Thesis (M.M. (Finance & Investment)--University of the Witwatersrand, Faculty of Commerce, Law and Management, Wits Business School, 2016 / This study investigates the dominant determinants of Foreign Direct Investment in Namibia. The second part of the study evaluates whether FDI received in Namibia is beneficial for the Namibian economy. The study uses two different methods to test for stationarity: Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP). The study makes use of the Ordinary Least Square (OLS) in conjunction with the cointegration (CI) and Error Correction Models (ECM) to determine the factors that influence FDI in Namibia, using data for the period of 1990- 2014. The results show that, in the short-run, Foreign Direct Investment is significantly influenced by GDP, taxes, exchange rates and Drought occurrence. The results of the second part of the study were to test whether FDI received is beneficial for the Namibian economy. The Granger causality test was used to test this relationship. The results of the Granger causality test revealed that FDI is indeed beneficial for the economy. Hence, it is significant in explaining GDP in Namibia. The study recommends a review of the administration of the current investment system, which should highlight the role of each player in the economy. The study further recommends that a good quality of governance, reduced bureaucracy, low-interest rate and well-developed infrastructure will enhance investor’s confidence. Expansionary fiscal and monetary policies should be applied to stimulate GDP growth and to increase Foreign Direct Investment. Keywords: Foreign Direct Investment, Gross Domestic Product, Stationarity, Cointegration, Error Correction Modelling, Taxes and Exchange Rates. / GR2018

This report examines the role of FDI in economic growth in Namibia using annual time series data from 1980 to 2012. The relationship was explored using the VAR framework, in particular, the Granger causality. Impulse response functions and forecast error variance techniques were used for analysis. The results show that there is a positive relationship between FDI and economic growth in Namibia. The study then concluded that Namibia need more investment in other sectors such as education taking into consideration that most foreign capital is directed into the mining and manufacturing sectors. However, Namibia does not have all the necessary skill to be able to sustain the growth in GDP as a result of FDI. The study further suggested that Namibia can take advantage of export-led growth because of the positive relationship that exists between growth and export. However, there is great need to improve and diversify by focusing on exporting semi-finished and finished manufactured products instead of solid minerals and primary products that are of low value. This will enhance competitive advantage on foreign markets.

ENGLISH ABSTRACT: In Namibia the small business sector is seen to play a very important role in the creation of jobs and the growth of the economy. At the same time small enterprises face a wide range of problems, which keep the failure rates of new ventures high and often prevent dynamic business growth. To address these challenges it is insufficient to have a national strategy for small businesses or to just rely on national government and other national bodies. This is particularly important in a country like Namibia which has a small population, stretched over a vast territory, with huge differences in the resources and development patterns of the various regions. Against that background this study focuses on a particular area of Namibia, viz the Erongo Region along the coastal belt. It is Namibia’s best developed region after the central Windhoek/Khomes area, with the two towns, Walvis Bay and Swakopmund, the harbor of Walvis Bay, the Uranium mines and tourism being the foundation for business growth. After reviewing the spectrum of small business support bodies available in Namibia the study looked at a sample of 100 small enterprises in the Erongo area. They were asked about their business engagement, business prospects, main problems experienced and their awareness and utilization of support programmes. These needs profiles were then compared to the set of actual service suppliers found in the Erongo region. This showed that in practice very few of the problems are addressed, largely due to a lack of awareness, pro-activity and cooperation on both sides: local small enterprises and local support suppliers. The study ends with a range of proposals which should, if tackled on a partnership basis and in closer cooperation between the head offices in Windhoek and local bodies, lead to a steady improvement of the SME support process.

Can mining industries and mining based localities promote Local Economic Development (LED)? This case study, on the mining town of Oranjemund, seeks to examine the economic diversification prospects of the town. Stakeholder views are considered and their aspirations determined, through an interview process. Relevant theories on economic development, growth and sustainability are outline. Lessons are drawn from local and international empirical studies on mining towns. The roles and contributions stakeholders and institutions could realize that could lead to local economic diversification and LED are defined. The opportunities and threats that could affect the town’s LED process are identified. This paper concludes that it is imperative that sound relationships be developed amongst key stakeholders. It further, recommends that a strategic LED plan be designed for Oranjemund and that national government, through the regional and local authority, lead the process.

Thesis (MPA)--Stellenbosch University, 2012. / ENGLISH ABSTRACT: In 1997, the Government of the Republic of Namibia launched the Policy and Programme for Small Business Development. The Ministry of Trade and Industry at the time was assigned the responsibility, together with several different stakeholders, to implement this policy. The launch of such a programme was a step taken to recognise the importance of the small and medium enterprise (SME) sector in local economic development (LED). The core of LED transformation and the implementation of any local authority is the creation of the private sector - a primary source of development – and support of the SME sector in particular. SMEs are considered one of the main driving forces in LED. The current study, which was conducted within Oshakati Town, attempted to study the role of SMEs in the LED sector and what challenges are hampering the SME sector to participate fully and to make a serious contribution towards LED implementation at the local authority level. The study considers to what extent the Namibian government and local government policies supports the SME sector development and contributes to LED and assessed issues regarding the sustainability of the measures engaged in by the government, and especially by the local government. Further, the researcher also attempted to determine how the SME sector in Namibia has responded to the LED implementation that regards SME development as the key to social and economic development through reducing poverty and increasing employment opportunities. The findings of the study indicates that, despite the nationally recognised importance of the SME sector in terms of LED, the sector still faces major challenges in regional and local government. The challenges of business entry (start-up capital), survival and growth are often substantial. The availability of financial resources and the lack of capacity to handle complex business management issues, as well as business premises also regarding the price of business land are all important in this regard. There is a continuous need to improve and maintain the required elements that bring about a good enterprises climate. / AFRIKAANSE OPSOMMING: Die regering van die Republiek van Namibië het in 1997 die Beleid en Program vir Kleinsakeontwikkeling bekend gestel. Die destydse Ministerie van Handel en Nywerheid is saam met etlike verskillende belanghebbendes met die praktiese inwerkingstelling daarvan belas. Met dié beleidstuk het die regering oënskynlik ’n tree nader gekom aan die erkenning van die belang van die klein-en-middelslagonderneming- (KMO-)sektor in plaaslike ekonomiese ontwikkeling (PEO). Die grondslag van PEO-transformasie en die suksesvolle funksionering van enige plaaslike owerheid is die koestering van die privaat sektor – synde ’n vername bron van ontwikkeling – sowel as steun vir die KMO-sektor in die besonder. KMO’s is bekend as een van die hoofdryfkragte agter PEO. Hierdie studie, wat in Oshakati onderneem is, ondersoek die rol van KMO’s in PEO, en die uitdagings waarvoor die KMO-sektor te staan kom om as volwaardige deelnemer aan die ekonomie ’n werklike bydrae tot PEO-inwerkingstelling op plaaslikeregeringsvlak te lewer. Die studie besin oor die mate waarin Namibiese staats- en plaaslikeregeringsbeleid die ontwikkeling van die KMO-sektor sowel as dié sektor se bydrae tot PEO ondersteun. Die volhoubaarheid van die maatreëls wat die regering, en veral plaaslike regering, ingestel het, word ook verken. Voorts probeer die navorser vasstel hoe die Namibiese KMO-sektor gereageer het op die ontwikkeling van dié tipe ondernemings as sleutel tot plaaslike maatskaplike en ekonomiese ontwikkeling deur armoedeverligting en werkskepping. Ondanks die nasionaal erkende belang van die KMO-sektor in die strewe na PEO, kom die sektor volgens hierdie studie klaarblyklik steeds voor groot uitdagings op streeks- sowel as plaaslike vlak te staan. Dikwels is saketoetrede (aanvangskapitaal), -oorlewing en -groei wesenlike hindernisse. Die beskikbaarheid van geldelike hulpbronne, die gebrek aan vermoë om ingewikkelde sakebestuurskwessies te hanteer en die verkryging van ’n sakeperseel, ook wat eiendomspryse betref, is alles tersaaklike kwessies in dié verband. Dus is daar ’n dringende én voortdurende behoefte aan die verbetering en instandhouding van die vereiste elemente vir ’n goeie sakeklimaat.

Thesis (MBA (Business Management))--University of Stellenbosch, 2010. / ENGLISH ABSTRACT: In a stable economic environment and enabling macro economy, such as Namibia, a small and medium enterprise (SME) sector is vital for the growth and sustainability of the economy. Although several studies have been conducted on SMEs, to the best of the researcher's knowledge, no single study has been conducted with regard to SME development in Namibia with emphasis on the Khomas region. The aim of this study was to explore the progress made, during the last decade in minimising constraints faced by SMEs in key developmental areas, such as access to finance, sound management, business processes, marketing and strategic alliances. In order to adequately address these key developmental areas the research sought to address the following questions: What strategies should SMEs adopt in terms of management, finance, marketing and networking in order to ensure their future viability? What is the institutional capacity from the sample of 50 SMEs in the Khomas region? What are the likely capital and recurrent cost implications with respect to traders wanting to form alliances in the Khomas region? What potential problems are likely to emanate from the SMEs' venturing into the export processing enclave? The government of Namibia, in 1997, recognised the important role SMEs can play in the country's socio-economic development. A number of policy documents were issued to give clear definitions of small businesses and to stipulate government programmes intended to ensure that conditions are favourable and enabling for SMEs' growth in Namibia. This research study explores the impact of the process of development since the passing of the Government SME Policy in 1997. Furthermore, this research looked at policy documents on SMEs, national development plans (NDPs), millennium development goals (MDGs), other developmental goals and government policies relevant to SME development in Namibia. The analysis indicates that the majority (74%) of SMEs in the Khomas region are involved in general dealing, like footstalls, detergent makers and the service industry. According to the Ministry of Trade and Industry (MTI 1997: 29), lack of finance is widely regarded as one of the major obstacles to the development of more advanced small businesses. Most of the SMEs do not have sufficient funds to venture into capital intensive programmes like manufacturing activities. As a result, general dealing becomes a better option since it does not require large sums of money to start operating or to expand current operations. Financial institutions have stringent collateral requirements; therefore access to finance is regarded as a major limiting factor for SME growth in the Khomas region. The survey also concluded that most SME owners act as sole proprietors and try to perform all business operations by themselves. They usually fail to keep financial records, due to ignorance of its importance. As a result most SMEs do not know how much money they have used or profits made. This research investigated, concluded and made recommendations on the factors that have assisted or impeded SME development in Namibia, with emphasis in the Khomas region.

Thesis (MPhil (Sustainable Development Planning and Management))--University of Stellenbosch, 2007. / Community participation is a concept adopted to ensure participation and give opportunities to communities to determine their own destination in terms of their needs. It is a means of empowering people by developing their skills and abilities to enable them to negotiate with the development delivery system and to equip them to make their own decisions in terms of their development needs and priorities. The aim of the study is to asses community participation in the development planning and service delivery system by the Omusati Regional Council. As a government institution at the grass root level, it has a task to deliver required basic services through development programmes and projects. Interviews and participatory observation, including project visits were the methods used to collect information on the implementation of community participation in the decision making processes, and project implementation by the Omusati Regional Council. The study is structured into six chapters. Chapter 1 deals with the general introduction, background to the study, the statement of the problem, the hypothesis, objective of the study, perceptions, research methodology, significance of the study and organisation of the study. Chapter 2 discusses the theory and philosophy of community participation. It conceptualizes the key terms of community participation in development planning, such as sustainable development, integrated development planning and projects, decentralised development and the building block of development integrated rural development, basic service delivery and indigenous knowledge systems. Chapter 3 highlights the policy framework on community participation in terms of international, national and regional development planning policy documents. Chapter 4 is concerned with the local context of study (Omusati Regional Council), while Chapter 5 presents the data results, interpretation and analysis. Chapter 6 reflects the conclusion and the way forward.

Thesis (MBA (Business Management))--Stellenbosch University, 2008. / ENGLISH ABSTRACT: This study’s objective was to investigate what black economic empowerment (BEE) means to Namibians and what impact it has had on development in Namibia. The study also did research in South Africa for the purpose of benchmarking. Namibians in general understand and embrace BEE, but it is clear from the study that Namibians are highly skeptical about its impact in terms of empowering those who were previously disadvantaged. The purpose of BEE is to empower black people. The challenge, however, is that seventeen years after independence there is no policy yet on BEE in Namibia. Critics of affirmative action argue that it is not worthwhile empowering only certain groups of people and excluding the able-bodied, white male Namibians while the country has adopted the policy of national reconciliation, irrespective of what happened in the past. They argue that it would be fair to select people based on class, rather than race, gender or ethnicity. It is true that the picture painted so far on empowerment is skewed, but it is important to note that BEE is not about empowering the black elite or the middle class at the expense of those who really need to be economically empowered; it is about allowing every citizen of the country to participate fully in the economic development of his/her country. The research was conducted in Namibia and also partly in South Africa, as it used progress on BEE in South Africa as a yardstick. In Namibia, statements made by leaders in different sectors were studied and analysed, since there is no written policy on BEE. The study conducted surveys on businesses, including companies that have benefited from BEE, state owned enterprises, government institutions and small and medium enterprises. Individuals were also selected across the broad spectrum, of whom some were interviewed face-to-face and others through questionnaires. The study repeated the same process in South Africa, the only difference being that in South Africa it included study and analysis of policy documents. The aim of the study was to find out how far Namibia has gone in empowering its people and how this compares to neighbouring South Africa. The analysis was done in the following way: data from different sectors were compared and also assessed against targets set by different sectors or industries in their sectoral charters. Data from different industries in Namibia were also compared to similar industries in South Africa. In order to determine whether there has been any progress in terms of BEE since Namibia’s independence eighteen years ago, the results obtained during this study were compared to the figures that were available at the time of independence. The study has established that, although the Namibian government had set up a committee headed by the Office of the Prime Minister to come up with a legislative framework for the drafting and implementing of BEE policy in 2000, no such policy exists to date. All the companies included in this study indicated that they have submitted their affirmative action (AA) reports to the office of the Employment Equity Commissioner and that they adhere to this policy; yet the study has established that most of the companies do not adhere to the AA policy. There is a high degree of income disparity in Namibia, where the richest 10% of the population receives 65% of the total income. The study also found that Namibia does not have any shares in companies that were established after independence, especially in the mining industry, whereas mining is the backbone of Namibia’s economy. According to the findings of this study, with regard to the BEE agreements announced and signed so far, only those who already have wealth or are well-connected benefit from these deals. There is no controlling mechanism in place for BEE agreements and, as a result, companies choose who they want to do business with. In South Africa, the study has established, the majority of the companies have their own broad based black economic empowerment (BBBEE) policies and all the industries have either implemented or drafted their industry BBBEE charters. Although the government has laid down a good foundation for the rest of the institutions to build on, South Africa still has a long way to go, because the majority of its people are still living in abject poverty. The study established that people sitting on the committee to draft the BEE policy are permanently employed in other positions within the Government and when it comes to prioritizing jobs, BEE is not regarded as one of the most important topics. It recommends that the government appoint people on the committee either permanently or on a fixed-term contract basis, so that these people can concentrate only on drafting and implementing the BEE policy. In line with the annual AA reports submitted, businesses should submit annual BEE reports to the government. This would ensure that some efforts are made to address BEE and, as is the case with AA, most of the companies, if not all, should be required to appoint BEE coordinators in their structures to drive the process. It is also recommended that there must be a graduating system whereby companies and individuals who have attained a certain level with regard to BEE should graduate out of the system in order to give others a chance to benefit. Businesses that have never benefited before should get preference when awarding tenders and quotas. Lastly, the study recommends that the Namibian government create a fund to which all registered companies would be required to contribute a certain percentage of their profits. These funds would be used for skills development, since skills development and transfer are the most important components of economic empowerment. The study has found that many firms have good governance, they practice diversity, they are doing very well financially and their company policies also state that they reward their employees in an unbiased way; but that can, nevertheless, not be taken as a guarantee to success in BEE. There is a fast-growing middle class of black people in Namibia, but the most important thing for Namibia, however, is to determine how this middle class can contribute to the creation of wealth for the majority of Namibians. Although there are clear indications in South Africa that there is a strong presence of BEE, at least for middle class black people, much remains to be done to address the issue of poverty. Finally, there are government policies and legislations that were created to advance black people, but the success of these policies and regulations depends on the management strategies that can create a conducive environment for black people. The corporate culture in private and public institutions needs to change so as to accept and accommodate black people in order for them to make a significant contribution to the economic development of Namibia. / AFRIKAANSE OPSOMMING: Die doel van hierdie studie was om vas te stel wat swart ekonomiese bemagtiging (SEB) vir Namibiërs beteken en watter invloed dit op ontwikkeling in Namibië gehad het. Om ‘n maatstaf te stel het die studie ook navorsing in Suid-Afrika gedoen. Hoewel Namibiërs in die algemeen SEB verstaan en aanvaar, is dit uit die studie duidelik dat hulle hoogs skepties is oor die impak wat dit gehad het in die bemagtiging van voorheen benadeeldes. Die doel van SEB is om swartmense, vrouens en mense met gestremdhede te bemagtig. Die uitdaging is egter dat daar in Namibië sewentien jaar na onafhanklikheid steeds geen beleid ten opsigte van SEB is nie. Kritici van regstellende aksie redeneer dat dit nie verdienstelik is om sekere groepe te bevoordeel terwyl bekwame blanke Namibiese mans uitgesluit word nie.; dit terwyl die land ’n beleid van nasionale rekonsiliasie aanvaar het, in weerwil van gebeure in die verlede. Hulle reken dat dit regverdig sou wees om mense eerder op grond van klas as ras, geslag of etnisiteit te selekteer. Toegegee dat ’n skewe beeld van bemagtiging sover voorgehou is; tog is dit belangrik om te besef dat die doel van SEB is om elke burger van die land die geleentheid te gee om ten volle in ekonomiese ontwikkeling te deel en nie om die swart elite of middelklas te bevoordeel ten koste van dié wat werklik behoefte aan bemagtiging het nie. Navorsing is in Namibië gedoen en ook gedeeltelik in Suid-Afrika om vordering ten opsigte van SEB in dié land as maatstaf aan te wend. Die navorsing bestudeer en analiseer uitlatings deur leiers in verskillende sektore in Namibië, aangesien daar geen geskrewe SEB beleid is nie. Opnames is gedoen van besighede, insluitend maatskappye wat bevoordeel is uit SEB, ondernemings in staatsbesit, regeringsinstellings en klein en medium ondernemings. Daar is ook insette verkry van ’n breë spektrum van individue – deur persoonlike onderhoude of deur middel van vraelyste. Hierdie proses is in Suid-Afrika herhaal, waar ’n studie en analise van beleidsdokumente ingesluit is. Die doelwit met hierdie studie was om vas te stel hoe ver Namibië gevorder het in die bemagtiging van sy mense en hoe dit met die situasie in Suid-Afrika vergelyk. Die analise is soos volg gedoen: data van verskillende sektore is vergelyk en ook evalueer teen doelwitte wat in die handves van verskillende sektore of industrieë uiteengesit is. Data van industrieë in Namibië is ook vergelyk met soortgelyke industrieë in Suid-Afrika. Om vas te stel of enige vordering ten opsigte van SEB gemaak is sedert Namibië se onafhanklikheid agtien jaar gelede, is die navorsingsresultate van hierdie studie vergelyk met syfers wat op daardie tydstip beskikbaar was. Die studie het vasgestel dat die Namibiese regering in 2000 ’n komitee onder leiding van die Kantoor van die Eerste Minister aangestel het om ’n wetgewende raamwerk vir die opstel en implementering van ’n SEB beleid daar te stel. Tot op hede is daar egter nog nie so ’n beleid geformuleer nie. Al die maatskappye wat ingesluit is in hierdie studie het aangedui dat hulle regstellende aksie (RA) verslae aan die kantoor van die Diensbillikheid Kommissaris lewer en dat hulle hierdie beleid volg. Nogtans het die studie vasgestel dat die meeste van die maatskappye nie die RA voorskrifte nakom nie. Daar bestaan groot ongelykheid ten opsigte van inkomste in Namibië, waar die rykste 10% van die bevolking 65% van die inkomste verdien. Die studie het ook gevind dat Namibië geen aandele besit in maatskappye wat na onafhanklikheid tot stand gekom het nie, veral in mynbou, wat eintlik die ruggraat van die ekonomie vorm. Volgens die bevindinge van hierdie studie bevoordeel SEB ooreenkomste slegs diegene wat reeds rykdom besit of die regte verbintenisse het. Daar is geen beheermaatreëls in plek vir SEB ooreenkomste nie en gevolglik kies maatskappye met wie hulle besigheid wil doen. Tydens die studie is vasgestel dat die meerderheid maatskappye in Suid-Afrika hulle eie beleid het met betrekking tot breë-basis swart ekonomiese bemagtiging (BBSEB) en dat die industrieë hulle BBSEB industrie handves implementeer of opstel. Hoewel die regering ’n goeie grondslag gelê het vir ander instansies om op voort te bou, het Suid-Afrika nog ’n lang pad om te gaan, aangesien die meerderheid van die land se mense nog in groot armoede leef. Die studie het gevind dat die lede van die komitee wat die SEB beleid moet ontwerp voltydse posisies binne die regering beklee en dat SEB nie as ’n prioriteit gesien word nie. Daar word dus aanbeveel dat die regering mense permanent of op ‘n vaste termyn kontrak basis op die komitee aanstel, sodat hierdie persone op die opstel en implementering van die SEB beleid kan konsentreer. Indien vereis sou word dat besighede jaarliks RA verslae aan die regering inhandig, in lyn met die jaarlikse SEB verslae, sou dit verseker dat ’n poging aangewend word om SEB aan te spreek. Soos die geval is met RA, behoort van die meeste maatskappye, indien nie almal nie, verwag te word dat hulle SEB koördineerders in hulle strukture aanstel om die proses te dryf. Daar word ook aanbeveel dat ’n graduering sisteem ingestel word deur middel waarvan maatskappye en individue wat ’n sekere prestasievlak ten opsigte van SEB bereik het uit die sisteem gradueer om ander ’n kans te gee om voordeel te geniet. Besighede wat nog geen voordeel getrek het nie sou dan voorkeur geniet tydens die toeken van tenders en kwotas. Laastens beveel die studie aan dat die Namibiese regering ’n fonds skep waartoe alle geregistreerde maatskappye ’n seker persentasie van hulle wins moet bydra. Hierdie fonds sou aangewend word vir die ontwikkeling van vaardighede, aangesien die ontwikkeling en oordrag van vaardighede die belangrikste komponent van ekonomiese bemagtiging is. Hoewel die studie gevind het dat baie firmas goeie bestuur toepas, diversiteit beoefen, finasieel goed vaar en hulle beleid voorskryf dat werknemers sonder vooroordeel beloon word, verseker dit nie suksesvolle SEB nie. Daar is ’n vinnig-groeiende swart middelklas in Namibië en dit is belangrik om vas te stel hoe hierdie middelklas kan bydra om welstand te skep vir die meerderheid Namibiërs. Ten spyte van duidelike bewyse dat SEB in Suid-Afrika toegepas word, kan baie meer nog gedoen word om die probleem van armoede aan te spreek. Die sukses van die beleid en wetgewing wat deur die regering ingestel is om swart vooruitgang te ondersteun hang uiteindelik daarvan af dat ‘n omgewing geskep word wat bevorderlik is vir die benutting van geleenthede. Die korporatiewe kultuur in beide private en openbare instellings moet sodanig verander dat swartmense aanvaar en tegemoet gekom word, sodat hulle betekenisvol tot die ekonomiese ontwikkeling van Namibië kan bydra.