Exports key to Namibia’s growth, says Hamutenya

NAMIBIA can become an important player in the global economy if the country looks at diversified production, focussing mainly on export-led productive activities.

This was said by former Trade and Industry and Foreign Affairs Minister, Hidipo Hamutenya when he addressed participants on trade promotion at the Economist Business Forum, which ended in Windhoek yesterday. Hamutenya said it was time for Namibia’s businesses to evolve and also challenged them to remove the chains of the pre-Independence era, which has seen business establishments serve mainly as an outlet for South African manufacturers.The former minister said agriculture and the country’s cutting and polishing of diamonds and semi-precious had a major role in Namibia’s export growth.Local manufacturers operating in areas such as food processing, metal fabrication, chemicals, leather wear, clay ware, foam products, jewellery and cosmetics, he added, should expand into significant export products.Hamutenya explained that investment promotion should not be misconstrued to mean in-flow of foreign capital, but that it also means the retention of domestic savings.”The economic development process is cumulative such that success in one area opens up opportunities in others.Therefore, attracting substantial investment to the export sector is a fundamental challenge for export promotion.This is to say that trade and investment promotion are two sides of the same coin.”Hamutenya said without diversified production nor exports, local producers would remain confined to the small home market and have fewer avenues to improve their global knowledge, understanding and application of technology to production.He gave examples of countries that have grown rapidly due to opening up to international trade, pin-pointing the booming growth of economies of the Asian ‘tigers’, which include Malaysia, Taiwan, Thailand and Singapore.Studies have revealed that exporters in Africa are 20 per cent more productive than non-exporters, and Hamutenya added that by engaging in production for export, a country would be able to widen its economic space and keep its industries globally competitive.”Exports, especially of industrial and non-traditional products, provide the best venue for attracting high and productive investment.It triggers, among other things, higher and sustained growth, increased savings and further investment.”Hamutenya concluded his presentation by saying that the programme of export-push should be a challenge which the Government and private sector must address in a focussed and determined way.The Namibia Economist is hosting its sixth annual Economist Business Forum under the theme “Financial regulation of the non-banking sector”.The forum creates an environment for relevant economic key economic players to network, exchange ideas, share knowledge and hence promote business.Hamutenya said it was time for Namibia’s businesses to evolve and also challenged them to remove the chains of the pre-Independence era, which has seen business establishments serve mainly as an outlet for South African manufacturers.The former minister said agriculture and the country’s cutting and polishing of diamonds and semi-precious had a major role in Namibia’s export growth.Local manufacturers operating in areas such as food processing, metal fabrication, chemicals, leather wear, clay ware, foam products, jewellery and cosmetics, he added, should expand into significant export products.Hamutenya explained that investment promotion should not be misconstrued to mean in-flow of foreign capital, but that it also means the retention of domestic savings.”The economic development process is cumulative such that success in one area opens up opportunities in others.Therefore, attracting substantial investment to the export sector is a fundamental challenge for export promotion.This is to say that trade and investment promotion are two sides of the same coin.”Hamutenya said without diversified production nor exports, local producers would remain confined to the small home market and have fewer avenues to improve their global knowledge, understanding and application of technology to production.He gave examples of countries that have grown rapidly due to opening up to international trade, pin-pointing the booming growth of economies of the Asian ‘tigers’, which include Malaysia, Taiwan, Thailand and Singapore.Studies have revealed that exporters in Africa are 20 per cent more productive than non-exporters, and Hamutenya added that by engaging in production for export, a country would be able to widen its economic space and keep its industries globally competitive.”Exports, especially of industrial and non-traditional products, provide the best venue for attracting high and productive investment.It triggers, among other things, higher and sustained growth, increased savings and further investment.”Hamutenya concluded his presentation by saying that the programme of export-push should be a challenge which the Government and private sector must address in a focussed and determined way.The Namibia Economist is hosting its sixth annual Economist Business Forum under the theme “Financial regulation of the non-banking sector”.The forum creates an environment for relevant economic key economic players to network, exchange ideas, share knowledge and hence promote business.