Land plan scares investors

HAMBURG – NAMIBIA’S announcement that it will expropriate white-owned farms has set off alarm bells in Germany.

German businesses have been delaying investments as they fear that land reform in Namibia will follow Zimbabwe’s ‘land grab’ pattern. This cautious approach is hardening despite assurances from the Namibian Embassy in Berlin and marketing by non-governmental organisations, diplomats and business representatives.One of these groups, the Afrika-Verein (German-African Business Association), said their work had been made even more difficult by suggestions that expropriation could target white farmers who mistreated their workers.In his announcement at the end of February, Prime Minister Theo-Ben Gurirab listed not only the slow pace of land reform as the reason for shifting gear on land reform, he indicated that the eviction and dumping of labourers would suggest what land would targeted.The change of land ownership has been accepted as proceeding too slowly, but Government previously said unproductive farms would be the first to go if forced buying was introduced.Government’s statements that they had had enough of the maltreatment of workers have businesses worried, said Afrika-Verein’s Southern Africa business project leader, Heiko Schwiderowski.Afrika-Verein was set up to help attract business to Africa with Namibia being one of five the major destinations in the south of the continent.Its members include multinational firms such as Volkswagen and Daimler Chrysler.Schwiderowski told The Namibian: “Many companies are putting their plans on hold because of the [unclear] land reform programme.”Since the announcement, he said, it had become “difficult to recommend or to convince somebody to go to Namibia”, especially newcomers.”From time to time the phone rings and people want to hear our impression of Namibia.We would like to think their [investment] is not in danger, “but in the German media only the bad news can be seen in newspapers”.Schwiderowski said people did not get to hear about the successes of the Walvis Bay Corridor, the good infrastructure, business protection treaties and export processing zones.Talk of the fourth term before Swapo nominated three candidates for the choice of President Sam Nujoma’s successor, he said, was “the sort of information which really destroys a lot”.”This information, combined with the land issue, is a disaster for those who try to promote your country as a destination for investment.”The Zimbabwean comparison is ever-present,” said Schwiderowski.That Namibia had hired Zimbabwean “land experts” to help with reform and Nujoma’s closeness to Zimbabwe could only add to the uncertainty.The Afrika-Verein has been telling potential investors to wait and see until after the elections at the end of the year.”For those who are in the country, we tell them ‘just wait’.”The most important issue is how transparent is the selection of farms – if those farms are selected [because] land disputes occurred, that will not be a proper condition.The criteria has to be transparent and understandable,” said Schwiderowski, who added that businesspeople supported the need for land reform.This cautious approach is hardening despite assurances from the Namibian Embassy in Berlin and marketing by non-governmental organisations, diplomats and business representatives.One of these groups, the Afrika-Verein (German-African Business Association), said their work had been made even more difficult by suggestions that expropriation could target white farmers who mistreated their workers.In his announcement at the end of February, Prime Minister Theo-Ben Gurirab listed not only the slow pace of land reform as the reason for shifting gear on land reform, he indicated that the eviction and dumping of labourers would suggest what land would targeted.The change of land ownership has been accepted as proceeding too slowly, but Government previously said unproductive farms would be the first to go if forced buying was introduced.Government’s statements that they had had enough of the maltreatment of workers have businesses worried, said Afrika-Verein’s Southern Africa business project leader, Heiko Schwiderowski.Afrika-Verein was set up to help attract business to Africa with Namibia being one of five the major destinations in the south of the continent.Its members include multinational firms such as Volkswagen and Daimler Chrysler.Schwiderowski told The Namibian: “Many companies are putting their plans on hold because of the [unclear] land reform programme.”Since the announcement, he said, it had become “difficult to recommend or to convince somebody to go to Namibia”, especially newcomers.”From time to time the phone rings and people want to hear our impression of Namibia.We would like to think their [investment] is not in danger, “but in the German media only the bad news can be seen in newspapers”.Schwiderowski said people did not get to hear about the successes of the Walvis Bay Corridor, the good infrastructure, business protection treaties and export processing zones.Talk of the fourth term before Swapo nominated three candidates for the choice of President Sam Nujoma’s successor, he said, was “the sort of information which really destroys a lot”.”This information, combined with the land issue, is a disaster for those who try to promote your country as a destination for investment.”The Zimbabwean comparison is ever-present,” said Schwiderowski.That Namibia had hired Zimbabwean “land experts” to help with reform and Nujoma’s closeness to Zimbabwe could only add to the uncertainty.The Afrika-Verein has been telling potential investors to wait and see until after the elections at the end of the year.”For those who are in the country, we tell them ‘just wait’.”The most important issue is how transparent is the selection of farms – if those farms are selected [because] land disputes occurred, that will not be a proper condition.The criteria has to be transparent and understandable,” said Schwiderowski, who added that businesspeople supported the need for land reform.