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Drought leads to 35% growth in lifestock marketing

The Namibian drought situation has seen many farmers sell their livestock, leading to a 52.1 percent growth in meat processing. Klaus Schade of the Institute for Public Policy Research (undefinedIPPR) cautioned that such growth is not encouraging as it will in future lead to reduced production capacity. 

Leading economist Rowland Brown added that the selling of livestock does not boast well for the future as the decreased national herd will lead to a reduction in future meat processing. This can be harmful to MEATCO, the leading meat processor in Nambian, who is already experiencing losses.

End of Commodity Super Cycle

Klaus Schade further stated that unlike most economists, he doesn’t think the commodity super cycle has come to an end, but is optimistic that prices of commodities such as uranium, zinc and copper, which are 12, 10 and 16 percent lower than at the beginning of 2013, will eventually pick up as the global economy recovers.

He also held that as important as it is to Namibia to diversify from natural resources, the nation has to view its primary resources as a ‘means to an end’. By using the gains from minerals in the same way the UAE did, Namibia can also grow its other sectors. 

Namibian dollar looses more value against EURO despite Euro zone crises

The Namibian currency has lost more than a quarter of its value against the EURO, in comparison to the 17% and 15% it lost against the USD ad GBP over the past year. This is reflective of the Euro zone strength, maintained Klaus Schade. Such depreciation of the NAD makes imports more expensive, thereby leading to price increases.

Namibia is slightly above the 3-6% inflation target of the South African reserve bank. This is mostly attributed to food and non alcoholic beverages, and housing, water and utilities. 

The presentation was held during a breakfast meeting organized by the Hanns Seidel Foundation in collaboration with the Economics Association of Namibia and the IPPR. It was attended by over 100 participants amongst them officials from the diplomatic corps, economists, business men/ women, representatives -of the University of Namibia and the Polytechnic of Namibia, and the media.