Ministry of Trade and Industry

Introduction

The Ministry of Trade and Industry is one of the key economic ministries. It 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 is also responsible for the promotion of growth and development of the economy through the formulation and implementation of appropriate policies for attracting investment flow into the economy, and promoting industrial development and trade.

To achieve these objectives, the ministry pursues programmes and activities aimed at transforming the Namibian economy from its present heavy reliance on the production and export of raw materials to one in which manufacturing becomes a key component.  Therefore, enhancing the contribution of manufactures to the Namibian economy, and helping Namibian industries become more efficient and competitive is a central objective of the ministry.

Over the last nine years, the ministry’s efforts have been directed at four key activities: (1) investment promotion; (2) facilitating manufacturing activity; (3) promotion of the growth and development of small and medium-sized enterprises (SMEs); and (4) growth and diversification of Namibia’s exports. To this end, the ministry has been involved in the enactment of relevant legislative instruments, strategy design, and mobilisation of resources.

Structure of the Ministry

 The ministry has six main divisions, namely, the Office of the Minister, the Department of Investment Promotion, generally known as the Namibia Investment Centre (NIC), and the Directorates of Administration, International Trade, Industrial Development, and Internal Trade. Furthermore, the ministry oversees the work of three government development agencies, namely, the Namibia Development Corporation (NDC), the Offshore Development Company (ODC), and the Development Brigade Corporation (DBC).

Namibia Investment Centre 

The Namibia Investment Centre, created under the Foreign Investment Act, 1990, is the country’s official investment promotion agency. It directs and co-ordinates the work of trade and investment promotion counsellors who are strategically based at Namibian embassies and high commissions in Bonn, Kuala Lumpur, London, Pretoria, and Washington. Its task is to promote foreign and domestic investment by offering a variety of services to the investor community. These services include provision of information on incentives, investment opportunities, and the operations of the country’s regulatory regime. The centre also assists investors in minimising bureaucratic obstacles. In this connection, the centre has a permanent seat on the Immigration Selection Board at the Ministry of Home Affairs.

Directorate of International Trade

The Directorate of International Trade is responsible for the promotion and regulation of external trade. It administers multilateral and bilateral agreements governing Namibia’s international trade. The staff of the directorate are the principal advisers to both the government and the private sector on the numerous rules and regulations governing international trade. They also facilitate the participation of Namibian companies in regional and international trade exhibitions. The directorate is also responsible for information on and Namibia’s participation in various regional and global trade bodies, such as, the Southern African Customs Union (SACU); the Southern African Development Community (SADC); the European Union (EU); African, Pacific and Caribbean Nations through the Lomé Convention; and the World Trade Organisation (WTO).

Directorate of Industrial Development

The Directorate of Industrial Development is responsible for evaluating and appraising industrial projects. In this connection, it sponsors feasibility studies, research and surveys of potential development areas, and renders support and advice to potential developers and investors. It is also engaged in the production of industrial statistics, including the conducting of regular censuses of the manufacturing sector, and is responsible for information technology management and co-ordination within the ministry, including the collation of information on appropriate industrial technologies. In addition, the directorate is charged with the task of overseeing and co-ordinating the development of small and medium-size enterprises. This includes inputs into the six areas that comprise the government’s small and medium-sized enterprise development programme, namely, facilitation of access to finance, construction of sites and premises, technology transfer, purchasing of raw materials, marketing, and entrepreneurial training.

Directorate of Internal Trade

The Directorate of Internal Trade is responsible for the promotion, regulation, and facilitation of domestic trade. It is charged with the protection of all participants in the marketing of goods and services by ensuring quality and correctness in trade dealings. It administers the registration of companies, close corporations, patents, designs, and trademarks.

Achievements

Policy and Legal Framework

A number of policy and legislative measures have been initiated since independence in pursuit of the broad goal of economic growth and development. They include the Foreign Investment Protection Act (Act No. 27 of 1990) which guarantees foreign investors against expropriation and ensures them of their right to repatriation of profits and dividends. The 1992 White Paper on Industrial Development constituted the basis for the introduction of a special package of incentives for manufacturing activity in 1993. The Export Processing Zone Act (Act No. 9 of 1995) established Namibia’s EPZ regime to serve as a tax haven for export-oriented manufacturing enterprises in exchange for technology transfer, capital inflow, skills development and job creation. The Policy and Programme for the Development of Small and Medium-Sized Enterprises, approved by Cabinet in 1997, provides the policy framework for the development of this sector as key to the creation of employment and wealth.

To further improve the country’s regulatory regime, the ministry commenced work on a number of enabling pieces of legislation during 1998. Among these is the revision of the Companies Act to Namibianise several of its provisions, and to streamline the country’s company registration and statutory procedures. A draft Companies Bill would be ready for submission to Cabinet and parliament by the beginning of the year 2000. During 1998, the ministry also initiated a review of the 1992 White Paper on Industrial Development. This review resulted in the publication of a revised Policy Paper on Industrial Development. Furthermore, a draft Bill on Industrial Property would be ready for submission to the parliament in early 2000. This particular legislation is designed to enhance Namibia’s protection of intellectual property rights. A draft Competition Bill was also prepared during 1998 and is being finalised by the legal drafters. The bill is needed to curtail unfair trade practices, inhibit the dumping of products on the Namibian market, and curtail monopolies.

A major on-going initiative is the development of a national quality infrastructure. This is a prerequisite for Namibia in terms of its membership of both WTO and SADC. In other words, a national quality infrastructure is essential for ensuring international acceptance of Namibian products. The ministry is also working towards the establishment of national standards and national accreditation bodies by the year 2001. Guiding these developments is a national quality policy whose strategic implementation plan has already been approved by Cabinet and is currently being refined for submission to the parliament.

In short, the government has maintained the priority status of manufacturing in terms of policy formulation and legislation. It has also given support and encouragement to the private sector for it to focus more strongly on the manufacturing of non-traditional meat, fish, and beverage export products. The basic premise underlining all these policy and legislative measures is the imperative need to stimulate industrial development so that the country may benefit from growth and diversity in value-adding activity.

Industrial Development

Namibia’s approach to industrial development is based on the concept that there will be two types of manufacturing units. Some of these will be built around the utilisation of local materials, such as, minerals, hides and skins, gemstones, semiprecious stones, dimension stones, agricultural produce, fish, etc. The other type will be based on imported components, such as, electronics, garments, car parts, furniture, etc.

In 1997, manufacturing, not including fishing, mining and agricultural activities, contributed 12.3% to GDP, an increase of 2.1% since 1990. Growth has been steady but not as rapid as desired compared to other newly industrialising economies. Industrial investment, however, continues to be much higher than prior to independence. The ministry has, thus, had to play an active role in the creation of an enabling environment for the manufacturing sector to develop and diversify.

In order to facilitate the growth of manufacturing activities in the country, a plan was formulated in 1995 for the development of industrial parks and SME modules at a number of selected sites in the country. This plan was launched with a view to purchasing land and building and providing industrial facilities for either sale or lease to both foreign investors and local entrepreneurs. This approach is aimed at achieving a wide geographical spread of industrial activities.

To this end, the ministry came up with a programme for the construction of industrial parks and SME modules in 1997 to provide affordable premises for small and medium enterprises in both manufacturing and trading fields. The first of these were to be constructed in ten selected towns countrywide. Five of these have already been completed, namely, the Otjiwarongo multi-market, SME module facilities in Gobabis and Keetmanshoop, the Prosperita Industrial Park in Windhoek, and the Ondwangwa Industrial Park.

This initiative has been further complemented by the construction of an EPZ park at Oshikango which was opened in October 1998. The initial ten EPZ enterprises in the Oshikango park have invested a total of N$33 million and created some 233 jobs. The renewed outbreak of an all-out war in Angola has, however, impacted negatively on the Oshikango-based trading operations but manufacturing enterprises there continue to operate normally.

Feasibility studies have been completed and phased construction commenced on SME modules in Rundu, Ohangwena, Karibib, Uutapi, and Katima Mulilo.

 Value addition to Namibia’s hides and skins holds forth great promise for the leather industry in the country. Leather products will also contribute positively to the diversification of the country’s export of manufactured goods. Financial and technical assistance to the leather industry development programme has been rendered by the United Nations Industrial Development Organisation (UNIDO). In 1997, the ministry also established a Revolving Credit Fund aimed at assisting small producers of leather goods. In addition, an extensive assessment of the status of SMEs operating in the leather and footwear sector was carried out during 1997/98 to identify appropriate technologies. As a result of these initiatives, new entrants to the sector have been assisted to improve the quality of their products. In this connection, a Common Facility Centre was established in 1997 at Windhoek’s Northern Industrial Area to offer training and product advice, as well as the use of footwear-producing machinery that it houses.

The ministry’s specific support to the leather industry comprised the following seven initiatives conducted with the assistance of UNIDO:

1.      establishment of a common facility for production and training in Windhoek’s Northern Industrial Area equipped with machines to produce veldskoen and moccasin-type leather shoes,

2.      establishment of a slaughter facility in Ondangwa at which hides and skins can also be amassed,

3.      acquisition of tanning machinery for the Swakopmund and Windhoek commercial tanneries to enhance production processes,

4.      supply of tools and small machinery to shoemakers operating from small workshops in the Gobabis and Keetmanshoop areas,

5.      establishment of a Hides and Skins Pilot Scheme for ex-combatants which involved the creation of hides and skins collection points in Uutapi and Eenhana where participants can deliver untreated hides and skins for sale,

6.      design of a tannery plant and conduct of an environment impact assessment, and

7.      construction of a tannery plant and an effluent and sludge treatment facility in Ondangwa.

Subsequent to the enactment of the EPZ Act (Act No. 9 of 1995), the first export processing zone was established in Walvis Bay in 1995. In 1998, an EPZ industrial park was established by ODC in Oshikango at the Namibia-Angola border for use by companies targeting markets in that country and beyond. On completion, some ten EPZ enterprises commenced operations, ranging from manufacturing to break-bulk and repackaging activities. Once fully operational, the ten EPZ enterprises in Oshikango will have invested N$74 million and created 256 jobs in this formerly neglected area which is slowly turning into a town of merchants. Indeed, the dramatic transformation of Oshikango over the past two years can be attributed to the catalytic effect of the EPZ programme implementation in the area.

International interest in the EPZ regime continues. By early 1999, fifty-six companies had been granted EPZ status, with applications coming from such countries as the United Kingdom, the United States, Germany, Israel, South Africa, Italy, etc. EPZ companies that are operational are busy churning out products, such as, charcoal, car engine parts, bathroom-ware, garments, and soft toys for export markets, and computer-aided design and data processing.

Most of the EPZ companies are engaged in manufacturing and/or assembly activities. Interests, particularly at Oshikango, have diversified into the additional operations of break-bulk, re-packaging, and customer services allowed under the EPZ programme. The level of projected investment by companies at full operation has reached N$ 8.1 billion.

Table 1: EPZ Activities, 1996-1998

Source: ODC

The EPZ programme plays a pivotal role in employment creation. Once fully operational, fifty-six companies granted EPZ status will employ 4049 people, with figures set to rise substantially as more companies come aboard. Incentives to encourage companies to offer in-service training and skills development further ensure that these new members of the Namibian workforce acquire technical and managerial expertise.

Table 2: EPZ impact assessment

(All figures are indicative of status, for companies with EPZ status, at full operation)

Source: ODC

Table 3: Growth in investments (N$’000)

(Companies maintaining EPZ status)

Source: ODC

Table 4: Growth in employment

(Companies maintaining EPZ status)

Source: ODC

In the context of the country’s offshore industry, steps are also being taken to set up an offshore financial services sector. The benefit of this to Namibia would be the creation of white-collar jobs, and provision for easier access to funds that would give impetus for accelerated growth of the EPZ programme. In 1997, the ministry tasked the ODC to draft the requisite legislation. Work on three pieces of legislation, i.e., offshore banking, international business companies, and international trusts is in its final stages.

To further assist in the diversification of the economy through the expansion of manufacturing activity, the ministry has initiated a number of industrial feasibility studies. These include examination of the potential for a Namibian ceramic clay industry. This has involved a comprehensive survey of clay deposits in the Mariental area. Initial evidence suggests that surface clay deposits, while not of prime quality, would be suitable for the development of labour-intensive brick-making projects. Deeper deposits, however, have been found to contain porcelain-quality clay suitable for the production of tiles for the export market. The ministry’s Namibia Investment Centre is already working to secure possible investors for the project.

A feasibility study on the marketing of seaweed was conducted in conjunction with the Taurus Atlantic Company in Lüderitz. A number of export markets for this marine product have subsequently been established, especially in the Far East.

Several new industrial initiatives, specifically those involving women, have been put in place. These include a trial marula and manketti nut as well as melon seed oil production project to investigate commercial production, processing and marketing of natural oils for domestic and international markets, and a food processing project.

Efforts to investigate possible areas of industrial activity have been further assisted through a joint initiative involving the ministry’s Namibia Investment Centre and the EU’s Centre for the Development of Industry (CDI). Technical assistance under this joint venture agreement has been rendered to seventy Namibian companies to expand their production. Companies thus assisted include Nakara, the Namibian Ostrich Breeders Association, Sarnow Ceramics, Peraline Paints, Yetu Cosmetics and a number of brick making enterprises. CDI support has further included the identification of joint venture partnerships in Europe to work with Namibian counterparts. These have included partnerships involving Namibian and Portuguese, German and Swedish businesses.

To facilitate transfer of appropriate technology, the ministry established an Equipment Aid Fund (EAF) in partnership with the Spanish International Co-operation Agency, following the signing of a bilateral agreement in November 1997. The fund has been established to specifically assist Namibian manufacturers with the purchase of machinery and equipment from Spanish suppliers. Recently, an agreement has also been signed with the Import and Export Bank of India to set up a similar mechanism for the purchase of appropriate technology from that country, mainly for SMEs.

In 1998, the ministry published a Guidebook for Manufacturers in Namibia which provides basic information on everything from legal and procedural requirements, incentive schemes, sources of finance, employment practices, and export opportunities. The guidebook would be updated regularly.

A key and on-going function of the ministry is the collection, codification and presentation of up-to-date information on the manufacturing sector. An industrial database system has therefore been established to produce timely and reliable data required for industrial planning and policy making. Initially a manufacturing establishment register was created and was used as foundation for conducting a manufacturing census. This census, the first of its kind to be carried out in Namibia, was conducted according to International Industrial Classification and its results, published in 1996, can be used to compare Namibia’s industrial status with that of other countries. The results show that the manufacturing sector’s contribution to GDP rose from barely 5% in 1990 to 11.2% by 1995. It also indicated that by 1995 there were 278 manufacturing establishments employing a total of some 21 000 people or 4.5% of Namibia’s economically active workforce. The number of both general and EPZ manufacturing establishments has noticeably increased since then.

The ministry further carries out periodic surveys and censuses utilising a technical system established to regulate data collection, processing, analysis and presentation. It is, thus, able to provide data to both government industrial planners and potential private sector investors. The ministry is also working to establish a Web presence to publish and regularly update Namibian industrial information.

Small Business Development

In 1996, the ministry formulated the policy and programme for the development of small and medium-sized enterprises, which was adopted by Cabinet at the beginning of 1997. This policy undertaking was initiated in recognition of the potential SMEs offer to reduce poverty through the process of industrialisation and empowerment. The SME development programme calls for the expansion and diversification of this sector with particular emphasis on manufacturing activities.

The ministry’s role in the implementation of the SME policy is the creation of an enabling environment in which the SME sector can flourish and grow. A Joint Consultative Committee comprising the ministry, NDC and representatives from the non-governmental organisations specialising in SME activities is participating in the implementation of the policy in areas, such as, training. Six pro-active programmes form the core of government support to this initiative. These are finance, marketing, purchasing, technology acquisition, training, and sites and premises. There is also a vendor development programme designed to foster the necessary linkages between SME manufacturers and the nation’s major trading companies.

The SME programme further aims to encourage small entrepreneurs to undertake manufacturing activities in areas, such as, food processing, woodwork, metalwork, textile and garment production, leather work, jewellery, building materials, ceramics, agro-based products processing, chemicals, rubber and plastic manufacturing, electrical and electronic products, motor works, etc. A total of some 35 000 jobs are to be created in the SME sector over a period of three years (1999-2001) through the implementation of this development programme.

The Vendor Development or Partnership Programme (VDP) was initially launched in 1996 with the help of the Commonwealth Secretariat to link small entrepreneurs to established big businesses through supply contracts. The success of the programme, which has started a trend among large business houses to procure from local producers, has prompted its continuation by the Namibia Development Corporation. Sixty-four on-going linkages have already been developed through this programme, each with a minimum order value of some N$5000, and some exceeding N$700 000. As a result of this initiative small businesses from a number of regions have established permanent supply relationships with large firms, such as, Agra Co-op, Namibia Breweries, M&Z, and Game. The Namibia Breweries and BP Namibia projects alone have created over 500 new jobs.

Databases housing information on small entrepreneurs, goods and services they supply, and potential large buyers have already been compiled for Windhoek, Gobabis, Walvis Bay, and Rundu. VDP dovetails into the Input Sourcing Programme which involves the establishment of information centres to house databases on sourcing or procurement of raw material that is competitive in terms of quality and prices from sources other than conventional sources (South Africa) to make production more viable.

Over 100 SMEs are also benefiting from the services of the ministry through the VDP and advisory services of the Centre for the Development of Industry (CDI) experts identified and brought in by the ministry.

A Support for Micro and Small Enterprise Development Program has also been launched with assistance from United Nations Development Programme. The program focuses on institutional capacity building, finance and credit, marketing and purchasing, training, appropriate technology transfer, and legal reforms. Specifically, the programme aims to assist in strengthening capacities of selected national institutions providing service to promote micro and small-enterprises. It will also strengthen capacities of SME support institutions servicing the northern regions (Omusati, Oshana, Oshikoto, Ohangwena, and Caprivi).

The ministry is further implementing a four year programme with assistance from the German Agency for Technical Co-operation (GTZ) focusing on advisory services with respect to the ministry’s SME financial programmes and on-going support to implementing agencies, such as, NDC, the Institute for Management and Leadership Training (IMLT) and the Vocational Training Centre (VTC) to improve their implementing capacity.

IMLT is also involved in the on-going training of the SME operators in technical and business skills, as are a number of other local and international specialist non-governmental organisations, such as, the Italian Comitato Internazionale per lo Sviluppo dei Populo (CISP), and Care Austria. Initiatives in this respect are co-ordinated through the Joint Consultative Committee and are actively guided by the ministry.

A credit guarantee scheme has also been set up with the assistance of the EU and the GTZ to enable small enterprises to access loans from commercial banks and other financial institutions. Absence of collateral has traditionally made banks shy away from financing small entrepreneurs. Through the scheme, the government would provide guarantee for 80% of any loan amount in case of proven default. The lending bank and SME borrower would between them bear the remaining 20% risk. For this purpose an initial N$10 million has been made available as the capital corpus to be deposited with the commercial banks. Interest revenue will secure coverage of both risk and administration costs. In this way, the ministry plans to motivate commercial banks to increase lending to SMEs. The scheme was launched in 1999.

Considerable work has also been undertaken to establish SME appropriate technology demonstration centres. The objective of this project is to install and provide access to viable manufacturing machines at designated sites which would further house information on technology sources. Interested entrepreneurs would thus be able to view machinery under operational conditions, test it out, and undergo basic training before deciding to purchase. Such demonstration facilities are to be established at each of the sites selected for industrial parks. The first is being implemented in Ondangwa, with machinery supplied by the Indian Government for plastics manufacturing. The Ondangwa Industrial Park will also house an engine rebuilding workshop and training facility which is being set up with assistance from the Commonwealth Secretariat, and a wood and metal processing factory established as a joint venture between the Development Brigade Corporation and a German private sector company.

The ministry is in the process of establishing complementary common facility centres at many of the designated demonstration sites. In this connection, a centre for the manufacture of wood products has been set up in Rundu, and one specialising in gem cutting and polishing will be operational in Keetmanshoop by March 2000.

Trade Promotion

In terms of both volume and value, Namibia’s external trade remains heavily biased towards import of finished goods from South Africa. Exports, on the other hand, are largely unprocessed primary products, such as, minerals, meat and fish. However, the conclusion of a number of bilateral trade agreements has initiated the process of reducing dependence on South Africa.

The ministry’s programme of industrial development assumes that growth in manufacturing will have to go hand-in-hand with the diversification and expansion of the country’s exports. The ministry is, thus, responsible for foreign trade policy formulation and management, export promotion, and the co-ordination of Namibia’s participation in bilateral and multilateral trade negotiations.

To this end, the ministry with the financial and technical assistance of the EU launched a two-year (1999-2000) Trade and Investment Development Programme (TIDP). As a result, a long-term strategy has been developed for the expansion of Namibia’s exports with diversification of products as its prime focus. Particular attention has been paid to the marketing of non-traditional export products.

Development of trade information specialists is viewed as an important aspect of the trade promotion function. Emphasis was thus placed on the development of a professional trade information service to meet the information needs of the public. A review of Namibia’s import and export management regime was conducted with a view to rationalising existing procedures to conform to the World Trade Organisation requirements. Work under the TIDP strengthens human resource capacity through activities, such as, on-the-job training and programmes at external institutions, such as, the World Trade Organisation, the International Trade Centre, Singapore Trade Development Board, and Zimtrade of Zimbabwe. These programmes are intended to enable staff to acquire professional skills in their respective areas of specialisation.

The ministry holds regular consultative meetings and workshops to advise the private sector on meaningful participation in foreign trade, and to maintain information flow in regard to opportunities accruing to Namibia from its membership of multilateral bodies, such as, the Lomé IV Convention, WTO, SADC, SACU, and the Common Market for Eastern and Southern Africa (COMESA)

The country’s participation in trade fairs and exhibitions coupled with trade missions to countries in the sub-region, Europe, USA, Asia and the Middle East has resulted in the identification and expansion of new export markets. Namibia’s traditional markets have been mainly South Africa and Europe, particularly for unprocessed mineral products, meat and meat products, and fish and fish products. Today, Namibia exports a number of manufactured products to many countries in the world. Current major export destinations include the EU, Japan, Mexico, Germany, United States, Switzerland, Australia, the Netherlands, Canada, Hong Kong, South Korea, Israel, Ghana, Zimbabwe, and the Democratic Republic of the Congo.

The ministry continues to handle aspects of import and export management, such as, issuing of import, export, and rebate permits and duty credit certificates. In this connection, an important activity has been the development of a customer charter to spell out service provision standards. The charter is currently being put into operation.

The ministry is also establishing a WTO Reference Centre to facilitate access to information on the multilateral trading system that should enable more effective participation in global trade. In this respect, an Inter-institutional Working Committee on WTO matters was formally launched in November 1998 with the primary objective of ensuring Namibia’s adherence to the implementation of WTO agreements.

Namibia is playing an important role in the drive for the implementation of the SADC Trade Protocol intended to achieve regional economic integration.

Through all these initiatives, the value of Namibia’s total exports increased from N$3188 million in 1990 to N$7954 million in 1997, an increase of N$4766 million or a massive 249%. This achievement stemmed largely from access to markets, such as, the EU as a result of Namibia’s accession to the Lomé Convention, and the diversification of the country’s export products. Other positive factors have been the preferential tariff treatment accorded to Namibian products under the Generalised System of Preferences (GSP). On the basis of GSP, Namibian products enjoy preferential access to the United States, Japan, Canada, and New Zealand markets.

Table 5: Composition of exports (N$ million)

Within the sub-region outside SACU, trade with Zimbabwe has been facilitated by the conclusion of the Namibia-Zimbabwe Preferential Trade Agreement that allows free trade between the two countries. Zimbabwe now serves as an alternative source of imports, and destination for Namibia’s exports. Namibia has also signed most-favoured nation bilateral trade agreements with dozens of countries.

In short, much effort has gone into strengthening institutional capacity to support trade promotion and to render the necessary services to the private sector in the development of export strategy, marketing, and provision of trade information and related technical assistance. In this regard, the ministry publishes the annual Namibia Trade Directory and the quarterly Namibia Trade Digest. It further renders material and human resource inputs to both the Namibia International Trade Fair in Windhoek and the Northern Namibia Trade Fair at Ongwediva.

Investment Promotion

The government is keenly aware of the fact that foreign investment is needed to increase the level of gross fixed investment and capital formation without which growth in the country’s manufacturing and export sectors cannot be realised. Therefore, investment promotion has become one of the ministry’s high priority activities. Several steps have been taken, including the establishment of the Namibia Investment Centre in 1991 and the Offshore Development Company (ODC) in 1996. The Investment Centre was established in terms of the Foreign Investment Protection Act of 1990. The ODC was set up in accordance with the EPZ Act to propel the development of Namibia’s offshore industry, entailing not only EPZ but also offshore corporate banking and other financial services. It is now fully operational.

Aggressive marketing and promotion of the country and its wealth of investment opportunities is a continuing task. The ministry’s promotional focus is aimed at attracting both foreign and local investment, especially to value-added, wealth-generating activities.

As a result, FDI inflows into Namibia have progressively increased since independence from an average N$583.7 million per year during the period 1992-95 to N$851.5 million in 1996-97. Namibia’s FDI inflow per capita, measured over the same period, rose significantly from N$395 in 1992-95 to N$534 in 1996-97, giving the country third ranking on the continent.

Indeed, over the past four years, the country attracted well over half a billion Namibia dollars in investment annually and the figure is rising.  Further, FDI inflows are now diversifying from traditional sectors, such as, mining and fisheries, into a wider range of operations.

Many of the companies investing in Namibia in recent years are reputable firms, such as, Schweppes, which has located a soft-drink concentrate plant in Windhoek, one of only three in the world. This plant services both the African and Asian markets. Offshore diamond mining has been another area of investor interest, with major investments made by Namcor and Ocean Diamond Mining. Investment in the fisheries sector continues to rise. Companies like Pescanova, which has been the single largest investor in the country since independence, are not only expanding operations but establishing on-shore processing facilities, thus, creating hundreds of permanent jobs. Other major companies that have located operations in Namibia include Barden International, Tata of India, Namibia Press and Tools, and Prima Foods.  Prima Foods has invested some N$30.5 million in a wheat mill and pasta factory in Walvis Bay and is set to create some 230 jobs. A N$1.3 billion zinc mine and refinery is to become operational near Rosh Pinah shortly and would create over 500 permanent jobs. Many of these firms have taken full advantage of incentives offered under the EPZ regime and have, since their establishment, steadily increased operations, employment generation and skills development within the country.

The Namibia Investment Centre, working in partnership with the Offshore Development Company, remains pivotal in attracting increasing volumes of investment to Namibia by means of progressively pro-active targeted promotion. Namibia has, as a result, developed an excellent reputation as an all-round investment location. In particular, the country’s excellent infrastructure, availability of finance, flexible rules of licensing and access to foreign exchange have earned high ratings in independent comparative analyses of southern African countries. In 1997, for example, The Economist Intelligence Unit awarded Namibia a country risk rating of 40 points, the highest for sub-Saharan Africa. The Africa Competitiveness Report, produced by the Harvard University Institute for International Development for the World Economic Forum ranked Namibia fourth in an analysis of continental competitiveness. In April 1999, Namibia was also honoured with a Global Player Award bestowed by leading US corporations operating in Africa.

To boost promotional efforts, several investment-related international conferences have been held in Namibia since late 1997 in which the ministry played a central organising role. These were:

1.      The Southern Africa Initiative of German Business (SAFRI) conference, held in Windhoek in October 1997, brought together the German and SADC business communities to discuss mutual economic interests and explore specific areas for German investment in the region. Delegates showed particular interest in Namibia’s burgeoning tourism industry.

2.      The World Economic Forum 1998 Southern Africa Economic Summit was held in Windhoek in May. Some 850 delegates representing business, government, labour and the academic community participated in deliberations that focused on efforts to enhance the region’s competitiveness, private-public partnerships, integration of the region into the global marketplace and the promotion of investment in the region.

3.      The Second Southern African International Dialogue on Smart Partnership (SAID II) was hosted by Namibia in July 1998 that brought together 360 delegates including heads of state and government, and private sector and labour representatives. Acceleration of growth with equity and interactive economic hubs were central themes, with emphasis put on partnership between southern Africa and the ASEAN economic community.

4.      The German/Namibian Business Initiative, held in Windhoek in November 1998, brought business people from ten Namibian and seven German enterprises together to explore joint venture partnerships. Four partnership agreements were signed as a result. The exercise will continue with a second meeting scheduled for March 1999, which some fifty German firms are expected to attend.

Targeted outward missions are an integral part of the ministry’s investment promotion strategy, with trips undertaken to, among others, India, the United States, Malaysia, Mauritius, Germany and the United Kingdom. Promotional publications produced by the Investment Centre and the Offshore Development Company complement the ministry’s outward missions. All of these efforts aim at selling Namibia as an ideal investment location and as a gateway for doing business in southern Africa.

The ministry is currently involved in a project known as Spatial Development Initiatives (SDI) that is being pursued in collaboration with neighbouring partners. SDI’s primary objective is the creation of employment through innovative methods of investment facilitation. Areas with high growth potential for internationally competitive industries are targeted, usually linked to a port for easy trade access. The government’s efforts with regard to the promotion of Walvis Bay as a gateway to the region and the completion of the Trans-Kalahari Highway as a transport route have drawn particular interest and attention of South Africa. Area scans to examine mining and minerals, tourism and other potential labour-intensive industries have been conducted and serve as groundwork for a series of full-scale feasibility studies.

Statistical and industrial research and the compilation of sectoral profiles is one of the ministry’s on-going activities. In this connection, the ministry is in the process of developing a series of relational databases to house continually up-dated information on, among others, the country’s productive sectors, comparative investment climates and targeted FDI sources. Data thus generated will help enhance project proposal evaluation and provide a comprehensive and current analysis of Namibia’s industrial and investment environment.

To ensure a continually responsive, investor-friendly climate, the ministry introduced a number of special incentives for manufacturers and exporters as follows:

1.      widening the incentive range from the provision of significant tax deductions to concessional loans and indirect subsidies on marketing and training costs.

2.      provision of tax abatement of 50% for manufacturing activity;

3.      writing off provisions of up to 20% or less annually on buildings erected for manufacturing purposes; and

4.      deductions for marketing, training, wage, and feasibility study costs.

There is also an incentive package for exporters which consists of a tax exemption on 80% of the profits accruing from the exports of manufactured goods with the exception of fish and meat products, whether the goods are produced in Namibia or not. This translates into an effective tax rate of 7% if the entire product is exported from Namibia.

Wide-ranging radical tax concessions are offered to enterprises with EPZ status. These enterprises do not pay corporate tax, import duties on imported intermediate and capital goods, sales tax and/or stamp and transfer duties on goods and services required for EPZ activities.

The procedures in granting of work permits for non-Namibians coming to work in new companies have been rationalised through the representation of the Immigration Selection Board. The application process has, as a result, been reduced to seven working days.

Namibia Development Corporation

At independence, Cabinet took the decision to restructure the erstwhile First National Development Corporation (FNDC) into the Namibia Development Corporation (NDC). This decision was prompted by the fact that FNDC had lost sight of its original development mandate and was crowding out the emergent local black entrepreneurs whom it was ostensibly meant to promote. The immediate task was the re-orientation of the corporation towards national economic development efforts away from commercial operations. This was carried out through the passage of the Namibia Development Corporation Act (Act No. 18 of 1993). Commercial outlets of the erstwhile FNDC were placed under a separate body, Amalgamated Commercial Holdings (AMCOM), for divestment.

One of the first steps the NDC took was the setting up of a Special Projects Division to concentrate on project identification, implementation and management, feasibility studies, market studies, etc.

The corporation implements and co-ordinates a number of agricultural development projects in the country, such as, the Etunda Irrigation Scheme, and the establishment of commercial date production at Naute Dam in the Karas Region and at Eersbegin in the Erongo Region. It has also been responsible for the management of the experimental Kavango farms, namely, Shitemo, Musese, Vungu-Vungu and, until recently, Shadikongoro agricultural projects. It performs this function on behalf of the Ministry of Agriculture Water and Rural Development. NDC also plays a central role in the government drought relief schemes in the form of co-ordination of cereal production and distribution. The Kavango projects represent an investment of more than N$30 million.

NDC has taken a number of steps to assist in the mechanisation of agricultural production, including the establishment of a tractor assembly plant in Tsumeb which is a joint venture partnership with the Chinese Government. Currently, it is working on own production of a mahangu threshing machine.

The corporation’s brief also includes facilitating development through initial equity participation in projects and eventually divesting once the projects are well-established. For example, the Vungu-Vungu Dairy Project is now being evaluated for possible private sector involvement.

Also, a South African investor with expertise in the grape industry is negotiating a joint venture partnership with the corporation in the Naute Dam grape project. This should serve to improve productivity and increase market access for grapes into overseas markets. Negotiations are, furthermore, underway with Indian partners on the conversion of the Musese experimental agricultural farm into a fully-fledged commercial operation.

Participation of both the local population and traditional authority structures are built-in elements of all these projects. The corporation has also established financing instruments to assist local communities to gain access to these resources.

Apart from the Kavango, Naute and Eersbegin projects, which NDC runs on behalf of the Ministry of Agriculture, Water and Rural Development, the corporation manages a number of other government projects and programmes on an agency basis. These include the Aussenkehr grape project, Etunda groundnut project, and the Telefood project. The latter is operated in conjunction with the United Nations Food and Agriculture Organisation. These projects have a total investment of N$130 million.

Still more, the NDC administers various loan programmes on behalf of government ministries. These include programmes to finance rural electrification on behalf of the Ministry of Mines and Energy; tractor, resettlement, special agronomic and communal farmers loans on behalf of the Ministry of Agriculture, Water and Rural Development; and a Traders Aid Fund on behalf of the Ministry of Trade and Industry.

The corporation tasked to promote and nurture business development through provision of financial, consulting and other services provides financial assistance in the form of term loans and guarantees and affordable business premises through implementation of government programmes for the development of small business. For instance, NDC is the implementing agency for the government’s N$51.6 million Industrial Parks and SME Modules Construction Programme which is a project of the Ministry of Trade and Industry.

The corporation has a total corporate loan portfolio of N$65.2 million numbering over 4000 accounts. A number of these are non-performing, while N$16.6 million represents the Agency Loans portfolio.

In order to provide better service, the corporation has designed various programmes and products to assist specific target groups. These include financing schemes under which normal lending conditions have been relaxed to allow broader participation of would-be entrepreneurs. These schemes include Young Entrepreneurs Assistance Scheme, Rural Women Enterprise Development Scheme, SME Start-up Assistance Scheme, and Small Builders Bridging Fund.

For existing and expanding entrepreneurs, the corporation  provides various lending facilities similar and comparable to those on the commercial financial market. These are backed up with additional assistance, such as, advisory, loan monitoring and after-care services, assistance with business plans and feasibility studies, training and help with capacity building, exposure visits, and a sourcing and linkages programme. Lending facilities include agro-industries assistance scheme, business assistance development scheme, franchise financing, wholesale financing, and lease financing.

To support the government’s drive to promote manufacturing activity through its small business development programme, NDC has also implemented a number of capacity building initiatives, such as, Enterprise Namibia (a scheme to encourage young entrepreneurs), a sourcing programme, common facility and technology demonstration centres, and a vendor development programme.

In order to promote economic development and to help high risk businesses establish themselves, the corporation has taken up equity amounting some N$26.3 million in Namibia Pipe Manufacturers, African Portland Industries (cement production), Southern Africa Tractor Manufacturers, and Charex International (charcoal production).  NDC’s role through equity partnership is to facilitate development and the corporation is ready to divest once these companies are firmly established.

In 1998, as part of its restructuring process the corporation reduced its staff from 310 to 114. Although some of its regional offices were closed, it continues to retain its presence in Oshakati, Rundu, Katima Mulilo, Otjiwarongo, and at its headquarters in Windhoek.

The restructured NDC has embarked on a further streamlining exercise aimed at achieving self-sustenance through the elimination of non-core business activities, such as, real estate, ploughing services and wholesaling. The corporation now concentrates on narrower-focused core functions geared towards making it a more responsive and pro-active institution. In order to strengthen this new business focus, the NDC has adopted a new lending policy to delineate risk and minimise losses, and thus enhance profitability.

Offshore Development Company

When Namibia became independent, one of the major challenges facing the government was that of economic diversification and expansion of the country’s industrial base. There was a realisation at the time that the national economy could no longer continue to depend only on the production and export of primary products. In line with this thinking, the government began developing strategies aimed at attracting investment into the manufacturing sector. In part, this led to the promulgation of the Export Processing Zone Act, 1995. This act put in place an EPZ regime to serve as a vehicle for export-led industrialisation of the economy.

The same act provided for the formation of the Offshore Development Company (ODC) as a joint public-private sector enterprise in which government would hold a minority shareholding. Main mandate of ODC was and continues to be the monitoring, regulation and promotion of Namibia's EPZ regime.

As part of this function, ODC runs the EPZ secretariat that handles investors’ applications for EPZ status. Applications are assessed by an EPZ Committee chaired by the Minister of Trade and Industry, with the assistance of the Minister of Finance and the Governor of the Bank of Namibia.

ODC provides guidance to EPZ applicants in the form of information on legal ways of doing business in Namibia, investment opportunities, the wide range of incentives that Namibia offers as well as labour and other issues likely to affect their conduct of business in the country. It also provides them with guidance on location decisions and functions as the link between investors and local authorities in places where such enterprises plan to locate.

Once operational, ODC visits such companies and conducts periodic surveys to ensure that they are operating within the law and have fulfilled their employment undertakings and provides them with assistance where possible. In particular, ODC, working jointly with its sister organisation, the Namibia Investment Centre, gives foreign investors access to first-class immigration facilitation.

Since its inception, ODC has worked closely with the Ministry of Trade and Industry in organising investment promotion campaigns to attract foreign investments into the Namibian economy, particularly into the EPZ regime. This has been done by way of undertaking foreign investment promotion missions around the world, organising inward investment missions, as well as through publication and distribution of investment promotion materials.

Some of the offshoots of these initiatives have been ODC’s signing of a Memorandum of Understanding with the Shanghai International Corporation under which the Shanghai partner undertook to market Namibia’s investment opportunities in China. A Namibia Investment Promotion Office has been opened in Mauritius by the ODC in collaboration with the Ministry of Trade and Industry. At the same time, strategic alliances have been formed between individuals and institutions in countries like India, Malaysia, Singapore, South Africa, Germany, France, Austria, Italy, the United Kingdom and the United States.

As a result of these investment promotion efforts, the EPZ regime has grown significantly. The regime has now attracted projected investments totalling some N$8.3 billion. What is of note, however, is that the majority of companies that have been granted EPZ status will not only be engaged in manufacturing activities, but will also be located across the country. So far, EPZ companies are either located or plan to locate in Windhoek (13), Walvis Bay (15), and Oshikango (15), and in other towns like Tsumeb, Ondangwa, Katima Mulilo, Mariental, Arandis, Lüderitz, Keetmanshoop, Rosh Pinah, Oshakati, Gobabis, Otjiwarongo and Okahandja.

Current gains warrant optimism in the future growth of the EPZ regime through the entry of new companies and corresponding creation of new jobs for the benefit of Namibians.

The other strand of ODC’s mandate is the provision of industrial or factory space for investors at economical rates. In line with this mandate, the ODC completed and officially launched the first industrial park in Oshikango in October last year at a cost of N$20 million. The park is intended to serve investors targeting the Angolan market.

Following the successful completion of the Oshikango industrial park, ODC was tasked by the government to implement a similar development in Katima Mulilo in the Caprivi Region. Work on the Katima Mulilo industrial park development is currently underway. The park is intended to promote industrial development in the Caprivi region as well as greater cross-border trade with Namibia’s neighbours, such as, Angola, Botswana, Zimbabwe, Zambia and the Democratic Republic of Congo, further north.

Besides EPZ management, the government has also assigned ODC the task of managing two lines of credit worth some N$66 million. The first, worth some N$36 million from the Eximbank of China, is intended for on-lending purposes to the Northern Tannery Project.

The second line of credit, worth some N$30 million, from the Eximbank of India, is intended for on-lending purposes to local private entrepreneurs interested in sourcing Indian technology at relatively cheap finance costs. Management of the two lines of credit has strengthened the role of ODC as an agent of development.

Since its inception, ODC has focused attention on human resource development imperatives. As a result, the company runs an in-house training programme for its staff as well as officials of the Ministry of Trade and Industry, especially in the areas of investment promotion, investment targeting and project design and project management. ODC has also delegated most of its staff to attend similar training programmes outside the country.

Besides focus on its staff training needs, ODC also has trained young graduates from the University of Namibia and the Polytechnic in the fields of investment promotion and economic management. The company has been running a 3-6 month attachment programme since 1996. On average, three graduates have gone through the programme annually.

Perhaps, the highlight of ODC’s training initiatives was the organisation of a nine-month Investment Promotion and Investor Targeting training programme for its staff, and those of the Ministry of Trade and Industry as well as other local institutions involved in the field of investment promotion and international trade.

The training programme, funded by AMSCO, was organised in collaboration with the Namibia Investment Centre. At the end of the nine-month period, organisations, such as, the Namibia Development Corporation, the Namibia Chamber of Commerce and Industry, the Windhoek Chamber of Commerce and Industry, the Indigenous Peoples’ Business Council, the Walvis Bay EPZ Management Company, the Walvis Bay Chamber of Commerce and the Walvis Bay Municipality had benefited from the programme.

As the umbrella organisation for the EPZ programme in Namibia, ODC maintains close ties with the Walvis Bay EPZ Management Company. ODC has been represented on that company’s board since 1996. It has also seconded experts to the company and funded some of its training needs.

Development Brigade Corporation

Since its formation in 1992, the Development Brigade Corporation (DBC) has established several centres in different parts of the country to train ex-combatants as electricians, carpenters, plumbers, bricklayers, plasterers and skilled agricultural workers. Training in these fields is now conducted at N1 level, using the same programme as that offered at the Windhoek Vocational Training College. However, training in itself did not immediately translate into employment opportunities because there are just too many other people in the country chasing after the few available jobs. Also, because of resource constraints and management problems, DBC has only been able to employ about one-third of the ex-combatants who were in need of employment over the seven years of its existence.

Alongside its skills development initiatives, DBC established a variety of income-generating projects including crop production, poultry farming, brick making, and drilling of boreholes.

In September 1996, DBC launched, on Cabinet instruction, four subsidiary companies to further commercialise its activities. These were Namibia Bricks Enterprise, Namibia Pioneer Engineering, Star Protection Services and Patriot Construction Company. For the first two years, these companies experienced  managerial and production problems. For example, a situation arose whereby Patriot Construction had 900 ex-combatants in its employ, a number that was bigger than that of Namdeb or Rössing. But there were no commensurate financial resources or management competency to cope with this huge number. The consequence of this was failure to perform and therefore to earn the necessary income to pay salaries and wages. Retrenchments then became unavoidable to reduce the number to a manageable level of 210 employees. That number continued to work on the construction of the Onyati and Sossusvlei roads and carried out the resurfacing of the Oshakati-Oshikuku road.

Namibia Bricks Enterprises initially employed sixty-six ex-combatants. The company started off very well and achieved a turnover of N$2.5 million in its first year of operation. However, with the rushed buying of delivery trucks, market unrelated remuneration and poor accounting system, the audited statement showed a net loss of N$600 000 during the second year of the company’s operations. Early this year, Namibia Bricks Enterprises got a huge contract to supply bricks for the construction of a three-star hotel which is being constructed at Ondangwa. This was a welcome development as it injected the needed financial resources into the company. But with the announcement of civil service jobs for ex-combatants early this year, thirty of the sixty-six staff members of the company left. This company, however, has considerable potential to grow and be profitable because the demand for bricks is very high in the north.

Namibia Pioneer Engineering is involved in the manufacture of furniture and vehicle repairs. It also started off fairly well but ran into serious management problems. It employed fifty ex-combatants initially but the number dwindled to forty-four as six of the employees left to take up government jobs early this year.

Currently, Namibia Pioneer Engineering is finalising an agreement for a joint venture partnership with a German company to engage in the manufacturing of wood and metal products. This operation is to set up a manufacturing workshop in the newly-completed Ondangwa Industrial Park. This will serve to resolve the company’s problems regarding production costing and managerial skills. The Germans are to bring in technology as well as managerial and marketing expertise.

Star Protection Services initially employed fifty ex-combatants but now employs 202 people. This growth has been achieved through the company’s own efforts. It has won tenders to provide security services to the Windhoek, Walvis Bay and Grootfontein municipalities, NamPower, NamWater and a number of private companies.

These four subsidiaries have now created employment for 482 ex-combatants. This is, of course, a far cry from the 9000 who were, at the time, looking for employment.

Furthermore, in 1993, DBC established joint venture partnership with a Malaysian partner in the form of a company called M&N Development. This joint venture partnership was given a loan of US$9 million by the Malaysian state-owned Bank Industri to kick-start its operations. By the end of 1998, M&N had constructed 180 new homes and six new retail premises in Grootfontein; and by the first quarter of 1999 it had completed 250 new homes at Oluno, Ondangwa. Currently, M&N is negotiating to obtain tenders to provide servicing and construction of municipal facilities and infrastructure at Uutapi and Eenhana. This company has acquired significant capacity to perform fairly complex construction work on its own. In line with the original agreement, the Malaysians have, this year, exited from the partnership. The initial loan has been repaid in full and M&N is now a fully independent and thriving Namibian construction company.

DBC also co-ordinates three of its own divisions which provide direct employment. Its Forestry Division runs nurseries at Mashare, Rundu, Berg Aukas, Okahao and Ondangwa. It also held a wood harvesting concession to supply timber for the government sawmill in Rundu. This sawmill was transferred to DBC in 1998 which took on responsibility for the renovation of the premises and other repair work. The corporation invested in the project in the form of replacement of antiquated machinery. As such, the sawmill is now back in full operation employing fifty ex-combatants.

The Forestry Division also runs an Afforestation Project which was launched in 1996. This project recruited some 500 ex-combatants who were engaged in the pruning and planting of trees under the supervision of the Directorate of Forestry in the Ministry of Environment and Tourism. However, this project ran out of funds in September 1998. Proposals have been submitted for additional funding to extend this labour-intensive project.

DBC’s Agriculture Division employs fifty-nine people at three of its centres: Etunda, Berg Aukas and Mashare. Despite relatively good yields of mahangu and vegetables, unpredictable weather and lack of adequate irrigation systems to support commercially viable production hamper the division’s operations. The division has also experimented with a tenant system similar to that in place at NDC’s Etunda Project.

The Poultry Division which, until 1997, was a component of the Agriculture Division, now operates independently. Twenty-one ex-combatants are employed at Berg Aukas and Okatope in the production of eggs and live chickens. The division now has the capacity to produce some 6000 eggs per month. This has proved to be a viable project.

Vision 2030

The ministry’s place and role in the government’s vision for 2030 is to ensure that the economy becomes one which is integrated, productive, equitable, diversified, and providing meaningful employment to the broadest majority of the Namibian people.

By the year 2030, the Namibian economy will be 50% diversified and the country’s manufacturing sector will contribute 45% to GDP. To achieve this, 750 graduates in applied technology will be available. In addition, 500 people will have graduated in business management, 400 in information technology, 250 in financial management, and 125 in tourism development.

Sixty per cent of the economy will be in the hands of the previously disadvantaged sector of the population. Eighty per cent of SMEs will be established and 50% of potential businesspeople will be trained.

Challenges for the New Millennium

Solution to the increasing challenge of unemployment requires a multifaceted approach. The first facet must be the expansion of the country’s manufacturing base. The second should be the full exploitation of Namibia’s tourism potential. This will entail concerted promotion effort and injection of new investment into those sectors. Third, the development and growth of the SME sector is crucial to poverty alleviation through new ownership of business and job creation. Fourth, the expansion of manufacturing should result in the growth and diversification of the country’s export products.

With respect to manufacturing, there are three distinct lines of approach. One of these is import substitution industry. The government spends some N$1.4 billion per annum on the procurement of basic goods and services. Much of these continue to be sourced from outside the country. It is obvious that many of these products can easily be manufactured locally. The ministry is calling for a reduction of this over-dependence on imports of consumer goods. The government should support this initiative in the form of long-term supply contracts; and since, in the long-term, export will be essential for manufacturing to survive in this country, the government has in place arrangements in regard to preferential, duty and quota free access to most of the world’s markets.

The EPZ programme also remains central to the government’s industrial development strategy and diversification of exports in the first decade of the new millennium.

Use of information technology to enhance both interactive communication with the investor community and internal capacity will be key to realising increased efficiency and effectiveness. Indeed, the ministry is already on the road to making IT a part of its management culture and an essential development tool. In this respect, it will ensure that appropriate technical skills and understanding of IT potential are developed.

This can, of course, only be achieved through further investment in across-the-board and on-going human resource development. In this regard, the ministry is geared to upgrade internal capacity. It is also intending to promote the use of industrial attachments, or apprenticeships to assist in the process of developing industrial and technical skills within the private sector.

During the first decade of the new millennium, the Ministry of Trade and Industry’s mission is to actively promote and facilitate accelerated growth and development of the economy through the formulation of appropriate policy and legislative instruments in support of private sector operators. Over the next ten years, the ministry will concentrate its efforts on the following activities:

1.      diversification of industrial activity to reduce dependency on production and export of primary products;

2.      increased contribution of industry to GDP from its current 12.3% to 18% within ten years;

3.      development and diversification of manufacturing activity to produce goods for both local consumption and export, such as, garments, pharmaceuticals, household products, wood products, textbooks and stationery, plastics, electronic components, motor vehicle parts, jewellery and construction materials;

4.      spatial distribution of industrial development through, among others, construction and expansion of industrial and EPZ parks and implementation of spatial development initiatives (SDIs);

5.      development of a competent authority and skills to oversee quality and standards of Namibian products;

6.      development of an off-shore banking and financial services sector.

7.      Implementation of the export development strategy to increase the volume and variety of export goods;

8.      implementation of WTO, Lomé, SADC and COMESA protocols and agreements;

9.      capacity building in trade and investment promotion;

10.  capacity building in technical skills for industrial development, including the promotion of industrial attachments. Skills development will be carried out within the context of the need to be regionally and internationally competitive;

11.  creation of an Innovation and Technology Centre to assist in product development and quality control;

12.  continuous improvement in service provision;

13.  computerisation and streamlining of company registration;

14.  internal capacity building and streamlining of the structure of the ministry, including strengthening the ministry’s six regional offices;

15.  completion of computerisation and development in the use of information technology to enhance investment promotion, including production of industrial data, information management, and maintenance of the ministry’s website;

16.  sectorally-focused investment promotion; and

17.  strengthening of the Namibia Development Corporation as an agent for industrial development and promoter of manufacturing industry.   In this respect, its tasks will include the initiation and development of industries, the carrying out of feasibility studies, and the drawing up of business plans to be used for investment promotion purposes.