July 27, 2011

Namibian beef and agricultural products are set to enter the Chinese market following the finalisation of a standing agreement on sanitary and phyto-sanitary export requirements between the two countries.

Namibia has failed in its initial attempts to export beef and fish to China due to the absence of such an agreement, even though demand for the two products is high in that market.

The battle however is half won for Namibia - the country still has to address the issue of exporting unprocessed primary products to China.

Latest figures from the Chinese state put the trade volumes at US$713 million a year as of 2010, with minerals taking up the largest chunk of goods exported to China on an annual basis.

Markets for unprocessed primary products are highly volatile and low in value, says the Under-Secretary of Trade and Commerce in the Ministry of Trade and Industry, Edward Kamboua.

The next step, he says, is to transform the current relationship with China into one that enables the creation of "a new culture of value addition to our natural resources".

Chinese Ambassador to Namibia, Wei Ruixing says the two countries "are now facing an unprecedented opportunity to expand the economic and trade cooperation".

Namibia is asking for a new approach and strategy in investment promotion where goods are processed in the country instead of being exported in raw form.

Last week, the Ministry of Finance announced a new tax system that would penalise exports of raw materials out of the country.