We are not dismissing the challenges Namibia’s businesses are facing. However, it is time we start facing those challenges positively. There are many Namibian companies who have seen – and who continue to see – real growth in the face of the worst recession in more than 5 years. That is something we should be celebrating and emulating. It is something that is very much within reach.
Our Business model is focused on nurturing and developing growth in Namibian. To make sure our approach is as effective as possible, it’s built around those sectors identified by the government Economic Strategy as offering particular opportunities for growth – creative industries, energy, financial and business services, food and drink, life sciences, tourism, including the significant opportunities from Namibia’s science, technology and advanced engineering assets.
Between them, these sectors account for about 30% of employment, which makes their importance to the Namibian economy very clear. Our strategy must however, also recognise that each sector contributes in a different way and we need to ensure that our input is tailored to add the greatest impact. We are determined to focus our efforts on what works. That means prioritising our activities within sectors according to the areas we have identified as being key to progress: growth companies, innovation, international trade and investment and low carbon.
We will be working with companies to seek out and respond to opportunities – including opportunities they might not have considered before. We will help them make the robust decisions that will give them the determination and confidence to make maximum impact on their markets. Our work will also focus on responding quickly to key events like ownership change or innovative new products, services or business models, to capitalise on a period of renewed activity. Therefore, we will keep recognising the importance of leadership and organisational development and of innovations that carve out a clearer route to global markets.
We will be seeking international trade and investment in global markets where our companies and their services have a high chance of success. Manufacturing technologies, for example, are going to be crucial to the future success of Namibia’s companies, so we will maintain a focus on making use of opportunity to help our companies grow and put new products in the market.
Over the next three years, we will deliver a clear and robust business model focused on opportunity and growth. There is no denying the difficulties still to be faced, but early indications of lessening international uncertainty; together with confidence in our work, our partnerships and our determination, will help us keep fostering investment opportunities, supporting ambition and expansion and, above all, focusing on Namibia’s economic growth.
Our ambition is to help make Namibia more globally competitive. Our Business model for the next three years will sets out what we are going to do to achieve that ambition and how we will responding to the economic challenge. The plan will sets out how we will stimulate investment and action through a balance of short, medium and long-term activity that will help to rekindle Namibia’s economic growth.
The rolling nature of our business plan will allows us to build continuity into our operational activity and at the same time, reflect changes in the economy and new market opportunities. As such, we will continue to concentrate on our strategic priorities and maintain a firm focus on the framework provided by the government Economic Strategy with its emphasis on growth sectors, growth companies and growth markets.
Global growth continues to be weak, compounded by continuing uncertainties caused by the Eurozone crisis, cuts in government spending, rising commodity prices and difficulties in accessing finance. As a small open economy, Namibia is not immune to these global trends and there is no doubt that economic conditions remain tough. While economic uncertainty is never a desirable situation, some of the world’s greatest businesses have started during a downturn or recession. If the company depends on products from suppliers, a downturn is a great time to negotiate or renegotiate a deal that will benefit you even after the downturn ends. When the economy is strong, the vendor sets the rules. A company built during the tough times is designed from the ground up to be a lean, mean, efficiency machine – whether it is bootstrapped or not. These habits should stay with the business when the market recovers, giving higher profit margins since the business will be able to lift prices once consumers and clients are spending again. If one can build and grow a business when consumer confidence is down and businesses are tightening their belts, the business will be bulletproof when things improve.
Job Mateus
CEO – Mega Engineering & Technology