Niël Terblanché
Namibia’s economic growth is set to receive a significant boost in 2024 through its growing and robust relationship with China, according to an independent economic and business researcher, Josef Sheehama.
The strengthening ties between the two nations are expected to bring tangible and substantial benefits for both peoples.
Over the years, China has emerged as Namibia’s largest source of foreign investment and its second-largest trading partner.
The economic and political partnership between the two countries has deepened, offering a wide range of opportunities for mutual growth and cooperation.
According to Sheehama, the opportunities arising from the China-Namibia relationship include increased investment and infrastructure development. Namibia’s economy is projected to grow by 3.4 percent in 2024, as indicated by the Bank of Namibia. This growth is expected to be further elevated through the smart partnership with China.
China’s status as Africa’s largest trading partner has led to a significant increase in trade volume, allowing Namibia to diversify its export markets. China’s investments in various sectors, including mining, manufacturing, and agriculture, have the potential to strengthen Namibia’s industrial capacity and promote economic diversification.
The trade volume between China and Namibia from January to June 2023 reached $750 million, representing a year-on-year growth of 31 percent, according to China’s Ministry of Commerce. Of this, China’s imports from Namibia amounted to $430 million, indicating a year-on-year increase of 21.5 percent. Additionally, by the end of 2022, cumulative direct investment by Chinese enterprises in Namibia reached $180 million.
“This cooperation can lead to technology transfer, skills development, and increased productivity in these industries,” Sheehama said.
Namibia’s tourism sector is also set to benefit from the China-Namibia relationship. The growing middle class in China has shown an increased interest in international travel, and Namibia’s diverse wildlife, natural beauty, and cultural heritage make it an attractive destination.
“By promoting tourism exchanges and collaboration, Namibia can benefit from increased tourist arrivals, generating revenue and employment opportunities,” Sheehama said.
The latest Tourism Arrival Statistical Report published by the Namibian Ministry of Environment, Forestry, and Tourism revealed that the number of Chinese visitors to Namibia exceeded 1,500 in 2022. Namibia also welcomed its first group of 20 tourists from China in May 2023 after a three-year hiatus due to the COVID-19 pandemic.
Sheehama also highlighted the potential of the Belt and Road Initiative (BRI) in further enhancing trade and strengthening relations between China and Namibia. The BRI can contribute to Namibia’s economic growth, create employment opportunities for Namibians, and attract more foreign direct investment through improved infrastructure.
The growing partnership between China and Namibia presents a promising future for economic growth, cooperation, and mutual benefit. Both nations are poised to capitalize on their strong relationship, which is expected to pave the way for increased trade, investment, and collaboration in various sectors.
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