What is the current state of manufacturing in Namibia? It has been established that the country has a number of manufactured products which have potential for expansion. The key existing products identified are paint, tiles and slabs, tables, beds, cupboard, school and office furniture, kitchenware, beer, carbonated water and soft drinks, steel windows and door frames, polished diamonds, hand-woven carpets, field shoes, textiles and clothing, as well as salt (coarse, fine, rock and table) amongst other items.
There are a number of possible markets to which the existing products that are currently being produced although not at their optimal levels, could be exported. These markets include: the SADC, the EU, the US, Australia, as well as East Asia.
The country has the potential of engaging in the production of other manufactured products which are currently not being produced. These products entail: swimming pools salts, bathing salts, leisure garments (i.e. hanging shirts and T-shirts), pencils, desks and chairs as well as cassava planting for fuel production. It is encouraging to note that the country has ventured into producing pineapples and intend to can them and produce pineapple juice.
The Manufacturing sector of Namibia is faced with a number of constraints. The major constraints mentioned by survey respondents were mainly; the cost of electricity, high transport and port charges, unfair competition from well-established South African manufacturers, the availability of cattle for local slaughtering and processing, tense labour relations, especially in the fishing sector, and the HIV/AIDS pandemic and its severe impact on labour productivity. The sector was also faced by problems relating to the access and cost of technology, as well as the availability of skilled labour.
There is an acknowledgement amongst manufacturers of the role which the Government plays in terms of promoting manufactured products overseas. Manufacturers believe that the Government should make a concerted effort to explore and market Namibian products in the Asian market. This is especially of relevance to the leather goods industry.
The case studies of countries such as South Africa, Ireland and Singapore, reveal four major policy lessons for Namibia. Firstly, all these countries have designed and implemented clear industrial policies and strategies for promoting their manufacturing sectors. Secondly, these countries have identified and targeted specific sub-sectors within their broader manufacturing sectors. The Irish manufacturing strategy has for example, targeted chemicals, electronics, electrical and telecommunication equipment as some sub-sectors. Thirdly, the use of taxation as a policy instrument in promoting industrial development is a common feature of all the industrial policies in the countries chosen for the case study. The importance of well managed and effective institutions also emerges as a common feature from all these countries which were reviewed.
Related to these findings, the paper recommends that the Ministry of Education, in collaboration with the Ministry of Labour and Social Welfare as well as the National Planning Commission should formulate and implement a policy which is geared towards training the required number of qualified and skilled artisans, technicians, engineers, researchers and business managers for Namibia. The implementation of the Education and Training Sector Improvement Programme (ETSIP) will go a long way in strengthening the supply of skilled labour to meet the labour market demands in the economy. The Ministry of Home Affairs should also facilitate the importation of special skills which are critical for the efficient and effective operation of the private sector. This will help in terms of filling the shortcoming of skills in the private sector. It is important that mechanisms are established to ensure the effective transfer of skills to local workers.
The Ministry of Agriculture, Water and Forestry in collaboration with representative bodies such as the Meat Board, should ensure the implementation of policy measures which are targeted at the local value addition for the livestock industry (i.e. both cattle and small stock). The paper also recommends that such policy measures should be accompanied by an adequate infrastructural development i.e. feedlots. Other valued added activities such as the Hoodia plant and the Devil’s claw should also be promoted by the Ministries of Trade and Industry and Agriculture.
The Ministry of Trade and Industry and other relevant stakeholders such as the private sector should devise a manufacturing strategy for Namibia centered on the existing and potential sub-sectors which are identified to be important for the industrialization process of Namibia. A number of studies have identified several key sub-sectors with potential in the manufacturing sector namely; food processing and other agro-industries; leather and leather products; textiles and clothing; wood and wood products; the production of construction materials, such as cement; paper products and stationery. A sub-sector which needs a closer examination is that of leather and leather products. This sub-sector offers a great potential in terms of the products which could be produced such as shoes, handbags, belts, furniture for houses and interior fittings for cars. A key issue which should be addressed by both the Government and the private sector is capacity building in the sub-sector (i.e. both managerial and technical capacity). The manufacturing strategy for Namibia must thoroughly examine all the sub-sectors and should have clear action plans for their implementation, as well as proper monitoring and evaluation mechanisms for all the sub-sectors, to yield desirable results. The strategy must take into consideration the findings of the Commonwealth Study on the Development of Clusters of Small Enterprises and Cottage Units.
The Ministry of Trade and Industry should play a facilitating role with regard to the entry of Namibian products into foreign markets. The role of the MTI is expected to be in the areas of organising trade missions and exhibitions, as well as the negotiation of preferential international trade agreements with possible markets within the context of the SACU. The Ministry of Trade and Industry should create awareness amongst Namibian manufacturers of the existence and possible usage of article 26 of the SACU 2002 Agreement on infant industry protection. This may assist the country with the protection of strategic industries of national importance and enable these industries to compete with well-established industries within the customs union and beyond.
The Ministry of Trade and Industry should create awareness amongst Namibian manufacturers of the existence and possible usage of article 26 of the SACU 2002 Agreement on infant industry protection. This may assist the country with the protection of strategic industries of national importance and enable these industries to compete with well-established industries within the customs union and beyond.
The Ministry of Trade and Industry should further strengthen the capacity of the Directorates tasked with the promotion and conduct of research in the manufacturing sector of the country. It is particularly important that the census of manufacturing establishments be conducted every 5 years by the Directorate of Industrial Development as required by the policy. The census results provide valuable statistics required for industrial planning and policy formulation, and their implementation. The coordination of the research and policy efforts need to be encouraged between the different private and public sector institutions involved in the manufacturing sector, to create a combined force and eliminate a duplication of efforts.
