The Namibian economy has historically been based on its primary sectors: Mining and Agriculture. The small manufacturing sector has mainly been based on the processing of food and the production of beverages. We have over the last 15 years also witnessed a pronounced development in the metal and metallurgical industry. We have a very well-developed service industry that should be able to propel the economy to new heights in the coming years.

The Government has since independence endeavoured to build a strong and diversified manufacturing sector. The development of this sector has primarily been predicated on the available SADC market, as our domestic market is too small. Namibia has immense potential to become the gateway to the SADC market as a time and cost-effective trade and transportation hub.

In view of the above, the Namibian Government has put in place the necessary road and rail network connections to neighbouring countries to facilitate cost and time efficient transport mechanisms. The Trans-Kalahari Highway that links the Walvis Bay port with our south and eastern neighbours and Trans-Caprivi Highway that provides access to the north and north eastern neighbours are already serving as trade avenues. A bridge linking the north eastern part of Namibia with Zambia has also been constructed to allow traffic across the Zambezi river. The internal railway network is now being extended to Oshikango which is situated at the Namibia/Angola border. The handling, storage and servicing facilities of the Walvis Bay port are continuously being improved to ensure fast, efficient and safe transportation of goods to and from the region. It is my wish that Walvis Bay becomes the preferred port for entry for most of SADC imports and exports.

Power supply has been very essential to our developmental goals; however the demand for energy in the Southern African region has been growing at a very rapid rate, signalling possible power supply deficiencies in the region by 2007. Namibia, pressed by this situation is currently exploring the Kudu Gas to Power Project, an investment of approximately N$6.4 billion aimed at increasing and securing sufficient power supply for Namibia and neighbouring countries. This project is expected to stimulate development in various sectors of the local and regional economy, including the financial, engineering, legal, construction, manufacturing and services sectors.

To keep abreast with the rest of SADC Member States and in its efforts to increase foreign investment flows to the country, Namibia is currently in the process of reviewing its incentive regimes. The Export Processing Zone (EPZ) regime still remains the core incentive in attracting foreign direct investment to Namibia. There are at the moment 25 companies fully operational under this regime. They have collectively invested N$5.2 billion and have provided employment to 6,986 people. We are talking to two new companies which will join this group: one will cut, grind and polish granite slabs as well as manufacture tiles; the other will produce natural health products. Their potential employment has been estimated at 68 people and their potential investment at N$28.2 million.

Namibia remains committed to work towards the realisation of all the objectives of the SADC and would leave no stone unturned in making the SADC region safe to do business in.

I. NGATJIZEKO
Minister of Trade and Industry