Local business goes with global flow

COMPANIES in Namibia are acclimatising to the harsher business conditions presented by the global economic crisis and finding ways to cope, the Institute of Public Policy Research (IPPR) says in the latest IJG Quarterly Business Confidence Survey.

Especially the hospitality, healthcare and manufacturing sectors are confident about prospects and intend going ahead with major investments.Unfortunately only 48 of the targeted 103 companies participated in the survey. However, none of them mentioned any further significant job losses.More companies, nearly 32 per cent, intend to employ more people in the second quarter than in the previous survey in the fourth quarter of last year, when the figure stood at 24 per cent, the IPPR said.Most of the businesses surveyed, about 55 per cent, seem to think that the business environment has stabilised. They expect the same conditions they’ve had to endure so far this year to continue in the second quarter. Only 41 per cent of businesses shared this view during the previous survey.However, nearly 48 per cent have set their stakes on higher turnovers, whereas 43 per cent did so in the fourth quarter.’Almost all manufacturing and retail respondents forecast improvements in revenue performance,’ the IPPR said.About 55 per cent of companies also intend to invest significantly in plant, property and equipment, much more than the 43 per cent in the previous survey.’This seems to indicate that despite forecasts of a looming recession, Namibian businesses are retaining a measure of confidence in the future,’ the IPPR said.Manufacturing continues to ride high as general business conditions have been improving since the third quarter of 2008, the IPPR said. The revenue outlook looks bright and huge investments in capital equipment are planned from April to June this year. This will create more job opportunities, according to the survey.’Retailers, like manufacturers, continue to swim against the tide of the global economic crisis,’ the IPPR said.High turnover for basic-goods retailers characterised the period, while furniture and clothing retailers maintained the same revenue levels. The survey doesn’t indicate huge investments for the second quarter, and employment figures are not expected to change.Major upgrading of hospital infrastructure and purchasing of medical equipment will mean big business for the health sector in the second quarter. In this case, more jobs will be created, revenues will grow and business conditions in general will be healthier, the survey predicts.The refurbishment of tourism facilities will feature prominently in this quarter.’All respondents indicated that they will invest considerable amounts of money in upgrading their establishments.’Neither the number of employees, nor the general business conditions are expected to change, though.The IPPR said major investments are underway in banking in the second quarter, but it will unfortunately not translate into more jobs.The fishing sector is expected to remain in stormy waters as input costs increase and sales price are under pressure, the survey shows. Although the industry will take on more workers during the second quarter, it is because of the seasonal nature of the business and not because of major capital investments.Business conditions in both the mining and construction sectors are expected to pick up during the second quarter.Several respondents in the construction industry indicated that they are on the verge of landing big contracts. Although things are looking slightly better for the mining sector, this too isn’t expected to mean more jobs, the IPPR said.jo-mare@namibian.com.na