyond what local businesses can invest in. -mndjavera@nepc.com.na
