The Namibian Government in collaboration with the Economic Commission for Africa (ECA) and the United Nations System in Namibia officially launched Namibia’s national strategy and implementation plan for the agreement establishing the African Continental Free Trade Area (AfCFTA) for the period 2022-2027.
Essentially, the strategy is informed by the broader national development policy framework of Namibia, consistent with vision 2030, the Fifth National Development Plan, the 2012
National Industrial Policy and its execution, the “Growth at Home” strategy, the Harambee
Prosperity Plans and building on progress achieved through participation in regional integration initiatives, mainly the Southern African Development Community (SADC) and the Southern African Customs Union (SACU).
“The strategy sets in motion the process of identifying and catalysing key value addition and trade opportunities based on the country’s comparative and competitive advantage. In line with the provisions of the AfCFTA Agreement, the Strategy seeks to mainstream economic advancement of women and youth through deliberate interventions and actions, to enable them to take full advantage of opportunities of the Agreement and reap its benefits,” key extracts of the strategy reveal.
PROGRAMME OF ACTION
The is a programme of action for Namibia, Melaku Desta, Coordinator of the African Trade Policy Center (ATPC), Regional Integration and Trade Division (RITD) at the United Nations Economic Commission for Africa (UNECA) said.
Essentially, Namibia’s National AfCFTA implementation strategy contains seven broad policy objectives with detailed action plans, including: developing and submitting tariff offers and services schedules; establishment of the National Implementation Committee; increasing Namibia’s export market; developing capacity for trade in services; attracting domestic, cross-border and foreign direct investment; revamping its industrial policy and implementing it; and focusing on women and youth, and MSMEs.
“Through this strategy, Namibia is also making a statement to the rest of the Continent about its seriousness of purpose about implementing the Agreement. As we implement the existing AfCFTA package through this national strategy, let us also remember that the negotiating arm of the AfCFTA has already produced new protocols in three equally critical sectors of economic activity – competition policy, investment, and intellectual property rights.
“These three protocols are expected to be adopted by the extraordinary summit of African Heads of State and Government that is taking place later this week in Niamey, the Republic of Niger. What this means for us here today is that, the implementation of the strategy we are launching will need to take into account the new and much expanded list of commitments that are contained in these three new protocols,” Desta further said.
AREAS OF CONCERN
The Strategy notes that the national production system and trade patterns of Namibia are primarily driven by extraction and/or processing of natural resources. The manufacturing base, which is heavily dependent on inputs from natural resource endowments, is limited and less diversified, accounting for only around 13 per cent of gross domestic product (GDP). This poses challenges for Namibia to competitively trade in a liberalized African market, and requires persistent efforts to enhance its diversified manufacturing capabilities – especially of micro, small and medium-sized enterprises – and produce more value added goods.
While Namibian intra-African trade is relatively significant, accounting for 37 per cent of exports and 66 per cent of imports in 2019, it is highly concentrated in terms of product and market coverage. Intra-African exports are mainly diamonds, gold, fish, live bovine animals, beer and unwrought zinc. Namibian intra-African trade is largely within SACU and
SADC countries (mostly South Africa, Botswana, Zambia and the Democratic Republic of the Congo), and less with the rest of Africa. This highlights the need for export and market diversification.
OPPORTUNITIES
By signing the AfCFTA Agreement, Namibia has unlocked access to a market of 1.3 billion people, providing opportunities for local entrepreneurs and to optimize these benefits there is need for the country to address issues pertaining to the removal of tariffs and non-tariff barriers.
Existing Namibian intra-African trade links suggest potential opportunities for boosting participation in cross-border value chains. The Strategy emphasizes the importance of attracting investment in identified strategic sectors, with the potential to add value at home and promote the participation of Namibia in regional, continental and global value chains.
“Priority sectors are clustered around agro-processing and fish processing; mineral processing and beneficiation; and service-driven value chains, particularly in tourism and travel, financial, transport, communication, business services, educational and health services. The promotion of such value chains emphasizes the need to improve progress in the implementation of trade, logistics and transport infrastructure, of which Namibia can be an important regional hub,” the strategy recommends.
At the launch, Eunice Kamwendo, Director, UNECA sub regional office for Southern Africa said that this strategy will be the framework that will enable stakeholders in Namibia to fully internalize and maximize opportunities from the larger continental market.
“It is highly commendable that the strategy was formulated through widespread consultations with a broad range of public and private stakeholders and academia. It is these kinds of partnerships across all stakeholder groups which will anchor success in the implementation of the AfCFTA and thereby ensure that benefits from participation in the larger African market accrue to all.
“You will agree with me that since formulation of this Strategy relied on previous consultative reports and sensitization efforts, supporting Namibian industrial and trade policies and strategies, as well as regional strategies from SADC and SACU, this new AfCFTA strategy will also surelycompliment current efforts to update the country’s trade in goods and services policies and strategies, thereby advancing a coherent, coordinated and aligned trade policy framework,” Kamwendo said.