Economic Briefs

Friday 30th of May 2003
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24 Million N$ pig farm

The minister of agriculture, Mr Helmut Angula inaugurated the Namibia Pig farm at Mariental last weekend. It is a joint venture of a black empowerment group with partial funding from the Government Institutions Pension Fund (GIPF). The project already started last year and so far produces 250 pigs per week for the local market. About 8000 pigs are raised on the farm. A similar project outside Swakopmund along the Swakop River by an entrepreneur was halted for unknown reasons, before it could materialise, about two years ago.

2 Million To Be Won Next Week

Namibians can look forward to win up to 2 million dollars next Thursday, when a local insurance company will announce the winner during a live television broadcast on 5 June at 19h50. The over 50 000 members of the company can put their entries via SMS messages on their mobile phones. This is the first time such a large sum can be won in the country.

 

Ostrich Industry

Cabinet noted that the Namibian Ostrich Industry (NOI) is currently not a viable business. Cabinet thus agreed to issue a guarantee of N$ 14 million that will be used for the purchase of 14 000 ostriches by communal farmers as well as for working capital. In December 2002 the NOI was declared a strategic industry, which would be supported by Government for three years. The subsidy would be N$ 190 per bird slaughtered in the first year, N$ 250 per bird slaughtered in the second year and N$ 320 per bird slaughtered in the third year.The Minister noted thatthe financial position worsened significantly. The shift in the exchange rate and market conditions had a decreasing effect of up to 30% on prices for ostrich meat and skins. Fodder prices increased due to a shortage. These events resulted in a drop of revenue of the industry in excess of N$ 20 million since November 2002.

 

Shivute PRO for Ramatex?

The government’s information policy took an interesting turn on Friday with the permanent secretary of the ministry of information and broadcasting, reacting with a press statement to a letter, which appeared in a local daily two weeks ago. Without mentioning the author, DTA youth leader Joseph Kauandege, who attacked the government’s investment policy with regard to the textile factory Ramatex, Mr Mocks Shivute, informed the public in his statement that the strike of around 700 Chinese workers at Ramatex was in fact but were "released from work to allow them to observe their own national religious festival, just as we celebrate Christmas, Easter and other religions holidays". In is letter, Mr Kauandenge not only criticised the low wages Ramatex paid to Namibians – who went on strike recently – but also the protection Ramatex seemed to enjoy by the Namibian government. The management of Ramatex did not react to that letter, which appeared in the English daily’s edition of16 May, 2003. Instead, Mr Shivute chose to act as public relations officer (PRO) for the company. "We would like to emphasise that we do not believe in destructive state intervention, as advocated by the writer of the letter", Mr Shivute noted in the media statement, using the "Royal We", probably referring to the Namibian government. The average wages of about N$ 500 for the Namibian workers, Mr Shivute explained instead of Ramatex like this: "These workers are currently undergoing intensive on-the-job training; that is a general requirement in textile and garment production if this magnitude. This means that the recruits are not yet fully qualified members of the Ramatex workforce, and as such are not eligible for the pay packages offered to their more skilled colleagues", the permanent secretary of the ministry of information explained on behalf of Ramatex.

"The Namibian government is not in a position to dictate labour relations," he noted further, as relevant labour laws were in place. Mr Shivute however forgot to mention that both Mr Tarah Shaanika, CEO of the Namibia Chamber of Commerce and Industry criticised the strike of the almost 3000 Namibian employees of Ramatex. President Sam Nujoma did the same during his speech on 1 May, Labour Day.

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