Speech by German Ambassador, Arne Freiherr von Kittlitz at NCCI Breakfast:

I am still new to this country, and most of what I have to say is no news to you. - The German-Namibian economic relations have a solid foundation, and yet there is, of course, room for development.
Namibia is supplying Germany with important export products like copper, chrome and meat. Exports to Germany in 2006 reached 94,1 Million Euro, alone over 56 million are due to copper and copper products.
German direct exports to Namibia were worth around 61,6 million Euro in the 2006 . Many of these German products in Namibian shops are imported via South Africa, therefore I think the figures I gave you show only a part of the picture.
Our trade balance is therefore in favour of Namibia.
Namibia is a good choice for investors given the country’s peace, security and political stability. Investments can create employment and are therefore of high priority for the Namibian Government. A prosperous and industrialised Namibia, developed by human resources in peace, harmony and political stability, is part and parcel of the Namibian government’s Vision 2030. This is something Germany as a major development partner of the Namibian Government can fully subscribe to.
I would like to emphasize that business opportunities in Namibia are attractive to foreign investors. The investment conditions are good: The GRN has set up export processing zones, there are favourable tax conditions and capital transfer possibilities and the Government has set up an Investment Centre in Windhoek which provides detailed information on foreign investments in the country.
Namibia has many assets like a well established, modern infrastructure comprising railroads, roads (among the best in Africa, and Germany is strongly involved in the transport field), and not least your port facilities.  Germany also assists in the further development of the Walvis Bay Harbour as part of our development cooperation.
Namibia has skilled workers and a large number of small and medium-size enterprises which are contributing to the GDP. Namibia has an open market economy, a sound fiscal policy. Much emphasis is placed on the development of skills.
There is an investment protection treaty between Germany and Namibia, which is of key importance to German investors.
However, any potential investor will compare Namibia with other options. Everybody these days thinks and plans in global terms.
Namibia is a small market with long distances to cover and this disadvantage cannot be changed by any government.
Labour is inexpensive, but Unions are strong and what will be written into the next Labour Act we will have to see. With regard to efficiency and productivity Namibia has to see the changes in the global context. A nearly total shutdown over the Christmas period starting in mid December and ending after mid January, that is more then we know from the European summer time period.
How about energy: are we about to face a serious shortage? When and how will it be overcome?
Telecommunications were an asset in the past but nowadays many complain about high prices and the slow transmission rates.
ICT is becoming an ever more important factor. Many investors – and tourists – get their information from the internet and they want to have it fast. Here I see room for improvements.
And then, for a foreign investor there are administrative hurdles:
it takes longer than elsewhere to register a business, and to obtain the necessary work permits for foreign experts is a long and cumbersome procedure.
It is still a sad truth that the results of many Namibian school leavers are not satisfactory. I understand that the import of foreign labour is politically difficult for a country with a high unemployment of 36%,  but for many tasks you will continue to need foreigners, at least for a while, and maybe forever, just like we in Germany. This includes, for instance, currently all options of generating the needed energy, not just the nuclear option or the Kudu power station. The legacy of the apartheid education system, we are aware, continues to place a high burden on Namibia.
The German Government assists Namibia in various ways to improve the general conditions for private sector growth and employment, particularly in Namibia’s northern regions.
Basically the programme addresses three challenges of entrepreneurs and especially SME businessmen and formerly disadvantaged in Namibia:
First, creating an enabling environment for SMEs.      
 a) Supporting economic policy making on different levels, e.g.
-by supporting the government of Namibia in developing and imple-menting a Private Sector Develop-ment Policy (a cross-sectoral, cross-ministerial and comprehensive approach on how the government can support the development of the private sector, especially Small and Medium Enterprises, uniting SME Policy, Industrial Policy as well as Trade and Export Policy) and a Policy on Local Economic Development (The issue is: How can the government create a conducive environment for economic development in the regions, in towns and municipalities?)
- And then by Support of strategy development for sectors (e.g. Namibia Manufacturers Association) and national branding (Team Namibia)
b) Improving economic data and data collection as a basis for decision making, e.g. by
-Support of the improvement of the statistics of the government by a nationwide enterprise census
-Support of analytical studies (e.g. on capital outflow)
c) Strengthen Public Private Dialogue, e.g. by
-Support of the President’s Economic Advisory Council in setting up structure and strategy
-Organizing Stakeholder workshops (e.g. in the context of policy/strategy development)
d) Improve policy implementation, e.g. by
-Different trainings and other capacity building measures for ministries and other institutions (e.g. on local economic development, competition policy, best practices on enabling environment etc.)
Secondly, strengthening the market for business development services, e.g. by
-Enhancing the qualification of trainers and consultants for SME and strengthening a network of such Service Providers (JCC)
-Support the efforts of Commercial banks of Namibia to offer post-loan mentorship and training services for SME
-Training of SME entrepreneurs by DED (e.g. book keeping for wood processing etc.)
And thirdly, providing financial services for SME, e.g.:
-Currently GTZ already supports a microfinance project in four northern regions, offering micro credit to several thousand clients. We hope that with support of KfW a formal microfinance bank will soon be established which would expand the range of services and reach out to other regions.
-Next to this it is foreseen that KfW will assist the Nampost Savings Bank as well as the Namibian ‘Development Bank to extend their services.
My GTZ colleagues who I am glad to see here will certainly be able to answer any further question you might have on this impressive list.
In Namibia the German cultural influence is evident, especially to foreign visitors. Namibia is at the moment popular for German TV productions. A soap shown in the German TV in December which was set in Namibia attracted about 7 million viewers in Germany, Austria and Switzerland. This is good PR for Namibia.
Many of this viewers in Europe will want to visit Namibia. Namibia attracts a great number of German tourists every year. Tourism will remain the biggest  economic growth factor in the future. The Tourism Satellite Account which was concluded last year showed the growth potential of this sector and the future employment opportunities it offers. Very often tourism is perceived as a “white “ business where formerly disadvantaged Namibians do not benefit. I do think that the TASA changed this impression. Last week PM Helmut Angula and Minister Willem Konjore stressed the importance and the success of conservancies. Personally I believe that conservancies have the potential to offer very interesting prospects for many communities that see no opportunities for themselves at present, if they manage to establish for themselves a reputation next to the many excellent lodges and guest farms we have at present.
Currently a Namibian delegation led by the Tourism Minister is promoting Namibia at the International Tourism Fair in Berlin.
In economy irrational factors and perceptions do play a role. We see this in Germany at the moment. After the Soccer World championship last year the mood has become more optimistic. The reasons may be difficult to explain, but the effect is clearly there. I do hope that the upcoming games in South Africa will bring lots of chances for the Namibian economy as well.
In Germany many view the land reform in Namibia as an key indicator where the country is heading. Namibia’s state visitor last week took his own route to land reform for his country, Zimbabwe. As Ambassador I tell German visitors and potential investors that the assurances of the Namibian Government concerning the respect for the rule of law are reliable and trustworthy.
But you all know that perceptions are hard to argue against. Any impression that link Namibia and Zimbabwe on the land reform issue are poison for FDI (= Foreign Direct Investment) in my view.
In my short time in your country I have met with several businessmen from Germany who came here to explore the possibilities and chances. They were all delighted by what they encountered, but the market for foreign direct investment is a very competitive one and as a German saying goes other fathers have beautiful daughters, too.
There is one type of investor that is, I believe, of special significance here, and I think quite a few Germans fall into this category. I am thinking of the businessperson who comes first as a visitor, then for love of Namibia’s  splendours and its people, wants to invest here in spite of certain drawbacks he or she is clearly aware of. I think that is the sort of investor we would like to see more of.