An Assessment of the Africa Growth and Opportunity Act (AGOA) and its Implications for Namibia
The United States introduced the African Growth and Opportunity Act (AGOA) in 2000 with the intention of maximising trade between the US and sub-Saharan African (SSA) countries. Specifically, AGOA aimed at developing the textile industry in SSA countries as it has the potential to contribute positively to employment creation due to its labour intensiveness nature. Unlike other trade agreements that are bilateral, AGOA is a unilateral trade preference agreement decided upon by the United States and targeting SSA countries. AGOA accords the President of the United States the right to cease the status of a SSA country that does not meet the requirements set out in AGOA. Only eligible sub-Saharan African (SSA) countries that meet certain requirements outlined in the Act can benefit under AGOA. Under AGOA, certain goods from eligible SSA countries can enter the United States duty free and quota free. The introduction of AGOA led to increased trade between the USA and the SSA countries. However, the increase in trade was not experienced at the same level in all SSA countries and did not affect all goods equally. Trade statistics show that countries that experienced substantial growth in trade included Nigeria, Angola and South Africa, Gabon and Chad. Furthermore, products dominating trade between United States and SSA countries are natural resources and primary products. Overall, petroleum products account for more the 90 per cent of all African exports to the United States. In other SSA countries, AGOA led to the development of textile industries. Thus countries like Swaziland, Lesotho and Malawi experienced a substantial growth in their textile industries. Despite the significant growth experienced by the above-mentioned countries, total exports to the US from African countries are still dominated by petroleum products. In Namibia, products that dominate exports to the US are metals, minerals, textiles and apparel. The highest overall exports of US$ 238 219 million were recorded in 2004 and dropped significantly to US $129 557 million in 2005. The reduction in exports was also experienced in the textile industry in Namibia and in many SSA countries. For instance, many textile producing SSA countries experienced a decrease in their textile exports and subsequently company closures, which led to loss of thousands of jobs. In Namibia alone, about 1 600 jobs were lost when one of Ramatex’s subsidiaries (Rhino Garments) closed down in 2005. Namibia became a beneficiary country in 2001 and qualified for the ‘special rule’ provision on apparel articles which allows lesser developed SSA countries to source their raw materials from anywhere in the world. Only countries that had been classified as lesser-developed countries on the basis that their GDP per capita did not exceed $1500 could benefit from this provision. Before, 2001, Namibia did not have a developed textile and apparel industry but this changed with the introduction of AGOA coupled with many government concessions, which largely influenced the Ramatex company decision to invest in Namibia. Ramatex is by far the largest textile factory in Namibia and was expected to create about 8 000 jobs, a reason which was used to justify the concessions offered to Ramatex. Following retrenchments in 2005 and 2006, there are currently only 3 600 Namibian workers employed at Ramatex. Despite having increased workers wages in 2006 following lengthy negotiations and a strike, Ramatex workers are still among the lowest paid industrial workers in Namibia. Furthermore, since its inception, labour relations have been tense at the company with the lack of wage increases as the main source of conflict. This study revealed that there are internal and external challenges that face the success of AGOA in SSA countries. The internal challenges relate to the ability of companies to fully benefit under AGOA due to internal capacity constraints whilst external constraints are the end of the Multi Fibre Agreement (MFA) coupled with the attractions offered by China as an investment location.
Ntwala Mwilima and Herbert Jauch
Labour Resource and Research Institute (LaRRI)
2007
© Labour Resource and Research Institute (LaRRI)
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Chinese Investments in Namibia: A Labour Perspective
This study forms part of a broader 10-country case study on Chinese investments in Africa, coordinated and implemented by the African Labour Research Network (ALRN). African trade union leaders identified the topic as a priority area for the labour movement and the ALRN study thus aims to provide them with up-to date information on the impact of Chinese investments for African workers. In Namibia, the national congress of the National Union of Namibian Workers (NUNW) in 2006 passed a resolution asking the Labour Resource and Research Institute (LaRRI) to carry out a study into Chinese investments in Namibia, with particular emphasis on working conditions. We therefore decided to publish our study as a separate booklet for debate in Namibia and hope that it will provide a basis for a sober analysis of the costs and benefits associated with Chinese investments.
Herbert Jauch and Iipumbu Sakaria
Labour Resource and Research Institute (LaRRI)
2009
© Labour Resource and Research Institute (LaRRI)
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Service Station Workers in Namibia
The main objective of the study was to examine the working conditions of workers at service stations countrywide with a particular focus of exploring the possibility of introducing a minimum wage. Specifically the study aimed to: - Examine the working conditions of petrol attendants, including working hours, overtime pay, disciplinary procedures and dismissals; - Determine the wage levels of workers at service stations; - Explore regional differences with regards to wages and working conditions at service stations; - Assess the health and safety risks associated with work at service stations; - Assess the possibilities of introducing a minimum wage in the industry; - Examine the role played by the Association of Service Station Owners; - Investigate trade union recruitment at service stations; - Investigate ownership changes and economic trends at service stations; - Explore the relationship between oil companies and the individual owners of service stations.
Herbert Jauch and Ntwala Mwilima
Labour Resource and Research Institute (LaRRI)
2008
© Labour Resource and Research Institute (LaRRI)
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Playing the Globalisation Game: The Implications of Economic Liberalisation for Namibia
Namibia‟s investment policies are largely shaped by the process of globalisation and the neo-liberal line of thought which claims that developing countries have to attract investment by offering increasing concessions to foreign investors. This is reflected in the Government‟s policy on Export Processing Zones (EPZs). However, the manufacturing sector is still underdeveloped and Namibia continues to be a net exporter of capital. The figures for the last 5 years reveal that the foreign investment received is significantly lower than the capital leaving the country each year. Last year (2000),for example, Namibia received capital inflows of 795 million N$, but more than 2 billion N$ left the country. About two thirds of the foreign investment that Namibia receives goes into the capital-intensive mining sector without contributing significantly to employment creation. Unless this trend can be reversed, there is little prospect for the development of a significant manufacturing sector in Namibia.
Herbert Jauch
Labour Resource and Research Institute (LaRRI)
2001
© Labour Resource and Research Institute (LaRRI)
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Ramatex: On the other side of the fence
This booklet will not discuss all aspects in detail but will give a brief overview of Namibia's EPZ programme as well as a profile of the Ramatex Company. The main part of this booklet deals with the experiences of Ramatex workers. All too often their views are discarded by policy makers who simply argue that ‘workers should be grateful to have any job at all’. We believe that development must be a people-centred process that cannot ignore the views of those directly affected. We therefore hope that this booklet will contribute towards making the experiences of Ramatex workers known. This booklet will present their stories as they have told them. We also hope that this booklet will contribute to a debate about the costs and benefits of investments like Ramatex in terms of long-term sustainable development.
Herbert Jauch and Hilma Shindondola
Labour Resource and Research Institute (LaRRI)
2003
© Labour Resource and Research Institute (LaRRI)
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Social Justice and the responsibility of the State: The Triple Burden of Poverty, Inequality and Unemployment in Southern Africa
Apart from presenting some interesting country case studies, these were the questions we tried to answer at the FES conference organised in February 2011 in Windhoek. Participants included representatives of governments and civil society from eight Southern African countries. In addition, various regional organisations dealing with social and economic issues participated as well. The case studies and new approaches were evaluated, focussing on their suitability for Southern Africa. The discussions brought up various fundamental questions about inequality, redistribution and social protection in Africa. Hence, this booklet is not a conference report but rather takes the deliberations as a starting point for general considerations and information on the topic. We hope to provide some thought-provoking ideas on redistribution, social protection and structural changes in Southern Africa and trust that this booklet will stimulate discussions on possible socio-economic and political changes in the region.
Herbert Jauch & Phanuel Kaapama
http://www.fesnam.org/pdf/2011/publications/SocialJustice.pdf
Friedrich Ebert Stiftung
2011
© Friedrich Ebert Stiftung, 2011
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Making the difference! The Basic Income Grant in Namibia
This report is part of a series of publications on the Basic Income Grant in Namibia. It reflects the results of the Pilot Project in Otjivero-Omitara in particular. This one year report attempts to give an overview over the new findings, and possible lessons for national implementation of a BIG in Namibia.
Claudia Haarmann, Dirk Haarmann, Herbert Jauch, Hilma Shindondola-Mote, Nicoli Nattrass, Ingrid van Niekerk and Michael Samson
http://www.fesnam.org/pdf/2009/publications/BIG_Assessment_report_08b.pdf
Friedrich Ebert Stiftung, National Union of Namibian Workers (NUNW), Namibia NGO Forum, Labour Resource and Research Institute (LaRRI)
2009
© Friedrich Ebert Stiftung, 2009
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“Towards a Basic Income Grant for All” (Pilot)
In January 2008, a Basic Income Grant (BIG) pilot project began in the Otjivero-Omitara area 100 kilometres east of Windhoek. All residents below the age of 60 years receive a Basic Income Grant of N$100 per person per month, without any conditions being attached. The grant is being given to every person registered as living there in July 2007, whatever their social and economic status. This BIG pilot project is designed and implemented by the Namibian Basic Income Grant Coalition (established in 2004) and is the first universal cash-transfer pilot project in the world. The BIG Coalition thereby aims to practically pilot the Namibian Government's NAMTAX recommendation of a BIG for Namibia. Thus the BIG Coalition regards this project as the first step towards a BIG for all. The BIG Coalition consists of four big umbrella bodies in Namibia, namely, Council of Churches (CCN), the Namibian Union of Namibian Workers (NUNW), the Namibian NGO Forum (NANGOF) and the Namibian Network of AIDS Service Organisations (NANASO). Funds to start the pilot project were raised through voluntary contributions from supporters of the idea from all sections of Namibia's society, and by support from people, churches, organisations and donors in other countries. The BIG pilot project will run for a period of 24 months up to December 2009. The effects of the BIG pilot project are being evaluated on an ongoing basis. Four complementary methods are being used. First, a baseline survey was conducted in November 2007. Second, a panel survey is being conducted every six months, the first being in July 2008. Third, information is being gathered from key informants in the area. Fourth, a series of detailed case studies of individuals living in Otjivero-Omitara is being carried out. This is the report comparing the results of the baseline study and panel data after the first six months of implementation.
Claudia Haarmann, Dirk Haarmann, Herbert Jauch, Hilma Shindondola-Mote, Nicoli Nattrass, Michael Samson and Guy Standing
http://www.fesnam.org/pdf/2008/reports/BIG_PilotProjectAssessmentReport2008.pdf
Friedrich Ebert Stiftung, National Union of Namibian Workers (NUNW), Namibia NGO Forum, Labour Resource and Research Institute (LaRRI)
2008
© Friedrich Ebert Stiftung, 2008
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Africa’s Clothing and Textile Industry: The Case of Ramatex in Namibia
Namibia’s experiences with Ramatex to date point to the urgent need to ensure (at the very least) compliance by foreign investors with Namibian laws, regulations, workers’ rights, as well as environmental, health and safety standards. Experiences elsewhere have shown that compromises on social, environmental and labour standards in the name of international competitiveness have led to a ‘race to the bottom’. The Namibian government as well as trade unions will have to demonstrate that they are serious in defending these rights that were only won through long and bitter struggles. It will be crucial to demonstrate to Ramatex that Namibian laws, regulations and rights are not negotiable. Otherwise, Ramatex will set an example for others to follow, resulting in the loss of some achievements made by Namibian workers since independence. in: Herbert Jauch / Rudolf Traub-Merz (Eds.) - The Future of the Textile and Clothing Industry in Sub-Saharan Africa (Bonn: Friedrich-Ebert-Stiftung, 2006)
Herbert Jauch
http://www.fesnam.org/pdf/2006/reports_publications/Jauch_AfricasClothing_TextileInd2006.pdf
Friedrich Ebert Stiftung
2006
© Friedrich Ebert Stiftung, 2006
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Alternatives to TIPEEG: Possibilities for Employment Creation in Namibia
The TIPEEG results thus far do not provide reason for too much optimism and the programme is unlikely to reach the targeted 104 000 new (although mostly temporary) jobs. What then are possible options to create thousands of permanent, sustainable and decent jobs in Namibia in the coming years? Paper presented at a parliamentary forum hosted by the Friedrich Ebert Stiftung in Windhoek on 6 March 2013
Herbert Jauch
http://www.fesnam.org/pdf/2013/AlternativestoTIPEEG.pdf
Friedrich Ebert Stiftung
2013
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Transitions in Namibia : which changes for whom?
This volume completes the research project on "Liberation and Democracy in Southern Africa" (LiDeSA). It mainly addresses socioeconomic and gender-related issues in contemporary Namibia. Most of the contributors are either Namibian, based in Namibia or have undertaken extensive research in the country. Their interest as scholars and/or civil society activists is guided by a loyalty characterised not by rhetoric but by empathy with the people. They advocate notions of human rights, social equality and related values and norms instead of being driven by an ideologically determined party-political affiliation. Their investigative and analytical endeavours depict a society in transition, a society that is far from being liberated. Not surprisingly, this compilation explores the limits to liberation more than its advances.
Henning Melber (ed.)
http://nai.diva-portal.org/smash/get/diva2:275566/FULLTEXT01.pdf
Nordic Africa Institute
2007
© Nordiska Afrikainstitutet
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