Indian SMEs Carving a Niche in Namibia

By David K Parks

Namibia's economy is characterised by its heavy dependence on mineral export earnings. One of the leading exporters of diamonds in the world, Namibia is also the fifth largest uranium producer. According to the World Economic Forum, Namibia is one of the top five competitive economies in Africa.

India maintains cordial trade relations with Namibia. India exports pharmaceuticals, transport equipment, fine chemicals, rubber, ferrous and non ferrous metals and cotton to Namibia. Alternately, Namibia exports pearls, metal ores, raw hides and skin to India.

Advantage Namibia

Over the years, this African country has implemented some important policies to promote bilateral trade and investment with India. Indian SMEs eyeing expansion abroad have thus found an attractive market for growth and expansion in Namibia. The strategic location of the country makes it an ideal gateway to the thriving South African market.

Namibia's business-friendly environment has attracted several foreign investors from across the world. Its Foreign Investment Act of 1993 provides equal opportunities of growth for foreign investors. The country also provides tax benefits and special incentives to promote foreign investment.

Sectors of growth

Prospective sectors for trade and investment in Namibia include gems and jewellery, leather, textiles, energy and telecommunications.

Namibia's burgeoning tourism industry is also an ideal segment for Investment Guide. In recent times, Namibia has become a popular tourist destination in Africa. The government of Namibia is thus focusing on upgrading its infrastructure to boost tourist inflows. Indian SME in the hospitality segment can make inroads into the industry by catering to the increasing demand for luxury hotels, spas and resorts in the country.

To increase economic cooperation between the two countries, the Indian government has initiated its 'Focus Africa' policy. It has also announced financial aid for Namibia through the recently formed association - New Partnership for Africa's Development (NEPAD).

The Indian government is also considering setting up SME clusters in Namibia to provide an impetus to Indian SMEs targeting Namibia for trade and investment. With total trade between India and Namibia growing at around 63% per annum1, Indian SMEs can look at making a mark in this African country in the near term.

1 Ministry of Commerce, Government of India

David Parks is a well known author and has written articles on IT Companies Directory B2B Portal, Home Appliances Manufacturers suppliers, Manufactures and many other subjects.

Article Source: http://EzineArticles.com/?expert=David_K_Parks