Thread: NAMIBIA: State of the Nation 1999

Honourable Speaker
Honourable Chairman of the National Council
Honourable Members of Parliament,

It is with a deep sense of honour, privilege, and humility, that I am presenting before you all, the state of the Nation Address; our country as I see it now, since my last address to you in March 1998. Indeed, as I look back, I see many areas where Namibia, has continued to perform excellently, and to be the envy of our region, of our continent, and of the developing world.

But, I also see many areas where a lot of work remains to be done. We must, however remember that the task of nation building cannot be accomplished overnight. After all, as it is often said, Rome was not built in a day. Fortunately, however today we live in a technological age. A time in which we can build faster, plan better and deliver results more efficiently if we adopt appropriate mechanisms, strategies and technologies. The challenge before us, therefore is to search for technologies that are appropriate to our country, to identify appropriate partners, and to move forward with renewed and sustained commitment, determination, optimism, and hard work.

As we all know, where there is a will, there is a way. And we have the will. We shall succeed. I am saying this profound confidence and boldness because of what we have been able to achieve since the beautiful and promising dawn of our political independence, on March, 1990.
I am a very proud citizen of this country. I am very proud because:

- together, we have cultivated and nurtured the spirit of national reconciliation and national unity;
- together, we have cherished a culture of peace and social stability;
- together, we have fought for, attained, and sustained democracy in our country;
- together, we have demonstrated the power of mutual tolerance and respect;
- and together, we have promoted, respect and upheld the rule of law in our country.

These are achievements that all Namibians can be proud of. Our country’s exemplary democracy is increasingly enabling our people to enjoy the freedom of electing leaders of their choice, leaders whom they think are best qualified to represent their interest at all levels of decision making, starting with local government and including Parliament. Indeed, I commend all our citizens who worked so hard, so professionally, and so selflessly, to ensure that all our elections to date have been pronounced free and fair, and devoid of any acts of intimidation of our citizens.

The atmosphere of peace, democracy, and political stability, which continued to prevail in Namibia during the year under review, has enabled us to make satisfactory progress towards promoting the socio-economic advancement of our people. Indeed, our various government Ministries continued to work very hard to fulfil their mandates, and to address problem areas in their respective jurisdictions.

As I have said many times before, our most valuable economic asset is our people. If our people have solid education and training; if they are provided with appropriate scientific and technological skills; if they are provide with an enabling environment that permits them to apply their knowledge and expertise fully, our country stands a good chance of becoming Africa’s stunning example of rapid socio-economic development. After all, Namibia is widely hailed as an acclaimed role model for good governance and democracy.

It is for this reason that we should continue to support the efforts of the University of Namibia and other institutions of tertiary education in the country expand education and training in the fields of agriculture; fisheries and marine resources development and management; natural geological and engineering sciences; computer technology and information sciences; environment and tourism; as well as language and culture studies, which serve as bridges of co-operation with other nations and continents.

I am proud to note that, although it took some time, the Council of Traditional Leaders was finally inaugurated during 1998. This Council is provided for in the supreme law of the land and is an important institution in Namibia’s democratic machinery. The overriding function of the Council is to act as a bridge between modernity and tradition, and to ensure that the values of hard work, honesty, family, integrity and community are imparted to our entire society, especially the youth.

However, I am disturbed that some failed politicians want to use tradition and ethnic diversity in Namibia as an excuse to incite our people.
I am here referring to the secessionist plot by some people in the Caprivi Region who wanted to stage an armed insurrection to dismember the Republic of Namibia. I wish to assure this August house and the entire country that the Namibian Government will do everything in its power to safeguard the national sovereignty and territorial integrity of our republic and foil the plans of those who want to break up our country and our people by force of arms.

Honourable Speaker
Honourable Chairman,

The agricultural industry is one of the most important sectors of the national economy. It plays a crucial role in the achievement of the objectives of the NDP1 and other national developmental programmes by way of direct and indirect creation of jobs and the stimulation of development in the communal areas. At present, it is mainly dominated by livestock production which accounts for 98 per cent. In contrast agronomy contributes only 2 per cent of the farm gross income. This could soon change with the envisaged cultivation of grapes along the Orange River for export and domestic consumption. This project is expected to create approximately 1000 jobs and contribute significantly to the generation of foreign currency once in full production.

It is important to note that the harsh climatic conditions for the past years had a negative effect on the agricultural sector. The cumulative rainfall was below average, amounting to 400 mm for the 1998 season. This had a disastrous effect on the agricultural production base. Cereal production, namely white maize, was down to a meager 12 500 tons in 1998 as compared to 37 000 tons in 1997.

It is encouraging that grazing conditions are better in most areas that have received good rainfall, especially in Caprivi, Kavango and eastern parts of Oshikoto and Ohangwena regions. However, they remain critical in the southern, central and western regions.

As you are all aware, over two-thirds of our people derive their livelihood from agriculture and animal husbandry. It is important, therefore that our education should be directed towards producing a critical mass of graduates with relevant know-how and skills.
Such graduates should also be equipped with the commitment to go out to our rural areas to share their expertise and skills. It is for that reason that my government fully supports the initiative made by the University of Namibia in developing its Northern Campus, based in Oshakati.

During the period under review, the government, through the ministry of Agriculture, water and rural development, continued to intensify its efforts towards providing boreholes to our drought-stricken rural communities.

Drought relief in the form of food and related commodities had thus to be given to the needy citizens in various parts of the country. In the same vein, despite a lengthy dispute which occurred between the government and the illegal occupants who invaded government farms during 1998 in the Omaheke, Otjozondjupa and Kunene regions, the Ministry of Lands, Resettlement and Rehabilitation was able to resettle 115 families with 615 dependants in the Kunene and Hardap regions. During the dry season the Ministry was able to provide emergency grazing to livestock farmers who were severely affected by the drought. We also continued to provide agricultural and veterinary extension services to various parts of the country, in an attempt to fight diseases afflicting our crops and livestock, and to provide skills on sustainable resource development and management.

The Ministry of Lands, Resettlement and Rehabilitation also managed to build 49 houses through its resettlement programme in the Oshikoto Region, 12 at Skoonheid in the Gobabis area and 25 at Mangetti Dune in the Otjozondupa Region.

Nine farms with the surface area of more than 56,884 hectares were purchased at the cost of more than N$10.6 million during the year under review. These farms have benn earmarked for resettlement and development purposes. In the same vein, during the 1998/99 financial year, some 47 business people were allocated with sites of different sizes in communal areas to set up businesses and were issued with permission to occupy (PTO) certificates.

Honourable Speaker
Honourable Chairman,

As you all know, one other important natural resource heritage which Namibia is blessed with is its ocean. Our ocean possesses abundant fish resources, and a wide spectrum of their marine life. These include plankton, seaweed, and large marine mammals, such as seals.

As you also know, seawater itself, is a vital resource. From it we can harvest various salts, as we already do, and obtain water for drinking, if we adopt appropriate cost-effective desalination technologies. The importance of our marine resources, as you will recall, was eloquently articulated and presented for the world to see through our participation in EXPO 98 in Lisbon, Portugal.

I am proud to say that the fisheries sector of our economy has performed well, and that It has become technologically very advanced. We must remember that, Namibia, as the country task to co-ordinate research And development in the marine resources sector in the SADC region, our performance must be exemplary.

In this regard, I am proud to say that we have performed well over the years and also during the year under review. Where as, for example, the value of Namibia’s fishing industry at independence was less than N$300 million, it has grown to an estimated value of approximately N$2.2 billion in 1998, and it continues to grow. This has been a phenomenal growth rate. What is even more gratifying is the fact that, since independence, the proportion of fishing vessels owned by Namibians increased from 50 percent in 1991, to approximately 85 per cent at the end of 1998.

Most of this growth is due to increased catches, development of new fisheries of high value species such as orange roughly, increased value adding and higher real fish prices in world markets. The latter trend seems likely to continue with rising demand for fish and declining global supply due to wide spread over-fishing. The volume of fish landings has increased from 511 000 tonnes in 1997 to 674 000 in 1998. With conducive environmental conditions prevailing at present, we expect the sector’s contribution to the GDP to increase into the New Millennium

The country is now earning more income from processing fish than we do from catching it. There are more jobs onshore in our factories than there are at sea. The fishing industry’s labour force stood at about 15 000 people in 1998 compared to 13000 in 1997.

Additional, the proportion of Namibian crewmembers on fishing vessels increased from 40 per cent in 1994, to about 60 per cent in 1998. Both of these results are ahead of the targets that were set in NDP1 to be achieved by the year 2001. In addition, from analysis of sharing of shareholding and of fishing right holders it is clear that the industry is increasingly becoming Namibian-owned and controlled.

Foreign investment has played a major role in the establishment and equipping of the modern fisheries sector in Namibia. Not only jobs were provided through foreign investment but also the transfer of skills, technology, market access and finance.

The fish consumption project that started about four years ago is progressing well and the Ministry will intensify the campaigns to cover all corners of our Republic. As a fishing nation, it is ironic that our consumption of fish is low while we export most our fish elsewhere. A healthy nation that depends on proper nutrition, which must include fish in our diet. Last year, the Ministry, together with the fishing industry launched a new campaign to bring more fish to more Namibians.

During the year, additional rights for rock lobster and the linefish fisheries were granted. This year, no new fishing rights are expected to be granted. However, the seven-year fishing rights issued in 1993 will expire at the end of the year 2000. Several thousand Namibians are currently employed in joint venture companies whose fishing rights will expire in two-years’ time. While two years may seem to be a long time, the Ministry has already started the process of evaluating the performance of these companies so that they will be informed of their status in time. This will enable successful companies to commit their resources from elsewhere for new investments.

Our participation in Expo’98 was a tremendous success. Our country presented a world class exhibition. Under the theme, “Sea Namibia”, we presented a panoramic overview of Namibia’s past and present. We exhibited a complete overview of the industries, which are dependent on the ocean, in a culturally and environmentally rich, and technologically well-serviced Namibia. This was possible because of a smart partnership between the government, private sector, parastatals and individual citizens. I am confident about the long-term benefits we have gained from such windows of opportunity as Expo’98 in terms of tourism and investment in our country.


Honourable Speaker
Honourable Chairman,

Industrial development remains one of the Government’s main policy objectives. This is an essential component of the nation’s long term development strategy because it has the greatest potential for the creation of employment opportunities, generation of wealth and thus, the improvement of the standard of living of our people.

While the primary responsibility for industrial development is the role of the private sector, the Government plays an interventionary role in terms of kick-starting the process of industrialization. In this respect, a number of policy and legislative measures, such as the Foreign Investment Protection Act of 1990 and the export Processing Zone Act of 1995 are in place. They have proved to be important tools in opening up and stimulating growth in the Namibian economy.

I am happy to report that the review of the 1992 White Paper on Industrial Development is based on the concept that there will be two types of manufacturing. The first is built around the utilisation of local materials, such as minerals, hides and skins, gemstones, semi-precious stones and dimension stone, agricultural produce and fish. The second is based on the use of imported components, such as electronics, car parts and other components that can be assembled locally. Value –addition, however, is the key aspect of both types of manufacturing processes.

In this respect, the Ministry of Trade and Industry is presently working on projects to establish leather, ceramic and seaweed industries in the country. In the course of the year, a tanning and leather factory will be set up in Oshakati, financed with a soft loan of some US$ 26 million from the Government of the People’s Republic of China.

The Ministry has also, with the help of United Nations Industrial Development Organisation, established a Revolving Credit Fund as part of a wider development initiative to assist small producers of leather goods to expand their businesses and improve on the quality of their products. Testing of clay deposits in the Mariental area has indicated the potential of a large ceramic clay industry, producing everything from bricks to the finest porcelain, creating substantial employment. Similarly, a feasibility study has been conducted in Lüderitz on the processing and sale of seaweed to the lucrative Far East export market.

The Ministry is mid-way through a programme of infrastructural development, namely the construction of industrial parks and Small and Medium Enterprises (SME) modules. The programme aims to establish manufacturing and trading premises at important centres throughout the country. Four of these have been completed and are already operational. They include, SME Modules in Gobabis Town Centre and Gobabis Epako; the Otjiwarongo Multi-Market and the Prosperita Industrial Park in Windhoek.

Work on the construction of the Ondangwa Industrial Park and Keetmanshoop SME module started in February 1999 and will be completed by June. Construction programmes for SME modules in Karibib, Ohangwena, Rundu and Outapi are all scheduled for completion by the end of this year.

Following the successful launch of the EPZ Industrial Park at Oshikango, last October, plans are underway to develop a multi-purpose park at Katima Mulilo to cater for EPZ and non-EPZ operations. Companies already operational in the Oshikango EPZ Park have invested some N$33 million so far, and created 233jobs.

With regard to technology transfer, an Appropriate Technology Demonstration Center is being established at Ondangwa, with support from the Government of the Republic of India. The Center will house a variety of machinery and equipment, which interested entrepreneurs can view under operational conditions. The Ondangwa Centre is to specialise in machinery suitable for plastics production. The Ministry is to establish other such centres at each of the sites selected for industrial park development.

The Ministry’s industrial and small business development programmes foresee that growth in manufacturing will go hand-in-hand with diversification and expansion of the country’s export base. The global process of trade liberalisation and economic integration demands that Namibia actively participate in various regional and international trade arrangements.

In this regard, the participation of Namibian entrepreneurs in regional and international trade fairs and exhibitions has been arranged. This is backed up with targeted trade missions designed to open up new export markets for Namibian products. Some 60 Namibian companies exhibited at trade fairs during 1998, showing products representing the meat, fish, handcraft, mineral and dimension stone sectors. Missions to Angola, Zambia and Zimbabwe were undertaken to stimulate intra-regional trade.

Honourable Speaker
Honourable Chairman,

We must not lose sight of the fact that Namibia’s membership of SADC is particularly important with regard to new strategies to broaden and deepen regional trade and integration. Namibia thus ratified thus SADC Trade Protocol in September last year. The protocol aims to establish a SADC Free Trade Area within eight years.

Namibia’s membership of SACU continues to provide duty-free access for the country’s export products to a market of some 60 million people. The SACU Agreement is being re-negotiated, however, to make the benefits of union more equitable and to ensure a more balanced pattern of economic development among all member states.

A matter of great concern for Namibia is the recently concluded Free Trade Agreement between the Republic of South Africa and the European Union. We are concerned about the possible negative impact it might have on Namibia’s economy. Together with Botswana, Lesotho and Swaziland, we have started to look closely at the possible impact that such an arrangement might have our respective economies. There are also regular consultations between South Africa and the other Member states of SACU on this issue.

Namibia also continues to benefit from the Lomé IV Convention Agreement, that gives African, Caribbean and Pacific countries’ products preferential access into European Union markets. This Agreement however expires on 29 February 2000. Negotiations on a successor agreement started in September 1998 and will continue throughout 1999. Namibia has been appointed to coordinate trade negotiations, in this respect, at ambassadorial level.

The Export Processing Zone (EPZ) regime continues to attract significant investor
Interest. Over 60 companies from 19 countries have been granted EPZ status, and twenty EPZ companies are already operational. So far, the EPZ regime has created close to seven hundred direct job opportunities for Namibians. About five thousand jobs will be created should all these companies become operational. It is important to note that 84 per cent of EPZ enterprises are involved in manufacturing.

Our continuous investment promotion efforts will further bear fruit this year through the establishment of the following projects; namely, a N$30.5 million wheat mill and pasta factory earmarked for Walvis Bay, which is set to create some 230 jobs. The project will benefit from the Special Incentives for Manufacturers and will manufacture pasta products for Namibia and the regional market.

In addition, a N$1.3 billion zinc mine and refinery will become operational near Rosh Pinah shortly. It is set to create over 500 permanent jobs. The establishment of this refinery has been facilitated through incentives available under the EPZ programme.

Another effort to promote and attract investment was carried out through an investment promotion and targeting study, based on the analysis of Namibian industries in 1998. The exercise centred on the identification of specific industries and target markets in which pro-active promotion efforts were likely to yield the greatest inflow of foreign investment. The following Namibian industry sector were identified as having a potentially competitive edge:

. Fish processing;
. Textile manufacturing, particularly within the EPZ regime;
. Game lodges, resorts and hotels;
. Vessel repair and maintenance, using Walvis Bay s a regional base;
. Leather tanning and processing; and
. Data processing, information and telecommunication services.

To ensure a responsive, investor-friendly climate, the Ministry of Trade and Industry is currently reviewing manufacturing incentive packages. Efforts are also being made to ensure uniform administration of the Exporters‘ Cash Grant Scheme; and to streamline the operations of the EPZ Secretariat.

The mining sector which makes a significant contribution to our national economy continued to make advances during the year under review. The closure of some mines such as Namibia Lithium Mine near Karibib, Namibia Lead Mine near Swakopmund and the Otjozondu Manganese Mine had a negative impact on the economy because of the resultant loss of jobs and income. However, other areas especially marine diamond mining have shown phenomenal growth. Companies such as Namibia Minerals Corporation have surpassed expectations in terms of production and diamond recovery. We are therefore confident that other companies that are involved in offshore mining, namely De Beer marine and Offshore Diamond Mining will register similar growth, thereby contributing positively to economic growth.

It is also important to report that the Government has continued to implement the policy of commercialising non-core functions in order to improve efficiency and downsize the civil service. As a result, commercial entities such as the Namibia Airports Company, NamWater and Namibia Wildlife Resorts were established. Plans are at an advanced stage to establish the Roads Contractor Company, the Roads Authority and the Road fund Administration. The establishment of these entities will bring about a notable reduction in the size of our civil service.

Honourable Speaker
Honourable Chairman,

The Government has also remained focused on the maintenance, rehabilitation and construction of new physical infrastructure.

Thousands of kilometres of both bitumen and gravel roads were rehabilitated around the country. The labour intensive construction of many gravel roads provided job opportunities to hundreds of our citizens.

It is equally important to note that the feasibility studies of the Epupa and Baynes hydro-electric schemes on the Kunene River as well as the feasibility study for the establishment of a 750 megawatt combined cycle gas fired power plant at Oranjemund were also completed. As part of the national rural electrification programme 27 villages in the south, west and northern parts of our country were connected to the national power grid at a cost of N$34.6 million. More than 150 solar systems were also installed.

Improvements on our already excellent telecommunication infrastructure also continued during the period under review. The southern fibre optic network was extended to link Ariamsvlei, Noordoewer, Lüderitz and Oranjemund to the rest of the country. Fibre optic links to South Africa, to the Trans-Kalahari border post, as well as to places like Nkurenkuru, Khorixas, Okoruso Mine, Waterberg, Omatjene, Aminius, Ruacana and Opuwo were also completed.

Honourable Speaker
Honourable Chairman,

I would like to take this opportunity to give some detail on the overall performance of our economy during the period under review. The performance of the economy during 1998 should be viewed in the context of the aftermath of the south East Asian crisis which only started to affect the economies of Southern Africa more seriously at the beginning of the period under review. Negative sentiments on emerging markets caused capital flight to mature markets and consequently currencies of many emerging economies came under pressure.

The South African Rand, and hence, the Namibia Dollar were no exceptions. The renewed pressure on the Rand brought about a series of interest hikes both in Namibia and south Africa. The effects of high interest rates were felt more in sectors such as construction and retailing. Statistics also reveal that the sales of motor vehicles declined by about 15 per cent and the number of buildings completed also fell strongly in 1998.

The effects of high interest rates were further compounded by the decline in commodity prices resulting from a slowing world trade and output brought abut by the contraction in many Asian economies including Japan. Average prices of primary commodities are now at their 1990 levels. Metal and mineral prices are now 65 per cent of their 1990 levels as the fall-off in Asian demand coincides with a significant growth in supply, particularly in copper. The declining copper prices contributed to the closure of the TCL mines in the first half of 1998. Although diamond prices held up due to the strategy of the Central Selling Organisation of cutting supply, output, contracted, the exception being marine diamond mining. As a consequence, overall mining output is estimated to have fallen by about 10 per cent in 1998.

The only two sectors that showed significant improvements are fishing and tourism. Fishing seems to have recovered from earlier problems brought about dwindling fish stocks due to over-fishing and unfavourable oceanic conditions. Tourism benefited greatly from visitors from Western Europe who generally spend more than tourists from neighbouring countries. The depreciation of the Namibian Dollar was a major boost to the sector. Statistics available indicate that the number of tourists who landed at Hosea Kutako International Airport in 1998, the majority of whom were from Europe, rose by about 5 per cent. Figures for the whole country indicate an eleven percent growth or more than 560 000 visitors. It is expected that this growth momentum would carry on in 1999 if strong growth in Western Europe holds up.

Honourable Speaker
Honourable Chairman,

The effects of the South East Asian economic crisis brought about a further slowdown in GDP growth for 1998. Estimates showed that growth would only be around 1 per cent, signifying a further drop in the average income of Namibians. In fact, the slowdown in growth has already started to show since 1994. Although much of the slide in growth can be blamed on external factors such as weak commodity prices, reduced fish stocks and the drought research shows that productivity in the Namibian economy as measured by Total Factor productivity (TPF) has been falling. This indicates that for every unit of capital invested, less and less output is received in return. The underlying factor explaining this decline in productivity is the deficiency in skills of the labour force, the gradual shift to high cost deposit in the mining industry and the large government consumption expenditure which drives up taxes. These are the real issues we are now faced with.

The decline in factor productivity has been reflected in the sluggishness of private investment. Investment declined from about 24 per cent in 1994 and remained at only about 20 per cent ever since. The country’s savings however, have been high be international standards, remaining at around 25 per cent over the past five years. This savings-investment gap is the main reason for the outflow of savings to South Africa. Namibia therefore faces a serious challenge of how to improve our productivity levels in the future, particularly the skill levels of the labour force so as to make investing in Namibia more profitable. This is the only sustainable way of keeping domestic savings within the country.

The slow growth in the economy could not keep up with growth in the labour force, which is estimated at 3 per cent every year. As a result, unemployment is on the rise. The recently published Labour Market Survey indicated that unemployment now stands at about 35 per cent of the labour force, up from less than 33 per cent in 1994. Besides the inadequacy of skills, it has been indicated that Namibia’s wage levels are significantly higher than those of her neighbours, excluding South Africa.

A study by the Ministry of Trade and Industry shows that a semi-skilled worker in Namibia earns almost three times more than what his counterpart in Botswana earns. The gap is even greater when compared to countries such as Zimbabwe, Malawi, Kenya and Lesotho.

In response to weak domestic demand and the general depressed prices for commodity, including that of crude oil, inflation continued at a single digit rate, with an average of 6.2 per cent in 1998, far below the 8.8 per cent of the previous year. The decline in price increases started toward the end of 1997 and continued in the fist half of 1998.

But, inflation picked up again in the last half of 1998 as the effects of depreciation of the Rand in May started to show up in the South African inflation figures. This was further supported by domestic pressures from increased taxes and municipal charges that were introduced early 1998.

The original budget passed at the end of March envisioned a deficit of 3.9 per cent of GDP for the fiscal year 1998/99. The budget statement also spelled out measures that would be undertaken to achieve this target. These included an increase in GST from 8 to 10 per cent, while that of services was reduced by a percentage point to 10 per cent. It also inclded an increase in the additional sales duty (ASD) on beer from 10 to 15 per cent, and for spirits and tobacco from 15 to 25 per cent. An increase of 5 percentage points in corporate tac for non-mining companies and individuals to 40 per cent was also effected, while taxes on mining, excluding diamonds, were raised by 5 percentage points. Many of these tax hikes have been reversed in the 1999/2000 budget.

On the external side, the current account surplus continued to rise because of the narrowing trade deficit and increased transfers from the SACU revenue pool. As a result, the current account surplus as a percentage of GDP rose from 2.8 per cent at the end of 1997 to 5.9 per cent. But, capital outflows also surged from 1.2 per cent of GDP to 4.6 per cent during the same period. The consequence was an increase of N$412 million in the international reserves of the Bank of Namibia to N$1.5 billion at the end of December 1998. This represents about 8 weeks of import cover.

Honourable Speaker
Honourable Chairman,

It is encouraging to note that this year looks better, but the improvement is likely to be small and slow. World output is expected to pick up slightly as growth resumes in the crisis-striken countries, notably in Korea and Thailand. In addition, it has been reported that Japan has adopted new policy measures to stimulate domestic demand and tackle the banking problems more vigorously.

This could prevent a further decline in commodity prices and therefore prevent further cut backs in mineral production in Namibia. Growth impetus will continue to come from fishing and tourism. The general downward trend in interest rates is also a positive development for a better ear.

Honourable Speaker
Honourable Chairman,

The performance of the economy does not take place in a vacuum. In addition to the creation of jobs and improved GDP and GNP figures, we must also be able to relate it to other social and socio-economic indicators. It is for this reason that the performance of our socially oriented Ministries and their implementation activities become crucial. In this regard, I would like to report that the Ministry of Health and Social Services has been busy implementing several programmes during the year under review. An important achievement has been the launching of the Second Medium Term Plan for HIV/Aids as well as the launching of the new National Aids Programme Structure.

The Ministry has also commissioned upgrading projects of several hospitals, clinics and the health centres around the country. Moreover, successful national Immunisation days were conducted in which children were immunised against polio , measles and vitamin A deficiency. It can be reported that the number of targeted children of under five years against polio was 324,623 and coverage was 100 per cent in the first round. As for measles the targeted children of nine months to under fifteen years were 444,783 and the coverage was 98 per cent. The coverage of 87 per cent was obtained for vitamin a immunisation.

In the same vein, a highly successful Eye Camp was carried out in the Northern Regions with assistance of Surgical Eye Expedition and Raleigh International. A total number of 1,386 patients were successfully operated on. In 1999, the Eye Camps will focus on the Southern regions.

Honourable Speaker
Honourable Chairman,

The provision of social services to the Namibian people goes hand-in-hand with our efforts to ensure the efficient implementation of our developmental programme through proper planning.

During the period under review, the National Planning Commission, which is constitutionally mandated to plan the priorities and direction of national development, prepared the Poverty Reduction Strategy for Namibia. This Strategy was widely discussed both an national and regional levels, through publc consultation workshops. The implementation pan to put it into operation has earnestly commenced.

In my Address to the nation last year, I made mention of my Government’s commitment to participatory planning and the crucial importance attached to Human Resources Development. It is within this policy perspective that the National planning Commission has now finalised the co-ordination and preparation of the Human Resource Plan for Namibia.

To strengthen popular participation, the NPC is to embark on consultations with Government’s main social partners in preparing the Second National Development Plan or NDP2. Those to be involved include representatives of Namibian non-governmental organisations, the Trade Union Movement, the Private Sector and the International Donor Community who have all played and are expected to continue playing a pivotal role in the development planning process.

Namibia’s second medium-term planwill come into operation when the current NDP1 comes to an end during the 1999/2000 financial year. The Second national Development Plan shall assess and evaluate national objectives and strategies with a view to continue addressing national development problems and propelling Namibia into the next millennium.

In the context of the 199/2000 budget, I would draw the attention of this august house to the increased development provision for Ministries and Government Agencies tasked with the provision of social services such as education, health and water supplies. These Ministries are scheduled to increase their share in the 1999/2000 Development Budget to 29 per cent as compared to 22 per cent during the 1998/99 Development Budget. Similar advances will be evident in the development provision for agricultural services, whose contribution remains essential to the realisation of Government’s economic and social objectives, particularly food production.

With regard to development co-operation and aid co-ordination, a policy framework for Development Co-operation and Debt Management was adopted. This Policy paper spells out the policy guidelines for formulating appropriate policies for development co-operation and debt management.

Given the need for co-ordinating the activities of the key economic policy institutions, an Inter-Agency Committee on Development Co-operation and Debt Management will be established, representing the Ministry of Finance, the National Planning Commission and the Bank of Namibia. The functions of the Inter-Agency Committee would be, to first formulate appropriate policies and, thereafter, to manage aid and debt according to the principles and policies approved by Cabinet.

One of the important milestones at the beginning of every decade remains the National Population and Housing Census. Namibia’s first census was carried our in 1991 and the next census is planned to take place during 2001. Preparatory work has already started to this end. In fact, efforts are underway to put together the 2001 national Population and Housing Census Committee that is expected to embrace all the major stakeholders in the area of population and development. The census is a very expensive undertaking and, therefore, my Government would like to solicit the support and co-operation of bilateral and multilateral donor agencies and others in this important exercise.

Honourable Speaker
Honourable Chairman,

As we move towards more efficient and improved implementation of our development programmes, the impact of such improvement will be felt in other areas of public administration. In its efforts to streamline the collection of customs levies and increase efficiency, the Ministry of Finance has implemented the Automated System on Customs Data. This computerised system allows for speedier processing of customs transactions by linking traders with customs and entry points. The Direct Trader input was also installed at several Namibia companies.

After months of preparations, the Customs and Excise Act has been gazetted and has been made effective by Ministerial Notice on 1 august 1998.

As part of the efforts to reform tax collection and to broaden the tax base, the Inland Revenue Directorate is currently busy with the implementation of Value Added Tax. The final draft bill is being completed, and due for submission to Cabinet by April 1999.

Of the budgeted figure of more than N$3.2 billion revenue for 1988/99 by Inland Revenue Directorate, above N$2.4 billion has so far been collected, compared to N$1.9 billion collected in 1997/98 for the same period of 9 months.

The increase in Revenue collection is attributed to the increase in registered taxpayers from 173 200 in January 1998 to 184 000 in January 1999, and intensifying of audit functions.


I would also like to report that Namibian Customs actively participated in COMESA and SADC trade liberalisation efforts to attain a Free Trade Area as soon as possible, and to implement a tariff phase down over 8 years. Several of the Namibian inputs were taken up in the working documents relating to Rules of Origin, Customs Cooperation and Documentation and on efforts to establish Automated Customs Systems in the Region.

In the same vein, it is important to note that revenue from the Customs Pool was calculated at more than N$2.2 billion in 1998 which represents an increase of 24.1 per cent from the previous year.

During the period under review, regular elections were held where our people had the opportunity to express their democratic right of free choice. Elections are an important process that empowers our people to elect their own leaders. Our local councils were established in order to look into and address the needs of our people, as well as to complement the efforts of our regional councils, and those of the Central Government. I am aware of the fact that there still remains a huge task of providing our people with appropriate, low cost housing, portable water and electricity. In regard, the efforts of the local and regional councils, and of the Government, should be pooled together to find a common solution.

Honourable Speaker
Honourable Chairman

The Government of the Republic of Namibia is highly concerned about the security and security and safety of our people. As it is well known our country is governed on the principle of the rule of law. It is for this reason that our law enforcement agencies had been tasked to ensure the safety of our people in accordance with relevant pieces of legislation. Towards this end, the Namibian Police have apprehended several criminals who have targeted our citizens and tourists a like.

Our courts and our legal system will continue to deal with and bring to justice all those who are accused of wrongdoing or involvement in criminal activities. We will also continue to maintain a tough environment in our prisons to ensure that no prisoner escapes lawful custody or continue with their criminal activities. While in custody however, we will provide them with proper rehabilitation programmes to ensure upon their release they will become useful and productive members of society.

As an extension of our policy to ensure security of our country and our region, our gallant men and women in the Namibian Defence Force have demonstrated superb loyalty to our country, a high level of professionalism, and dedication to duty, discipline, exemplary behaviour and performance under difficult circumstances.

They were involved in peace keeping operations in Angola, helping to implement the vision of the United Nations, and they are also playing an important role in contributing to the safeguarding of the national sovereignty and territorial integrity in the democratic Republic of the Congo.

We are also concerned about the resumption of hostilities in Angola as well as the unstable political situations in Lesotho, Sierra Leone, Ethiopia and Eritrea, which disturb Africa’s development.

Honourable Speaker
Hnourable Chairman

The future of our country can only be secure if our people are provided and equipped with the necessary and appropriate skills that will enable them to function in the 21 century. Therefore, our educational institutions, from primary school to University must be given the necessary support to enable them to function effectively and efficiently. Education is what will form the strongest foundation for our existence as a country.

As we review the performance of our Government for the period under review, and as we cast our eyes to the future, special attention must be given to the education and training of our people. During 1998, our institutions of learning, again from primary school to University, made great strides in making education available to our people, and in improving both performance as well as the quality of education. However, there is still room for improvement and I do admit that in some instances our children still attend school under trees. I can assure you that my Government is hard at work to rectify this situation and to ensure that our school system all over the country is equal and uniform.

It has become imperative that a closer look be directed towards the quality of our education and the performance of both teachers and students. We must ensure that our school -leavers are either able to secure a job, to continue on towards tertiary education, or both. It is for this reason that I believe that vocational training programmes in our country must be strengthened. These are challenges that we must face, and we must face them head-on.

Honourable Speaker
Honourable Chairman,

We live in a world that is rapidly changing. A world that demands of us to adapt to, and move along with these changes. I, however, also believe that as a country we must position ourselves to manage this change and all that accompanies it, so that it does not sweep us away. This means that our domestic programmes, our administrative machinery and our interaction with the outside world must have clear objectives that are aimed at advancing our country and improve the livelihoods of all our people. The last nine years of our independence have witnessed our growth from infancy into mature and respected democracy. The culture of democracy has become entrenched at all levels of decision making, from the local authority level to our national legislature.

My government is committed to make more resources available to the training of our women who have taken up the challenge of improving their qualifications. I am proud to report that during the recent graduation ceremonies of the University of Namibia and the Polytechnic of Namibia women were in the majority of graduates, even in more challenging disciplines such as geology, engineering and marine biology. That means that women are really making use of the new opportunities which were denied to them during the apartheid colonial occupation.

I would also like to emphasise that fact that the Government of the Republic of Namibia has always recognised that fact that it is absolutely necessary for our youth to be properly trained. In addition to other initiatives aimed at uplifting our youth, the Government has made provision in the 1999/2000 Budget for the establishment of the National Youth Service.

The purpose of the National Youth Service will be to train and equip our youth with vocational and practical skills that will enable them to secure employment, to become self-employed, and to employ others, thereby addressing the problem of unemployment in the country.

The youth shall therefore be trained to become electricians, plumbers, carpenters, auto mechanics, welders, bricklayers, builders or tailors. Training will also be provided in several other fields of craftsmanship and artisanship.

Moreover, another positive spin-off that will result from the establishment of the National Youth Service is the fact that it will supplement other programmes that are aimed at strengthening and developing our human capital in the country. We are confident that through this programme we will move a step closer towards our cherished goal of nation building and the improvement of the standard of living of our people.

It is a source of great pride to know that our service –delivery systems from education to health care and indeed all other social amenities are well in place. This is what we have been able to achieve in the short space of nine years of independence. I believe that we can achieve even more in the coming years. I therefore call on all Namibians to work even harder as we enter the 21st century.

Long live the Republic of Namibia!

ENDS…..