Govt should strike balance with private sector - Namibian minister
Isaac Pinielo | Friday July 15, 2016 12:17
He noted that the government, just like the business sector, has certain responsibilities and obligations to fulfill, adding that the government relies on businesses to invest and grow the economy that is able to generate taxes that the government needs to fund its budget.
On the other hand, he said businesses in turn depend on government to create the regulatory environment that is conducive to doing business.
“Private sector businesses should recognise that while profit is their overall motive when investing, they also have an obligation to ensure that we build a society based on equal opportunity and the fair sharing of economic benefits,” Ngatjizeko said.
He added that this will require that businesses consider investing in ventures that might not have the potential for the highest return on investment, but have potential to unlock faster economic growth and human development.
The minister indicated that Botswana is a critical partner for the development of Namibia in that it does not only act as a link to some of its key neighbouring countries, but it is also a key player in its trade and investment arena.
According to Ngatjizeko, during the year 2015, trade statistics indicate that Botswana was the fourth largest source of imports into Namibia, with value of N$2.3 billion (P2.08bn) as compared to N$1.9 billion (P1.72bn) in 2014, just after South Africa, China and Switzerland.
Some of the key products that Botswana exported to Namibia include diamonds, vehicles, electrical machinery and equipment, and pharmaceutical products. “To illustrate the importance of Botswana to our trade relations, a Toyota Corolla is commonly referred to as ‘Dankie Botswana’ (Thank you Botswana) in Namibia,” he said.
In addition, he said Botswana is Namibia’s highest export destination, comprising a value of N$13.1 billion (P11.84bn) in 2015 as compared to N$10.7 billion (P9.67bn) in 2014.
Some of the key products that contributed to this figure include diamonds, mineral fuel and oils, meat and fish, as well as beverages, and cement.
“We are further convinced that these positive trade relations are advanced by not only our supporting arrangement, which includes our membership to both the customs union and SADC free trade area, but also the two countries’ commitment,” said Ngatjizeko.
He further pointed out that Namibia is prepared to take its economic cooperation to greater heights by affording more opportunities to Botswana entrepreneurs to exploit further trade investment opportunities between the two countries.
“We believe the two governments have put in place mechanisms to enhance business, a notable example of which is the dry port facility in Walvis Bay,” he said.
Minister of Investment, Trade and Industry, Vincent Seretse said Namibia and Botswana’s shared economic vision was highlighted recently when the EU-SADC economic partnership agreement was signed in Kasane.
“This economic partnership agreement guarantees duty-free, quota-free market access to the European Union for businesses located in both our countries,” he reiterated. Seretse said there is a growing interest by Botswana companies to invest in Namibia, citing Sefalana, Letshego, Sunita Cables, Afritec and Motovac, amongst others.