By JOSEF KEFAS SHEEHAMA
President Netumbo Nandi-Ndaitwah advocates a shift away from exporting raw materials and toward domestic producing and processing goods to accelerate economic growth, create jobs, and add value.
The president addresses a high-level roundtable hosted by the Business Council for International Understanding (BCIU) in New York.
For Namibians to witness a full transformation of the country’s economy from a reliance on raw materials to more diversified, innovation-driven growth pathways, the president should demand a serious commitment from all of the cabinets and ministers to engage at the grassroots level to find some ideas that will be deemed a collective national effort, laying the foundation for sustainable development and increased global competitiveness.
This transition encourages innovation, builds local capability, and creates more lucrative opportunities for employment, all of which contributes to a stronger and more resilient national economy.
As a result, I applaud the president for reaffirming this bold decision, which was also supported by the previous administration, and for disclosing that the government is working to implement policies to control raw mineral exports and encourage potential investors to consider value addition as a means of increasing national revenue and creating jobs for Namibians.
Exporting raw materials can increase a country’s reliance on foreign markets, deplete natural resources, and hinder domestic industrialization and value-added industries.
This action is crucial because it aligns with NDP6’s strategy, which focuses on diversification, the extraction of natural resources, and the empowerment of young people to transform Namibia from an exporter of raw materials into an industrial producer of finished goods with added value.
If we want to achieve economic emancipation, we should cease exporting resources in their raw form and focus on adding value to them. Otherwise, Namibia will continue to be impoverished and unequal. If not, most of the value and all of the good employment will move to the countries in the northern hemisphere.
I am incredibly hopeful about our country’s future and, consequently, the impact it will have on the rest of the world. Furthermore, when we implement this policy and legislation, we are essentially declaring that we do not want raw materials exported from Namibia.
So, if we can process the raw materials, we will have local value, maintain jobs, and create wealth for our people, which is exactly what this reform policy should advocate for.
As a result, the intention is to attract more investors in the downstream business. This indicates that policy reform will encourage international investors to establish processing facilities in Namibia. This will contribute to economic diversification and a stable Gross Domestic Product (GDP).
Furthermore, Namibia’s mining sector remains an important engine of long-term economic development. Indeed, this industry contributes significantly to exports and has critical interconnections with other sectors of the economy. We should admit that our mining industry is undeveloped, resulting in the export of raw minerals.
Namibia’s mining sector is crucial for mineral exploration, extraction, processing, and marketing because the country lacks enough capital on hand and technological means to fund large-scale capital-intensive projects.
Moreover, I am convinced that this measure will help the country’s economy by expanding its processing industries. Some contend that the method will lower the amount of commerce in specific minerals.
Several African states are concerned that a government that has outlawed the export of such minerals may not allow the materials to be supplied to another country, thereby impeding trade with partners.
We argued this question with 50 African countries who attended the China’s modernization and African development conference in order to gain a general understanding of other African countries’ perspectives.
That being said, if an effective policy is enacted, we can be confident that it will eventually operate. We have to comprehend that Africa contributes most of the raw materials used, such as in the development of green technology.
If the continent decides to establish the rate for such material imports and exports, it will become an unstoppable force. We cannot keep exporting unprocessed goods. Potential investors should create jobs and impart skills to Namibians. As a result, while policymaking is adequate, implementation remains a challenge.
If policy reform inhibits the export of raw minerals, I believe additional actions should be done to ensure that Namibians get the most out of their resources. This approach is viewed as an effort to promote the expansion of value chains. Exporting raw materials results in income loss.
Statistics demonstrate that raw material exports are sold at a low price, but finished products are imported at three times the price. Namibia’s Minerals Policy should be streamlined to let investors generate value.
This will encourage foreign investors to adopt value addition, transforming all traders into producers and thereby boosting domestic economic activity.
As a result, being exporters of raw materials rather than finished goods with higher added value limits our people opportunities for employment.
As Namibia prepares to move away from raw material exports, we must devise a clear strategy for achieving long-term economic development, reducing environmental degradation, and boosting real prosperity through the promotion of value-added commodities and services.
Prior to industrialization, international companies sought lower labor costs, access to raw resources, and expansion into new markets, driven by government incentives and the need to reduce operational costs.
To gain mutual benefits from cooperation, win-win strategies and expectations must be defined from the outset. This allows both parties to coordinate their efforts and work together toward a common goal.
The country can gain a competitive advantage and expand its economic reach by transferring technology and partnering with multinational corporations.
This roadmap should include a diagnostic process for establishing competitiveness targets strategic priorities, improving the business environment, attracting investment, simplifying regulations, and securing favorable trade agreements to ensure a smooth and beneficial transition from commodity dependence to diversified and higher-value exports.
To this end, an outlaw on raw material exports would encourage the development of processing facilities in Namibia, giving Namibians a larger portion of the value chain. As a result, a partnership focused on vital minerals would transform this into a mutually advantageous strategic economic alliance.
Therefore, it’s not going to be easy; Namibia must be active in international trade negotiations to ensure that its value-added products have secure and advantageous access to important markets. This transition will be viable and profitable with the help of trade agreements, export incentives, and partnerships across borders.
