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Manufacturing sector in Namibia Presenter: Mrs. Victoria Nambinga National Planning Commission- Namibia TIPS FORUM 2017 INDUSTRIALISATION AND SUSTAINABLE GROWTH
Manufacturing sector in Namibia
Presenter: Mrs. Victoria Nambinga
National Planning Commission- Namibia
TIPS FORUM 2017
INDUSTRIALISATION AND SUSTAINABLE GROWTH
Outline
1. Introduction
2. Study Objectives
3. Background trend to Namibia
manufacturing sector
4. Conceptual framework
5. Critical factors hampering the
manufacturing sector in Namibia
6. The concept of value chain
analysis
7. Findings and recommendations
Intro’ and objectives
Three main industries:
Primary, tertiary and secondary industry.
Vision 2030
GDP 6%, manufacturing 7% p.a
manufacturing sector growth (averaging 3.4 % (1990 – 2015))
objectives:
Identify the factors that are hampering the manufacturing sector growth in Namibia.
Identify various value chains in the manufacturing sector.
which of the sectors in the manufacturing industry employ more people.
Background
-17.0
-12.0
-7.0
-2.0
3.0
8.0
13.0
18.0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Manufacturing Linear (Manufacturing)
18%
-6.6%
-16.2%
Figure 1: Growth in the Manufacturing sector (%) (1990 to 2015)
Background
Figure 2: Manufacturing - % contribution to GDP (1990-2015)
57.0
59.0
61.0
63.0
65.0
67.0
69.0
71.0
73.0
-1.0
1.0
3.0
5.0
7.0
9.0
11.0
13.0
15.0
17.0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Meat processing(LHS) Other food prod & bev(LHS) Diamond processing(LHS) Other manufacruring(LHS)
Manufacturing(LHS) Man' & service sector(RHS) Linear (Manufacturing(LHS))
Background
0
5
10
15
20
25
30
35
2007 2008 2009 2010 2011 2012 2013 2014
Ta
use
nd
e
Manufacturing Meat processing Other food & Beverages Other manufacturing
Figure 3: Employment in the Manufacturing sector (2007 to 2014)
Background
Figure 4: Exports of manufactured products (1990 to 2015)
-15
-5
5
15
25
35
45
55
65
75
-2,000
3,000
8,000
13,000
18,000
23,000
28,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pe
rce
nta
ge
Mill
ion
s
Achsentitel
Manufactured products(LHS) Man products(% shares-RHS) Export Growth(RHS)
Background
Figure 5: Gross Fixed Capital Formation in the manufacturing sector (1990 to 2015)
-100
-50
0
50
100
150
200
250
300
0
500
1000
1500
2000
2500
3000
3500
4000
4500
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
%
N$
Mill
ion
GFCF-Man(LHS) Man GFCF( % growth-RHS) Man/T_GFCF(RHS)
Literature review
Kaplan (2007) ,Kadhikwa & Ndilikokule (2007) and NMA) (2007
Industrial development in Namibia
SADC industrial strategy and roadmap -2015
1992 White Paper on industrial development
Foreign Investment Act of 1993
Vision 2030 of 2004
Industrial Policy 2012
Manufacturing incentives
Registered Manufacturers Scheme
Exporters Incentive regime
Export Processing Zones (EPZ) regime
Literature review Critical factors hampering the manufacturing sector in Namibia
Access to finance
Access to land
Investment incentives
Manufacturing status
Cost of Utilities
Investment & Competition
Corruption
Skills shortage
Procurement of locally produced products
unfair trade practices
Value chain
Value chain exist in the following sectors:
Mining sector- Diamond cutting & processing
Agriculture -Process hides and skins
Fishing- Canned fish and Seals products
Findings and recommendations
Downward performance
Below vision 2030 target and NDP4 targets
Decline in exports of manufacturing products
Factors affecting the manufacturing sector in Namibia
Value chain do exist in Namibia
The following is recommended:
MITSMED and MoF – align the definition for manufacturer
Effective VAT refund system
Fast track the Implementation of the procurement bill, draft investment incentive regime and
retail charter
Improve skills
Need for diversification in the sector
Thank you!
