New era of co-operation with Finland

FINLAND is transforming its development focus for Namibia to that of bilateral commercial relations, with the last bilateral grant project ending in March next year.

“Both countries held negotiations recently to discuss the changed focus and the end of traditional grant funding,” a joint statement of the National Planning Commission and the Finnish Embassy said on Monday. The new Finnish government, which was formed last year, decided on a new development policy with the main objective to concentrate on poverty reduction in least developed countries (LDCs).Namibia is not classified as an LDC, despite having one of the most unequal societies in the world, and will become a “pilot country” of the new Finnish partnership instrument, said Seija Kinni-Hutennen, Charge d’Affaires of the Finnish embassy in Windhoek, who co-signed the statement.A high-level Finnish delegation arrived in Namibia ten days ago to plan the new phase of co-operation with the Namibian Government.”Our aim is a partnership where commercial, cultural, political and development cooperation complement each other in a more balanced way into a relationship of two equal market economies,” said Finnish Under Secretary of State Marjatta Rasio at the start of the bilateral talks.Finland has increased its economic development aid budget by 40 per cent, but Rasio would not reveal any figures.The changed focus in Finland’s development policy necessitated a review of Finland’s development support to Namibia, resulting in moving away from the traditional grant system between a donor country and a developing country to partnerships based on co-financing involving both countries.Finish institutions are to co-operate directly with Namibian counterparts in science, education, municipalities and tourism.Discussions centred around concessional loans, from which the Health Ministry is already benefiting by buying badly needed medical equipment, rural electrification, renewable energy, support for the planned Institute of Public Administration and Management and Finnish support for small and medium enterprises (SMEs) via the Namibia Chamber of Commerce and Industry (NCCI).Relations between Namibians and Finnish people date back 140 years to the arrival of the first Finnish missionaries in what today is north-central Namibia, and later support for exiled Namibians during the liberation struggle.Since Independence in 1990 Finland has extended about N$ 412 million of development aid to Namibia.The new Finnish government, which was formed last year, decided on a new development policy with the main objective to concentrate on poverty reduction in least developed countries (LDCs).Namibia is not classified as an LDC, despite having one of the most unequal societies in the world, and will become a “pilot country” of the new Finnish partnership instrument, said Seija Kinni-Hutennen, Charge d’Affaires of the Finnish embassy in Windhoek, who co-signed the statement.A high-level Finnish delegation arrived in Namibia ten days ago to plan the new phase of co-operation with the Namibian Government.”Our aim is a partnership where commercial, cultural, political and development cooperation complement each other in a more balanced way into a relationship of two equal market economies,” said Finnish Under Secretary of State Marjatta Rasio at the start of the bilateral talks.Finland has increased its economic development aid budget by 40 per cent, but Rasio would not reveal any figures.The changed focus in Finland’s development policy necessitated a review of Finland’s development support to Namibia, resulting in moving away from the traditional grant system between a donor country and a developing country to partnerships based on co-financing involving both countries.Finish institutions are to co-operate directly with Namibian counterparts in science, education, municipalities and tourism.Discussions centred around concessional loans, from which the Health Ministry is already benefiting by buying badly needed medical equipment, rural electrification, renewable energy, support for the planned Institute of Public Administration and Management and Finnish support for small and medium enterprises (SMEs) via the Namibia Chamber of Commerce and Industry (NCCI).Relations between Namibians and Finnish people date back 140 years to the arrival of the first Finnish missionaries in what today is north-central Namibia, and later support for exiled Namibians during the liberation struggle.Since Independence in 1990 Finland has extended about N$ 412 million of development aid to Namibia.