Rikus Grobler | Aug 22, 2017 | 0
On the Factory Floor – Manufacturing in Namibia
One of the most important goals of the Government of Namibia is to alleviate poverty by creating maximum employment for its citizens. In order to reach this goal, the Government drafted and approved Vision 2030 as a development target.
According to Vision 2030 as approved by the Namibian Government, the economy must attain growth of approximately 6% per annum and become an industrialised country to reach the goals of the Vision. This means that the manufacturing sector of Namibia will have to achieve a growth rate of at least 8% annually to reach this target. Manufacturing growth is conducive for economic growth as it has a very high spill-over effect on the economy. Manufacturing growth has a high multiplier effect. For every N$1 spent on manufacturing development, an additional N$1.50 to N$2.50 (depending on the sub-sector of manufacturing) is generated in the rest of the economy through products and services provided to the manufacturing sector. Thus, expanding the manufacturing sector is an important contributing factor to the development of the economy of a country.
Manufacturing performance in Namibia in 2010
At current prices in 2010, the manufacturing sector contributed N$11 725 million (14.4%) to the Gross Domestic Product (GDP) of Namibia.
(Total GDP = N$81 509 million.) As indicated below, manufacturing was, after services in general, the single most important contributor to the Namibian economy.
Source: National Planning Commission, National Accounts, 2010
These figures confirm that manufacturing is currently a very important contributor to economic growth in Namibia and should become even more important if it receives ample support from the Government and the rest of the private sector in future.