Japanese scout forbusiness opportunities
Japanese scout forbusiness opportunities

Japanese scout forbusiness opportunities

Namibia is the best gateway to inland markets for Japanese high-value cargo which requires safe and efficient logistics, a visiting trade delegation has been told.
Otis Finck
Members of a Japanese business mission consisting of representatives from eight major Japanese companies visiting Namibia appear to be enthusiastic about development projects and investment opportunities on offer in Walvis Bay.

According to the delegates, the fact that Namibia has established itself as one of Africa's most economically and politically stable countries over the past 27 years makes the country a good candidate for foreign investment.

The mission headed by Takashi Yao, chairman of the Japanese Chamber of Commerce and Industries (CCIJ) in South Africa, visited Walvis Bay on 21 and 22 February.

Yao explained that the purpose of the Japan Business Mission to Namibia was to promote and facilitate the development of Japanese business activities in the country by collecting information updates and intensifying the understanding of the country's economic policy, the development plan for infrastructure and industry, policies for mineral resources and the energy sector, the investment environment including incentives and regulations, as well as aspects of stability and political security.

“The 64 CCIJ member organisations are looking for new opportunities to expand businesses not only in South Africa but also in Sub-Saharan Africa, including Namibia, in the wake of the sixth Tokyo International Conference on African Development (TICAD VI) held in Kenya in 2016.

“I sincerely hope this mission will contribute to the deepening of mutual understanding and the development of economic and trade relations between Namibia and Japan,” he said.

“Japanese companies' business interest in Africa revolves around the automotive industry, natural resource development, infrastructure-related business and consumer markets.

“There is huge potential. The further development of the Walvis Bay port enhances its attractiveness as a gateway to Sub-Saharan Africa and will bring new economic opportunities and contribute to the continued prosperity of Namibia.”

The mission delegates were briefed on the International Logistics Hub Masterplan, aspects of the Walvis Bay Corridor Group (WBCG), the Walvis Bay Export Processing Zone Management Company (WBEPZMC) and the United Nations Industrial Development Organisation (UNIDO) during a seminar at Protea Hotel jointly organised by CCIJ and the Japan External Trade Organisation (JETRO).

Shigeki Kawara of the Japan International Cooperation Agency (JICA) informed the delegates that the port of Walvis Bay had some huge advantages as the gateway to inland markets and invited them to try the Namibian route.

“Namibia is the best gateway for Japanese high-value cargo which requires safe, secure and efficient logistics. The new container terminal will possibly open in September 2018 and increase the existing handling capacity significantly.

“There are weekly container services available between Japan and Namibia. Ocean freight from Japan to Namibia is a little bit expensive but trucking costs are almost the same.

“Concerning trade with America or Europe, the Namibian route is cost competitive. Major South African logistics companies are present in Namibia and this enables the establishment of logistics networks in cooperation with Johannesburg and Durban while already established logistics networks in South Africa can be used in Namibia.”

He pointed out that Namibia had the lowest theft risk in Africa.

Inland transit time is the shortest via Namibia. This means no damage and safer transportation of Japanese high-value cargo to Zambia and the DRC. Namibia can minimise the risk of cargo theft and damage when hauling.

Levy Maduse, the national project officer for the United Nations Development Organisation (UNIDO), provided a brief overview of regional projects and investment opportunities along the Walvis Bay Corridor.

These include Otavi Rebar Manufacturing, which consists of 18 projects worth US$140 million and involves the production of reinforced bar for construction from scrap metal and or billets.

Lodestone Iron Ore Mine consists of 127 projects worth US$240 million. It focuses on iron ore mining.

The Grootfontein Container Depot consists of eight projects worth US$80 million and ensures container facilitation from rail to road.

There is also a 300MW base load power plant which consists of 48 projects worth US$1.0 billion. It will be constructed in two phases of 150MW each.

There are also 50 poultry farm projects worth US$190 million which produce for the local (5% fresh/frozen) and foreign markets (95% fresh/frozen). Chicken manure pellets are exported to Europe, intestines to Zambia and feet to China.

OTIS FINCK

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Namibian Sun 2024-11-23

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