Martin Endjala
Industrialisation and Trade Minister, Lucia Iipumbu, has challenged policymakers to develop business models and economic sectors that decrease inequalities and minimise societal vulnerabilities.
According to Iipumbu, such actions will help promote equitable productive development capacity through smart business strategy and fostering of responsible businesses.
She shared her idea during the recently held Business Forum of the third session of the Namibia-South Africa bi-national commission in Windhoek.
The minister said there is a need for the business sector to unlock and harness its power as a force for good.
“This need is driven by the fact that both our two countries are faced with the quadruple challenges of poverty, unemployment, climate change and inequality. Both South Africa and Namibia share the first and second ranks as the most unequal societies in the world respectively, “she said.
Iipumbu noted that doing good business collectively will ensure that economic collaboration reinforces commitment towards the Sustainable Development Goals by ensuring a healthy planet and leaving no one behind.
Through innovative approaches in collaboration and smart partnerships, the Minister is confident that the private sector can be the catalyst of change.
As part of their commitments, the two countries penned down a signing of the Statement of Intent to enable for the creation of an Industrial Development Fund and a Namibia – South Africa Business Council.
In addition, Iipumbu said efforts are to ensure a viable value chain development in the automotive sector, which is key to the work going forward. As per the Statement of Intent, these interventions are to be finalised by the end of March 2024.
Despite the visible commitments, Iipumbu is poised that there is still room for Namibia and South Africa to enhance both trade and economic relations.
“I thus have the full confidence that beyond this Forum our full ambition now and beyond March 2024 can only further deepen our economic ties,” she said. Meanwhile, Namibia Chambers of Commerce and Industry Vice-president Patty Karuaihe-Martin, said trade matters need urgent attention and facilitation for Namibia.
She highlighted that the private sector looks forward to the speedy establishment of a domestic Trade Board as this will also assist in unlocking the value chain potential in the agro-processing sector.
“It has been noted that the level of development among member states of the Africa Continental Free Trade Area (AfCFTA) will create winners and losers. These can be avoided if we can tap into our bilateral synergies to create opportunities for new transactions that guarantee mutual economic benefits, “she said.
With different resource endowments, she believes that the AfCFTA agreement allows for cumulation for value addition to take place in any of the member countries and as the private sector, they need to take advantage of this arrangement for their products to meet the rules of origin requirements.
She explains that this opens up opportunities for the two countries to build cross-border value chains, especially in the automotive and textile industries.
To unlock these opportunities, they need to ensure that in their engagements as trading partners and recognising their trading history, reviewing some of the Southern African Custom Unions provisions is critical going forward.
