This study attempts to assess the impact of the Export Processing Zone (EPZ) programme in
Namibia. Using data from the country’s EPZ programme authorities, the central bank, relevant
studies, and country reports, the study shows that although the programmes have facilitated
employment generation and foreign exchange earnings from manufacturing and exports, such
exports rely highly on the mining processing sector such as diamond cutting, polishing, as well
as zinc refinery. The reliance on mining process, and the uncertainty regarding the continuation
of such mining are important sources of vulnerability. This causes fluctuations in investments
and also helps explain the low level of backward linkages. This is especially evident in the case
of Ramatex. Several factors hamper larger investments, such as high labour unit costs, high
electricity prices, lack of affordable business and industrial premises, lack of rough diamond are
some of the factors affecting the production performance of EPZ enterprises in Namibia.
However, Namibia’s EPZ programs should to a greater extent target industries and services in
which they have good prospects of developing a competitive advantage, regardless of trade
preferences, which provide good opportunities for human capital and technology transfers, and
which generate backward linkages. The study emphasizes on the need for the scheme to be
reviewed, and be aligned to its main purpose. The main problem is that capital-intensive
industries seem to have low rate of employment compared to labor-intensive industries. Quality
infrastructure and supporting services also play a vital role in attracting investors. The study
further looks in the overall overview of tax incentive and non-tax incentives aimed at attracting
more investment to Namibia. The study in general evaluated the potential impacts of the EZP
regime in Namibia, and concluded by giving recommendations which the relevant government
ministries as well as institutions can consider.
The Public Access, L (2021). An Assessment Of The Impacts Of Export Processing Zones On Namibia’s Socio-Economic Growth. Afribary.com: Retrieved May 12, 2021, from https://afribary.com/works/an-assessment-of-the-impacts-of-export-processing-zones-on-namibia-s-socio-economic-growth
Library, The Public Access. "An Assessment Of The Impacts Of Export Processing Zones On Namibia’s Socio-Economic Growth" Afribary.com. Afribary.com, 29 Apr. 2021, https://afribary.com/works/an-assessment-of-the-impacts-of-export-processing-zones-on-namibia-s-socio-economic-growth . Accessed 12 May. 2021.
Library, The Public Access. "An Assessment Of The Impacts Of Export Processing Zones On Namibia’s Socio-Economic Growth". Afribary.com, Afribary.com, 29 Apr. 2021. Web. 12 May. 2021. < https://afribary.com/works/an-assessment-of-the-impacts-of-export-processing-zones-on-namibia-s-socio-economic-growth >.
Library, The Public Access. "An Assessment Of The Impacts Of Export Processing Zones On Namibia’s Socio-Economic Growth" Afribary.com (2021). Accessed May 12, 2021. https://afribary.com/works/an-assessment-of-the-impacts-of-export-processing-zones-on-namibia-s-socio-economic-growth