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Companies in the EXPORT processing area invested about N $ 11.6 billion in the Namibian economy during the 2017/18 fiscal year.
In addition, the 19 companies operating in Namibia during the reporting period employed 2,203 Namibians out of 2,345.
Trade Minister Tjekero Tweya recently reported the figures to the National Assembly in response to questions from PDM President McHenry Venaani on the activities of the country's EPZ enterprises.
Tweya said that since the start of the EPZ regime in 1995, a total of 142 companies have been granted EPZ status.
"As we speak, 19 companies operate under the free zone regime."
The minister added that the 19 companies operating in the free zones operated in the sectors of manufacturing, mineral processing and assembly of motor vehicles.
EPZs include registered companies to import facilities, machinery, equipment and material for the manufacture of export products under warranty, without payment of the usual duty. Everything they sell is considered an export, even if it is sold in the country.
According to statistics, it is NamZinc that has invested the most in Namibia, with exports of about 7.7 billion Namibian dollars during the reporting period, thus creating 613 direct jobs. Dundee Precious Metals then invested about N $ 3 billion in 2018 and created 74 jobs.
At the same time, a study conducted in 2012 by the Offshore Development Company (ODC), which was only released last year, showed that export-processing zones are no longer in demand. Have not succeeded, over the years, in attracting the foreign direct investment expected for the country, while the contribution of the initiative to the economy has been insignificant.
The study was conducted after the Ministry of Commerce asked the ODC to conduct a study on the revision of the law on industrial free zones, on its performance, as well as on the analysis cost-benefits of the plan.
The results of the ODC study were outlined in a draft strategic framework for "Special Economic Zones (SEZs).
"It has been proposed that Namibia develop SEZs which, on the one hand, provide incentives on the basis of the three programs which are part of the EPZ and the Income Tax Law, in line with the objectives of Vision 2030 and national development plans, "they said. outside.
Last year, the ministry announced that the government would introduce SEZs to replace free zones, with the aim of accelerating the industrialization of the economy. The idea was to create an environment conducive enough to allow investors to add value to the country.
SEZs are defined as geographically designated areas of a country reserved for specifically targeted economic activities, supported by special arrangements and systems that often differ from those applied to the rest of the country. They are seen as engines of growth to achieve the government's strategic goals of industrialization, regional development, and job creation.
– [email protected], Twitter: Char_Ngatjiheue.
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