Much more room for growth as ties increase

Industrialization of Namibia's economy makes significant progress thanks to Chinese investment

China's trade and investment cooperation with Namibia, championed by political trust and growth of the Belt and Road Initiative, has not only grown stronger in traditional sectors, but led to broader prospects in emerging areas like energy transition and green development, said experts and government officials.

Namibia, with its abundant resources and promising growth potential, is an ideal partner for China's technology and financing capabilities. Recognizing this, the Southern African nation has warmly embraced Chinese investment to bolster its capabilities in various key sectors, such as healthcare, education, urbanization, digitalization and energy transition, said Ding Rijia, a professor of industrial supply chain operations at the China University of Mining and Technology in Beijing.

Ding said that industrialization efforts have seen significant progress through Chinese investments. Namibia has leveraged China's resources and expertise to boost its manufacturing industry. This has resulted in the establishment of new businesses, the expansion of established ones and the creation of employment opportunities, driving economic growth.

Echoing such positive sentiment, Elia Kaiyamo, Namibian ambassador to China, said he looks forward to Chinese investment in Namibia, hoping to expand bilateral trade with the world's second-largest economy.

As Namibia, inspired by China, is exploring a modernization path with its own characteristics, the ambassador spoke highly of the BRI development and emphasized the importance of cooperation with China in infrastructure, regional connectivity and foreign trade.

He said Namibia supports China, welcomes Chinese businesses to invest and cooperate in Namibia and stands ready to work with the Chinese side to push for greater development of bilateral relations.

Regarding some Western countries' attempt to "decouple" from China or "de-risk" their trade with China, Kaiyamo stressed Namibia is ready to cooperate with China because of its favorable business environment and massive market.

Thanks to their complementary foreign trade structure and closer business ties, the value of China-Namibia trade grew by 4.8 percent year-on-year to $765.58 million in 2022, data from China's General Administration of Customs showed.

Their two-way trade soared 30.4 percent on a yearly basis to $918.23 million in the first eight months of 2023.

China primarily exports machinery and electrical products, trucks, textiles, furniture and other daily necessities to Namibia. Meanwhile, it imports agricultural products, natural uranium and mineral products, such as lead, manganese and copper ore from Namibia.

The close collaboration with China is essential in supporting Namibia's efforts to shore up exports, build more infrastructure and modern service facilities, said He Wenping, a senior researcher on African studies at the Chinese Academy of Social Sciences in Beijing.

He said that continued foreign and domestic investment in infrastructure development such as ports, roads, airports and power stations will be key elements in supporting economic growth in Namibia, at least over the next decade. This will create favorable conditions to boost trade and people-to-people exchanges in this fast-growing African economy.

Namibia inaugurated two new substations and a 190-kilometer interconnector overhead transmission line in the country's northern region in early October, according to information released by Namibia's ministry of mines and energy.

The Kunene substation, located 30 km south of the Angola-Namibia border at the Ruacana Power Station, and the Omatando substation in Ongwediva are now connected by the overhead transmission line. These facilities were built by the Chinese company Sinohydro, a subsidiary of Power Construction Corp of China, a Beijing-based State-owned enterprise, with a local partner.

Zhang Xiaojun, an executive from Sinohydro, said that these projects represent a milestone in advancing the region's energy infrastructure. He also noted that the project provided employment for 300 locals and supported Namibian subcontractors and suppliers.

Namibia's Minister of Mines and Energy Tom Alweendo said these substations and transmission lines serve as vital highways that will bring electricity to every part of the country and assist regional integration.

"As we expand our network, we open doors to greater trade opportunities, collaboration and growth with Angola. These infrastructures certainly allow for future trade to be strengthened between our two countries," he said, noting that the Kunene substation will serve as the connection point between Namibia and Angola.

Kahenge Haulofu, managing director of Namibia Power Corp, the national electric power utility service provider, said that the project is historic as it marks the company's largest collaboration with a Chinese firm and is aimed at strengthening northern Namibia's energy infrastructure.

It is worth noting that the majority of Namibia's electricity is generated through hydropower and 61 percent of Namibia's energy is imported, he said.

In order to assist Namibia — strategically positioned as a gateway for imports and exports to and from its landlocked neighbors within the Southern African Development Community region — China has extended foreign aid to bolster infrastructure development.

The most recent project under this initiative focuses on the enhancement of the road connecting Windhoek to Hosea Kutako International Airport, aimed at accelerating the progress of regional connectivity-related projects.

Initiated in May 2022, the Phase 2B project is an integral component of Namibia's regional trunk routes. It encompasses the construction of a 21.3 km dual-carriage freeway, along with three interchanges, two river bridges and various drainage structures. Financed by the Chinese government, the project is anticipated to be finalized over three years.

The project is being built by a Namibian-registered Chinese firm, Zhong Mei Engineering Group, together with local subcontractors. It will create more than 300 jobs and provide technological advancements through skills transfer.

Eager to bolster business ties, government and business representatives from China and Africa signed agreements worth 26.2 billion yuan ($3.59 billion) for in-depth cooperative pilot zone projects during the third China-Africa Economic and Trade Expo, which was held in Changsha, the capital of Central China's Hunan province from June 29 to July 2.

The projects encompass a wide range of sectors, such as the import of Madagascan lamb, the establishment of a China-Africa agricultural product e-commerce platform, the development of the China-Africa cashew nut industrial chain and the creation of a Hunan industrial park within a national economic zone in Namibia.

These agreements signify the deepening of cooperation between China and Africa in trade, investment and infrastructure development, according to information released by Hunan's provincial department of commerce.