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					                                                                 Founding Members: Hon. Ben Amathila       Dr. Kaire Mbuende    Prof. Peter Katjavivi

                                                                 THE NAMIBIAN ECONOMIC POLICY RESEARCH UNIT
                                                                 Postal: P. O. Box 40710, Ausspannplatz, Windhoek, Namibia


            N EPRU                                               Street: 59 Bahnhof, Windhoek, Namibia
                                                                 Tel.: +264 - 61 - 228284
                                                                 Email: nepru1@nepru.org.na

                                                                  Director: Dr Dirk Hansohm
                                                                                                        Fax: +264 - 61 - 231496
                                                                                                        Web site: www.nepru.org.na




                                                                                                     Windhoek, 23 January 2001



                                    An overview of trade in services in Namibia

                                                              Dirk Hansohm

                                                                  Contents

1.     Introduction .............................................................................................................................. 4

2.     The role of services and trade in services in the economy ....................................................... 4

3.     Capacity, efficiency and competitiveness of the services sector .............................................. 8

     3.1.    Financial Services ............................................................................................................. 8

     3.2.    Telecommunication......................................................................................................... 10

     3.3.    Transport ........................................................................................................................ 12

     3.4.    Tourism .......................................................................................................................... 12

     3.5.    Business services ........................................................................................................... 12

     3.6.    Construction ................................................................................................................... 12

4.     Progress in liberalisation and remaining barriers ................................................................... 12

5.     Conclusion ............................................................................................................................. 12

6.     References ............................................................................................................................ 14




27/08/10

Board of Trustees:            Hon. Ben Amathila Anne Gebhardt Dr Dirk Hansohm (ex officio) Prof. Peter Katjavivi (Chairperson) Dr. Kaire Mbuende

                              Gida Nakazibwe-Sekandi Hon. Netumbo Nandi-Ndaitwah Hanno Rumpf (ex officio)
                                                             Table of Figures

FIGURE 1    THE CONTRIBUTION OF SERVICES TO GDP (CONSTANT 1995 PRICES) .................................. 5
FIGURE 2    THE IMPORTANCE OF NAMIBIA’S SERVICES SECTOR IN INTERNATIONAL COMPARISON
    (% OF SERVICES IN GDP, 1990 AND 1999) ......................................................................................................... 6
FIGURE 3    NAMIBIA’S BALANCE OF TRADE IN SERVICES (1991-1999) ....................................................... 8




                                                              Table of Tables

TABLE 1  EMPLOYMENT DISTRIBUTION BY TYPE OF EMPLOYMENT AND SECTOR (1997) .................... 6
TABLE 2  EMPLOYMENT DISTRIBUTION BY TYPE OF EMPLOYMENT AND SECTOR AS PERCENTAGE
   OF TOTAL SECTORAL EMPLOYMENT (1997) ................................................................................................... 7
TABLE 3  TRADE IN SERVICES IN NAMIBIA’S BALANCE OF PAYMENTS (N$ MILLION, 1991-1999) ........ 7
TABLE 4  OUTPUT/LABOUR, CAPITAL INTENSITY AND RATE OF RETURN BY INDUSTRY (1993) .......... 8




                                                                         2
                                    Abbreviations

BoN      Bank of Namibia

CAPAS    Coordinated African programme for Assistance in Services

CBS      Central Bureau of Statistics

COMESA   Common Market of Eastern and Southern Africa

GATS     General Agreement on Trade and Services

GDP      gross domestic product

GIPF     Government Institutions Pension Fund

GMPCS    Global Mobile Personal Communications by Satellite

MLHRD    Ministry of Labour and Human Resources Development

MTC      Mobile Telecommunications Limited

NCC      Namibian Communications Commission

SACU     Southern African Customs Union

SADC     Soutthern African Development Community

SATA     Southern African Telecommunications Association

SSA      sub-Saharan Africa

TRASA    Telecommunications Regulatory Association of Southern Africa




                                          3
1. Introduction

This paper bases on the country study on Namibia under the CAPAS III programme in 1998. It is
a revised version of the paper presented to the CAPAS IV workshop in Geneva, 27-29 November
2000. The paper takes up the discussions at the workshop, recent developments and discussions
on the subject of trade in services in general and in the African context in particular. Furthermore,
the data of the 1998 study are updated.

In addition to this introduction, the paper consists of four chapters. The second chapter describes
the role of Namibia’s services sector as well as its trade in services, after introducing the Namibian
economy. The third chapter analyses capacity, efficiency and competitiveness of services. This
chapter concentrates on the two sub-sectors that have been analysed in some detail: finance and
telecommunications. The fourth chapter discusses the progress in liberalisation and remaining
barriers in the service sectors. The conclusion discusses policy implications.

2. The role of services and trade in services in the economy

Namibia, becoming independent in 1990, inherited a highly dualistic economy and society,
established by colonialism and Apartheid’s policy of segregation. To overcome this, Government
set growth, employment creation, reducing of income inequality, and poverty eradication as its key
development objectives.

Both compared with the pre-independence decade and with the average sub-Saharan African
(SSA) country, Namibia compares well with an average growth of 3.4% (1990-99). However, the
high population growth of more than 3% p.a. almost cancelled out this growth, so that per capita
growth stagnated. The challenge of higher growth with redistribution can only be met through
transformation of an economy dependent on natural resource extraction to a diversified one more
based on the skills of its labour force, both in the manufacturing and service sectors. The main
growth sector has so far been government services, with a high priority on social services, health
and education.

The data on services in Namibia are highly deficient:

1. The data on production (collected by the CBS) are presented in different categories than those
   on trade (collected by the Bank of Namibia) and those on employment (collected by the
   MLHRD).

2. Data on employment are not collected regularly - the most recent data are six years old
   (1992/93). As the Namibian economy is undergoing rapid changes, these data cannot be
   expected to reflect reality correctly.

3. Most importantly, the categories do no reflect the categories of the GATS, according to which
   Namibia has to made her offers in the forthcoming negotiations in the year 2000.

These deficiencies are of concern, because only a picture which is reasonably close to reality will
enable the administration to prepare offers in the best interest of Namibia.

The development of the shares of primary, secondary, and service activities in GDP over time
follows expected trends.



                                                  4
Figure 1          The contribution of services to GDP (constant 1995 prices)
Erreur ! Liaison incorrecte.

source: Central Statistics Office (2000)

The share of tertiary activities (which can be taken as a proxy for services, but excludes
construction) grew strongly from 35.2% over 54.4% to 54.9% in 1981, 1993, and 1999 resp. A
large part of this growth can be attributed to the other services, which constituted 20.7%, 30.5%,
and 33.2%. Government services innitially grew strongly, but later stagnated, which constituted
14.5%, 23.8%, and 21.7% in the respective years.

The international comparison (following table) shows that

 in Namibia, the relative importance of services increased steeply between 1990 and 1999;

 the relative importance of services is higher than in other lower middle income countries, as
  well as in other country groups with lower income as well as in sub-Saharan Africa.




                                                 5
Figure 2              The importance of Namibia’s services sector in international comparison (%
                      of services in GDP, 1990 and 1999)
Erreur ! Liaison incorrecte.

source: World Bank (1999)

The development of the three sectors in terms of GDP contribution contrasts with that in terms of
employment (see two following tables). Although the contribution to GDP of the agricultural sector
is declining, its importance for employment remains central, as it employs almost half of the labour
force (48%). Government employees have remained static since the last survey, in fact they
actually decreased by 253 jobs, which was due to the large decrease (7,100) in community, social
and personal services, while all other categories increased. Private employees on the other hand
in creased slightly over the years by 5,900.

Table 1               Employment distribution by type of employment and sector (1997)
                                    Total Wage Govern- Private         Em-            Informal    Total
                                    Em-ployee ment Em- Em-             ployers
                                               ployee  ployee

1. Agriculture & Fisheries              42,154    3,101       40,669       3,237        144,044     189,929
2. Mining & Quarrying                   14,498      506        4,904             61         123      14,686
3. Manufacturing                        12,514    3,592       12,794       1,027         10,005      22,979
4. Electricity, Gas                      2,879    1,981        1,744         132             62       2,974
5. Construction                         15,934    2,355       11,734       1,127          2,034      18,638
6. Trade, Hotels, Motor repairs         28,045    2,777       21,290       2,069          7,932      37,820
7. Transport and Communication           8,740    4,460        6,559         374            422       9,322
8. Finance/ Estate                       8,007    3173        15270          302            235       8,547
9. Community, social and personal       86,620   50,343       37,795       2,844          2,356      89,446
services
Total                                  219,391   72,288   152,759         11,173        167,213     394,341
Source: MLHRD (1998)

More than one third of the labour force (36.8%) was employed in services (excluding construction,
which accounts for 4.7%). The services sector is gaining in importance, partly due to public sector
expansion. Due to political agreements at the time of independence, no public servants of the
former administration have been dismissed. At the same time it was necessary to employ
additional staff in order to accommodate and to implement political change. However, there is little
scope for further expansion of the public sector due to financial constraints, but also in order to
allow for the emergence of the private sector.

The following table shows the employment pattern by percentage distribution of employment per
sector, so that sectoral differences are better visible. The informal sector (defined here as
enterprises with less than 5 employees) is very much concentrated on agriculture - 86% of the
informal labour force is employed in agriculture. The informal sector development in non-
agricultural areas is conspicuously limited. While one can safely assume some underestimate of
this sector as in other countries, it is obvious that especially the producing part is very little
developed.

In general, services are highly concentrated on wage employment (as compared to self-
employment and informal employment). Only the categories ‘construction’ and ‘trade, hotels,


                                                          6
motor repairs’ have substantial informal employment. In ‘transport and communication’ and
‘community, social and personal services’, public employment is most important.

Table 2        Employment distribution by type of employment and sector as percentage of
total sectoral employment (1997)
                                    Total Wage Government Private     Employers Informal
                                    Employee Employee     Employee


1. Agriculture & Fisheries               22.2          1.6     21.4          1.7     75.8
2. Mining & Quarrying                    98.7          3.4     33.4          0.4      0.8
3. Manufacturing                         54.5         15.6     55.7          4.5     43.5
4. Electricity, Gas                      96.8         66.6     58.6          4.4      2.1
5. Construction                          85.5         12.6     63.0          6.0     10.9
6. Trade, Hotels, Motor repairs          74.2          7.3     56.3          5.5     21.0
7. Transport and Communication           93.8         47.8     70.4          4.0      4.5
8. Finance/ Estate                       93.7         15.9     56.0          3.5      2.7
9. Community, social and personal        96.8         56.2     42.1          3.2      2.6
services
Total                                    55.6         17.9     36.0          2.8     42.4
source: Table 1

In general, services are highly concentrated on wage employment, as compared to self-
employment and informal employment. Only the categories ‘construction’ and ‘trade, hotels, motor
repairs’ have substantial informal employment. In general, service sectors have higher female
employment, but lower employment of ‘formerly disadvantaged’ population groups. With respect
to size of establishment, surprisingly, service firms are more concentrated among large
enterprises.

Unfortunately, statistics on foreign trade in services are incomplete, so that only preliminary
conclusions can be drawn. The balance of trade in services has consistently been negative.
Currently, imports are about double as high as exports (in 1991 they had been three times as
high). The only important exports are in the ‘travel’ category. The import structure is dominated
by transport (although to a declining extent). Most categories witnessed a high growth. The top
growth was achieved by ‘professional and technical services’. Following the two mentioned, the
most important import categories are (by importance): ‘travel’, ‘administrative and business
services’, ’insurance’, ‘other services’, ‘construction services’, ‘government services’, and
‘computer and information services’.

Trade in services is not exhaustively covered in the Bank of Namibia’s Annual Reports - instead of
exports and imports only net services are listed. However, unpublished trade data of the Bank
allow to add up the different categories of trade in services (see below). On this basis the balance
of trade in services is arrived (see table and figure below).

Table 3               Trade in services in Namibia’s balance of payments (N$ million, 1991-1999)
Erreur ! Liaison incorrecte.source: Bank of Namibia (2000)

The figure shows that while the absolute excess of service imports over exports remained largely
the same, in relative terms exports have picked up: while they were less than a third (31.2%) in
1991, they had risen to half (71.6%) in 1998.




                                                        7
Figure 3          Namibia’s balance of trade in services (1991-1999)
Erreur ! Liaison incorrecte.

source: previous table

3. Capacity, efficiency and competitiveness of the services sector

The data on capacity, efficiency and competitiveness of services are particularly scarce.
Comparative incomes provide an indicator. Wages of service sectors are much higher than in
agriculture, and with the exception of ‘trade, hotels, motor repairs’ also higher than wages in
manufacturing, but much lower than wages in the mining sector. Figures on efficiency and
capital/labour intensity are difficult to interpret.

Table 4           Output/labour, capital intensity and rate of return by industry (1993)
industry                 output per      capital per      capital/         rate of return    profit per
                         employee        employee         output ratio     on capital (%,    employee
                         (‘000 N$)       (‘000 N$)                         pre tax)          (‘000 N$)
agriculture                        9.7            139.0             14.3               1.9             2.7
mining                            58.1            320.0              5.5               6.7            21.8
manufacturing                     21.5            137.0              6.3               4.6             6.4
electricity/gas                  117.9           1945.0             16.5               4.1            79.5
construction                      16.2             20.1              1.3               8.0             1.6
trade/hotels                      22.7             58.6              2.6              13.4             7.9
transport                         12.6             53.6              4.2               3.3             1.8
finance etc.                      49.7            108.5              2.2              16.2            17.6
community and                     31.1             58.9              1.9              10.2             6.0
social services
all industries                    35.6           197.3               5.5              6.4             12.6
source: MLHRD (1994)

Except for the finance sector, all service sectors have less output per employee than the average,
i.e. their labour productivity is low. The low capital intensity of the service sectors is not surprising,
as the average is heavily biased by the very high capital intensity of the electricity/gas sector. All
service sectors need little capital per output unit, which is positive (although it is difficult to explain
why agriculture needs high capital input). The average rate of return on capital is surprisingly low,
but all service sectors (except for transport) show higher figures. The figures on profits per
employee are difficult to explain.

With respect to domestic service markets and foreign trade in services, due to budgetary
constraints, only initial information could be obtained on selected sectors. These were selected
according to importance and include. In addition to the sector studies on finance and
telecommunication), the following sectors were considered: transport, tourism, business services
(especially architectural services), and construction.


    3.1. Financial Services
Namibia’s balance of trade has some particular characteristics. The Namibian current account
has consistently been in surplus, with a positive balance of trade in most years, a consistently
negative balance of trade in services, an increasingly positive balance on primary incomes, and
net current transfers, largely representing Namibia’s share of the SACU Common Revenue Pool.
The capital account shows a consistent outflow of savings, attributed to the limited investment
opportunities in Namibia. Interest rates and inflation are largely determined by price developments

                                                             8
in South Africa. Government finance are characterised by low but increasing indebtedness, high
importance of SACU incomes (around 30%), and concentration on education and health spending
as well as increasing share of current expenditures.

Namibia’s financial sector is sophisticated, well developed and offers a wide range of services.
The level of information technology used is high. While Windhoek is well served, the economy is
too small and population too scattered to justify nation-wide geographic coverage by banks and
insurance companies. Since 1990 financial services have been considerably strengthened.
However, the operational strategy of the banking sector has to be characterised as risk adverse.
The sector is relatively open, with few restrictions on new entries. In addition to commercial
banks, merchant banking services, bureaux de change, building societies, asset management
firms, and a stock exchange, five parastatals are active. The Bank of Namibia performs the
functions of a central bank. It is, however, bound by the regulatory framework of the Common
Monetary Area. The insurance sector, largely underresearched, includes long-term and short-term
insurance companies. The former consist of ten companies offering pension fund facilities, the
largest of which is the Government Institutions Pension Fund (GIPF), and shows a definite positive
trend in the value of assets. In the second sub-sector, there are also five companies registered,
but there appear to be a few more. The assets of these doubled between 1993 and 1996.

The policy framework for the financial sector, in the case of the banking sector, consists of 16
laws. With respect to entry barriers for foreign companies, the following points are noteworthy:

 for most categories, foreign providers need to be incorporated as a public company before they
  may offer their products on the Namibian market,

 once incorporated, there is no discrimination;

 for a number of categories, the board of directors should be composed mainly of Namibian
  citizens, and in some instances the managing director needs to be Namibian;

 for most categories, a certain portion of total assets should be held in Namibian assets; in
  addition, certain restrictions are placed on the investment portfolio, which should be held in
  Namibian assets up to a minimum proportion.

The long- and short-term insurance sectors are regulated by respective acts. These have similar
restrictions as those outlined for the financial banking services. Legislation on re-insurance is in
the making.

Financial reforms in Namibia are an ongoing effort with the step-by-step liberalisation of capital
account transactions, the full liberalisation of current account transactions in 1996, the continuous
introduction of new financial market instruments, and more favourable allowances for capital
transactions within SADC.

The analysis of competition and efficiency in the financial sector is made difficult by the limited
access to relevant data. Nevertheless, the preliminary analysis shows that the profitability of the
Namibian banking sector is very high compared to the ratios achieved in South Africa (returns on
assets and equity being twice as high), and also relatively high in comparison with Botswana. This
can be explained by risk-adverse attitudes, higher charges, and lower expenditures. Indicators
point to a lack of competition in the banking sector. However, more analysis is necessary to make
definite statements on the competitiveness and openness of the various sub-sectors of the
financial sector.

No Namibian offer on financial services to GATS has yet been made. As the legislative framework
for the financial sector is relatively liberal with no major legal obstacles to foreign entry and foreign
participation in various segments of the financial market is relatively high, Namibia is in an ideal

                                                   9
position to prepare a detailed offer. However, the commercial banks operate apparently in a
protective environment with de facto obstacles to foreign entry (high costs of infrastructure and
adverse attitudes of existing operators to new investments) and the de facto situation in the
banking sector (as well as for portfolio managers and insurance companies) needs further
investigation. For Namibia, to notify the existing legislation to GATS would go a long way in
meeting the WTO commitments, since the existing laws do not appear to be in any way in conflict
with the GATS requirements.

In support of a detailed offer, the following research areas are identified:

 more detailed legal review,

 performance indicators of insurance industry, asset management and unit trust companies

 more detailed analysis of cost structure of commercial banks

 more detailed analysis of the market behaviour of leading banking and insurance companies
  and their functional linkages to their South African mother companies.


   3.2. Telecommunication
The telecommunication sector is important for liberalisation of the trade in services for two
reasons:

 as an economic sector in its own right, in the form of investment and restructuring to improve
  performance;

 by underpinning other sectors of economic activity and as a vehicle of enabling African
  countries to participate on a competitive footing in world trade in goods and services.

Participation in the GATS may result in advantages such as: attracting foreign investment,
increased efficiency, availability of a wider range of services, improved quality, greater
opportunities for the rapid introduction of new services and technologies, and lower costs for the
end user, which translate into benefits for the economy as a whole. Liberalisation under GATS
may, however, also result in drawbacks in terms of the negative impact on the revenue stream of
the national operator. Telecom Namibia has, over the past years, invested heavily in establishing
a modern, digital backbone infrastructure throughout the whole country and expanding the urban
and rural local networks. Competition in certain profitable sectors may result in Telecom not being
able to recover this investment, and may reduce its ability to meet its universal service obligation.
Should this happen, this obligation has to be shared amongst all operators on an equitable basis.

Due to the relatively large size (824 000 km²) and small population (1,7 million) of Namibia, the
telecommunication sector is faced with numerous challenges to bring an acceptable service to all
inhabitants of the country. Even though the present telephone density of 5 telephones per 100
inhabitants ranks amongst the highest in Africa, the need especially in rural areas remains acute,
with high investment costs and low returns having deterred major progress in this respect.

Telecom Namibia, as the national operator, has established an extensive and modern
telecommunications network throughout the country, especially since its commercialisation in
1992. A digital backbone for national and international traffic has been established, and Telecom
is now focussing its attention towards rural and remote areas, which account for 72% of the
population.




                                                  10
The revenue of Telecom Namibia has been steadily increasing over the past years, with national
and international calling revenues each accounting for 30% of total calling revenues. Traffic to
South Africa provides 83% of international calling revenues. Both local/national and international
tariffs in Namibia compare favourably with other countries, with international rates having
decreased in past years. The quality of services offered is steadily improving and ranks amongst
the highest in Africa.

Mobile GSM services are provided by MTC, which is owned by Telecom Namibia and two Swedish
companies. It is expected that satellite-based GMPCS services will be available shortly. Paging
and internet services are offered by private companies. The terminal equipment market is fully
open to the private sector.

The Namibian Communications Commission (NCC) was established in 1992 as the regulatory
authority for broadcasting and telecommunications. Its functions include the licensing of private
broadcasters, telecommunication and postal operators and services, radio spectrum management
and other telecommunication regulatory aspects. A telecommunication policy for Namibia and the
associated legislation are currently being drafted, with a strong emphasis being placed on the
liberalisation of the industry.

Due to the historical development of the regulatory infrastructure in Namibia, the interesting
situation has arisen whereby the market has been open by default since 1992 mainly because it
has never been closed in the absence of suitable regulations. Other telecommunication operators
have thus been free to apply for licenses to operate services such as mobile communications or
other telecommunication services, subject to certain conditions. The reason why no applications
other than the licences already issued have been received is probably due to the limited scope
within the Namibian telecommunication sector compared to larger and more densely populated
countries.

Over the past few years, significant progress has been made in co-ordinating the
telecommunication sector in the region. The activities have been spearheaded by the SADC
telecommunication division SATCC, and have led to the formation of associations for the
regulators and operators in the region (TRASA and SATA respectively). Areas addressed include:
universal service, tariffs, interconnection, frequency spectrum management, numbering plans, new
services, standards, indigenous participation and international participation.

Although the telecommunication market in Namibia is virtually open by default, it may be
advantageous to reserve certain services and functions for Telecom Namibia in the short-term in
order to afford it the opportunity to consolidate the expansion of its network that is taking place
since 1992.

As a first step, licences for operators to provide services in under-served areas may be invited
from 2000, with national and international long-distance traffic being opened up in 2003.

Areas of competition such as data services, value-added services, Internet and private leased
circuits may be opened up more officially than is the case at present, with clearer guidelines and
licensing conditions being available to potential operators.

Commitments to keep the market open for fixed and mobile satellite services as well as a second
cellular service operator should be made. Rules to regulate or prohibit call-back services and
other alternative calling procedures may be necessary.

Frequency management and accounting rates should continue to be co-ordinated within a regional
and international context.



                                                11
   3.3. Transport
The transport sector, relatively well developed, is concentrated and dominated by a few players.
The presence of a parastatal, Transnamib, is also strong, from rail to sea transport. Currently
government is attempting to deregulate this sector, which is expected to bring about positive
externalities to the rest of the economy through competitive pricing of transport services. The cost
of transport is a major barrier to trade in Namibia.


   3.4. Tourism
Tourism has been the fastest growing sector in recent years and its also has the highest growth
prospects for the medium term. Employment amounts to over 13,000. It is estimated that this
sector would gain from a deregulated transport sector.


   3.5. Business services
Business services are predominantly producer services. Thus, they are of high importance for the
competitiveness of Namibia’s economy. The study only deals in more detail with architectural
services. This has had a fairly slow and continuous growth. In recent years, it started operating in
cooperation with regional and international architectural associations. Imports are important,
exports less so. The requirement to have local knowledge, which normally reflects national
regulatory of market peculiarities, provide a considerable protection for local suppliers.


   3.6. Construction
The construction sector is comparatively small (with some 18,000 employees), although the official
figures are believed to be gross underestimates. Foreign companies are important in government
projects (estimates of 60% market share). Among domestic market participants, there are
formally registered firms, informal constructors, self-help groups, especially among the poor, and
family based operations. Activities of Namibian firms abroad are unimportant. Entry barriers to
the sector are minimal and there are no additional barriers to foreign firms. There are suspicions
from domestic firms, that foreign contractors enjoy preferential access to government tenders, and
also do not seem to be subject to the same conditions with regard to taxation, wage regulation,
and legislation.

4. Progress in liberalisation and remaining barriers

Namibia is part to several international agreements, including GATS, SACU, SADC, COMESA,
Lomé Convention, and bilateral agreements.             Under GATS, Namibia has made specific
commitments with respect to the tourism and energy (i.e. off-shore petroleum exploration) sectors,
in order to attract foreign investment into these sectors. SACU is primarily concerned with trade in
goods and has thus no direct impact on liberalisation of trade in services (the same is true for the
bilateral agreement with Zimbabwe). The SADC trade protocol also covers trade in services and
aims at extending preferential liberalisation, in line with GATS. As it does not have any region-
specific commitment for service liberalisation, it does not have any impacts going beyond GATS.
Because of Namibia’s deepening engagement with SADC, the impacts of its COMESA
membership is doubtful. The impact of the Lomé agreement is limited to EU support to the
development of services.

5. Conclusion

The preliminary conclusions of the study are:



                                                12
 There are incompatibilities between data systems covering production, foreign trade, and
  employment which makes an accurate comparison impossible.

 Namibia is highly dependent on imports of services in many areas, notably in professional and
  technical as well as administrative and business services. As these are predominantly producer
  services, i.e. inputs into further production, price and availability of these services are important
  determinants of Namibia’s competitiveness.

 Thus it is important to minimise restrictions to these imports, but also to facilitate the building up
  of skills in these areas.

 The most important sectors for further study are tourism, business services and construction.




                                                  13
6. References

Gibbs, Murray, 2000, The positive agenda and the Seattle conference, in: UNCTAD, A positive
agenda for developing countries: Issues for future trade negotiations, New York and Geneva:
United Nations, 1-10
Mashayekhi, Mina, 2000, GATS 2000: Progressive liberalization, UNCTAD, A positive agenda for
developing countries: Issues for future trade negotiations, New York and Geneva: United Nations,
169-191
NEPRU and Trend Line Economic and Management Services, 1998, Namibia: Financial services
and the GATS, Prepared for CAPAS, 10 July

NEPRU, 1998, Telecommunication sector study for Namibia, Prepared for CAPAS, 8 July

NEPRU, 2000, Country study Namibia. Overview study: The contribution of services and
international trade in services to the national economy, CAPAS, Draft final report

Sauvé, Pierre, and Robert M. Stern (Eds), 2000, GATS 2000. New directions in services trade
liberalization, Washington: Brookings Institution

Statement by Mr Sivaramen Palayathan, Coordinator of the African Group, at the workshop on the
preparation of African countries for the negotiations on trade in services and related technical
assistance under CAPAS IV, Geneva, 27-29 Novermber 2000

UNCTAD, 2000, Elements of a positive agenda, in: UNCTAD, A positive agenda for developing
countries: Issues for future trade negotiations, New York and Geneva: United Nations, pg 11-70

UNCTAD, 2000, Workshop on the preparation of African countries for the negotiations on trade in
services and related technical assistance under CAPAS IV, Geneva, 27-29 November 2000

World Bank, 2000, World Development Report 2000/2001, Attacking Poverty, New York,
September 2000

World Trade Organization, 2000, Communication from Mauritius on behalf of the African Group.
Negotiating guidelines and procedures, 4 October 2000




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