Diversify, implores FNB's KaliliDiversification away from mining to spur growth Mining is not the be-all and end-all for the Namibian economy, a leading economist has said. OGONE TLHAGEFNB Namibia economist Namene Kalili recommended diversification away from the mining sector when he spoke at the Namibia Scientific Society’s talk on marine phosphate mining this week.
Addressing an unsurprisingly packed hall in the capital, Kalili advised the government to seek other forms of income in the face of strong economic headwinds.
“We need to create exports but we must do it sustainably. We need to start building new industries as revenues come under huge amounts of pressure,” the economist said.
Kalili explained that growth would primarily be driven by activities in the construction, water and electricity and health sectors, keeping the construction of the Neckartal Dam and the addition of two new state hospitals in mind.
“Investments required in these areas will drive growth. We have been busy spending quite a lot on building hospitals. A lot is happening in the health sector. We have a massive housing backlog. There is massive opportunity with mass housing.”
Shifting his attention to phosphate mining, Kalili played it safe.
“I hold no position on phosphate. We [FNB Research] are not phosphate experts and we do not know where we are going. We do not understand phosphate mining. Once we have the facts we will run them through our models.”
Environmentalist Dr Mary Seely tore Namibia Marine Phosphate’s claims into shreds in her speech. Setting the tone of her talk, she began: “The first attempt to extract manganese from the ocean floor ended in failure,” suggesting that marine phosphate mining likewise would end in failure.
“Why was the assessment for phosphate conducted in such secrecy? We have heard that there must be a subsidy for this project. 100% of the coast will be directed towards the Namibian environment while the profit will be shared by an Omani billionaire and one Namibian businessman,” she said.
Seely suggested finding alternatives to marine phosphate mining.
“We have people doing good things using organic agriculture. Manure is a very important source of phosphate and that source is increasing. We can even look at using human excrement. Maybe we ought to get ourselves around that.”