NAMIBIA’s pasta exports to South Africa have reached over 8 800 metric tonnes annually for the past seven years from 1 750 metric tonnes in 2012, Namib Mills’ trade statistics show.
The data seen by shows a significant increase of 7 094 metric tonnes of pasta exported to South Africa over the past seven years, which Pieter van Niekerk, the commercial manager at Namib Mills, said is indicative of how best local manufacturing industries can thrive if provided with a conducive environment and supportive policies in which to grow.
“Pasta does not have protection in Namibia any longer, but it is an excellent example of how infant industry protection (IIP) ensured the proper vesting of an industry. Today, we are producing Namibian pasta with Namibian workers and competing with a very important food commodity in the region, improving the country’s output, consequently the balance of payments,” Van Niekerk explained.
Namib Mills increased their pasta production capacity in 2011 by 190% (from 1 100 kg to 3 200 kg per hour) to explore new markets.
He said after the increased production capacity, the company invested in distribution, marketing and sales to ensure a supply line to the South African and Zambian markets in 2012. Namib Mills also have plans to push their new Top Score instant porridge into the regional bloc, SADC.
Van Niekerk indicated that due to the demand for Namibian pasta, they are expanding their production further by injecting more capital.
“We are again in the process of expanding our capacity with 206% (9 800 kg per hour, a capital investment of N$200 million), and thus additional marketing and distribution investments in Pasta Polana is being planned for 2020, which we hope will entrench Namibian-made pasta in the region,” he said.
Furthermore, their growth was made possible as the government came on board, working with the private sector, to drive the 2030 growth vision.
“I believe we can only grow the economy and create wealth for Namibia as a nation if the government creates policies necessary to create industries, and allows the private sector to drive businesses with passion,” Van Niekerk enthused.
According to the latest Bank of Namibia economic outlook, the current account deficit, as a percentage of gross domestic product, is expected to decline to 1,3% in 2019 from 1,8% in 2018.
The exports of locally manufactured goods such as pasta will diversify the over-reliance of foreign currency inflow from the mining sector alone, and give the country a firmer standing.
reported earlier this year that trade and industry minister Tjekero Tweya said for the country to grow, reciprocal trading should happen, where exports flow out as much as imports flow in.
Email: erastus@namibian.com.na
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