To Buy Or Not To Buy

I AM an American living in Australia, and recently visited Namibia on my honeymoon.

I found it to be a wonderful country, full of fascinating and

beautiful people and places.

This led me to thinking about investing in land or a small

guesthouse in Namibia, as I think there is tremendous tourist

potential in the country.

 

I am in fact very close to a deal to buy a small amount of land

with some rental camp sites and bungalows, which would employ a

couple of local people, as well as bringing more tourism to Namibia

through my marketing, leading indirectly to more employment and

income.

 

However, I am inclined not to finish the transaction now that I

am reading about your new land confiscation policy.

 

I realise that the type of small non-farm property I am buying

is not subject to confiscation, but the policy itself cannot help

but conjure up images of Mugabe's disastrous policies in

Zimbabwe.

 

There is nothing more important in long-term economic

development than stable property rights and rules which citizens

can expect will not be changed in the middle of the game.

 

In other words, uncertainty prevents progress and growth.

 

Frustration with the slow pace of land resettlement is

understandable, but addressing it with a policy that is very likely

to damage current productivity and incentive for investment is a

recipe for disaster.

 

You have taken the first step down an extremely dangerous road,

a step which I think is most ill-advised, is likely to create

serious trouble for the country, and is not likely to achieve your

stated goals.

 

Rather, the uncertainty you create will put brakes on economic

productivity that you can not afford to diminish, especially with

Namibia's high population growth rate.

 

I urge you to reconsider the policy you have recently proposed,

or at least to go out of your way to make sure that land owners and

potential investors, and even tourists, understand that any policy

has very strict standards which will be adhered to, and that any

policy is strictly used for its stated economic or demographic

goals and not for political purposes.

 

I urge you to retract the decision and come out with a policy

much more clearly aimed at stability and rule of law.

 

Ross G. Kaminsky

Sydney, Australia

 

This led me to thinking about investing in land or a small

guesthouse in Namibia, as I think there is tremendous tourist

potential in the country.I am in fact very close to a deal to buy a

small amount of land with some rental camp sites and bungalows,

which would employ a couple of local people, as well as bringing

more tourism to Namibia through my marketing, leading indirectly to

more employment and income.However, I am inclined not to finish the

transaction now that I am reading about your new land confiscation

policy.I realise that the type of small non-farm property I am

buying is not subject to confiscation, but the policy itself cannot

help but conjure up images of Mugabe's disastrous policies in

Zimbabwe.There is nothing more important in long-term economic

development than stable property rights and rules which citizens

can expect will not be changed in the middle of the game.In other

words, uncertainty prevents progress and growth.Frustration with

the slow pace of land resettlement is understandable, but

addressing it with a policy that is very likely to damage current

productivity and incentive for investment is a recipe for

disaster.You have taken the first step down an extremely dangerous

road, a step which I think is most ill-advised, is likely to create

serious trouble for the country, and is not likely to achieve your

stated goals.Rather, the uncertainty you create will put brakes on

economic productivity that you can not afford to diminish,

especially with Namibia's high population growth rate.I urge you to

reconsider the policy you have recently proposed, or at least to go

out of your way to make sure that land owners and potential

investors, and even tourists, understand that any policy has very

strict standards which will be adhered to, and that any policy is

strictly used for its stated economic or demographic goals and not

for political purposes.I urge you to retract the decision and come

out with a policy much more clearly aimed at stability and rule of

law.Ross G. Kaminsky

Sydney, Australia

---