Namibian, Chinese trade enjoys rapid growth

Despite the financial crisis that has wrecked global economies, the volume of trade between Namibia and China has grown, resulting in commerce between the two countries exceeding US$550 million in 2009. Diplomatic ties between the two are sound.

While Chinese businesses recorded a trade deficit, the balance of trade between the two countries favoured Namibian exporters who sold more goods mostly semi-processed minerals to China that in turn exported vehicles, trucks and equipment to Namibia.

This was revealed in a recent interview that New Era had with Ren Xiaoping, the Ambassador of the People’s Republic of China to Namibia.

She said while the volume of trade between China and other countries fell partly as a result of the global financial tsunami, with Namibia it increased in comparison to 2008.

And contrary to perceptions that the bilateral balance of payment sheet favours Chinese business at the expense of Namibian business, Xiaoping said: “From January to September 2009, Chinese exports to Namibia stood at US$181 million, an increase of 27. 1 percent compared to 2008 while its imports from Namibia were US$240 million.”

Minerals and other goods exported by Namibia to China valued at US$240 million represent an increase of 45.7 percent.

“A lot of people have a wrong concept that Namibia’s imports from China are more. I think what this means is we import more from Namibia than we export to Namibia.

While China has a trade deficit, the balance of trade in this case is to the benefit of Namibian exporters,” stressed Ambassador Xiaoping.

“The main goods that China imports from Namibia are minerals and there are other things and the main goods that Namibia imports from China are vehicles, trucks, machinery and other daily necessities,” explained the senior Chinese diplomat.

“In a nutshell, Namibia and China are very good friends. We trust each other. We support each other. We are described as ‘a friend in need is a friend indeed’. So, I just think that this traditional friendship between the two countries will definitely grow under the joint efforts of the two sides, and I hope the friendship between the two countries lasts forever,” she told New Era during an interview last Thursday at the Chinese Embassy.

Namibia has been consistent in giving moral support to China and has been unwavering on its recognition of the One-China Policy and it gave “strong moral support” to China to host the 2008 Beijing Olympics and the Shanghai Expo to be hosted by China this year.

This special relationship pre-dates Namibia’s independence and goes back to the 60s and 70s when China trained PLAN fighters while giving arms and material support to Swapo.

Bilateral trade aside, the visit to Namibia in 2007 of Chinese President Hu Jintao during his historic tour of several African countries, resulted in China offering Namibia concessional loans amounting to RMB1 billion. And it also generously extended a preferential line of credit that is interest-free to the tune of US$100 million.

From the concessional loan, an amount of RMB41 million was used for the procurement of software and for the implementation of the e-governance project for Namibia, while RMB300 million was used for the procurement of X-ray equipment from China.

RMB645 million from the concessional loan funded three developmental projects including for the implementation of one of the phases of the Northern Railway Line as well as the upgrading of the Oshakati State Hospital in northern Namibia, which she noted: “was very run down and needed to be upgraded”.

Part of these funds was used to give a facelift and expansion of the Namibian Broadcasting Corporation (NBC), whose facilities were built during the colonial era.

“The Namibian side is satisfied with the implementation of these projects,” she said.

She said since her deployment as Chinese Ambassador to Namibia, she has worked tirelessly to ensure that the eight areas of cooperation measures promised by President Hu Jintao at the China Africa Summit held in Beijing in 2006 such as the provision of full support to African countries, that such as assistance to rural schools and hospitals are fulfilled.

“Since I came to Namibia, I have been working very hard to implement the eight measures promised by President Hu Jintao at the China-Africa Beijing Summit. Since my arrival, my job was to consolidate different relations and to further the friendship and areas of cooperation. Since my arrival, our mutual trust has grown,” she said.

The eight measures announced by the Chinese president included the doubling of grant assistance and providing US$3 billion soft loans and US$2 billion preferential buyer’s credit in three years setting up a China-Africa development fund which will be injected with US$5 billion to encourage Chinese companies to invest in Africa.

Other measures are: building a conference centre for the African Union, cancelling debts owed by heavily indebted and the least developed African countries, further opening up China’s vast market to Africa by largely increasing the number of African export items to China that receive zero-tariff treatment and strengthening cooperation in the fields of agriculture, human resource enhancement, health and education.

The inception of the Forum of China-Africa Cooperation (FOCAC) brought tangible benefits to Namibia such as the building of the regional council buildings in Rundu and Outapi, the New State House, the fishery laboratory at Kamutjonga Inland Fisheries Institute in Kavango, the Defence Academy (Okahandja), and the Youth Training Centre.

China also availed grants amounting to RMB20 million and it helped to fund a large hospital at Omuthiya where a groundbreaking ceremony has occurred.

She said China has provided over 300 training opportunities to Namibians in various fields while at the same time it has seconded a medical team at the Katutura State Hospital. There are several Chinese experts working at grassroots level while rural women and youth empowerment projects have all benefited from China’s generosity.

At current exchange rates, US$1 is equivalent to RMB6.8.

BROUGHT TO YOU BY PAMBAZUKA NEWS

* This article first appeared in the New Era on 25 January, 2010.