The Ministry of Industrialisation and Trade says price competitiveness remains a challenge for Namibia’s manufactured goods to penetrate lucrative markets.
The Ministry’s Chief Information Officer, Elijah Mukubonda, said Nambiain manufactured goods are expensive due to high operational costs, including water, land, and electricity, as opposed to goods from other parts of the world, like cheaper Asian markets.
It is based on such challenges that he said the ministry has embarked on the development of a National Export Promotion Strategy (NEPS).
“This strategy aims to be a guidance for improving export performance and international competitiveness for Namibian products. We also have the Africa Continental Free Trade Area (AfCFTA) implementation strategy geared towards promoting trade on the continent,” he said.
“In improving this, Namibia has entered into trading agreements such as the European Partnership Agreement (EPA), SACU, SADC Protocol on Trade, and AfCFTA are the most important determinant links to the international trade markets.
“Included is also the African Growth and Opportunity Act (AGOA) that seeks to assist the economies of Sub-Saharan Africa to improve economic relations with the USA. This facilitates sub-Saharan Africa’s integration into the global economy and to boost exports of these countries to the USA,” he added, highlighting some of the enabling market access government policies.
In terms of export trade performance, Mukubonda said Namibia’s total exports to the world market stood at US$6 billion in 2022, of which approximately US$1.3 billion was directed to the European Union, while US$3 billion was allocated to SADC
Furthermore, US$2,1 billion worth of goods were exported to the Southern African Customs Union.
Notable export destinations include China (US$735 million), the United Arab Emirates (US$210 million), and the United States (US$128 million).
“Meat and meat products; wood charcoal and charcoal products; wine and beverage products; fisheries and fish products as well as pasta and pastry products, were some of the major goods exported. Africa and European markets emerged as priority destinations. Europe offers good prices and Africa offers distance proximity and cultural connectivity,” he said.
Namibia’s location on the coastline of the Atlantic Ocean and its efficient port logistics, Mukubonda said offers a good opportunity for trade with the region.
Mukubonda expressed concern that an excessive focus on oil and gas could divert attention from other critical sectors like agriculture and manufacturing, potentially leading to an imbalanced economy.
“Namibia’s investment in the energy sector, such as green hydrogen, could be a game changer. Oil discovery is likely to boost income at national level. However, if proper planning is not done, the challenge could be that the oil discovery would divert attention from non-oil sectors such as agriculture and manufacturing. Therefore, Namibia’s economy could end up depending on one sector, oil and gas. Adaptation of skills to capitalise on green industrialisation could be one of the challenges,” Mukubonda said.
