MINISTER-COUNSELLOR AT THE EMBASSY OF THE REPUBLIC OF NAMIBIA TO THE PEOPLE’S REPUBLIC OF CHINA ON THE OCCASION OF THE CENTRAL CHINA-AFRICA BUSINESS COOPERATION SEMINAR
STATEMENT BY MR. THEODORE GRUNEWALD
Director of Ceremonies
Representatives of the Government of the People’s Republic of China
Officials from Henan Province as well as other Provinces from Central China
Representatives of African Countries
Officials from the China Council for the Promotion of International Trade
Officials from China Development Bank
Captains of Industries
Ladies and Gentlemen
Allow me to express gratitude to the Government of Henan Province and the China Council for the Promotion of International Trade for having invited H.E. Mr. Leonard Nambahu, the Ambassador of Namibia to the People’s Republic of China, who, due to other equally pressing commitments cannot be present here today, to attend Expo Central China 2013. He has delegated me to represent him at this very important Seminar.
Director of Ceremonies
From the outset, allow me to convey my appreciation for the warm reception and hospitality extended to me since my arrival in this beautiful City of Zhengzhou.
It is an honour and privilege for me to address this important Business Cooperation Seminar and to inform the Seminar on investment opportunities offered by my country, Namibia.
The Government of the Republic of Namibia attaches great importance to investments. Therefore, the opportunity to present investment and business opportunities offered by Namibia to the business executives attending this event is most valued and therefore appreciated.
There is an old African proverb that says; “If you want to walk fast, walk alone. But if you want to walk far, walk together”. By walking together Africa and China can create a brighter and prosperous future for our peoples. I trust that our presence here today will contribute to this goal.
Director of Ceremonies
Although we are only 2,3 million people, Namibia is the 31st largest country in the world. Namibia borders Angola in the north, Zambia, Botswana and Zimbabwe in the east, South Africa in the south and the Atlantic Ocean in the west.
The Chinese entrepreneurs present here today might ask: Why invest in Namibia? I am proud to say that Namibia is politically stable and that our economy is doing quite well taking into consideration the current global financial situation. Namibia is a peaceful country with a conducive trade and investment climate. We have first class road, rail, air and port infrastructures, an excellent telecommunications network, wide inter-continental market access and the labour environment is stable. The GDP growth in 2012 was 5% while the Per Capita Income currently [2013] is US$6000. Namibia has low inflation and is strategically located in the region.
Namibia can serve as a gateway to markets in the Southern African Development Community (SADC) region. The fact that Namibia is a country with a relatively small population of just over 2 million people should not be a deterring factor to any investor willing to penetrate our market. Namibian goods enjoy access to the following markets through our geographical position and membership to the following trading organizations: Namibia is part of the 58 million people Southern African Custom Union (SACU) whose other members are South Africa, Botswana, Lesotho and Swaziland. We are also part of the larger SADC which is a market of some 230 million people. In addition, bilateral trade agreements with neighbouring counties give Namibian goods and services preferential access to markets in these countries.
On the international scene, Namibia’s trade advantages are defined by its membership to the multilateral trade arrangements such as the Africa, Caribbean and Pacific (ACP) - European Union (EU) Cotonou Partnership Arrangement. This arrangement offers privileged duty- and quota-free access for most raw materials and manufactured products from ACP countries into the EU market. The Africa Growth and Opportunity Act (AGOA) and the Generalised System of preferences (GSP) Agreements provide access of Namibian products to the North American markets at zero tariffs.
The Namibian government adopted Vision 2030 that aims to make Namibia a prosperous, harmonious industrialized state by 2030. Thus we have put in place incentives for investors in the manufacturing sector as well as other measures to achieve this goal.
Furthermore, under the Foreign Investment Act of 1990 all foreign investments are protected. The Act also guarantees freedom to remit capital and profits, currency convertibility and includes a process for settling labour disputes fairly, if they arise.
Director of Ceremonies
As a developing nation Namibia faces socio-economic challenges that must be addressed urgently. These include the unemployment, socio-economic inequalities, labour skills shortages and a narrow industrial base. Government acknowledges that more is required to create jobs and reduce unemployment in our country. The Namibian Government thus acted proactively and came up with the Targeted Intervention Programme for Employment and Economic Growth (TIPEEG), with a total funding of approximately 1.4 billion US Dollars. The programme is aimed specifically at addressing economic growth and the high unemployment rate through targeted Government support to strategic growth sectors.
The aim is to facilitate the creation and preservation of 104,000 direct and indirect jobs over a three year period. The targeted priority sectors that were identified for their potential to create jobs are:
· agriculture;
· tourism;
· transport infrastructure;
· as well as housing and sanitation.
It should, however, be mentioned that other sectors will also continue to receive attention. Namibia is a renowned producer and exporter of high quality gem diamonds, beer, mutton, beef, grapes, dates and a variety of fish products.
Namibia is blessed with extensive mineral deposits such as diamonds, uranium, gold, copper, lead, zinc and other base metals, a wide variety of semi-precious stones and dimension stones. Value addition is encouraged. This includes the refining of base metals and other minerals like manganese, the processing of marble and granite as well as the cutting and polishing of precious and semi-precious stones. Opportunities for investment exist in the energy sector in oil and gas exploration and hydro-power, wind and solar power generation.
Director of Ceremonies
Economic ties between Namibia and China have been steadily growing. The past twelve months have witnessed an increase in the number of Namibian entrepreneurs traveling to China as well as Chinese visiting Namibia to explore business opportunities. Some of them have established businesses in Namibia, mostly in infrastructure development and mining. The most important in this regard is China Guangdong Nuclear Power Corporation (CGNPC) which gained control of the Husab mine located close to our coastal town of Swakopmund in a deal worth about US$ 2,4 billion. An agreement for the construction of the mine was signed on 18 October 2012 in Beijing and the Ground Breaking Ceremony was held just last month. Once operational, this mine will become the second biggest uranium mine in the world.
At the beginning of December 2012 it was announced that another Chinese company, Heilongjiang Heilong Resources invested approximately US$ 35 million in a Namibian copper mine which is believed to have about 700 000 tonnes of copper.
Namibia is also an active member of the Forum on China–Africa Cooperation [FOCAC], which continues to serve as a catalyst in the growth of Chinese investments in Africa and the growth of trade between China-Africa.
Director of Ceremonies
My message at this Seminar is that Namibia is open and ready to do business with our Chinese friends. It is a priority for our country to promote trade and especially investment. This is part of our national development strategy aimed at broadening the industrial base of our economy, promoting value addition to our natural resources and creating new jobs in order to improve the living conditions of our people.
To conclude, the Namibian government means business and is ready for innovative investments in sectors such as education, health, film production, renewable energy, tourism and value addition in fishing, agriculture and mining. I would like to urge you to join those Chinese companies who are already doing business in Namibia and by doing so both nations can realize win-win cooperation that will provide benefits to our people. I invite you all to go to Namibia as potential investors and tourists and to explore the business opportunities for our mutual benefits. The Namibian Embassy in Beijing is ready to assist in this regard.
Once again, thank you to the organizers for inviting the Namibian Embassy here today to engage you on how we can further increase trade and investment between our two countries.
I thank you very much for your attention.