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Home Business & Economy

Money laundering, illicit timber among Namibia’s economic headaches

by editor
October 28, 2022
in Business & Economy
6
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A recent report on organised crimes in Africa flags illicit timber trade and money laundering as some of Namibia’s major economic crimes that stifle economic growth. 

Asian cartels working in cohorts with local facilitators have been named as the kingpins of illegal timber trade in Namibia in the report on the evolution of crime in a Covid-world and Africa Organised Crime Index 2021. 

“Despite the fact that Namibia has very little tree cover, illicit timber from the north of the country is exported to China and Vietnam, and criminality surrounding flora species is rife,” states the report. 

The report further reveals that corrupt forestry officials issue fraudulent permits for the harvesting and exporting of rosewood, in particular. The trade is facilitated by local criminal actors and Chinese cartels and stimulated by high and increasing demand from East Asia. The market for exotic hardwood is one of the largest illegal enterprises in the country and runs parallel to the legal markets for timber and charcoal. 

Walvis Bay is said to be the transit point for other African wood destined for Asia, including timber from Mozambique and Angola. 

These activities, the report states, are creating an unhealthy economic and financial environment, of which to some extent it was blamed on the weak legislations to guard and combat such crimes. 

“Namibia has comprehensive legislation in place in the form of its Financial Intelligence Act. However, once a case has been brought to court, a dysfunctional and under-resourced judiciary hampers prosecutions,” added the report. 

Despite the negative impact, there is some sort of good news, as research indicates that the country has made good progress with regard to combating money laundering, although it still remains a substantial problem. 

It is further established that Namibia’s economic regulatory framework is adequate, but growth remains slow. This is mainly due to an overdependence on government subsidies in key areas of the economy. 

“The uneven distribution of income makes illicit activity attractive to poorer parts of the population. Property rights are constitutionally guaranteed but seem to be under increasing threat as movements are made towards land expropriation,” stresses the report.  

Other natural resources under threat include illegal fishing which is primarily conducted by foreign vessels. In terms of precious stones, it was established that there are no major diamond smuggling syndicates, although around 80% of small-scale mining is taking place. 

“Namibia has a considerable market for illicit diamonds and gemstones. However, there are no major diamond-smuggling syndicates. This is because the country’s geography and Debmarine Namibia’s control of large-scale mining make smuggling and illegal extraction difficult.” 

The report findings,however,come as the Namibian Revenue Authority, with the support of the United States government early this year launched the Container Control Programme at Walvis Bay Port, a program aimed at improving the port’s ability to interdict illegally smuggled goods, including wildlife and forest products.

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