More needed on value-addition

Despite persistent calls for Namibian based companies to increase value-addition on its products, Government has done little to enable such an environment. Policies, legislatives and regulations have consistently stood in the way for even the handful of local companies willing to go the value-addition route.

For instance, a can of Pilchards by Seawork – a Namibian company reads: “Packed by ABD Khan Co., Ltd, Thailand. Packed for Seawork Fish Processors Pty (Ltd), Ben Amathila Ave, Walvis Bay, Namibia. PRODUCT OF THAILAND”.

What this means, in essence, is that fish is caught in Namibian waters, by a Namibian-based company, employing a handful of Namibians as fishermen, is shipped to Thailand for processing and packaging. Thereafter, the same fish is shipped back to Namibia in packaged cans, for sale to the Namibian consumers.

Instead of creating employment by allowing the fish to be processed and packaged in Namibia by the Namibians, it is shipped to a foreign country - allowing the creation of more jobs there by those who process and package the fish. Also, the empty fish cans are probably also produced in Thailand, enabling the buying of Thailand produced cans to package Namibia’s produced fish. Therein lays the problem with value-addition.

The scenario is sadly not limited to the fishing industry, but replicates itself across all industries - uranium, diamonds, and hospitality. The uranium in Namibia, for instance, is mined and shipped raw overseas for processing. The story is the same for diamonds, with only a few cut and polished in Namibia, while the bulk of it is processed and sold by NDTC outside Namibia in London.

Given the country’s high unemployment rate, which stands at 51%, analysts argue that Namibia can actually create full employment for a majority of its citizens through the current industry and investment projects in Namibia.

Another pitfall for local empowerment and value-addition is the fact that the Namibians, including the civil service prefers hiring foreign consultants to carry out work that can be done by local professionals. Nearly every small project, such as research, development, and written instruments in Namibia are done by foreign consultants.

Yet, the Government of Namibia employs more than 80,000 of Namibians -most of them graduate of the Namibian institutions of high learning. It is high time Government level the playing field within the legislature, if the country is to gain anything from its rich industries.