Dr. M Humavindu DPS: Industrial Development Ministry of Industrialization, Trade and SME Development MANUFACTURING AND VALUE ADDITION OPPORTUNITIES FOR GROWTH AT HOME 09 November 2016 Invest In Namibia Dr. M Humavindu DPS: Industrial Development

Presentation Outline Conclusion Introduction Policy Context-Growth at Home Sector Growth Strategies and Targeted Sectors Review on Manufacturing Performance Enablers-Growth at Home Reforms Enablers-Trade Policy Dynamics Conclusion

Mandate MITSMED Mandate: Promote the Development of industries Promote Investment Promote Trade (internal and international)

Objectives Increased and diversified value addition and manufacturing Increased and diversified exports, markets and source of imports Increased investment Enabling environment to facilitate innovation, competition and consumer protection

POLICY CONTEXT Policy Formulations Industrial Policy 2012 Growth at Home Execution Strategy 2014 MSME National Policy 2016 Harambee Prosperity Plan Forthcoming-NDP 5-Inclusive & Sustainable Industrialisation

SECTORAL GROWTH STRATEGIES OVERVIEW The SGSs are the first set of strategies envisaged in the National Industrial Policy of 2012 and the Growth at Home Implementation Strategy in Government effort to accelerate manufacturing activities, value addition and to develop sectoral value chains. Core principle is that Government interventions should be based on principles of sustainable and prudent economic management and the protection of Public Interest. Realization that de-industrialization is a core risk and therefore policies and strategies need to be correctly attuned and optimized. Final principle is that Industrial Development is a shared responsibility between private and public sector.

Vision 2030; NDP4; IP 2012 Industries and Product Value Chains for which growth strategies have been drafted in 2016: Leather and leather products Swakara wool and wool products Charcoal Game meat products Taxidermy Industry Marine Resource Processing and Seafood Products Jewellery and gemstone products Metal fabrication products Cosmetics and active ingredients Handicrafts Targeted Sectors: Fish Processing Mineral beneficiation Steel Manufacturing and Metal Fabrication Pharmaceuticals and Cosmetics Arts & Crafts Others: Chemicals, Automotive, transportation equipment, construction materials, furniture, textiles and garments

Enablers (Growth at Home Reforms) The Namibia Industrial Development Agency (NIDA) Industrial Upgrading and Modernization Program (IUMP) Industrial Infrastructure Masterplan (Sites and Premises programme) Retail Charter National MSME Policy Public Procurement Act Revised Investment Incentives plus Special Economic Zones Policy Export Levy Act SACU Provisions-Policy Space Instruments and Industrial Rebates BIPA (Business Registration) and NSI (Standards) Public Investment in Generating Knowledge- Sector Growth Studies, Joint Value Addition Committee National Tourism Investment Profile & Promotion Strategy

Enablers (Trade Policy Dynamics) Global Bali 2013 package for the WTO Trade Facilitation Agreement. Agreement contains provisions for special and differential treatment for developing countries and least developing countries (inclusive of Namibia). Currently SACU working towards a regional approach as a collective to ensure optimal participation in this. Export Opportunities for Namibian beef to USA and China. AGOA Opportunity to be tapped. Continental Tripartite Free Trade Agreement-SADC (inclusive of SACU), COMESA and EAC. Agreement, once ratified will open major markets for Namibia’s manufactured goods, but so also competitive goods from the other African countries. Agreement very far from being finalised. A 2013 study shows that Namibia has very little exports to these markets and import competition into the Namibian market is almost nill. Opportunities could exist if appropriate trade institutions and NTB are removed for Namibia. SADC and SACU SADC-EPA-Agreement has appropriate safeguards were incorporated pertaining to Agricultural sector and , Infant Industry Protection, and Export Duties to ensure our Industrial Policy Space ambitions is maintained. SADC Industrialisation Strategy and Roadmap 2015 and current work on SACU Industrial Policy supports the development of bilateral and regional value chains in member states.

Industrial Infrastructure Developed

Key Takeaways-Conclusion -Value addition opportunities exists in various sectors as defined in the Growth at Home Execution Strategy. -Government is being pro-active by investing in knowledge creation in these sectors through Sector Growth Strategies. -In addition, a menu of support instruments are in place and constantly being revised to ensure incentivizing the initiation of investments in identified sectors. -At the regional level-cooperation is being fostered through the adoption of high level industrial policies to promote bilateral and regional value chains development. -Industrial financing is a critical ingredient for economic growth, moreover both the mode for the provision of financing and the quantum of funds are equally important. It significantly affects the ability of firms to upgrade technology to support vital operations and achieve competitiveness. -Overall in terms of industrial financing mode, the economy exhibit a lack of complete Value Chain financing induced instruments to clearly capture the type of financing needed. Facilities such as revolving credit lines, export credit lines and supplier credit which are vital in the industrial development value chain are underdeveloped or absent.

Thank you humavindu@mti.gov.na Tel: +264 61 283 7258