Kandjoze reacts to EU pact leak
Analysts also have their say
Job Amupanda has criticised the trade agreement, under which up to N$21.3 billion has been committed to Namibia by Europe.
Namibian Green Hydrogen Council chairperson Obeth Kandjoze says it is impossible for Namibia to negotiate with Europe outside the framework of the Organisation of the African, Caribbean and Pacific States (OACPS) after details of a partnership agreement between Namibia and the European Union (EU) entered the public domain yesterday.
Analysts have also said Namibia has no choice but to abide by the conditions of the European Investment Bank (EIB) - which will seek to repatriate capital it invested in Namibia - if the agreement, shared by activist Job Amupanda yesterday, is eventually signed.
The agreement will be the guiding framework for the the strategic partnership reached in Brussels last week, which seeks to support sustainable raw material value chains and the renewable production of green hydrogen.
Under the deal, Namibia will receive the support of the EU, member states and financial institutions - to the value of about N$21.3 billion - for the development of green hydrogen and critical mineral value chains in Namibia.
Amupanda described the agreement as unfavourable, saying the country’s leadership has sold out to Europe.
Flex more muscle
According to Kandjoze, Namibia on her own has no bargaining powers, and has to negotiate within the existing framework designed for African, Caribbean and Pacific States.
“We have our own aspirations, but we’re not a powerful nation that can negotiate fully on its own terms. We hope that gradually as time goes, we will be able to flex more muscle in subsequent negotiation cycles,” he said.
“We can’t afford to lose Europe as a trading partner, our people will go hungry. We’re encouraged by the fact that they see value in what Namibia has to offer and invited us for negotiations."
One of the concerns raised by Amupanda about the agreement was that European entities would be allowed to ship their revenue out of the country – something Namibian leaders have been trying to stop through legislation.
Bashing the agreement, he said the deal superseded other trade agreements the country already has in place.
“It is a super agreement; it has a clause that says no other agreement signed already by Namibia and any European country will prevent the implementation of this secret agreement,” Amupanda said.
Among the conditions is that the EIB will be allowed to convert into any fully convertible currency, at the then current exchange rate, the amounts in the national currency of the OACPS members.
“The EIB and any subsidiary of the EIB shall have legal personality in the territory of OACPS members, including in particular the capacity to contract, to acquire and dispose of movable and immovable property and to be party to legal proceedings,” the contract stated.
The EIB will also be allowed to freely, immediately and effectively transfer the amounts converted outside the territory of the OACPS member concerned to such bank accounts as the EIB or such subsidiary may freely determine, or dispose of such amounts within the territory of the OACPS member concerned, the contract added.
Nothing untoward
However, commentators are of the opinion that Namibia will not be entirely disadvantaged by these conditions.
High Economic Intelligence managing director Salomo Hei said as long as Namibian laws around the repatriation of capital are sufficient to guard against excessive capital flows, there is nothing untoward about the agreement.
“The ideal situation is that provisions currently in place are sufficient to guard against excessive capital flows,” he said briefly when approached for comment.
A commentator in the financial services sector who preferred not to be named echoed Hei’s sentiments, saying several agreements were already in place regarding the movement of capital in and around the common monetary area consisting of Namibia, Lesotho, eSwatini and South Africa.
The EU was also justified to seek means to ensure the repatriation of funds invested in Namibia for projects, they said, adding that as long as it provides funding, it could provide conditions for that funding.
Analysts have also said Namibia has no choice but to abide by the conditions of the European Investment Bank (EIB) - which will seek to repatriate capital it invested in Namibia - if the agreement, shared by activist Job Amupanda yesterday, is eventually signed.
The agreement will be the guiding framework for the the strategic partnership reached in Brussels last week, which seeks to support sustainable raw material value chains and the renewable production of green hydrogen.
Under the deal, Namibia will receive the support of the EU, member states and financial institutions - to the value of about N$21.3 billion - for the development of green hydrogen and critical mineral value chains in Namibia.
Amupanda described the agreement as unfavourable, saying the country’s leadership has sold out to Europe.
Flex more muscle
According to Kandjoze, Namibia on her own has no bargaining powers, and has to negotiate within the existing framework designed for African, Caribbean and Pacific States.
“We have our own aspirations, but we’re not a powerful nation that can negotiate fully on its own terms. We hope that gradually as time goes, we will be able to flex more muscle in subsequent negotiation cycles,” he said.
“We can’t afford to lose Europe as a trading partner, our people will go hungry. We’re encouraged by the fact that they see value in what Namibia has to offer and invited us for negotiations."
One of the concerns raised by Amupanda about the agreement was that European entities would be allowed to ship their revenue out of the country – something Namibian leaders have been trying to stop through legislation.
Bashing the agreement, he said the deal superseded other trade agreements the country already has in place.
“It is a super agreement; it has a clause that says no other agreement signed already by Namibia and any European country will prevent the implementation of this secret agreement,” Amupanda said.
Among the conditions is that the EIB will be allowed to convert into any fully convertible currency, at the then current exchange rate, the amounts in the national currency of the OACPS members.
“The EIB and any subsidiary of the EIB shall have legal personality in the territory of OACPS members, including in particular the capacity to contract, to acquire and dispose of movable and immovable property and to be party to legal proceedings,” the contract stated.
The EIB will also be allowed to freely, immediately and effectively transfer the amounts converted outside the territory of the OACPS member concerned to such bank accounts as the EIB or such subsidiary may freely determine, or dispose of such amounts within the territory of the OACPS member concerned, the contract added.
Nothing untoward
However, commentators are of the opinion that Namibia will not be entirely disadvantaged by these conditions.
High Economic Intelligence managing director Salomo Hei said as long as Namibian laws around the repatriation of capital are sufficient to guard against excessive capital flows, there is nothing untoward about the agreement.
“The ideal situation is that provisions currently in place are sufficient to guard against excessive capital flows,” he said briefly when approached for comment.
A commentator in the financial services sector who preferred not to be named echoed Hei’s sentiments, saying several agreements were already in place regarding the movement of capital in and around the common monetary area consisting of Namibia, Lesotho, eSwatini and South Africa.
The EU was also justified to seek means to ensure the repatriation of funds invested in Namibia for projects, they said, adding that as long as it provides funding, it could provide conditions for that funding.
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