Analysts say that the swift implementation of dry ports and railway upgrades in Namibia has the potential to significantly transform the country’s economic outlook, positioning it for success amidst anticipated developments in the oil and gas sector.
Capricorn Asset Management Chief Economist Floris Bergh said that for Namibia’s economic future, the potential of dry ports and railway upgrades should be used catalyse growth and enhance regional connectivity.
Bergh emphasised the strategic significance of neighbouring countries and the burgeoning infrastructure investments in Botswana, noting a substantial 33% increase in budget allocations.
“With the dry port model extended to Botswana, Gobabis emerges as a key nexus for trade convergence,” he stated.
Bergh underlined the symbiotic relationship between dry ports and railway infrastructure, envisioning Gobabis as a central hub for goods transshipment.
“All these trucks that come from Zambia, Copper concentrates, going all the way to the coast. Set up a dry port in Grootfontein,” he said.
Bergh further highlighted the immediate economic opportunities presented by these initiatives, stating “these are areas that can immediately have a turn while we wait for the oil and gas and hydrogen.”
The proposed dry ports and railway upgrades hold promise for enhancing trade facilitation and unlocking Namibia’s economic potential.
Ruusa Nandago, FirstRand Namibia Economist, noted an increased sustainable infrastructure development, emphasising the importance of prudent investments to propel Namibia’s economic agenda forward.
Nandago underscored the need for an infrastructure programme characterised by sustainability, cautioning against the pitfalls of white elephant projects.
“My focus would be on rail because that enables a lot of our export activity. It enables us to actually be a hub, a logistics hub for countries in the region which are landlocked like your Zambia’s, your Botswana,” she stated.
The Speakers shared this remarks during a Capricorn Group national pre-budget public discussion in collaboration the Economic Association of Namibia, GIZ and the High Economic Intelligence (HEI).
The discussion delved into the implications of the expected fiscal expansion in the annual national budget on the economy while examining the alignment of such spending and related fiscal reforms with the nation’s development priorities.
The dialogue was hosted ahead of Finance Minister Ipumbu Shiimi’s tabling of the national budget in the National Assembly under the theme: The National Budget in an Election Year: Fiscal Expansion and Strategic Priorities, the event received an overwhelming response.
This comes after TransNamib and the Botswana Railways have partnered in the establishment of a dry port at Gobabis station to connect Namibia’s eastern neighbour to the port of Walvis Bay.
According to the agreement between the two parties, the Gobabis station will remain under TransNamib’s operations and Botswana Railway will use TransNamib’s services and facilities at the station.
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