The main challenges facing the manufacturing industry this year would be high fuel costs, high interest rates, rising inflation and unstable exchange rates. These factors are making it much more difficult to operate profitably and plan ahead, says chairman of the Namibia Manufacturers Association, Koos Ferreira. Adding salt to the injuries is that manufacturers are struggling with higher tax rates, higher and electricity costs among other things.

“ In spite of these constraints, we are optimistic that we will, together with the Ministry of Trade and Industry and rest of the private sector, be successful in improving  aspects such as the incentive regime for manufactures and preferential procurement of local products,” says Ferreira.
Electricity and load shedding is another bottle neck. The association recently held a discussion with the Electricity Department of the City of Windhoek. The Department promised that where load shedding becomes necessary, the municipality will start with residential areas on a rotational basis and move last to business areas, industrial areas and hospitals.
The municipality also requested that a list be compiled providing contact details of manufacturers who would like to be warned before the time of planned load shedding in their area. The list was compiled and provided to the municipality. Similar arrangements will also be made in other electricity distribution areas in Namibia. According to the association, so far, due to voluntary savings and ripple control no load shedding has become introduced.
“This situation might however change during the winter when electricity consumption is significantly higher than in the summer. Manufacturers are therefore urged to continue saving electricity where possible,” the Association said.
Nampower has said the southern region has now entered into an abnormal supply situation following Eskom’s move to reduce exports of power to neighbouring countries.
According to the manufacturers association, where electricity is supplied to a bulk user such as a RED or municipality, that user has to decide which areas to target for load shedding, should that become necessary.
Due to new mines or expansions in the Erongo region, power needs in that area will increase by more than 200 MW between 2008 and 2010, according to the association.