| India-Namibia
Economic and Commercial Relations
Namibia’s relations with India are based on nostalgia
and high appreciation for the diplomatic, moral and
material support extended by India during the country’s
struggle for independence and for the assistance rendered
after independence, in its nation-building efforts.
President Nujoma, in particular, leads his countrymen
in keeping alive these bonds of friendship and warmth
towards India. Political interaction has continued at
a steady pace, through exchange of high-level visits
of dignitaries as well as interaction in various international
fora, including the UN, NAM and Commonwealth. President
Nujoma, visited India in February 2003, during which
an important Memorandum of Understanding was signed
providing for co-operation in various sectors like the
establishment of a civil services institute in Namibia,
assistance to Namibia in evolving a strategic plan for
e-governance, setting up of an agro processing unit
and setting up of SME clusters.
The Government of India has adopted the ‘Focus Africa’
policy to transform a warm political relationship into
one wherein, trade and economic cooperation acquires
a higher salience. The formation of NEPAD, to which
Prime Minister has announced a soft credit of US $ 200
million, has given rise to new opportunities for greater
interaction and for enhancing trade and economic cooperation.
Namibia, which occupies a strategic position in the
sub-Saharan Africa, enjoys political stability, has
excellent infrastructure, a modern and valuable port
at Walvis Bay and has in place a set of government policies
for encouraging trade and investment. The end of the
Angolan civil war, the opening of market in southern
Angola, accessible only from Namibia, adds a promising
additional prospect. Namibia’s infrastructure provides
access to Central African and SACU member countries.
Technical Cooperation
Namibia is a partner country under the Indian Technical
and Economic Cooperation (ITEC) programme and has received
substantial assistance for its HRD and vocational training
programmes. Since independence in 1990 till 2000 only
around 100 Namibian nominees visited India under ITEC
and various GOI scholarship programmes. However, beginning
2001-02, there has been a greater appreciation of the
programmes and the Government of Namibia has evinced
a keen interest in utilising the slots for scholarship.
In fact, during the year 2001-2002, 57 Namibian nationals,
including one Mayor and senior officials from the Office
of the President, Prime Minister etc., were trained
in India under ITEC/SCAAP scholarships. During 2002-03,
the scholarship figure reached 37. During 2003-04 all
the 30 slots allotted were utilised much before time.
India’s assistance, in the ITEC/SCAAP, is much appreciated
at the highest levels of the Government of Namibia.
The India-Namibia Plastic Technology Demonstration Centre
(INPTC) also set up under ITEC, aims at popularising
Indian plastic technology and equipment among the emerging
entrepreneurial class of Namibia.
Under the ITEC Study visits programme, Mr. Patrick
Nandago, Namibian Chief of Protocol, visited India from
3-14 January 1999 to study the functioning of the Protocol
Division of the Ministry of External Affairs. The Secretary
to the Cabinet, Mr.Frans Kapofi, led a three-member
delegation to India from 10 to 14th December
2002, mainly with the objective of studying the Cabinet
system in India, the functioning of the civil service,
the Public Service Management System and e-governance.
Also under the ITEC programme, Dr.K.K.Talwar, Professor
of Cardiology, AIIMS, visited Windhoek from 25-29 September
2001, in order to make an assessment regarding the setting
up of the first Cardiac Unit in Windhoek. During January
2004, a four member delegation led by the Acting Vice
Chancellor of the University of Namibia visited India
for 2 weeks to have discussions with various institutes
of higher learning in order to consider institutional
linkage with the University of Namibia. A senior Deputy
Director from the Lal Bahadhur Shastri Institute of
National Administration, Mussoori is expected to visit
Namibia shortly in order to provide expert advice to
the Namibian government regarding the proposal to set
up a civil services institute in Namibia.
Trade
Namibia still depends heavily on South Africa for its
external trade, particularly more so for its imports.
The main imports are from the members of the Southern
African Customs Union (SACU). The share of South Africa
in Namibia’s total imports, according to the latest
available statistics, is 86.22 percent. Many products
from different countries, including India are in the
Namibian market. However, because these items are being
re-imported mostly from South Africa, (in some cases
via other SACU countries), they are not indicated as
imports from the ‘country of origin’ but as imports
from South Africa. Another example is the import of
diamonds, mined by De Beers, and sold through the London
and Antwerp exchanges. Though Namibia is a large country
with a surface area of 825,418 square kilometres [about
¼ the size of India], yet it has a population
of only 1.8 million. The small size of the local market
and the stranglehold which South African companies exert
over it, have so far inhibited Indian companies from
trading with Namibia.
According to the Foreign Trade Statistics of India,
published by the Directorate of Commercial Intelligence
& Statistics, the following are the trade figures
relating to Namibia:
| Year |
Imports from Namibia to India |
Exports from India to Namibia |
| 1997-98 |
Rs. 20.57 lakhs |
Rs. 616.06 lakhs |
| 1998-99 |
Rs. 3.62 lakhs |
Rs. 5772.39 lakhs |
| 1999-00 |
Rs. 97.43 lakhs |
Rs. 1703.88 lakhs |
| 2000-01 |
Rs. 196.84 lakhs |
Rs. 1237.37 lakhs |
| 2001-02 |
Rs. 89.18 lakhs |
Rs. 4712.74 lakhs |
| 2002-03 |
Rs 1582.80 lakhs |
Rs. 2404.00 lakhs |
The principal commodities of export from India to Namibia
are drugs and pharmaceuticals, inorganic/organic/agro
chemicals, glass/glassware, manufactures of metals,
machinery & instruments, transport equipment, rubber
manufactured products, electronic goods and miscellaneous
processed items. The principal commodities of import
from Namibia to India are raw wool, fertilizers manufactured
and metalliferous ores and metal scrap.
However, according to statistics published by the Central
Bureau of Statistics, National Planning Commission,
Government of Namibia, the following are the export/import
figures:
Exports from India to Namibia:
| 1999 |
2000 |
2001 (Tentative) |
2002 (Tentative) |
N$ 14.09 million
(Rs. 93.31 million) |
N$ 19.80 million
(Rs. 131.13 million) |
N$ 27.78 million
(Rs. 183.97 million) |
N$ 38.29 million
(Rs. 253.58 million) |
Exports from Namibia to India:
| 1999 |
2000 |
2001 (Tentative) |
2002 (Tentative) |
N$ 1.14 million
(Rs. 7.55 million) |
N$ 0.99 million
(Rs. 6.56 million) |
N$ 0.1 million
(Rs. 0.66 million) |
N$ 0.08 million
(Rs. 0.53 million) |
The main commodities of exports from India to Namibia
according to Namibian statistics are Inorganic Chemicals;
compounds of precious metals etc, organic chemicals,
pharmaceutical products, plastics and articles thereof,
rubber and articles thereof, articles of leather; saddlery
& harness; travel goods etc, printed books, newspapers,
pictures etc, articles of apparel, made up textile articles,
articles of iron and steel, electrical machinery, vehicle
parts, etc. The items of export from Namibia to India,
according to Namibian statistics, are used household
effects; used personal effects and works of art, collector’s
pieces and antiques.
The Namibian Minister of Trade and Industry, accompanied
by a 15-member strong delegation visited India at the
invitation of CII, for the India Engineering Trade Fair
in February 1999, and to attend the first meeting of
the Indo-Namibian Joint Trade Committee (JTC), headed
by the respective Ministers of Trade and Industry, held
in New Delhi on February 15-16, 1999. The meeting reviewed
the implementation of the provisions of the Trade Agreement
and agreed to cooperate in the fields of electronics
and software, small scale industries, agriculture, commercial
farming, water resources, railways, energy sector, drugs
and pharmaceutical sector, telecommunications, gem stones.
The two sides also agreed to increase and diversify
bilateral trade. Namibian side has indicated its preference
for the 2nd JTC in April 2004.
An agreement between the EXIM Bank of India and the
Offshore Development Company (ODC) of Namibia on the
US$ 5 million credit line has also been concluded, as
a follow up of announcement made during the visit of
Prime Minister Shri Vajpayee to Namibia in 1998. However,
the utilisation of the Line of Credit has been rather
slow, with only US $ 0.5 million out of the US $ 5 million
available under the Line of Credit having been used
so far, for importation from India of what is stated
to be a state-of-the-art printing press in the SADC
region, by M/s Democratic Media Holdings Ltd., which
is printing the major newspapers of the country. Every
year the utilisation period of the Line of Credit is
being extended. During the last such extension granted
by the Exim Bank towards the end of 2003, the terms
of credit have further been liberalised. The Rupee interest
rate has been reduced by 1 percentage point to 11% per
annum for a credit period of up to 3 years and 11.5%
for a credit period of 3 to 5 years. Efforts are continuing
to speed up the process of utilising the Line of Credit.
Source : Indian High Commission, Namibia
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