Investors face increasing risks
Phillepus Uusiku
Businesses and investors operating in Namibia face increasing risks from a trade and investment perspective when compared to the vast majority of Southern African states.
The Namibian economy is largely undiversified in terms of key economic sectors, says Cedric Chehab, the global head of country risk at Fitch Solutions in their recent country risk report.
Across the Sub-Saharan African region, Namibia offers a good mix of operational risk indicators. Namibia is one of the fastest growing states for business operations in Southern African, as well as the wider Sub-Saharan African region, says Chehab.
He further pointed out that Namibia suffers from very low enrolment rates in secondary and tertiary education, while the majority of those that complete tertiary education, do so in non-STEM subjects such as humanities, arts, literature and management. Science, technology, engineering and mathematics are regarded as STEM subjects.
Employers
Employers in Namibia face recruitment restrictions for skilled and semi-skilled positions.
This is exacerbated by water shortages and the high cost of electricity, presenting key downside risks to both energy and water intensive manufacturing businesses, he says.
Nevertheless, Namibia remains competitive against most of its regional peers, boosted by low security risks facing businesses within its borders and superior quality transport infrastructure that make it one of the key trade gateways in Southern Africa, Chehab added.
In the report, Chehab emphasised the importance of protecting assets with advance warning of threats to the continuity of current economic policy and potential changes to the business operating environment.
Each report provides a complete examination of structural risks to the stability of each country's political system and the dominant public, he added.
“We assess the threats stemming from the country's labour market profile, logistics infrastructure, trade and investment regulations and crime and security risks, allowing investors to understand how this would support or challenge their operations, in comparison with neighbouring markets,” he says.
Businesses and investors operating in Namibia face increasing risks from a trade and investment perspective when compared to the vast majority of Southern African states.
The Namibian economy is largely undiversified in terms of key economic sectors, says Cedric Chehab, the global head of country risk at Fitch Solutions in their recent country risk report.
Across the Sub-Saharan African region, Namibia offers a good mix of operational risk indicators. Namibia is one of the fastest growing states for business operations in Southern African, as well as the wider Sub-Saharan African region, says Chehab.
He further pointed out that Namibia suffers from very low enrolment rates in secondary and tertiary education, while the majority of those that complete tertiary education, do so in non-STEM subjects such as humanities, arts, literature and management. Science, technology, engineering and mathematics are regarded as STEM subjects.
Employers
Employers in Namibia face recruitment restrictions for skilled and semi-skilled positions.
This is exacerbated by water shortages and the high cost of electricity, presenting key downside risks to both energy and water intensive manufacturing businesses, he says.
Nevertheless, Namibia remains competitive against most of its regional peers, boosted by low security risks facing businesses within its borders and superior quality transport infrastructure that make it one of the key trade gateways in Southern Africa, Chehab added.
In the report, Chehab emphasised the importance of protecting assets with advance warning of threats to the continuity of current economic policy and potential changes to the business operating environment.
Each report provides a complete examination of structural risks to the stability of each country's political system and the dominant public, he added.
“We assess the threats stemming from the country's labour market profile, logistics infrastructure, trade and investment regulations and crime and security risks, allowing investors to understand how this would support or challenge their operations, in comparison with neighbouring markets,” he says.
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