Physical Address - Gov Annual Report_Dft 5.pdf · the key programmes under the Ministry of Trade and Industry, aimed at contributing to the economy and job creation. The Ministry

1“GROWTH AT HOME“

© Published by the Ministry of Trade and Industry, 2014. Reproduction is

permitted, provided the source is acknowledged.

Physical Address:

Ministry of Trade and Industry

Brendan Simbwaye Square, Block B

C/o Goethe and Dr. Kenneth Kaunda Streets

Windhoek

Postal Address:

Ministry of Trade and Industry

Private Bag 13340

Windhoek

Namibia

MTI Contact Centre: +264 61 283 7311

MTI website: www.mti.gov.na

2 3“GROWTH AT HOME“ “GROWTH AT HOME“

1.1 Aim of Vote 07

1.2 Legislative Mandate 07

1.3 Public Entities Reporting to the Minister 08

2.1 Sectoral Consultations 11

2.2 Growth at Home Conference 14

2.3 Key Missions Led by Hon. Schlettwein Minister of Trade and Industry 15

Overview on the performance of the Namibian Economy for the year ended

31 March 2013 20

3.1. Vision 23

3.2. Mission 23

3.3. Core Values 23

3.4. Strategic Objectives 23

3.5. Programme 1: Industrial Development 24

3.6. Programme 2: International Trade 30

3.7. Programme 3: Commerce 33

3.8. Programme 4: Namibia Investment Centre 34

3.9. Programme 5: Administration, Coordination and Finance 36

Conclusion 40

Address list of Ministry and Foreign Economic Offices 42

Organogram 45

Annexure A: Hon. Minster’s Speech - “Growth at Home” Conference 47

Picture: “Growth at Home” Conference 50

Picture: MTI End of Year Function 2013 53

General Information

Highlights of the Year 2013

Programme Performance

PART01

PART02

PART03

CONTENTS ACRONYMS

TABLE OF CONTENTSA

CR

ON

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06

10

19

Acronyms 03

Foreword by the Minister 05

ACRWC African Charter on the Right and Welfare of the Child

ASEP Annual Sectoral Execution Plan

AU African Union

BEE Black Economic Empowerment

BRICS Brazil, Russia, India, China and South Africa

BIPA Business and Intellectual Property Agency

COMESA Common Market for Eastern and Southern Africa

CORAL Congo Oil Refinery Plant

CPI Consumer Price Index

CRC Convention on the Rights of the Child

DID Directorate of Industrial development

DIT Directorate of International Trade

DRC Democratic Republic of Congo

EAB Estate Agents Board

EAC East African Community

EIF Environmental Investment Fund

EPA Economic Partnership Agreement

EPZ Export Processing Zone

ESL Extended Shelf Life

EU European Union

FDI Foreign Direct Investment

FTA Free Trade Agreement

GDP Gross Domestic Product

GRN Government Republic of Namibia

HQ Headquarters

HRH His Royal Highness

IPR Intellectual Property Rights

IUMP Industrial Upgrading and Modernization Programme

MoA Memorandum of Agreement

MoF Ministry of Finance

MoU Memorandum of Understanding

MTEF Medium - Term Expenditure Framework

MGECW Ministry of Gender, Equality and Child welfare

MHAI Ministry of Home Affairs and Immigration

MME Ministry of Mines and Energy

MTI Ministry of Trade and Industry

MTP Medium Term Plan

MAWF Ministry of Agriculture, Water and Forestry


he 2013/14 financial year has seen progress in the implementation of the key programmes under the Ministry of Trade and Industry, aimed at contributing to the economy and job creation. The Ministry focused on various interventions underpinned by key polices relating to indus-trial development, trade and investment. Whilst the economic growth forecast for 2013 was revised down to 4.3% from 4.7%, positive growth

was experienced in both output and employment in the productive sectors of the economy.

The need to accelerate the industrialization agenda is at the core of the Ministry’s contribution to placing Namibia on a new developmental path and to achieve “Growth at Home”, an initiative of the Ministry. Our “Growth at Home” initiative reinforces the importance of accelerating economic growth and increase employment. It places greater emphasis on the importance of commodity - based industrialization by strengthening local and national value chains and creating more efficient linkages within the economy supported by improved logistics and infrastructure, improvements in the ease doing of business and ongoing dialogue and partnership between Government and private sector. In the area of industrial development, significant gains have been made towards finalizing the Industrial Policy Implementation Strategy as well as introducing the new Special Industrial Programme. Further progress has been made in increasing the annual budget for the Equipment Aid Scheme and the number of intended beneficiaries. The Industrial Upgrading and Modernization Programme (IUMP) has also begun to yield positive results.

In relation to Trade Promotion, Policy and Agreements, we continue our partnership within the Southern Africa Customs Union (SACU) and the Southern Africa Development Community (SADC). There is active participation in the formulation of the SACU Industrial Development Policy, review of the Agricultural Rebate Quotas Regime and Annexes on Unfair Trade Practices and on Competition Policies.The Ministry has continued to represent Namibia at the Economic Partnership Agreement negotiations (EPAs) with the European Union (EU) to establish a new trade-in-goods arrangement. The negotiating position on many key issues has been strengthened, updated and negotiations are ongoing to achieve a developmental outcome.

The Ministry‘s efforts to attract investment into the Namibia economy facilitated N$1.300 billion in investment projects over the financial year. The investment initiatives that contributed to this positive trend are in mining and exploration; services; manufac-turing and construction; tourism and hospitality; and the energy sectors among others.

In support of the outgoing trade missions, the Ministry facilitated a number of business missions led by myself, the Right Hon. Prime Minister, the Deputy Prime Minister and the Deputy Minister of Foreign Affairs. Support was also provided to key business forums during state visits from United States of America, South Africa, Nigeria, Senegal, Portugal, Korea, China, Spain, Germany, Poland, Netherlands, Mauritius, Finland and Turkey.

It is expected that, the 2014/15 financial year will see a gradual drive to enhance the industrial sector. The MTI is committed to seeing the establishment of the Namibia Industrial Development Agency (NIDA) which will be responsible for coordinating, fostering and promoting industrial development in the country.

The notable milestones and achievements of the 2013/14 financial year could not have been realized without the support and commitment of the staff members and management. I would therefore like to extend my sincere gratitude to all staff members for their unwavering commitment and invaluable contributions. I would like to thank all the stakeholders for their support and collaboration, without whom, the achievement of our goals might have been compromised.

FOREWORD

T

NACC Namibia Competition Commission

NAU Namibia Agricultural Union

NCCI Namibia Chamber of Commerce and Industry

NDC Namibia Development Corporation

NDP National Development Plan

NDTC Namibia Diamond Trading Centre

NIDA Namibia Industrial Development Agency

NMA Namibia Manufacturers Association

NPC National Planning Commission

NTB Namibia Tourism Board

NTBs Non-Tariff Barriers

NTF Namibia Trade Forum

NSA Namibia Statistics Agency

NSI Namibia Standards Institution

ODC Offshore Development Corporation

PDC Product and Development Centre

PS Permanent Secretary

PTA Preferential Trade Agreement

QRs Quantitative Restrictions

SACU South Africa Customs Union

SADC Southern Africa Development Countries

SME Small Medium Enterprise

SOEs State Owned Enterprises

SSC Social Security Commission

TBTs Technical Barriers to Trade

TFTA Tripartite Free Trade Agreement

UAE United Arab Emirate

UNDaO United Nations Delivery-As-One

UNIDO United Nation Industrial Development Organisation

UN United Nations

USD United States Dollar (Currency)

VAT Value Added Tax

VTCs Vocational Training Centres

WBCG Walvis Bay Corridor Group

WTO World Trade Organization

HON. C. H. G. SCHLETTWEIN, MINISTER OF TRADE AND INDUSTRY

ACRONYMS FOREWORD

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1.1. AIM OF VOTE

Ministry of Trade and Industry is charged with the responsibility of spearheading the development and expansion of the country’s trade and industry sector, as an important source of growth, employment and the country’s ability to compete in the regional and global markets. In this regard, the Ministry devises appropriate policy and legal frameworks and pro-grammes for attracting and facilitating domestic and foreign direct investment, promoting and entrepreneurial culture and a dynamic local industries sector, as well as for expanding and diversifying industrial production, export markets and sources of production inputs.

1.2. LEGISLATIVE MANDATE

MTI administers the following legislation (Table 1)

Act Purpose

1. Estates Agents Act (Act no. 112 of 1976).To regulate and control the activities of estate agents in the public interest.

2. Close Corporations Act, 1988 (Act No. 26 of 1988).To provide for the formation, registration incorporation, manage-ment, control and liquidation of close corporations.

3. Foreign Investment Act, 1993 (Act No. 24 of 1993 as amended).To make provision for the promotion of foreign investments in Namibia.

4. Namibia Development Corporation Act (Act No. 18 of 1993).

To promote, develop and support all sectors of the Namibian economy for sustained economic growth and the economic em-powerment of its people in conformity with the development strat-egies and policies of the Government of the Republic of Namibia.

5. The Import and Export Control Act, 1994 (Act 30 of 1994). To provide for import and export control.

6. Export Processing Zone (EPZ) Act (Act no. 9 of 1995 as amended).To promote and market investment opportunities under Namibia’s EPZ, monitor and coordinate all EPZ related activities and provide an umbrella facilitative service to approved investors in the country.

7. Competition Act (Act No. 2 of 2003).

To promote competitive market conditions through investiga-tion and prosecution of anti-competitive activities; reviewing and approving mergers and exemption applications; and disseminating information to businesses, consumers and other stakeholders.

8. Companies Act, 2004 (Act No.28 of 2004).To provide for the incorporation, management and liquidation of companies; and to provide for incidental matters.

9. Standards Act, (Act No. 18 of 2005).

To promote the use of standards and quality assurance and control in industry, commerce and public sector; provide conformity as-sessment services; certification of systems, product and personnel systems; inspect and test products and materials; and trade (legal) metrology – enforcement of product labelling, weights and measures.

GENERAL INFORMATION

PART 01

01


PART 01 PART 01

1.3. PUBLIC ENTITIES REPORTING TO THE MINISTER (TABLE 2)

Name of Public EntityEnabling Legislation/ Cabinet Decision

Purpose

1. Namibia Estate Agents Board

The Manager

Mr. Richard Stein

Tel: +264 61 24 9885

Fax: +264 61 23 4709

Email: [email protected]

Website: www.neab.iway.na

Estates Agents Act (Act no. 112 of 1976).

The purpose of NEAB is that of regulating

and controlling the activities of estate agents

in the public interest. In this regard, the

Board is tasked with protecting consumers

in estate agency transactions while having

regard to the interests of the industry;

maintaining and promoting the standard of

conduct of the industry; and regulating the

activities of the estate agents in general.

2. Namibia Development Corporation

(NDC)

The Managing Director (Acting)

Mr. Pieter de Wet

Tel: +264 61 206 2294

Fax: +264 61 223 854


Website: www.ndc.org.na

Namibia Development Corporation Act (Act

No. 18 of 1993).

The objects of the Corporation are to

promote, develop and support all sectors

of the Namibian economy for sustained

economic growth and the economic

empowerment of its people in conformity

with the development strategies and policies

of the Government of the Republic of Namibia.

3. Walvis Bay Export Processing Zone

Management Company (Pty) Limited

The Manager

Mr. Jan Kruger

Tel: +264 64 205 095

Fax: +264 64 206 132

E-mail: [email protected]

Website: www.wbepzmc.iway.na

Export Processing Zone (EPZ) Act (Act no. 9

of 1995 as amended)

Responsible of managing and promoting

the EPZ regime in Namibia’s premier harbor

town, Walvis Bay. In this regard, the Company

provides investment facilitative services such

as acquiring and servicing industrial land;

construction and leasing of industrial factories;

processing and facilitating applications for

EPZ status, work permits and visas, and other

investor needs.

4. Offshore Development Company

(ODC)

The Chief Executive Officer (Acting)

Mr. Phillip Namundjebo

Tel: +264 61 283 7360

Fax: +264 61 231 001

Email: [email protected] /

[email protected]

Website: www.odc.com.na

Export Processing Zone (EPZ) Act (Act no. 9

of 1995 as amended).

The ODC is mandated is to promote and

market investment opportunities under

Namibia’s EPZ, monitor and coordinate all

EPZ related activities and provide an umbrella

facilitative service to approved investors in

the country. The Company also develops and

leases serviced industrial and business sites

and factory shells to entrepreneurs.

5. Namibia Competition Commission

(NaCC)

Secretary

Mr. Mihe Gaomab II

Tel: +264 61 224 622

Fax: +264 61 401 900


Website: www.nacc.com.na

Competition Act (Act No. 2 of 2003).

The NaCC is tasked to promote competitive

market conditions through investigation

and prosecution of anti-competitive

activities; reviewing and approving

mergers and exemption applications; and

disseminating information to businesses,

consumers and other stakeholders.

Name of Public EntityEnabling Legislation/ Cabinet Decision

Purpose

6. Namibia Standards Institution (NSI)

The Chief Executive Officer

Mr R.A. (Othy) Kaakunga

Namibia Standards Institution

Tel: +264 61 386 400

Fax: +264 61 386 454


Website: www.nsi.com.na

Standards Act , (Act No. 18 of 2005)

The NSI was established to promote the use of

standards and quality assurance and control in

industry, commerce and public sector; provide

conformity assessment services; certification

of systems, product and personnel systems;

inspect and test products and materials;

and trade (legal) metrology – enforcement of

product labelling, weights and measures.

7. Namibia Trade Forum

Coordinator

Ms. Ndiitah Nghipondoka-Robiati

Tel: +264 61 379 500

Fax: +264 61 306 604


Website: www.ntf.org.na

Cabinet Decision No. 17th/ 02.08.05/007.

The NTF acts as the main consultative body

representing the private sector views to the

government. It thus serves as the highest

public private partnership on international

trade and investment matters.

8. SME Bank

Chief Executive Officer

Mr. Tawanda Mumvuma

Tel: +264 61 430 1000

Fax: +264 61 430 1040


Website: www.smebank.com.na

Cabinet Decision No. 6th/ 07.12.04/2005.

The SME Bank was established to help

develop the SME sector in Namibia to increase

value added production, services, jobs and

income through affordable financial services

& business support.

9. BIPA

Chief Executive Officer (Interim)

Mr. Tileinge Andima

Tel: +264 61 299 440

Fax: +264 61 401 061


Website: www.bipa.na

Cabinet Decision No.2nd/ 28.04.10/004. Business and Intellectual Property Authority Bill, 2013.

BIPA was established to be a central focal

point for the registration, administration

and protection of business, industrial and

intellectual property.


02

HIGHLIGHTS OF THE YEAR 2013

2.1. SECTORAL CONSULTATIONS

The Ministry of Trade and Industry is tasked in NDP4, to facilitate and strengthen public-private dialogue and cooperation. To this effect, the Minister of Trade and Industry undertook national consultations with various economic sectors of the economy namely; red meat agro-processing, milk and dairy products, retail and distribution, logistic and transport sectors, fishing and fish processing and general manufacturing. The main aim of these consultations was to consult with the stakeholders in these six sectors with the view to understand their focus, issues pertaining to their specific sectors and an exchange of ideas on how the Ministry can be of support especially in areas within its mandate such as manufacturing and value addition in support of the implementation of the NDP4 and the Industrial Policy as well as the overarching “Growth at Home” Strategy, and how growth in industrial capacity can be achieved.

Summarized below are the sectoral consultative meetings attended.

(a) Consultation with the Red Meat SectorDate: March 14, 2013Time: 10h00 - 13h00Venue: Nampower Convention Centre

The sectoral meeting was necessitated to discuss issues pertaining to the agro-food processing and allied industries, particu-larly the meat sector. All inputs from the stakeholders will form part of the Industrial implementation strategy document. The effort was primarily aimed at fostering accelerated growth in the meat sector by collectively eliminating challenges such as duplication of efforts, market access and

availability of raw materials. These challenges can be addressed through an effective monitoring framework, appropriate policies and programmes matched with private sector investment.

The red meat sector’s challenges include unpredictable rainfall; bush encroachment; international commodity prices; non-trade barriers; limitation in terms of export volumes and dependency on specific preferential markets.

In order to improve the red meat value chains in Namibia, distinct and comprehensive definition of the value chain with clear roles of all players in every chain, is necessary. In case of unprocessed or semi processed meat exported for further processing in foreign countries, measures are to be devised to ensure that value addition benefits Namibia with the value chain geared to contribute towards the overall economy and a SWOT analysis to be undertaken in the value chain aiming to address these challenges.

A recent study in this sector shows that traditional markets are no longer secure and there is need to identify alternative markets. Therefore, to improve current and future export marketing, a vigorous step has to be taken towards aggressive marketing; branding & product differentiation; capital investment & product diversification; logistical & infrastructure de-velopment; and involvement of the retail sector.

Complementing the above efforts and ensuring compliance to standards, the Namibia Standard Institution is reviewing its Trade and Metrology Act to ensure conformity and intensify its function of certifying Namibian products, ultimately enhancing confidence in the local products.

Caption: Participants at the consultative meeting

PART 02


(b) Consultation with the Logistics and Transport SectorsDate: 23 May 2013, Time: 09h00 – 17h00Venue: Walvis Bay

The Logistics and Transport sectors were represented by the Namibian Logistics Association, shipping agencies, Walvis Bay Corridor Group, Namibia-Germany Logistic Centre at Polytechnic of Namibia as well as participants from companies and State Owned Enterprize (SOEs) such as Namport, Transnamib, Wesbank Transport, Manica Group, Ohorongo Cement, Du Toit Transport, Etosha Transport, Telecom Namibia, and Navachab Namibia.

The representatives discussed economic and developmental issues with the transport and logistics sectors; to learn from the industry and how the ministry could assist the sector in line with the Ministry’s mandate, and to understand the effects of cost and efficiency in transport and logistics on the competitiveness of the manufacturing sector.

Issues raised by participants revolved around: the quality of infrastructure and the need for appropriate government interven-tion; the good performance of the Corridor Group in terms of the road initiative, as opposed to the underperformance of the rail sector; enabling environment to ensure that the country is competitive with the rest of the world; the prohibitive licensing fees such as the road user charges, and the proper use collection of fees; the establishment of the Customs and Business Forum; allocation of appropriate land for infrastructure development; and a central database on logistics matters where stakeholders can access information on import/export procedures.

Finally, the case for Quantitative Restrictions (QRs) to safeguard the industry is in line with the national objectives of NDP4 and prevailing SACU provisions. Government will continue to engage stakeholders to find ways to support the dairy sector and for the industry to become more competitive.

Caption: Dr. Malan Lindeque, Permanent Secretary - Ministry of Trade and Industry leading the discussion.

Caption: Hon. Schlettwein - Minister: Trade and Industry at the General Manufacturing consultative meeting.

PART 02 PART 02

(c) Consultation with the Namibian Dairy SectorDate: July 18, 2013Time: 10h00 - 13h00Venue: Nampower Convention Centre

The Ministry of Trade and Industry pioneered another public consultative meeting in response to an application from an industrial sector seeking support related to trade management and for government to get a clearer understanding from the stakeholders in the dairy sector to reach a common position on determining the sustainable growth of the industry.

A consultative meeting was held with stakehold-ers in the dairy sector at Nampower Convention Centre in conjunction with the Ministry of Agricul-ture, Water and Forestry.

The consultation emphasized the importance of industrial development and the mandate of the Ministry of Trade and Industry based on specific planning instruments, amongst others, the Ministry’s “Growth at Home” initiative. The Dairy sector is a strategic industry in the Namibian economy especially in the effort of adding value to local products and achieving the “Growth at Home” strategy. The Ministry is aware of potential impacts of industry support measures on consumers, importers and others.

Hence, the need to strike a balance between industrialized objectives and the broader public interest. There is need to recognize Namibia’s efforts toward industrialization and that without using the available policy measures it will be difficult for Namibia to industrialize as outlined in NDP4.

Some of the challenges experienced by the sector include; fighting price war against importers to maintain market share and volume; economic harm to the raw milk suppliers as well as the imminent collapse of the local industry; and the dominance of foreign markets and retailers in Namibia remains a threat to domestic production and industrialization. This situation makes it increasingly difficult to sustain the dairy sector under current conditions.

The Ministry of Agriculture, Water and Forestry is the custodian of the Act regulating importation and exportation of dairy products. Consideration is given for the inclusion of dairy products as a controlled product under the Meat Industry Act No. 12 of 1981. However, this process would be time consuming and not helpful in addressing the immediate crisis of the dairy producers and processors. Hence, MTI to get a clear mandate to institute immediate short term measures to address the crisis at hand. Govern-ment through MTI wish to see the dairy sector becoming more sustainable, diversifying the number of producers, processors, products and markets, including the domestic market in all its forms.

(d) Consultation with the General Man-ufacturing Sector Date: July 26, 2013Time: 10h00 - 13h00Venue: Nampower Convention Centre

The Manufacturing sector was represented by the Namibian Manufacturing Association, Ohlthaver List Group of Companies, Adrian Meyer Jewelers, Oshinge, Brandy Maker, Pewa Products, Cellphone Pouch Manufacturers, Namibia Poultry Industry, Fabufam, August 26 (Pty) Ltd, Steel Man-ufacturer and Marula jam producer.

The consultation discussed accelerating Namibia’s manufacturing capacity to enhance growth employment and reduce income inequal-ity; identify constraints to unlock the growth

potential of the sector; intensify value addition; work towards regional integration in terms of raw material sourcing, market access and competition; address issues relating to high cost of doing business; consider preferential public procurement for industrial and value chain development.

The main focus of exchanging ideas revolved around specific issues such as market diversification; value addition and value chain development & expansion; access to global markets; investment in targeted import substitution to expand manufacturing; development of technical skills required for manufacturing and development of a Retail Charter. The interactive nature of the gathering enabled delegates to make specific proposals to the Ministry on how to enhance Namibia’s drive towards industrializa-tion. The contributions amongst others are; a need to review the public procurement policy to ensure local sourcing; tailored incentives for manufacturers the implementation of policies and strategies to be monitored; bottlenecks associated with the Labour Act and skills shortages to be addressed; greater access to shelve space for locally manufactured products; assistance in terms of market penetration, equipment; and material sourcing.

The inputs and recommendations emanating from the consultation are to be integrated into the 5 year Sectoral Plan, Annual Sectoral Execution Plan of the NDP4, the Industrial Policy Implementation Framework and the “Growth at Home” Strategy.

(e) Consultation with the Retail and Distribution SectorsDate: 29 July 2013Venue: Nampower Convention CentreTime: 09h00 – 1700

The Retail and Distribution sectors were represented by sector players such as Fruit & Veg City, Model Pick & Pay, Woolworths, Game (Mass-Mart/Wal-Mart), Agra, CIC Distributors and Wecke & Voigts, including the Namibia Standard Institute and Namibia Trade Forum.

The meeting summarized inputs, constraints and possible solutions or interventions towards an efficient retail and distribution sector. Some of the issues highlighted the importance of manufacturing the development and the growth of the Namibian economy as designated in the fourth National Development Plan (NDP4) together with the logistics, tourism, and agriculture sectors. Importantly, the need to get locally manufactured products on to retail shelves was stressed, as also in NDP4. The local market is dominated by imported goods making it challenging for producers to access the domestic market. However, there are plausible efforts already made by some retailers to source from within Namibia and to help promote Namibian products and value chains.

The initiation of a retail charter with work streams in the sectors will include local sourcing and assistance with the promotion, marketing and distribution of Namibian produce and manufactured goods. The sector players hailed the proposal to establish a retail and distribution charter and a need to support local manufacturing by aligning procurement systems to assist in making local manufacturers more competitive through initiatives such as ‘local supplier development’ as part of its social responsibility to economic development. Sectoral players pledged commitment to initiate and drive the process.


2.2. “GROWTH AT HOME” CONFERENCE

Date: 28 November 2013Time: 09h00 – 17h40Venue: Nampower Convention Centre

On 28 November 2013, in a packed hall of the Nampower Convention Centre, the Ministry of Trade and Industry hosted the “Growth at Home” Conference, a consultative process that brought together stakeholders, line ministries and staff. In attendance were Dr. Hage Geingob, the Right Hon. Prime Minister, and other dignatories. The event aimed at enhancing the arm of ‘industry’ by bringing it on par with the leg of ‘trade’.

The overall objective of the Conference was to introduce the “Growth at Home” strategy to the private and public sectors as a theme for the Ministry to spearhead the promotion, development of a sustainable manufacturing and value addition activities of natural resources for greater socio-economic benefits within the country.

Namibia needs to do more to achieve sustainable economic growth. Some of the solutions to Namibia’s problems of high unemployment rate, a skew income distribution and poverty may be addressed through innovative strategies that make the most of its comparative and competitive advantages in terms of its natural endowment in raw materials. The economy has to be transformed from one that relies on trading in raw materials only, to a diversified economy that produces value added and finished goods – hence the ministry’s “Growth at Home” strategy.

According to the International Monetary Fund, Namibia’s manufacturing output can double if focus is put on growing secondary and tertiary industries. Reversing the reliance on exports of raw materials which causes the country to continuously export jobs “that are created in value chains in other markets based on raw material supplies” will create more job opportunities.

Industrial development and economic structural transformation continue to be long-standing goals and objectives, set in line with Vision 2030 roadmap.

The Government through the Ministry of Trade and Industry will intensify efforts towards transforming, diversifying the structure and content of the Namibian economy to the level where manufacturing, innovation and the development of value chains assume the center stage, to be able to add value to resources and to produce some of the consumer goods imported in large quantities. This will not only help improve balance of payments but will ensure sustained economic growth, consequent gainful employment opportunities, income re-distribution and poverty alleviation.

“Growth at Home” is the theme chosen by the Ministry of Trade and Industry to reinforce the importance of accelerating economic growth, reducing income inequality and increasing employment. The theme subsequently became a strategy adopted by Gov-ernment for implementing Namibia’s first Industrial Policy and to attain the strategic objectives for manufacturing as outlined in the 4th National Development Plan.

The “Growth at Home” strategy emphasizes the importance of commodity-based industrialization by strengthening local and national value chains and creating more efficient linkages within the economy supported by improved logistics and infrastruc-ture, improvements in the ease of doing business and ongoing dialogue and partnership between government and the private sector. With an abundance and variety of mineral resources, Namibia has exploited the commodity boom by attracting invest-ment in raw material extraction, and improving strategic infrastructure to enhance the efficiency of transportation and logistics.

Reliance on primary production and exports of raw materials nevertheless entails huge forgone economic gains and income through the lack of value addition, the export of jobs to countries where value is added, and the exposure of risks due to the de-pendence on exhaustible commodities and fluctuations in demand and prices. Namibia’s manufacturing capacity and economic growth thus need to be accelerated to deliver equitable benefits to the whole of society and reduce income inequality.

At the core of our strategy for manufacturing is therefore the need to trigger a commodity-based industrialization as the engine of growth and economic transformation. Namibia is endowed with significant human and natural resources that can be used to advance industrialization and structural economic transformation through value addition strategies in all sectors, but particularly in agriculture and agro-processing, fish processing and in mining and mineral beneficiation.

The fundamental point of departure is to make the most of available natural resources and to add value to as many raw materials produced in the country as possible. There is need to build on existing productive capacity and skills, but also to initiate new enterprises where necessary.

In order to diversify the economy the Ministry of Trade and Industry is championing the “Growth at Home” strategy whose emphasis is on industrialization, manufacturing and value addition. The aim is to develop value chains that are based on raw materials available in Namibia, to include the concept of regional value chains through which to accelerate regional economic integration.

In this process, there is need to identify all constraints and find solutions, and to provide targeted support to the private sector to rise up to the challenge, complementing private sector investment. The Namibian economy is geared towards a higher level of value addition and manufacturing and enhanced local supply-side capacity as well as better co-ordination and collaboration between all role players in the economy, including public-private dialogue.

The ultimate focus is to ensure that the impact of work is visible through tangible improvements in terms of the capacity of our local industries to produce efficiently and competitively as well as in the socio-economic welfare of the citizens of the country through employment and business opportunities. The programmes of the Ministry of Trade and Industry are geared at removing supply side constraints, increase productive capacity, and increase the competitiveness of Namibian industry in the domestic, regional and international markets.

2.3. KEY MISSIONS LED BY HON. MINSTER SCHLETTWEIN

Among others, below are the missions.

2.3.1. The 9TH WTO Ministerial Conference, BALI, INDONESIADate: 5 December 2013Venue: Bali, Indonesia

PART 02 PART 02

Caption: In attendance: Hon. Schlettwein at the Ministerial Conference - Bali, Indonesia


A key trade mission was led by the Minster of Trade and Industry to Bali, Indonesia to attend the 9th WTO Ministerial Conference.

The Bali Ministerial Conference is the culmination of one of the most intense periods of negotiations in Geneva since the launch of the Doha Development Agenda 12 years ago.

The gathering proposed to review the regular work carried out since the last WTO Ministerial Conference in 2011, to consider and take decisions on several key issues and draft texts that are the results of negotiations over the past few months.

The Ministerial conference enabled Ministers to send a strong message to the rest of the world that the multilateral trading system works (MTS) and to reiterate that the WTO remains the pre-eminent forum for negotiating new trade rules; and that it delivers tremendous economic benefits to all its Members. It was further demonstrated to the world that the WTO is still relevant, and Members are capable of putting aside their differences for the collective benefit of businesses and citizens around the world.

The major issues Ministers discussed at the conference embraced a small but significant proportion of the Doha Development Agenda – trade facilitation, elements of agriculture and pro-development initiatives. Trade facilitation to smoothen the flow of goods across borders by greatly reducing the time, cost and administrative uncertainty of engaging in international trade. New flexibilities on agriculture are intended to improve the lives of farmers in developing countries, promoting food security and the alleviation of rural poverty.

The success of the conference was envisaged to set a new path towards the conclusion of agreements that will maximize op-portunities for all members, and particularly for developing and least developing countries, to benefit from growth in global trade.

2.3.2. Namibia’s Participation In the 2013 Dubai Annual Investment Meeting (AIM), United Arab Emirates (UAE)Date: 30 April – 2 May 2013Venue: Dubai International Convention and Exhibition Centre

Namibia through the Ministry of Trade and Industry has been participating in the Dubai Annual Investment Meeting (AIM) since its inception in the year 2010. The Minster of Trade and Industry Hon. Schlettwein led a Namibian delegation to the United Arab Emirates which comprised of officials from Government, SOEs, private sector and the media. The Namibian delegation was also joined by the Namibia Ambassador to Egypt and the Middle East, H.E. Andrew Intamba (deceased).

With its Theme “A Future International Economic Landscape in the Making, Implications on FDI and the Economic Prospects of Frontier & Emerging Markets”, the Annual Investment Meeting (AIM) 2013 highlighted investment and trading opportunities in frontier and emerging markets and in specific regions, such as Africa and Asia, and in particular in high growth sectors such as agriculture and agro-processing, aviation, tourism and hospitality, healthcare, industry, mining, oil and gas, renewable energy, financial services, logistics and education. The meeting also reflected on the benefits that can be incentives, mergers and acquisitions (M&As).

Hon. Schlettwein highlighted Namibia’s vision to transform itself into an industrialized country and the country’s current national development plan (NDP4) whose focus is on four priority sectors of manufacturing (mineral and fish processing), agriculture and agro-processing, transport and logistics, and tourism. The Minister of Trade and Industry noted the tremendous advancement and achievements that the UAE has made to transform itself into a formable magnet for investments and a highly competitive global hub for trade in the world, and indicated that Namibia wishes to learn from the UAE and seeks that country’s assistance to help Namibia in her quest to also industrialize and become a viable logistic hub serving its land-locked neighbours.

PART 02 PART 02

Caption: Hon. Schlettwein accompanied by Hon. Chief Ankama (in picture), during a bilateral meeting UAE Economy Minister, H.E Sultan Bin Saeed Al Mansouri.

2.3.3. Namibia’s Participation In The 2013 China International Fair for Investment and Trade (CIFIT)Date: 10 – 11 September 2013Venue: Xiamen – Tianjin, China

Building on excellent bilateral relations of Namibia and the People’s Republic of China, Hon. Schlettwein accompanied the Deputy Prime Minister, Hon. Marco Hausiku, the Deputy Minister of Foreign Affairs Hon. Peya Mushelenga to visit two cities, Xiamen and Tianjin respectively. The Namibian private sector participation to the CIFIT consisted of 37 business executives from a diverse spectrum of industries and sectors. The China International Fair for Investment and Trade (CIFIT) takes place annually in September and Namibia has been participating since 2006.

CIFIT is currently one of China’s main annual international investment promotion event aimed at facilitating mutual investment. In the year 2013, the event was held under the theme “Introducing FDI and Going Global” and focused on investment, trade and exhibitions, an investment forum, project promotion and policy briefings. The event enabled Namibia to strengthen and promote its trade and investment opportunities to potential Chinese investors.

The visit to Xiamen was to attend CIFIT, while the visit to Tianjin was a familiarization trip which was aimed at reinforcing the idea of establishing a specialized industrial park in Walvis Bay. Meetings were held with the Bahili Seedling Project, Tianjin Economic- Technological Development Area (TEDA), Sino-Singapore Tiangin Eco-City, Tianjin Port Group, China Railway 18th Bureau Group (CR18BG) and Tianjin Bohai Chemical industry Group Co, Ltd.

Sector Representation AIM 2013


PART 02

Caption: Hon. Peya Mushelenga, Deputy Minister of Foreign Affairs, Hon. Carl Schlettwein, Minister of Trade and Industry and Hon. Marco Hausiku, Deputy Prime Minister.

Sector Representation CIFIT 2013

03


PART 03 PART 03

PROGRAMME PERFORMANCE

OVERVIEW OF THE PERFORMANCE OF THE NAMIBIAN ECONOMY

Global Economic Developments

The global economy was relatively weak at the start of 2013, but strengthened in the second half of the year as growth in advanced economies picked up and emerging market economies performed better than expected. Weak domestic demand among the advanced economies and weak export demand restrained global growth. Nevertheless, stronger than anticipated inventory demand in the advanced economies, supported by a pickup in exports by emerging market economies boosted global growth in the latter part of 2013. Firm growth levels in China and Sub-Saharan Africa, the rebound in Brazil as well as India’s growth, resulted in the emerging market and developing economies being the mainstay of global growth in 2013.

Although emerging market economies were expected to slow slightly, their performance remained relatively strong. Going forward, improved global growth is expected, with the IMF projecting global growth to increase from 3.0 percent in 2013 to 3.7 percent in 2014. Risks to the global economy, however, remain on the downside. This is on the back of fiscal consolidation in developed economies and monetary tightening in some major emerging economies, in response to foreign exchange market turbulence and capital outflows, as the US Federal Reserve tapers its Quantitative Easing bond-buying program.

Sub-Sahara Africa is estimated to have recorded robust growth in 2013, on the back of strong domestic demand. Growth is expected to be at 5.1 percent in 2013 up from 4.8 percent in 2012. This growth is anticipated to be particularly strong in oil producing countries, such as Angola (5.6 percent), which benefited from a recovery in oil production and the relatively high oil prices. Oil prices also underpinned Nigeria’s strong growth of 6.2 percent. South Africa’s growth slowed due to labour unrest, weak private investment and weak growth in consumption. South Africa’s currency suffered a steep decline while the bond yields increased, due to financial market volatility combined with domestic economic vulnerabili-ties ignited by labour unrest in the manufacturing and mining sectors. The economies of Zambia and Botswana are also expected to experience a slowdown in 2013.

On the domestic front, the Namibian economy is estimated to have grown by 4.3 percent in 2013, compared to 5.0 percent in 2012. The estimated growth is accredited to the construction sector along large private sector projects, notably in the mining sector and business facilities, coupled with a large public works programme. Contrarily, the experienced protracted drought that was experienced during the year adversely affected the agriculture and electricity generation sectors. The tertiary sector grew mainly due to strong domestic demand that sustained the expansion of wholesale and retail trade activities.

The Namibia Dollar/Rand weakened against the US Dollar, British Pound and Euro during 2013, resulting in gains in external competitiveness for Namibia. On the domestic front, the weakening of the Namibia Dollar/Rand emanated from negative sentiments that arose from labour unrests in South Africa’s manufacturing and mining sectors. Furthermore, pressure was exerted on the currency by economic challenges in South Africa linked to vulnerable average budget deficit figures of around 5.0 percent of GDP since 2009 and a widening current account deficit nearing 7.0 percent of GDP since 2012. On the global front, the appreciation of the US Dollar against the Namibia Dollar/ Rand and other emerging market currencies was driven by some improved economic data in the US, leading to expectations that the US Federal Reserve would commence tapering off its Quantitative Easing program in late 2013.

During 2013, the Namibian economy continued to grow at a healthy pace although growth slowed marginally, partly due to the drought effects. The economy is estimated to have slowed to 4.3 percent in 2013, compared to 5.0 percent growth in 2012. Protracted drought conditions adversely affected the agriculture and the electricity generation sectors during the year.

The estimated growth is accredited to the construction sector along large private sector projects in the mining sector and business facilities, coupled with a large public works programme. Wholesale and retail trade also grew at relatively high rates, suggesting some resilient growth in private consumption. The overall balance of payments recorded a notable surplus, although the current account deficit remained sizeable due to a marked deterioration of the trade balance that more than offset an increase in current transfers. Consumer price inflation averaged at 5.6 percent in 2013, a decline from 6.7 percent in 2012. The decline in inflation resulted mainly from a slowdown in inflation for food and transport.

Implications of Global Developments for Namibia

During 2013, the fragile, albeit improving external environment, challenged Namibia’s economic development. A significant dete-rioration in international terms of trade, coupled with depressed external demand for Namibia’s traditional exports put pressure on the country’s external position. Also, the initial anticipated and actual tapering of the Quantitative Easing bond buying program by the Federal Reserve added volatility to the exchange rate. The resulting depreciation of the South African Rand and Namibia Dollar represents an opportunity for improved export competitiveness. However, the downside of the depreciation of the Namibia Dollar is that it may have an adverse impact on inflation in future, if it is transmitted to the prices of imported goods and services. Namibia’s sources of growth for 2014 are likely to remain with the domestic economy, especially as the construction of sizeable mining projects proceeds.

Real Gross Domestic Product

Namibia needs much faster growth in the primary and manufacturing sectors to reduce poverty and unemployment in line with the objectives set out in the NDP4. Growth must not only be rapid, it also needs to be inclusive resulting in decreased inequality and increased wealth. The 2012/2013 financial years has seen stabilization in the domestic economy, and there was particularly good performance in the first quarter.

During the year under review there has been a significant recovery in the gross savings to GDP ratio when compared to the previous two years when the savings rate was temporarily lower than the investment rate. In 2012, the savings rate stood at 30.5 percent, while Gross Fixed Capital formation or the investment ratio was 21.1 percent.

Manufacturing

In 2012, the manufacturing industry contributed around 12 per cent to the country’s Gross Domestic Product (GDP), but it was as high as 17 per cent in 2007. According to the Namibia Statistics Agency, (NSA), the growth in the manufacturing sector acceler-ated in 2012, reaching 4.3 per cent in real value added, compared to a decline of 0.6 per cent in 2011. The manufacturing sector, a priority sector under NDP4, generated exports to the value of N$21 billion, which is equivalent to 53 per cent of total exports of goods during 2012. Of the N$21 billion, 49 per cent consisted of food products and beverages, 13 per cent of copper and zinc and the rest of other manufactured goods.

Growth in the manufacturing sector accelerated in 2012 reaching 4.3 percent in real value added compared to a decline of 0.6 percent in 2011. This can mainly be attributed to the other food products & beverages subsector that recorded an increase of 6.5 percent in real value added in 2012 owing to an increase in beverage production. Other manufacturing recorded an increase of 4.8 percent in real value added which was influenced by the growth in output of textiles, plastic products and diamond process-ing. Output in fish processing on the other hand showed a decline of 4.9 percent, which is in line with the contraction in the fishing sector.

The positive performance in the tertiary industry was attributed to stronger growth in wholesale and retail trade and repairs. The sector grew by 12.1 percent in 2012 compared to 3.3 percent in 2011. Real value added for financial intermediation registered a growth of 7.0 percent in 2012 compared to 3.2 percent registered in 2011. This positive performance was owed to the insurance subsector that expanded by 10.4 percent. The banking subsector registered a growth of 3.8 percent in 2012. Real value added in the transport and communication sector, a prioritized sector under NDP4, is estimated to have increased by 5.7 percent in 2012 as compared to 3.5 percent in 2011.

This was mainly due to the transport and storage sub-sector which registered an increase of 6.3 compared to 4.4 percent in 2011. The post and telecommunication sub-sector performed much better in 2012 than in 2011 and grew by 5.2 percent up from 2.6 percent a year earlier. The hotels and restaurant sector, a proxy for tourism, and another NDP4 priority sector, is besides fishing and fish processing the only sector that contracted during 2012. The weak performance was mainly due to a decline in the number of bed nights and room nights sold and resulted in a decline of 0.6 percent, while it grew by 3.0 percent in 2011.

The health sector performed also better in 2012 than in 2011 and grew by 11.8 percent compared to 3.2 percent in 2011. Public Administration and Defence, which includes central government administrative activities, statutory bodies and local government activities, recorded an increase of 6.5 percent in real value added in 2012 compared to 3.1 percent registered in 2011.

The sector remains a top priority for the Ministry of Trade in accelerating industrialization, creating employment and reducing poverty. More specifically, we as a country have to consolidate on resource based industrialization if the goal of creating employ-ment and industrialization is to be achieved.


Employment

According to the Labour Force Survey (LFS) conducted in 2012/2013, Namibia continues to experience the harsh reality of an economy with a low industrial base as evident in a 27.4% unemployment rate. The Government continues to implement interven-tions aimed at reversing these statistics. There was an overall increase in employment for the country in both urban and rural areas. Employment in manufacturing and wholesale and retail trade sectors rose, both on a yearly and quarterly basis during the review period. In the manufacturing sector, employment grew by 4.7 percent and 2.7 percent, year-on-year and quarter-on-quarter, respectively. Similarly, employment in wholesale and retail trade sector improved by 12.8 percent and 2.9 percent, year-on-year and quarter-on quarter, respectively.

Trade Balance

During the third quarter of 2013, the overall balance of the balance of payments recorded a significant deficit mostly attributed to a widening current account deficit that was larger than the recorded surplus in the capital and financial account. This overall balance of payment deficit of N$1.7 billion was also higher by N$1.1 billion when compared to the same quarter of 2012. The deficit during the third quarter of 2013 was mainly as a result of a widening current account deficit, attributed to the net payment in investment income, supported by another deficit in merchandise trade balance. Although imports rose at a lower rate than exports during the year, its value remained high relative to that of exports, resulting in a widening deficit in merchandise trade.

These deficits offset the large inflows in current transfers and led to the developments in the current account. In contrast, the capital and financial account registered a net inflow over the same period, although it was not enough to offset the outflows in the current account. Namibia’s merchandise trade balance continued to be in deficit, both on a quarterly and annual basis, albeit narrowed on a yearly basis due to the re-export of some high-value commodities during the third quarter of 2013.

The narrowed deficit on an annual basis was caused by a considerable increase in exports by 55.1 to N$13.7 billion, year-on-year, while imports grew by 24.1 percent to N$18.4 billion. This was partly due to re-exports of some high-value commodities, particu-larly vessel docking platforms and tags for pushing and/or pulling ships during the quarter under review. The imports of some of these commodities, before re-exported, was having a similar impact on the overall imports, causing it to grow significantly, year-on-year, over the same period.

On a quarter-on-quarter basis, however, the above developments represented a widened merchandise trade deficit by N$2.2 billion. Besides, imports tend to swing up noticeably during the third and fourth quarters of every year, reflecting the usual-robust festive season-induced demand.

Conclusion

Going forward, the performance of the global economy is likely to remain fragile, despite improvement in economic activities of some other major economies. Namibia’s main major exports destination, the Euro Area, remains in the recession, whereas sustained growth in China, India and the USA would constitute positive developments for Namibia’s exports. In addition, a further depreciation of the Namibia Dollar against major trading currencies would improve external price competitiveness of Namibia’s export commodities in the international market.

Further diversification of the Namibian economy from its heavy dependence on commodity to manufactured exports together with the improvement of regional integration and investments into new economic infrastructure is crucial to respond to the current economic developments. Namibia further needs to take advantage of its membership in SACU and SADC and TFTA by intensifying efforts to increase exports to these countries, particularly of manufactured goods.

Trade diversification remains key to industrial development in Namibia to support the realization of the objectives outlined in the NDP4. Unless Namibia continue to advance a developmental approach to regional and continental economic integration, where economic diversification and regional development play a central role. Africa’s full potential will remain unfulfilled.

It is for these reasons that Namibia should intensify its industrialization efforts in the form of implementing the Industrial Policy Implementation Strategy framework and fast tracking the Specialized Industrialization Initiatives.

PART 03 PART 03

3.1. VISION

To be the leading Ministry in the drive towards industrialization, the realization of an export-driven economy and making Namibia a preferred FDI destination in order to achieve increased and sustainable economic benefits and employment for Namibians and international competitiveness.

3.2. MISSION

To create an enabling environment for increased domestic and foreign direct investment, trade and industrial development, and to position and safeguard the interest of Namibia in the regional and global economy.

The Ministry of Trade and Industry is 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. It promotes growth and develop-ment of the economy through the formulation and implementation of appropriate policies to attract investment, increase trade, develop and expand the country’s industrial base.

3.3. CORE VALUES

The core values are guiding beliefs about how things should be done and represent the way in which Ministry of Trade and Industry: will provide services to customers and stakeholders. The Ministry’s actions will be guided primarily by the core princi-ples of the Public Service Charter, i.e. standards, information, courtesy and helpfulness, consultation and choice, accountability, openness, non-discrimination, quality of service and value for money.

Integrity: Consistent, Honest and Trustworthy in our dealings with Clientele and stakeholders

Quality: Deliver Quality and Standard services in line with the Public Service Charter

Transparency: Perform our duties in a fair, open and honest manner

Accountability: Be responsible and accountable in the performance of our duties

Efficiency: Deliver timely, efficient and effective service to the public

Professionalism: Provide and execute our duties in a competent and skillful manner

Creativity and Innovation: Strive towards Creativity and Innovation to improve productivity in a cost and effective manner

Foresight: Foresee problems and take proactive actions to respond swiftly and effectively to challenges

3.4. STRATEGIC OBJECTIVES

• Ensure efficient business and IP registration and a competitive domestic market environment.• Promote and Diversify market opportunities for Namibian products.• Promote manufacturing and Entrepreneurship Development.• Create an enabling environment for increased domestic and foreign direct investment to achieve sustainable economic

growth and employment.• Improve Namibia’s competitiveness ranking in Africa and SADC.• Ensure an enabling environment and high performance culture.• Promote manufacturing and Entrepreneurship Development.

Sources:

Bank of Namibia Annual Report 2013

Bank Of Namibia Economic Outlook Reports 2013

Bank Of Namibia Quarterly Bulletin Reports 2013-2014

NSA National Accounts 2013


3.5. PROGRAMME 1: INDUSTRIAL DEVELOPMENT

The purpose of this programme is to create conditions necessary for increased investment and the development of a robust and competitive industrial sector in the country. The activities that are carried out under this programme are aimed at building and boosting the capacity of local industries to efficiently produce and supply goods and services to meet local and export demand, as well as the ability of local industries to withstand global competition.

(a) Industrial Policy Implementation and Strategic Framework

Following the adoption of Namibia’s first Industrial Policy by Cabinet, the MTI moved on to design an Industrial Policy Imple-mentation and Strategic Framework which will guide the execution of Namibia’s Industrial Policy.The Industrial Policy provides strategic guidance and principles for industrialization. It is aligned to Vision 2030 and the current National Development Plan (NDP 4). Namibia’s future development path is laid out in these guiding documents sharing emphasis of the importance of structural transformation.

The Implementation Framework provides a road map for the execution of the Industrial Policy. It defines Strategic Intervention Areas and sets targets in line with the guiding policy and strategy documents. Along the Strategic Intervention Areas, horizontal Priority Actions have been derived which have a cross-sectoral focus and aim in particular at the general business environment. The Industrial Policy Implementation and Strategic Framework formulation is at an advanced stage of finalization and will be finalized by May 2014.

b) Improvement of Living Conditions of Inhabitants of Katutura

In executing the Cabinet decision: 9th/03.08.10/007, the Ministry of Trade and Industry, in 2013 commissioned a study aimed at clearly understanding the potential economic activities and their viability thereof, which could in turn be translated into concrete plans and actions aimed at improving the living conditions of the inhabitants of Katutura and the surrounding areas. The study further looked into the existing businesses, industrial and other infrastructure development plans for the specified areas, and gaps or additional needs that may hamper entrepreneurial development with the ultimate view of addressing those.

(c) Business Support Services Programme (BSSP)

The Business Support Service Programme is a comprehensive package of business support to assist entrepreneurs to conduct Environmental Impact Assessments (EIA), feasibility studies, turnaround and the development of business plans, enhancing capacity building and skills development through training and mentorship.

Training

Sponsorships of three hundred and sixty (360) trainings and skills development workshops and mentorship initiatives covering various aspects such as business management, product development marketing and trade facilitation countrywide.

Feasibility Studies

Thirty (35) entrepreneurs assisted with feasibility studies in the areas of chipboard and bitumen manufacturing, dairy and hor-ticulture farming and a beef production feedlot, clay brick project and steel foundry project which are still underway or to be implemented.

Equipment Aid Scheme (EAS)

In keeping with its mandate of promoting and developing the Small and Medium Enterprises Sector, the Ministry of Trade and Industry has devised a number of interventions aimed at providing targeted support to this important sector of the Namibian economy.

Among these support programs, is the Equipment Aid Scheme, which was initiated by the Ministry of Trade and Industry in 2009. This intervention is aimed at boosting the production capacity of the informal and formal SME sector by assisting SMEs to acquire production equipment and technologies. This scheme is designed to create an environment for self-employment; strengthen capacities of SME entrepreneurs as well SME service providers; and develop entrepreneurial spirit and skills through technology acquisition.

PART 03 PART 03

Table 3 - Value of equipment to be purchased.

No Region Number of Applications Apprroved

Value of Equipment to be Purchased

1 Zambezi 26 2, 156,108.00

2 Erongo 47 2, 659, 229.00

3 Hardap 52 2, 629, 193.00

4 Karas 37 1, 976, 284.00

5 Kavango 33 4, 174, 492.00

6 Khomas 77 7, 441, 894.00

7 Kunene 13 718, 689.00

8 Ohangwena 34 3, 411, 750.00

9 Omaheke 29 1,342, 641.00

10 Omusati 34 5, 396, 380.00

11 Oshana 81 3, 397, 183.00

12 Oshikoto 50 2, 784, 375.00

13 Otjozondjupa 59 3, 271, 944.00

GRAND TOTAL 572 37,962, 979.00

The scheme targets SMEs in all thirteen regions, primarily in the manufacturing sector. To support the graduation of SMEs and other small business into the economic mainstream additional support is provided to established businesses that are already in operation at the level of producing goods and services that might need further product development diversification to improve the quality of their goods and services, as well as to increase their production and clientele.

Caption: Hon. Schlettwein with some of the equipment aid recipients at Erongo and Ohangwena regions respectively.


PART 03

(d) The Industrial Upgrading and Modernization Programme (IUMP)

The Industrial Upgrading and Modernization Programme (IUMP) has been initiated by MTI to improve the production and supply capacity, efficiency and (export) competitiveness of local enterprises as well as to diversify the national value-addition and to increase employment in the manufacturing sector. In the first phase of its implementation, IUMP has committed N$ 7.5 million to support 10 enterprises.

This has resulted in increased employment and production output, decreased production costs, improved products and access to market, and subsequently a higher efficiency and profitability. The demand for the programme continues to grow. The Priority Action aims at widening the scope of IUMP with respect to target groups and areas of support and at developing strategic partnerships and complementary programmes to maximize the impact. The programme currently provides targeted support to majority Namibian owned entities with at least 10 employees in four sectors, namely agro-food processing, pharmaceuticals/cosmetics, fish processing and minerals beneficiation.

Interventions can either be “hard” in form of equipment purchase or “soft” covering amongst others diagnostic studies and upgrading plans, technical training/coaching, product development, marketing and export promotion, standards compliance and testing. The year under review saw IUMP beneficiaries increased to 13 with a combined intervention value of N$18 million.

(e) Sites and Premises Development Programme

The purpose of this activity is to promote and facilitate industrialization in the country in terms of economic activities, manu-facturing and value addition as well as the provision of industrial parks and common facility centres. It aims at transforming the economy to reduce the dependence on retail and export of primary commodities. It is a well-known fact that the cost of running or setting up business in Namibia is relatively high thus requiring more financial commitments as start-up capital.

Caption: Hon. Schlettwein with some of the equipment aid recipients at Erongo and Ohangwena regions respectively.

PART 03

To overcome the adverse prevailing situation, the Ministry has an on-going programme to construct multi-purpose SME Modules, Industrial Parks, and special built-export oriented industrial infrastructure (EPZ facilities). These facilities are made available to business operators especially SMEs at an affordable rental charge.

The Cabinet in 1995 passed a resolution that the Ministry of Trade and Industry should develop a policy for small business development, thus as a result, the 1997 Small and Medium Enterprises (SME) Policy was formulated and adopted. This policy constituted six areas of intervention: finance; markets; technology transfer; purchasing; sites and premises; and training.

This programme started by developing small SME modules for lease to small entrepreneurs and grew towards the development of the following:

• Common Facilities• Industrial Parks• Business Parks• Trade and Industrial Estates• Community Markets

As the policy is almost 17 years old, it is currently under review and envisaged to be completed later this year.

Ministry of Trade and Industry Ohangwena

Regional Offices

Community Market !Homs Ai

Keetmanshoop

Business Hub Omuhama Omuthiya

and MTI Offices


PART 03PART 03

f) Namibia Industrial Development Agency (NIDA)

To strengthen the implementation of the industrial policy and the Growth at Home strategy of the Ministry of Trade and Industry a new institution is proposed to be established, to drive the industrialization agenda. It is foreseen to be called the Namibia Industrial Development Agency (NIDA), which will realign all functions geared to accelerate industrial development.

The new proposed agency will inter alia will be responsible for:

• Coordinating industrial development;• Promoting development and support all sectors of the economy for sustained economic growth;• Promote employment and employment creating activities in all sectors of the economy;• Promote the empowerment of the historically disadvantaged communities;• Promote import substitution where economically viable;• Promote local and foreign investment for industrial development and value addition to local

materials;• Research and encourage the creation and development of value chains;• Develop key industrial infrastructure and skills; and• Provide key advise all industrial development matters.

The NIDA Bill is currently being revised and will be completed in the 2014/15 financial year.

(g) SACU-wide Industrial Development Policy

The programme of developing common policies in the Southern Africa Customs Union (SACU) Common Customs Area is expected to result in, amongst other outcomes, balanced economic and industrial development and deeper integration in the sub-region.Article 38 of this agreement particularly directs Member States to agree to develop common policies and strategies with respect to industrial development.

Member States have since agreed to come up with a SACU-wide Industrial development Policy particularly focusing on ways of achieving balanced and equitable industrial development in the Common Customs Area and identifying priority sectors applica-ble to the member countries of SACU. Considerable work has being done by the SACU Industrial Development Policy Task Team in this regard. A study has been carried out to recommend policy options and strategic interventions as inputs into the finalization of a SACU Industrial Development Policy.

NDP4 being the overall economic agenda required to implement Namibia’s Vision 2030 and targets sustainable economic growth, increased employ-ment creation and increased income equality. Therefore the Industrial policy and the Industrial Policy Implementation and Strategic Framework will be closely aligned to NDP4 and Vision 2030. With reference to the Growth at Home initiative of Government that is aimed at developing local and regional value chains, emphases the importance of commodity-based industrialization. Therefore, the need to focus the attention on priority sectors in order to ensure that the impact and results of efforts are substantive.

(h) Implementing Namibia’s Industrial Policy Practitioners’ Workshop on benchmarking Namibia’s Implementation Strategy against Best Practices”, Date: 17 -18 October 2013Venue: Safari Court Hotel

The aim of the workshop was to create a platform to facilitate knowledge sharing and technical input between national and international experts. With the awaited finalization of Industrial Policy Implementation and Strategic Framework,

MTI continues to support industrialization and economic transformation, such as the export processing zone regime and sites & premises development programme, with a more coherent and targeted approach towards industrialization to maximize the impact of interventions.

(i) FABLAB Technology Centre

The Ministry of Trade and Industry, in partnership with Germany’s GIZ and the Polytechnic of Namibia co-financed the establish-ment of the FABLAB Technology Centre at the Polytechnic. The Centre will impart aspiring and emerging entrepreneurs with productive skills and know-how on how to design and manufacture market-ready products that meet local and global market quality standards. This initiative will go a long way in stimulating and nurturing entrepreneurial and productive capacity building among the youth in the country.

(k) Specialized Industrialization Programme

The Ministry of Trade and Industry seeks to establish a fifth programme under Industrial development to accommodate critically important industrial development and raw material value addition projects identified through a) strategic initiatives in NDP4 and sectoral consultations with industry and regulators, b) the emerging implementation strategy for the First Industrial Policy of Namibia, and c) the Growth at Home initiative of Government which aims to develop local and regional value chains on the basis of the raw material resources available Namibia.

The rationale for this programme is to give effect to the implementation of identified industrial development priorities identified through sectoral consultations held in the context of developing the Manufacturing Sectoral Execution Plan for the implementa-tion of the 4th National Development Plan and other planning processes of the Ministry of Trade and Industry. In order to achieve the significant expansion of Namibia’s manufacturing sector called for in NDP4 this new programme has been developed. Its purpose will be to increase the contribution of manufacturing to GDP and accelerate economic growth by increasing growth in priority sectors, and expand industrial output, diversify products, enhance value addition, and to develop new and strengthen existing value chains.

The operational modalities of the programme will be to provide targeted support for a) value chain analyses and feasibility studies for targeted projects; b) the implementation of specific industrial projects already identified which could be initiated by Ministry of Trade and Industry or any of its agencies in partnership with any appropriate entity to establish and incubate the project; and c) to provide a sector support facility on a competitive basis for the development of a project within a targeted sector. The scope of such support could extend to the acquisition and development of industrial land, acquisition of plant and equipment and other essential infrastructure, product development and marketing, and reduction in the costs of utilities such as electricity, water and telecommunications for priority projects, and capacity building. Targeted regulatory interventions geared to the consolidation of impact of the programme where necessary would be enacted as may be required. The programme is envisaged to start the next financial year.

Caption: Left to right: Hon. Schlettwein, Dr. Malan Lindeque (PS - MTI) and Ms. Annegret Al-Janabi (representative of the German Federal Ministry of Economic Cooperation and Development)

Caption: Front row, from right: Dr. Wilfried Lütkenhorst (Associate Fellow at German Development Institute), Dr. Chris Tan (Director, Electrical & Electronics and Innovation at PEMANDU, Malaysia)


PART 03PART 03

3.6. PROGRAMME 2: INTERNATIONAL TRADE

The main purpose of this programme is to increase the volume, value and range of Namibian goods and services that are exported as well as securing external markets and preferential market access conditions for local products in regional and global markets. In this regard, the Ministry has devised an export development and promotion programme and undertakes targeted promotional activities such as trade missions, fairs and exhibitions; product and market research and development; and construction of trade estate centers in identified target external markets.

(a) Local and foreign trade fairs and exhibitions

The ability of people with money to invest in industries and to buy products to sell is greatly influenced by the availability of markets at home and abroad. The more people are able to sell, the more they will be induced to invest in factories and facilities to produce and sell products since they are able to recover their investments. Most local firms in the country especially SMEs face numerous difficulties in finding markets and buyers for their products and suppliers of productive technology and inputs.

To overcome or minimize the constraints, the Ministry has put in place a programme through which it provides financial and technical support to small-scale manufacturers and traders to enable them to exhibit their products and establish linkages with suppliers. One of the tools used is participation in local and foreign trade fairs and exhibitions, and the Ministry provides financial and logistical assistance to local firms through its Export and Marketing Assistance Programme (EMAP).

(b) Management of Bilateral, Regional and Multilateral Trade:

Trade Policy and Agreement Activities undertaken during the reporting period

SACU • Coordinated and participated in drafting of the Annex on Common Negotiating Mechanism.

• Participated in the formulation of SACU Industrial Development Policy.• Participated in the Review of Agricultural Rebate Quotas Regime.• Participated in the Drafting of Annexes on Unfair Trade Practices and on

Competition Policy.

SADC EPA - EC Negotiations During 2013, the parties (SADC EPA Group and the EU) met and progress was achieved in reaching consensus on a number of issues.• The parties agreed on the following provisions: Article 29: Special administrative

cooperation, Article 52: Consultation and Information Exchange, Article 97: definition of parties and Article 114: Rights and obligation. Government Procurement, Competition Policy and Intellectual Property Right.

• The Ministry hosted a National Consultative meeting on EPAs in April 2013 as it was directed by the Cabinet.

TFTA • The establishment of the Tripartite Free Trade Area (TFTA) is linked to the larger ideal of “Continental Integration”, which is envisaged to be operational by the indicative year 2017.

(c) Namibia Board of Trade (NBT)

The SACU Agreement to which Namibia is a signatory obliges all member states to establish national trade bodies to deal with issues related to cross-border trade and tariffs in the sub-region. The NBT is the national body that is still in the process of being established and will have the responsibility of setting, administering and implementing tariffs, trade remedies, infant industry protection, as well as investigating and ruling on unfair business practices. The Ministry is at an advanced stage to operationalize this body, and acquire budgetary allocation for its operations.

(d) Trade Promotion

The central focus is to increase exports of Namibian made goods and services and enhance regional and global trade and economic integration. As the National Focal Point on international trade relations, the Ministry of Trade and Industry continued to be at the forefront of coordinating Namibia’s engagements in bilateral, regional and multilateral trade negotiations and ar-rangements during the reporting period. Assistance to three hundred and sixty five (365) companies benefited from this support for which the Ministry spent N$4,617,420.05. This is a significant achievement in comparison to one hundred and ninety nine (199) companies that benefited from N$2,548,734.00 during the last financial year. The purpose of this intervention is to provide Namibian entrepreneurs a platform to exhibit their products and secure supply opportunities.

(e) EPA Negotiations – National Consul-tationDate: 24 April 2013Venue: Nampower Convention CentreTime: 09h00 – 13h00

Namibia remains committed to regional, con-tinental & multilateral economic integration, trade facilitation processes and arrangements through SACU, SADC, the AU and the WTO as well as to the negotiations of the Economic Partner-ship Agreement with the European Union. In all these, there is need to ensure that policy space to implement measures aimed at growing our industrial base and to safeguard industries is not eroded through such regional and multilateral arrangements. While consolidating our existing market access to equally intensify effort to diversify market opportunities for exports with special focus on China, the Russian Federation, India, South-East Asia and the Gulf Regions.

The purpose of the National consultative meeting was to provide an update on the state of play and obtain strategic guidance from stakeholders on the possible way forward regarding Namibia’s position in the negotiations. The consultation was well attended by political leaders, senior government officials and industry representatives. The meeting served as a platform to reflect on the challenges and opportunities that SADC – EU EPA negotiations present, with the purpose to inform policy makers and negotiators on potential options and avenues Namibia can take in this process.

Caption: In attendance: Hon. Ben Amathila, Hon. Joel kaapanda (Minster - MICT), Hon. Saara Kuungongelwa - Amathila (Minster - Finance), Mr. Joshua //Hoebeb (Governor - Kunene Region), Laura Veenelapi McLeod-Katjirua (Governor - Khomas Region).

Caption: From left to right: H.E. Mr. Hanno Rumpf (Namibian Ambassador in Belgium), H.E. Mr. Martin Andjaba (Namibian Ambassador in Washington), Hon. Hadino Hishongwa (Namibian Ambassador to Botswana) and Mr. Joseph Iita (PS – MAWF)

Table 4 captures the activities undertaken during the reporting period under Trade Policy and Agreement.


PART 03PART 03

The interim Economic Partnership Agreement (IEPA) between SADC EPA Members States and the European Union was initiated in November and December 2007 by all SADC EPA Member States, with the exception of Angola and South Africa. The IEPA was subsequently signed by the European Commission and four of the SADC EPA Member States, namely Botswana, Lesotho and Swaziland on 4 June 2009 and Mozambique on 15 June 2009, in line with Article 105 of the IEPA. Namibia, Angola and South Africa have not signed the IEPA.

Several contentious issues of concern contained in the IEPA are detrimental to the long-term economic development efforts of Namibia, some of these issues amongst others are:

• The non-negotiable Most Favorable Nation treatment provision sought by the EC; • The freezing of export taxes/levies/charges and thus inability to use such measures as incentives for value addition and

manufacturing;• The abolition of quantitative restrictions on imports with impacts on cereal production and thus food security;• Inadequate provision made for Infant Industry Protection ; and • Abolition of restrictions on local content in manufactured or processed goods.

EPA in its current form negatively affects Namibia’s industrialization process. Hence, Namibia continues to engage in the negotia-tions aiming to guard against having an outcome of the negotiations isolating Namibia from its partners in the region, erosion of policy space and a position where the country is made worse off in terms of economic activity. Namibia’s concerns are also shared by other ACP States as clearly evident from both the Sipopo Declaration of ACP Heads of State and Government in December 2012 in Malabo, Equatorial Guinea, and the recent African Union Commission organized EPA Negotiations Coordina-tion Meeting held on 24 – 25 July 2013 in Librevile, Gabon.

In concluding the status of the EPA negotiations, the EU Parliament set a unilateral deadline of 1 October 2014 as a cut-off date on which EU regulation 1528 of 2007 which allows for market access for ACP Countries in the EU will be withdrawn if the EPAs are not signed and ratified. This time limit puts pressure on the negotiation process. The indication from the EU is that it will take a minimum of two years before it provisionally implements the EPA and thus securing market access for products of export for Namibia and other SADC EPA countries. Such measure will lead to severe consequences for Namibia and others due to the loss of preference and a disruption in the exports to the EU.

(f) Namibia Trade Forum (NTF)

The Namibia Trade Forum (NTF) is an agency of the Ministry of Trade and Industry whose aim is to institutionalize public-private dialogue and cooperation with emphasis on international and domestic trade and investment policies as stipulated by the Fourth National development Plan (NDP4). The role of the NTF is to act as the main consultative body representing the private sector views to the Government. It thus serves as the highest public-private partnership on international and domestic trade and invest-ment matters of Government through workshops, seminars, trade negotiations, meetings and media releases.

Retail Charter

The Retail Charter will lay out principles and targets that will ensure greater access into the retail market for local beneficiaries and will subsequently be used to monitor and assess the impact of such an intervention. The Charter will make possible the creation of a sustainable climate for local contribution to the value chains as well as to facilitate job creation amongst other growth targets. This will best be achieved through stronger dialogue and collaboration between the public and private sector.

Furthermore, the Retail Charter is in line with the ‘Growth at Home’ strategy which strives to transform the local economy as seen with other initiatives by the Ministry of Trade and Industry. The emphasis is placed on ensuring domestic growth and subsequent attempts to increase employment opportunities for locals at different levels of the value chain.

(g) Single Window System

Cabinet Decision No.16th/15.10.13/004 approved the establishment of Namibia’s Single Window (NSW) initiative in October 2013 and the Ministry of Trade and Industry is authorized to be the lead agency to spearhead the establishment of NSW to deal with all import or export related regulatory requirements.

“Single Window” is one of the trade facilitation measures to improve Namibia’s competitiveness in doing business. It is a facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfill all import, export, and transit-related regulatory requirements. A NSW simplifies and expedites the processing, distribution, and storage of the information between government, traders and service providers, and facilitates standardization and sharing of data, and hence greater efficiencies in all aspects of cross-border trade. The Government of the Republic of Namibia sees the establishment of a National Single Window environment as the next step in consolidating its position as a modern state. It is evident that Namibia can only benefit from adopting such a system.

(h) Quantitative Restrictions on the Importation of Poultry and Dairy Products

Quantitative Restriction on Importation of Dairy Products

The Ministry of Trade and Industry, by Government Gazette No. 245 of 16 September 2013, instituted a quantitative restriction on the importation of dairy products into Namibia. The Gazette outlines the product coverage and prescribes quantity limitation of dairy products imported into Namibia. The import restriction includes Ultra High Temperature (UHT), fresh milk and yoghurts classified under the Harmonized System code 0401 and 0403 respectively. In addition, the Gazette prescribed a limit of 500 000 litres of milk (UHT and fresh milk) and 200 000 litres of yoghurt per month.

The measure was put in place to protect the local dairy industry against import surges of dairy products into the Namibian market; and to safeguard investment and employment in the local industry in line with Namibia’s industrialization drive to achieve Vision 2030. The trade policy measure instituted by the Ministry of Trade and Industry prescribes a limit on products to be imported into Namibia to create a level playing field and fair competition against cheap imports that created a distress to the domestic industry in Namibia. The measure is a trade policy decision that creates an opportunity for Namibia to industrialise in line with the national developmental goals and vision 2030.

Quantitative Restriction on Importation of Poultry Products

Cabinet by its decision No. 1st 12.02.13/009 approved in principle the granting of Infant Industry Protection (IIP) to the poultry industry. Cabinet further approved the imposition of an import permit requirement for poultry products as a complementary measure. The Importation of poultry products is limited to a maximum of 900 tons per month. This quantitative restriction is envisaged in line with domestic consumption to safeguard Namibia’s poultry industry. On 5 April 2013, a Government Gazette Notice No. 81 with regard to restrictions on importation of poultry products into Namibia was published and further amended to a maximum limit of 900 tons through Government Gazette Notice No. 321 of 2013.

3.7. PROGRAMME 3: COMMERCE

The Programme focuses on the initiation, development and adoption of appropriate legal and regulatory instruments, provision of an effective intellectual property regime, conformity assessment, business set-up and related services, consumer protection, franchises and market competition to enable and support increased economic activities.

(a) Namibia Business and Intellectual Property Authority (BIPA)

This envisaged establishment of BIPA is aimed at enhancing efficient and professional service delivery in the areas of business registration and intellectual property protection. This government agency, which is in the process of being established, will perform all business and IPR registration and regulation functions on behalf of the Ministry of Trade and Industry. Cabinet approval has already been granted for its establishment and a Chief Executive Officer (CEO) has been appointed.

(b) Consumer Protection and Internal Market Regulation

This activity involves the development and implementation of policies, laws and programmes aimed at promoting and enhancing fair competition among enterprises as well as consumer choices and rights in the marketplace. Policy and legal framework on consumer protection is still to be developed.


PART 03PART 03

3.8. PROGRAMME 4: NAMIBIA INVESTMENT CENTRE

The purpose of this programme is to achieve an increase in the number, value and nature of domestic and foreign direct invest-ments in Namibia. Creating an enabling environment for investment, this involves having in place an appropriate legal and regulatory framework; a proper plan and strategy for marketing Namibia as a preferred investment destination and enhancing a positive competitiveness ranking of Namibia.

Achievements

Following are some of the achievements realized:• Final draft of the Investment Bill;• Review of EPZ regime finalized;• Review of manufacturing incentives at final stage; and • Facilitated new investment in the mining, agriculture, tourism and hospitality, manufacturing, energy, construction, services

and fishing with a combined value of N$598 million and resulting in 1990 jobs.

Constraints

Following below are some of the constraints faced in the implementation of activities under this Programme:• Delays in the finalization of the Investment Bill;• Absence of investment strategy to guide targeted investment promotion to companies and countries; and • • The Euro Zone crisis and volatility in the global money market has resulted in reduced investments outflows from

abroad.

(a) Inward Business Missions

Overall, the Ministry facilitated and hosted a number of inward trade and investment partnership-seeking and exploratory missions from the following countries: United States of America, South Africa, Nigeria, Portugal, Korea, China, Spain, Germany, Poland, Netherlands, Mauritius and Turkey.

(b) Outward Business Missions

The Ministry of Trade and Industry participated in various trade and investment events in different countries as part of the invest-ment promotion drive in a quest to attract Foreign Direct Investment to Namibia. Listed below are countries where outward mission have been undertaken with private sector participation.

Two prominent events annually undertaken by the Ministry of Trade and Industry is the Annual Investment Meeting (AIM) in Dubai and China International Fair for Investment and Trade (CIFIT) in Xiamen. Both markets remain important to Namibia, as the country continues to seek their assistance and investment to enable her to realize her set long-term investment, economic and industrialization ambitions.

(c) Investment Facilitated

The table below indicates the value of investment and employment committed as a result of work permits granted to foreign investors, who have been admitted into the country with the facilitative assistance of the Ministry’s Namibian Investment Centre during 2013-2014.

Table 5 – Investment Facilitated

2013 / 14 Outwards Missions Investment amount per Sector

In 2013, the three sectors that attracted the highest value of investments were Mining & Exploration, Construction and Services. In addition the Mining and Exploration, Construction and Energy sector contributed to the largest amount of jobs created in the same year.

With the boom experienced in the mining & exploration sector, it is not surprising that this sector attracted the highest amount of investment totaling N$ 1,064,000,000.00, whilst the import & export sector attracted the least investment amount of N$ 300,000.00.

Sector Investment Amount (N$) Jobs Created

Agriculture 1 150 000.00 9

Automotive 2 000 000.00 3

Construction 75 800 000.00 68

Mining and Exploration 1 164 000 000.00 4 198

Tourism and Hospitality 16 400 000.00 42

Import and Export 300 000.00 2

Retail and Trading 2 900 000.00 14

Services 148 833 951.00 183

Energy 1 150 000.00 76

Manufacturing 1 300 000.00 26

TOTAL 1 335 883 951.00 4 621

INVESTMENT AMOUNT (N$) PER SECTOR IN 2013


PART 03PART 03

(d) Investor Aftercare

As part of the investor aftercare services the NIC undertakes regular company visits to the various regions in order to assess companies on their progress made, the current working environment, as well as possible additional facilitation required. During the period under review the following regions were visited:

The hundred and seventeen companies (117) companies visited in the Ohangwena region created 560 jobs and a total amount of N$597 million was invested. The fifty seven (57) companies visited in the Erongo Region created 600 jobs and a total amount of N$676 million was invested.

In Oshana region twenty eight (28) companies were visited and a total amount of N$6.6 million was invested and eighty (80) jobs created. While in Omusati region six companies were visited and an amount of N$764 000 was invested, resulting in (9) nine employment opportunities.

3.9. PROGRAMME 5: ADMINISTRATION, COORDINATION AND FINANCE

This programme deals with the provision of administrative or supportive services that the various units and agencies of Ministry require in order to execute their assigned core functions and achieve the strategic objectives as set out in the Strategic Plan. This is ensured through the acquisition and prudent utilization of human, financial, technical and other resources. It brings together (co-ordinates) all the other activities for the attainment of ministerial objectives.

Achievements

• The construction of housing units for the Ministry staff members and Regional Offices were completed at Omuthiya and Eenhana.

• Finalized Public Private Partnership (PPP) Policy framework and handed over to the Ministry of Finance for implementation.

Constraints• Delays in the acquisition of land and the non-availability of serviced land by Municipalities and

Regional Councils.

(a) Financial and Asset Management

Government resources, like any other resources, are limited and have to be applied to competing needs. In this regard, special attention was given to ensuring that the financial and other resources allocated to the Ministry were deployed, utilized and managed in strict adherence to relevant statutory, rules and codes and on the basis of value for money, efficiency and account-ability principles.

The Ministry’s total budgetary allocation for the 2013/2014 financial year amounted to N$749 437 000 comprising an amount of N$287 107 000 for the operational budget and N$462 330 000 for the development budget.

This allocation represents an increase of two hundred and fifteen million seven hundred and seventy thousand Namibia Dollars (N$215,770,000), or 10 % from the 2012/2013 allocation.

3.9.1 HUMAN CAPITAL MANAGEMENT AND OVERSIGHT

(a) Human Resource Management and Development

The Ministry has an approved structure of three hundred and forty one (341) posts. Out of the 341 positions, 291 were funded while 249 were filled translating into 72%.

The following developments were recorded in respect of staffing and human resource development during the period under review: • 17 New appointments and transfers from other O/M/As;• 8 Promotions• 1 Transfers to other O/M/As • 8 Termination/ resignation from Public Service; and • 1 Death

(b) Human Resource Development

Being a specialized Ministry, staff members at various levels and especially at professional levels were given sponsorship to pursue short-term and long-term career and competence enhancing training, especially in fields relevant to their assigned jobs or to the skill needs of the Ministry.

Table 6 – Investor Aftercare

The table 5 below indicates the budget allocations and utilization:

Table 7 below highlights some of the training undertaken during the reporting period.

Region Number of Companies Visited

Total Investment Amount by Companies

Employment Created by Companies

OHANGWENA 117 N$ 597 769 920 560

ERONGO 57 N$ 676 120 000 600

OSHANA 28 N$ 6 687 347 80

OMUSATI 6 N$ 764 000 9

Budget Expenditure Utilization %

Operational Budget 287 107 000. 00 282 015 455. 45 94 %

Development Budget 462 330 000. 00 461 524 021. 00 100 %

Total 749 437 000. 00 743 539 477. 41 99.2 %

Training Course Male Female Total

Degree Qualifying 2 3 5

Public Sector Accounting Training 2 3 5

Training of Training Committee Members 3 6 9

Defensive Driving Skills of Safety 2 0 2

Advanced Skill Upgrading Electrical 1 0 1

Tariff Analysis Simulation and Trade Remedies 1 3 4

Economic Promotion Leadership Programme 2 1 3

Website Design, Maintenance and Management 1 0 1

Advance Office Management and Administration 0 12 12

Management Development for Senior Secretary and PAs 0 5 5

Record and Registry Management 0 1 1

Economic Policy Analysis and Development Research 1 1 2

Project Monitoring and Evaluation Programme 1 1 2

Transport Management System 1 0 1

Internal Training of Transport Officer of Various Offices 1 0 1

Total 19 35 54

N$’000


PART 03PART 03

(c) Internal Audit

The following activities were carried out during the reporting period;

i. Audit Reports on:• Company Registrations Process;• Commercial Counsellors Offices; and• Recruitment and Payroll.

ii. Investigations on:• Silnam Payments Contract;• One Call Payments;• Equipment stolen at Ramatex Complex belonging to beneficiaries under the EAS; and • Equipment Aid Scheme Verification in Omusati and Oshana Regions.

iii. Audit Charter and Audit Committee Terms of Reference were also completed.

(d) MTI End of Year Function

Just like in the previous years, the Ministry of Trade and Industry held an end of year function in December 2013 designed to bring management and employees together with the objective of promoting team work through socializing. This is also an opportunity to bid farewell to the ending year, recognize its successes and failures while at the same time welcoming a new year with its challenges. The MTI end of year party took place on Tuesday, the 29th of November 2013 at the Windhoek Show grounds.

At the event, challenges encountered and achievements attained during the period under review were mentioned. Areas of focus during the ending year, were among them was the Industrial Policy Implementation strategy; a new structure for the Ministry and realignment of its agencies and SOEs.

CONCLUSION


CONCLUSION

CONCLUSION

Now that everything has been said and done as far as this issue of our Annual Report is concerned, what remains for us as the custodians of trade and industry in the country is to rededicate our efforts and strengthen our resolve to continue implementing the lofty ideals embedded in our “Growth at Home” concept and other strategies. Let us keep on engaging both the public and private sector; let us keep on empowering the SME Sector so that more small businesses can become medium-sized businesses, and more medium-sized businesses can become big businesses. This will ensure the creation of many more jobs and the narrowing of the chasm between the haves and the have-nots.

The editorial team would wish to thank all officials who made it possible for us to produce this latest Annual Report. We register our appreciation to all those who assisted us with research; who drafted articles and sub-reports; who made photographs available; who compiled statistics; who verified information and facts, who advised us in general, as well as those who worked from behind the scenes, encouraging us to present a high-quality document. We are confident that our Hon. Minister - when submitting this Report to Parliament - would be able to do so with pride, knowing fully well that all statements contained herein are based on facts and are reflecting the vision and ethos of the Ministry of Trade and Industry. Last but not least, we hope that ministry staff will take ownership of the contents of this edition of the Annual Report and will implement the philosophy of the ministry in the way they execute their individual duties from day to day.

Editorial Team: Ilona Nkandi – AsinoAdelina Omagano KankondiElijah Mukubonda (Coordinator)

Compiled by: Elijah Mukubonda

ADDRESS LISTMINISTRY

AND FOREIGN ECONOMIC

OFFICES


CONTACT DETAILSCONTACT DETAILS

ADDRESS LIST MINISTRY AND FOREIGN ECONOMIC OFFICES

CONTACT DETAILS OF THE MINISTRY OF TRADE AND INDUSTRY

Hon. Carl Schlettwein, MP Hon. Tjekero Tweya, MP Minister Deputy MinisterTel: +264 61 283 7334 Tel: +264 61 283 7329Fax: +264 61 220 148 Fax: +264 61 253 866Email: [email protected] Email:[email protected]

OFFICE OF THE PERMANENT SECRETARY

Dr. Malan Lindeque Mr. Nghidinua Daniel Permanent Secretary Dep. Permanent SecretaryTel: +264 61 283 7332 Tel: +264 61 283 7258 Fax: +264 61 220 278 Fax: +264 61 230 019Email: [email protected] Email: [email protected]

DEPARTMENT: NAMIBIA INVESTMENT CENTRE

Ms. Bernadette Artivor Dep. Permanent SecretaryTel: +264 61 283 7335 Fax: +264 61 220 278Email: [email protected] or [email protected]

Vacant Mr. Wilbard NashandiDirector Deputy Director Tel: +264 61 283 7254 Tel: +264 61 283 7254Fax: +264 61 220 278 Fax: +264 61 220 278Email: [email protected] Email: [email protected]

Ms. Mbolioshili (Dolly) Kandume Ms. Angela Dau-PretoriusDeputy Director Deputy DirectorInvestment Promotion Investor ServicesTel: +264 61 283 7315 Tel: +264 61 283 7312Fax: +264 61 22 0278 Fax: +264 61 220 278Email: [email protected] Email: [email protected]

INDUSTRIAL DEVELOPMENT DIRECTORATE

Ms. Petrina Nakale VacantDirector Deputy Director Tel: +264 61 283 7328 Regional Economic Development Fax: +264 61 259 676 Tel: +264 61 283 7328Email: [email protected] Fax: +264 61 259 676 E-mail: [email protected] Vacant Ms. Dina Nashidengo Deputy Director Deputy Director Industrial Policy, Planning and Development Business & Entrepreneurial Tel: +264 61 283 7328 DevelopmentFax: +264 61 259 676 Tel: +264 61 283 7305E-mail: [email protected] Fax: +264 61 259 676 E-mail: [email protected]

DEPARTMENT OF TRADE AND COMMERCE

Ms. Annascy MwanyangapoDep. Permanent SecretaryTel: +264 61 283 7331 Fax: +264 61 222 576Email: [email protected]

INTERNATIONAL TRADE DIRECTORATE COMMERCE DIRECTORATE

Mr. Benjamin Katjipuka Ms. Maria Pogisho (Acting)Director (Acting) Director/Registrar Tel: +264 61 283 7297 Tel: +264 61 283 7239 Fax: +264 61 253 865 Fax: +264 61 222 576 Email: [email protected] E-mail: [email protected]

Mr. Benjamin Katjipuka Ms. Maria PogishoDeputy Director Deputy DirectorTrade Agreements Consumer Protection Tel: +264 61 283 7288 Tel: +264 61 283 7239Fax: +264 61 253 865 Fax: +264 61 22 2576 E-mail: [email protected] E-mail: [email protected]

Ms. Patricia Liswaniso Ms. Diana Tjiposa Deputy Director Deputy DirectorTrade Promotion Trade Policy Tel: +264 61 283 7297 Tel: +264 61 283 7373 Fax: +264 61 253 865 Fax: +264 61 253 865 E-mail: [email protected] E-mail: [email protected]

FINANCE AND ADMINISTRATION DIRECTORATE

Mr. Munu G. Kuyonisa Ms. Hermine Himarua Director Deputy DirectorTel: +264 61 283 7337 Tel: +264 61 283 7204Fax: +264 61 238 607 Fax: +264 61 238 607Email: [email protected] E-mail: [email protected]

LIST OF FOREIGN ECONOMIC OFFICES

City Commercial Counsellors Telephone Contacts Fax Email Contact

Berlin Ms. M. Kaapanda +49302639000 +4917632345650 [email protected]

Brussels Mr. B Haufika +32277711410 +32486833301 [email protected]

Geneva Mr. K. Sirongo +41227866282 +4197781150 [email protected]

New Delhi Mr. J. Katuamba +911126140389 +919810490188 [email protected]

Luanda Mr. P. Shinyala +244222320441 +244912435410 [email protected]

Paris Mr. S. Mohamed +33144173265 +3360983657 [email protected]

Pretoria Ms. B. Hinda +27123433060 +27765474751 [email protected]

Washington Mr. F. U. Gauseb +12029862007 +120223783874 [email protected]


MTI ORGANOGRAMPART 03

MTI ORGANOGRAM

MTI ORGANOGRAM


ANNEXURE APART 03

SPEECH “GROWTH AT HOME”

CONFERENCE

STATEMENT

BY CARL - HERMANN GUSTAV SCHLETTWEIN, MP

MINISTER OF TRADE AND INDUSTRY

“GROWTH AT HOME” CONFERENCE

28 NOVEMBER 2013 NAMPOWER CONVENTION CENTRE, WINDHOEK

Right Hon. Dr. Hage Geingob, Prime Minister of the Republic of Namibia ;

Hon Speaker of the National Assembly;

Hon Chairperson of the National Council;

Hon Ministers;

Deputy Ministers;

Hon Members of Parliament;

Hon Regional Governors;

Your Worship the Mayor of the City of Windhoek and other Mayors present;

Esteemed participants from the private and public sectors and the academia;

Members of the Media;

Ladies and Gentlemen.

I am delighted and grateful to each and every one of you for having made time to attend this important Conference, which is being hosted by

the Ministry of Trade and Industry under a befitting theme of Growth at Home. I am particularly grateful to Right Hon Dr. Hage Geingob for having

accepted my invitation to grace and open our Conference this morning. Thank you very much Comrade Prime Minister for your continued leader-

ship and support to our Growth at Home strategy.

Director of ceremonies

Esteemed participants

My task is twofold. I need to introduce the main topic of the conference, and I shall have the honour to introduce the main speaker. Let me start

with the introduction of the “Growth at Home” strategy.

To drive home the importance of manufacturing and the transformation of the structure and content of our economy, the focus of our Growth

at Home strategy, allow me to share a quick snapshot of the economic indicators for Namibia for the year 2012 versus where we desire to be by

the 2030.

GDP N$ 109,348 billion….

NGDP/capita: N$ 4754 (2012/13)

GDP growth: -1.1 (2009), 6.0 (2010), 4.9 (2011), 5.0 (2012)

Share of GDP as per the National Accounts for 2012:

Primary sector: 18.6 %

Secondary sector: 17.6 %

Tertiary sector: 56.9%

Gini coefficient: 0.58, down from 0.70 in 1994

Unemployment rate: 27 %

Balance of payment small surplus: N$ 156 million

Current account balance: - 0.3 %, -N$316 million

Inflation: 6.5 (2012)

National Budget 2013/14: N$ 45 332 233

Total Public expenditure: 38.3% of GDP (2012/13)

Total revenue: 35.5 % of GDP (2012/13)

Budget balance: -2.8 % (2012/13)

Total public debt: 31 % of GDP $ 104.58 billion (2012/13)

Read in isolation, these macro-economic indicators show that Namibia is on the right track. We weathered the global economic crisis and

rebounded strongly with economic growth of 6% in 2010, the year after the start of global economic crisis. This solid growth was maintained at


around 5% in 2011 and 2012. However when one compares this relatively good performance with the Vision 2030 goals, it is clear that we have

to do more and must raise the performance bar significantly.

The fourth National Development Plan (NDP 4) as our overall national framework to bring about the realization of the goals set out in Vision 2030

has been developed and is now being implemented. To refresh our minds, the broad objectives and targets set out in NDP

a) High and sustained economic growth

• 4.6 % in 2012/13

• 6.1 % in 2013/14

• 6.4 % in 2014/15

• 6.3 % in 2015/16; and

• 6.5 % in 2016/17

b) Employment: 499, 968 additional jobs

c) Increased income equality: Gini coefficient of 0.47 by 2017

To reach these goals, we have identified a number of enablers and priority sectors for development. Some of the enablers that will be discussed

in more detail during sessions that will follow this one are education and skills, public infrastructure and institutional environment. For very

obvious reasons the manufacturing sector is one of the four sectors that have been identified to receive special attention. However all four were

identified as priority sectors due their high potential to contribute to the realization of the NDP 4 developmental goals of high and sustained

economic growth, additional employment creation and increased income coupled with equitable wealth distribution.

Ladies and gentlemen

Namibia can boast of a number of fundamentals that are necessary to bring and sustain economic growth, namely macroeconomic stability,

good governance, the rule of law, protection of property rights, strong institutions and good infrastructure. On the back of these, our economy has

recorded positive growth even amidst the global financial crisis. While economic and growth has been positive and given rise to gains per capita

income, the growth was jobless. It has not performed well in translating economic growth into sufficient additional jobs. Equally, the economy

performed below expectation in terms of equalizing wealth distribution. This is largely attributed to the fact that the structure of our economy

has remained narrow and resource-based. Economic growth is still largely fuelled by production and exports from the extractive industries. The

growth and share contribution of the manufacturing sector has remained low over the years, and the contribution of sector in real terms reduced

from 14 percent in 2010 to 13 percent in 2012.

Esteemed ladies and gentlemen

In our assessment the Namibian economy is suffering from the raw material endowment curse, which is typical for many colonial economies.

When relying on exports of raw materials we remain price takers for our export commodities; as well as for our imported finished consumer

goods. The economy remains prone to external shocks and price volatility in the global market. We are perpetually forfeiting economic opportuni-

ties to those who beneficiate the raw materials imported from Namibia and we are continuously exporting jobs that are created in value chains

based on our raw material supply. Solutions to our persistent and perpetual problems of high unemployment, a skew income distribution and

poverty may be found by innovative strategies that make the most of our comparative and competitive advantages.

The natural endowment in raw materials like minerals, precious and semi-precious stones, agricultural produce, marine resources and fish,

to mention but a few should not remain a curse. This endowment must be turned into our competitive advantage. Our economy has to be

transformed from one that relies on trading in raw materials only, to a diversified economy that produces value added and finished goods. The

emphasis of our “Growth at Home” strategy is therefore on increased value addition to our natural resources for greater socio-economic benefits

at home where such resources originate, or said differently – commodity-based industrialization.

I agree with Carlos Lopes, who in the “Economic Report on Africa” states that and I quote:

“On top of offering short- to medium term comparative advantages, commodity based industrialization can, with the right industrial policies, serve

as a launching pad for long term diversification and competitiveness in new and non-commodity sectors in Africa’s commodity rich countries.”

I have also noted with interest an observation by the International Monetary Fund (IMF) in its report on Namibia, wherein it noted that although

Namibia has been one of more stable economies in Africa, its ballooning import bill could in the long term pose a major threat to government

expenditure. The Fund is of the view that Namibia could double its manufacturing output from 6 percent annually and reduce its rising import bill

by 10 percent, if focus is put on growing secondary and tertiary industries. I cannot agree more with this sentiment. Historically, the manufacturing

sector has been inhibited by among others, a lack of a serious capitalization for major manufacturing projects, limited access to finance, limited

skills availability, high inputs costs especially utilities and transport, small domestic and market access constraints for export, limited access

to production technology and stiff competition from subsidized imports. The above highlight the interdependency between the manufacturing

sectors and other social and economic sectors of our economy.

The low performance of the manufacturing sector is a consequence of, or because of the disconnection or non-alignment between it and other

sectors. As an example, manufacturers or processors need a reliable supply of raw materials from the primary resource industries. They also

depended on the availability of industrial skills and Research &Development outputs from the higher education and research institutions.

Without efficient transport and logistics services to move inputs and finished goods manufacturing becomes less viable or unsustainable.

Domestic markets must be accessible through a well-functioning retail and distribution network and foreign markets must be penetrated with

competitive products.

The reverse is also true, namely that the other sectors depend and will grow with the support of the manufacturing sector in so many ways.

The concept of a value chain is now often used to highlight the importance increasing our gains from what we produce. The sad reality is that

we seldom participate in the upstream part of a value chain and produce the inputs into an extractive or other productive process or in the

downstream part of such processes. We generally only participate in the middle part, which is to produce and export raw materials.

Rt. Hon. Prime Minister

Ladies and Gentlemen

Historically we – and almost all other African states - have allowed too much of the value chains associated with our precious and mostly non-

renewable resources to extend beyond our borders. I firmly believe that we should as a matter of priority in the coming year consolidate policy

initiatives and make an all-out effort to generate the incremental value locked up in raw materials ourselves. If we can achieve this with our

Growth at Home concept I would be very pleased indeed.

Esteemed ladies and gentlemen

While emphasizing increased local value addition to our natural resources and a high share contribution of the manufacturing, our Growth at

Home strategy also accentuates the linkages and coordination between the various sectors and role players in the economy and society. We all

have roles and responsibilities to contribute and ensure the transformation of our economy in order to bring about the desired levels of growth,

employment, and income and wealth distribution.

As the saying goes, “Charity begins at home”, and it is my belief that the resources of our country, natural and human, should be exploited to first

and foremost generate growth and tangible benefits at home, in Namibia.

A number of interventions have been identified under NDP 4 to boost manufacturing and local value addition, and these are part of the focus

activities that are being pursued under our Growth at Home strategy and Industrial Policy. Details of some of the targeted interventions are

contained in the Industrial Policy Implementation Framework and a new Programme (entitled Special Industrialization Programme) that we have

just drafted and are refining, in consultation with other Government institutions and the private sector.

Copies of these documents are made available to the Conference participants in soft copy (memory sticks for your reference).

In our continuous effort to improve the ease of registering business and in contribution to the achievement of the NDP4 goal of moving Namibia

towards becoming the most competitive economy in the SADC region” by 2017, I am happy to announce and launch a trial Web-based Company

Registration. I wish to recognize that this initiative originates from my predecessor, the Rt. Hon. Prime Minister.

The following on-line registration functions will be tested;

• Name Searches

• Name Reservations

• Application for Defensive Name (Sole Proprietorship)

• Application for Registration of a Close Corporation

• Online application status check

The feedback from the trials will be used to inform the full roll out of the system, whose aim is to enable members of the public to perform the

functions referred to above from the convenience of their homes or at places with Internet access. The system will obviously be rolled out in a

phased manner, and I wish to request for your patience and support to ensure its successful implementation and impact.

On this positive note, I wish to renew my appreciation to you all for your attendance and look forward to your valuable contributions during the

various Session discussions.

Ladies and Gentlemen

I have now the honour to introduce to you our keynote speaker.

ANNEXURE AANNEXURE A


CONTACT DETAILS

PICTURES “GROWTH AT HOME”

CONFERENCE


PICTURES MTI - END OF YEAR

FUNCTION


56 “GROWTH AT HOME“

Documents

Physical Address - Gov Annual Report_Dft 5.pdf · the key programmes under the Ministry of Trade and Industry, aimed at contributing to the economy and job creation. The Ministry