From: wsargeant@IGC.ORG (Winslow L. Sargeant)
Newsgroups: soc.culture.african
Subject: IPS:Namibia, hopes of recovery pinned o'
Date: 12 Apr 92 21:24:44 GMT

/* Written  1:04 pm  Apr 10, 1992 by newsdesk in cdp:ips.englibrary */
/* ---------- "NAMIBIA: HOPES OF RECOVERY PINNED O" ---------- */
Copyright Inter Press Service 1992, all rights reserved.  Permission to re-
print within 7 days of original date only with permission from 'newsdesk'.

Reference: Science & Industry; Agriculture
Title: NAMIBIA: HOPES OF RECOVERY PINNED ON FISHING, MINING


an inter press service feature

by godfrey karoro

windhoek, apr 7 (ips) -- namibia is confident that its investor-
friendly policies, coupled with favourable mineral prices and a
rejuvinated fishing industry, will result in an upturn in its
economy by the mid-1990s.

''potential investors have been waiting to look at how the
new government's policies would be shaped,'' says an official of
the ministry of trade and industry.

''that obviously demanded that the government be in for at
least two years to disseminate its policies and test how
investor-friendly they are,'' ishmael namaseb told ips.

the fortunes of mineral-rich namibia have been falling over
the last 10 years following the low prices on the spot market
of copper, gold, lead and uranium.

because of the low prices, the production of uranium, for
example, fell by about 20 percent of capacity during 1990 and
resulted in retrenchments.

the number of people employed in the mining sector declined
from 20,000 in 1980 to 12,000 last year.

diamonds production is, however, expected to increase
significantly due to new mines coming up and the intensification
of production in offshore sites, according to forecasts by the
bank of namibia.

''mineral prices were also weakened by the east european
countries whose normally stockpiled minerals became available on
the spot market,'' says namaseb.

in 1989, namibia's mining sector contributed about 32 percent
to the gross domestic product (gdp), according to the central
bank.

namibia's economic growth rate this year is expected to be
slightly below three percent, compared with three percent in
1991 and 2.7 percent in 1990, says the bank in its latest
economic review.

the impetus for growth came largely from fisheries, which
recorded a spectacular growth rate of over 300 percent, while
agriculture, dominated by livestock production, is largely
undeveloped, the bank explains. (more/ips)


namibia: hopes (2)

before namibia's independence mar. 21, 1990, the fishing
industry played an insignificant role in the southern african
nation, with its value added constituting only two percent of
gdp in 1989, according to the bank.

''however, with the restoration of namibia's exclusive
economic zone (neez), fishing's share of total output increased
considerably,'' says the bank's review.

the bank predicts that catches will increase markedly from
400,000 tonnes in 1990 to over one million tonnes by the year
2000 through granting fishing rights, allocating quotas and
registering boats. surveillance of the 'neez' is already in
place.

there is renewed interest in mining and oil exploration from
namibian and foreign companies because of favourable labour and
tax laws, access to minerals and the country's fiscal policies.

''the government has accepted a lot of international advice
to create an enabling environment and boost confidence,''
explains namaseb.

president of the chamber of mines, jonathan leslie, told ips
that 1991 experienced continued exploration for precious and
base metals by its members and other international companies.

prospecting expenditure by namibian and international firms
is expected to go up this year although it declined by about 10
million u.s. dollars in 1991 from 24 million the previous year.

the government has also introduced incentives to investors,
in the agriculture, tourism and manufacturing sectors in an
effort to contain unemployment now estimated at 60 percent.

navin morar, president of the chamber of commerce, is also
optimistic that there will be an upturn in the economy, but is
concerned about the current control by south african companies.

''we feel that political freedom is worthless without
economic freedom,'' he told ips.

morar thinks that it would be difficult to expand the
manufacturing base in namibia as south africa virtually dumps
all consummables in the country, making it uneconomical to
invest in manufacturing sectors.

bank of namibia's director of research, esko aurikko, says
the economy may take a long time to improve.

according to aurikko, the current drought -- which has
severely hit all the southern african nations -- is likely to
make namibia a net importer of agricultural products.
(end/ips/gk/apc/ar/92)