Namibia can benefit from the United Kingdom’s plans to become the largest G7 investor in Africa by 2022, a local economist has said.
Prime Minister, Theresa May, announced this week during her visit to South Africa, Kenya and Nigeria that she wants the UK to become the top foreign investor in Africa by 2022.
She said working with African nations to boost investment, create jobs and deliver stability will help stem migration flows to Europe.
Reacting to the PM’s comments, economist, Klaus Schade, said although South Africa, Kenya and Nigeria are the regional economic power houses most likely to benefit from increased British investment, concerted efforts by the Namibian government and local business associations to promote the country as an investment destination through the British High Commission in Namibia as well as the Namibian High Commission in London, were needed for it to also benefit from the UK plans.
“If there is an increased inflow of FDI into South Africa, benefits to Namibia will depend on the sectors that receive the investment and whether these sectors create opportunities for regional value chains,” he said.
Schade said the impact on Namibia depends on whether the investment is aimed at producing goods and services for the regional market or markets overseas.
“Overall, the PM's statement indicates that Africa is seen as an attractive investment destination, but it will take quite some time, before we see any investment inflows.”
He said until 2013, Namibia's exports to the UK were dominated by diamonds (before De Beers relocated the diamond trading company to Botswana).
“Since then, the value of exports has dropped from more than N$5 billion to below N$1 billion in 2015. Exports consisted mainly of meat, fish, grapes and charcoal,” he said.
Namibia' imports were dominated by boilers and machinery, followed by vehicles and electrical equipment.
“Actual imports from the UK might be higher, since some British goods could be sourced through South Africa.”
May’s ambition was announced alongside a range of measures to boost trade between the UK and Africa and encourage UK investment in the region, including the creation of a new Africa Investors Board.
The UK PM also used the visit to South Africa, Kenya and Nigeria to set the stage for an Africa Investment Summit to be held in the UK in 2019.
The summit will bring together UK and African governments, alongside major international investors to grow awareness of opportunities on the continent and ensure progress toward the 2022 ambition.
The visit also saw the British government commit to working more closely with African nations and to increase in its presence across the continent - bringing in trade experts, investment specialists, health and family planning policymakers and cutting-edge climate researchers.
Trade Minister George Hollingbery said, “The British business delegation here in Africa is telling me first-hand that there is a massive appetite from our companies to invest in Africa. The opportunities for the UK in Africa, with its young and dynamic population - set to make up a quarter of the world’s consumers by 2050 - are clear.”
Hollingbery said the UK wants to deepen and strengthen partnerships with countries across Africa to ensure that mutually-beneficial relations continue to grow from strength to strength.
“This week’s visit will ensure trade between the UK and African nations, which is already worth more than £31 billion (N$576 trillion) continues to grow.”