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Thursday, April 25, 2002 - Web posted at 9:35:38 pm GMT Sept 11, rand fall hit Nam economy, says PresidentCHRISTOF MALETSKYTHE September 11 terrorist attacks in the United States, coupled with the decline in value of the South African rand adversely affected the Namibian economy, President Sam Nujoma told the nation yesterday. Delivering his State of the Nation address in Parliament, Nujoma said the country's economic performance was "largely satisfactory" despite the plunge in tourism and world travel figures in the aftermath of the terrorist attacks which caused substantial reductions in global air traffic and the flow of tourists. He said the decline in the value of the South African rand, to which the Namibian currency is pegged, against major currencies also had an inflationary effect on local imports. "The silver lining on this rather dark cloud is the fact that the change in currency values may have made our exports of fish, beef and other items that we export more competitive and more attractive in the world market," he said. Nujoma said the economy also had to contend with the impact of weaker demand in the world market for products such as diamonds and other commodities. Nujoma said while the growth rate of Namibia's real gross domestic product (GDP) stood at 3,5 per cent for the period between 1996 and the year 2000 on average, last year was marked by a significant down-turn. Citing Bank of Namibia figures, he said expectations were that economic growth would recover this year with growth forecast at 3,7 per cent until 2005. He said agriculture, fishing, mining and general retail were expected to perform better this year with ostrich products, grapes and dates expected to increase their product output. "This will compensate for the depressed demand for beef products due to the episodes of Mad Cow and foot-and-mouth diseases in Europe which is a major market for Namibian beef," he said. Namibia is one of few certified as a "Mad Cow Disease free" area with a "Grade 1" status by the European Union. The status gives Namibian beef exports increased and competitive access to world markets. Namibia is also only one of two countries in Africa - the other being Swaziland - awarded the status of a "foot-and-mouth free zone without vaccination". Investments in 2001 totalled N$4,85 b The President said Namibia had attracted investments to the tune of N$4,85 billion last year. The investments will result in the creation of 10 900 new jobs. Leading the pact of investors is Ramatex Namibia Textile Plant in Windhoek with a N$1 billion investment which Nujoma said was undoubtedly Namibia's most significant accomplishment to date. Other notable investments recorded during the year include: * N$3,2 billion investment by Anglo Base in a zinc refinery at Rosh Pinah, with over N$2,5 billion invested to date. Over 3000 workers are currently on site to establish this zinc mining operation; * N$100 million investment by Bank Windhoek into the Maerua Shopping Mall in Windhoek; * N$95 million investment by Namcot Diamonds into a diamond cutting and polishing centre in Windhoek; and * N$60 million investment by Trade Centre into a department store in Windhoek. Nujoma also cited other investments such as the establishment of gemstone cutting and polishing centres worth N$10 million in Keetmanshoop and Karibib, the N$50 million worth Northern Tannery for leather processing at Ondangwa and another diamond cutting centre planned for Walvis Bay. |
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