The Ministry of Industrialisation and Trade says crafting a National Trade Policy will boost domestic economic activities, including exports and accessing external markets.
This comes as Cabinet recently approved the Draft National Trade Policy, which aims to contribute towards Namibia’s economic diversification by promoting and stimulating a competitive trade sector to increase the export of goods and services.
The Cabinet directed the Ministry of Industrialisation and Trade to finalise and spearhead the Policy in line with the Implementation Action Plan.
“There is strong evidence to suggest that an export-oriented strategy within the context of establishing a better balance between imports and exports; while encouraging domestic demand is an appropriate policy orientation. Hence, the national trade policy prioritises the diversification of domestic economic activity, exports and markets, broadly based on strategic interventions and actions in the following areas,” the Ministry’s spokesperson, Elijah Mukubonda, said.
According to Mukubonda, the National Policy is developed to guide Namibia’s trade relations with the rest of the world and formulated within the scope of Vision 2030 – the country’s policy framework for long-term national development, aspiring to take Namibia into a developed country status.
He also said the Policy is shaped by the country’s international and regional trade agreements, particularly the World Trade Organisation agreements, the Southern African Customs Union Agreement, the Southern African Development Community Regional Indicative Strategic Development Plan and the Agreement establishing the African Continental Free Trade Agreement, amongst others.
Furthermore, the Policy recognises the role of trade in promoting the achievement of the 2030 Agenda for Sustainable Development and the Sustainable Development Goals.
“The National Trade Policy further focuses on both trade in goods and services. The latter, including digital trade, has become the most dynamic part of global trade; an essential input into the production of goods and services; an avenue for export diversification; and a significant contributor to inclusive growth, job creation and poverty alleviation,” Mukubonda told The Brief, while providing an overview of what the National Trade Policy entails.
He added that the development of services trade policies is vital in exploring new sources of efficiency improvements across all sectors of the economy.
Once the policy is finalised and implemented, it will be reviewed as after five years to take into account emerging national priorities and developments in regional and global markets.
The Policy further aims at tackling domestic trade, spurring local production to meet basic needs and acts as a springboard to international trade.
“Therefore, the Policy commits to the improvement of an enabling business environment for domestic trade and investment, particularly the promotion of local and regional development as centres of trade and investment. In addition, to creating opportunities for equal participation through entrepreneurial development; nurturing the private sector to compete locally and globally, and giving close attention to the informal sector and economically disadvantaged groups in society,” he said.
It further recognises the smallness of Namibia’s domestic market, high levels of income inequality and unemployment which impose limitations on trade policy, especially as relating to import-substitution trade strategies.
