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Namibia Keen to Strengthen Trade Relations with Gulf

Namibia recently opened an embassy in Egypt and now in the process of opening a commercial office in the UAE, informed its trade minister at Arab-Americas-Asia-Africa Business Summit 2009 in Dubai.

The event is being organised jointly by the Commonwealth Business Council and Dubai Group, the leading diversified financial services company of Dubai Holding. The Summit is themed ‘The Commonwealth in Dubai — driving trade and investment through the Middle East’. It is examining the role of Dubai and the Middle East region in promoting economic development.

The minister said, “We look to East notably to China, India and the Middle East as important emerging economic powerhouses. In this connection, we have established full-fledged diplomatic missions in some of these countries which are considered as strategic locations. In Namibia we have a market oriented government that has ensured that the people and business are cared for; that personal security and private property is safeguarded; that health care is proper and accessible to all and that there are recreational facilities for the people and investors.”

He informed, “Our national debt stock is kept low at 25 per cent of our GDP. Our fiscal deficit is also managed within the limits, this year it’s at 1.8 per cent and our inflation has been in single digit.” Without any doubt countries with commodity-driven economies, weak currencies and high inflation such as those in Africa will carry the brunt of the global financial crisis. Weak currencies in turn will negatively impact on the import bill and on the foreign exchange reserves.

The impact current financial crisis on Africa is mostly in the form of declined demand for commodities and other products by buyers in the developed world, who now experience constrained access to finance and credit terms to finance their economies activities.

The resultant effect of the reduced demand on commodities is widespread job lay-offs especially in the mining and export-oriented sectors, thereby worsening the already very high levels of unemployment and poverty. The global economic turmoil raises the risk that resource flows such as private capital, foreign direct investment, migrant remittances, trade opportunities and even aid essential for fuelling the continued growth of the continent would decline.

A top official of Mozambique government said, “Our power sector has huge opportunities for investment because there is shortage of power. We are interested to promote south-south trade.” Mozambique has special economic zones in the southern part.

· abdulbasit@khaleejtimes.com