Staff Reporter
THE Ministry of International Relations and Cooperation has mentioned that the bilateral relations shared between the United States of America (USA) and Namibia may very well be influenced by the worldwide political local weather, as seen within the U.S. determination to halt international support.
The transfer has left a whole lot of Namibian staff dealing with uncertainty relating to job safety after President Donald Trump reduce funding from the United States Agency for International Development.
The U.S. President’s Emergency Plan for AIDS Relief (PEPFAR) introduced in August 2023 that it could make investments roughly N$840 million (US$45 million) in offering well being and social companies to susceptible youngsters, adolescents, and youth in Namibia.
The five-year “Reach Namibia” programme focused youngsters and youth made susceptible by HIV in chosen areas, bettering their entry to well being and social companies to stop them from contracting HIV and to remain AIDS-free. This is among the many U.S. programmes that breathed life into many non-governmental organisations in Namibia, which now face a scarcity of funds.
Marbeline Sabatha, Deputy Director of Information Research inside the Ministry of International Relations and Cooperation, mentioned that the ministry believes the U.S. administration’s withdrawal from the Paris Climate Accord, the World Health Organization, and the International Court of Justice has solely weakened multilateral establishments in confronting challenges posed by present geopolitical realities.
“Regarding U.S.-Namibia bilateral relations, the relationship between the U.S. and Namibia is cordial. Through this relationship, Namibia has benefited from various programmes offered by the U.S., such as the President’s Emergency Plan for AIDS Relief (PEPFAR), the African Growth and Opportunity Act (AGOA), the U.S. Agency for International Development (USAID), the Young African Leaders Initiative (YALI), and the Peace Corps. Namibia also benefits from regional programmes in the field of energy through the Southern African Regional Energy Programme, which is part of the U.S. commitment to supporting regional integration and the transition to clean energy. Substantial investment is entering the energy sector from the U.S., particularly in the oil and gas sector,” Sabatha mentioned.
She added that Namibia exports uranium ore, diamonds, treasured and semi-precious stones, marble, travertine, alabaster, frozen boneless meat, fish, charcoal, important oils, and cosmetics to the U.S.
“While the relationship is mutually beneficial to both countries, it can also be influenced by the international political climate, as seen in the U.S. decision to halt foreign aid. It is not clear how much assistance will be affected, as funding for many projects has already been appropriated by Congress and is obligated to be spent. What might affect Namibia is when these programmes are revisited for renewal. Namibia remains open to engaging with the U.S. on matters of mutual benefit,” Sabatha mentioned.
Touching on AGOA, which was enacted in 2000 to supply Sub-Saharan nations preferential entry to the U.S. market, Sabatha mentioned that Namibia signed the Trade, Investment, and Development Agreement.
She added, nonetheless, that Namibia has not absolutely leveraged its AGOA advantages, because it stays largely a commodity-based exporter, significantly of diamonds and uranium.
“The closure of Ramatex has hindered the growth of Namibia’s textile industry in the U.S., which was once central to U.S.-Namibia trade relations,” Sabatha mentioned.
Governor of the Bank of Namibia, Johannes !Gawaxab, giving his views on the topic, mentioned that commerce wars between the U.S. and South Africa might affect Namibia.
“What we need to do is watch trade wars and exchange rate movements, particularly the relationship between South Africa and the U.S., which will have a profound impact on the Namibian economy. There are about 600 U.S. companies in South Africa, employing 2,000 people. This accounts for about 5% of South Africa’s GDP. We will see the impact of negative trade relations through the exchange rate, as the Namibian dollar is pegged to the rand,” !Gawaxab mentioned.