November 01, 2024
Economy

BoN calls for import substitution to reduce import bill

July 21, 2022
BoN calls for import substitution to reduce import bill

Bank of Namibia (BoN) Governor Johannes !Gawaxab has challenged local companies to stimulate production and help the country reduce its import bill.

This comes as several other countries such as China, India, and even the United States are seeking to promote domestic manufacturing and exclude imports from their markets.

Delivering a public lecture at Rundu, !Gawaxab said Namibia’s import bill has 15 products which can be substituted with domestically produced goods or scaled up.

"In total, the import bill of these 15 products translated to N$5 billion in 2021. If we substitute these imports or a significant portion thereof by producing them cost-effectively here at home, it will have a massive impact with added multiplier benefits,” he said.

The Governor added that import substitution presents opportunities for self-employment and Small Medium Enterprises (SMEs).

"A Harvard Growth Lab study on the economic complexity have diversification opportunities that include inter alia the food industry, chemicals, and basic materials."

He also noted there is a need to ensure food and energy security (including clean energy), encourage start-ups and self-employment in all sectors, substitute imports, and value addition to grow the economy.

“We need to maintain macroeconomic stability including restoring the fiscal sustainability and stable prices and financial system. We need to implement the reforms resolutely to attract the needed investment and encourage private sector participation. We need to invest in new engines of growth while improving the old ones such as health, technology, skills and education," he said.

Further investigations by The Brief show that some of the 15 products mentioned by !Gawaxab include toilet paper valued at $138,882,130 and textiles fabrics (including uniforms) costing N$49,339,399.

 In terms of food products, the import bill for maize (including. seeds) amounted to N$1,280,288,574 and Namibia mostly priced good, sunflower-seed and safflower oil came in at N$606,730,627.

Other products mentioned by the governor include fruits worth N$354,298,297, frozen chicken valued at N$302,165,399, cheese and curd stood at N$215,424,236.

At the same time, the margarine, yoghurt and buttermilk bill stood at N$ 85,326,012 72 and N$ 866,848 respectively.

In terms of chemical fertilisers (including ammonia nitrate) came in at N$ 548,572,208, washing and cleaning preparations, N$509,754,917, soap and organic surface-active products worth N$144,786,875 were imported in the period under review.

The plastic and rubber products bill stood at N$452,393,138, while sacks and bags for N$ 146,907,135 and acrylic polymers and polyethylene worth N$128,249,142 were imported last year.

In 2021, Namibia recorded a N$33.4 billion trade deficit according to the Namibia Statistics Agency, after exporting goods valued at N$95 billion against total imports of N$129 billion.

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Last modified on Saturday, 23 July 2022 09:58
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