By Josef Kefas Sheehama
Namibia should capitalize on the economic and geopolitical opportunities provided by BRICS+, which will signify a strategic evolution, by establishing new economic pathways for the future, funding international development initiatives, and enhancing its standing in the international community, particularly in the global south.
This would require Namibia to diversify its international alliances strategically and balance out its traditional ties to reduce dependence on old friends who do not contribute to the country through common interests.
Through the BRICS+ cooperation, Namibia will be able to enhance its economy beyond 35 years of independence, optimize modernization and self-sufficiency, alleviate poverty, improve the standard of living and accelerate economic growth. Therefore, Namibia’s readiness to join BRICS+ will foster more solid economic relations and inclusive partnership by bolstering infrastructure, people-to-people connections, economies of scale, and market integration.
Even though Namibia was not invited to the 2024 BRICS summit in Moscow, Russia, it will still join the bloc. It is a representation of how leaders in the global south think about the nature of the current order and the potential for creating an alternative. Although Namibia has done well in the areas of political and civil society development and at least moderately well economically, the country has not achieved the significant structural transformations, particularly in its economy, that are necessary for a significant improvement in living standards for the vast majority of Namibians.
For this reason, it is crucial that Namibia join the BRICS+ bloc to address its shortcomings. This will allow us to fully utilize our country’s resources and talents for the benefit of all of our citizens. The BRICS + nations believe the manufacturing sector is one of the most significant sources of growth, as a result Namibia is set to experience a gradual expansion of the manufacturing and mineral processing industries. This could transform the country’s economic structure and raise living standards. An increase in value-added production and exports would give Namibia the opportunity to benefit economically from international cooperation.
Given the current status of the Namibian economy, which runs the potential risk of slowing down due to a number of triggers, notably the drop in commodity prices, which caused the mining sector to contract, and the weather-induced slowdown in the agriculture sector, the economy cannot continue as it is.
High income inequality aggravates social fragmentation and poses a risk to economic growth. Economic downturn may be exacerbated by the impasse and policy uncertainty that stem from inequality’s contribution to sharply divergent viewpoints. Therefore, in order to revitalize the economy, preserve jobs, draw in Foreign Direct Investment (FDI), and involve the general public, the government must take strategic action. A strategic policy focus should continue to promote competitiveness and long-term growth by way of the application of flexible trade and industrial policies.
According to the World Economic Outlook and the International Monetary Fund, the BRICS+ countries will account for 46% of global GDP and 55% of the world’s population by 2025. The analysis predicts that the grouping’s GDP will be 3.4%, while the global average will be 2.8%. In 2024, the BRICS jointly had 4% GDP growth, while global growth was 3.3%. The United Arab Emirates (4%), China (4%), Ethiopia (6.6%), India (6.2%), and Indonesia (4.7%) are the top four countries in the BRICS growth forecast for 2025. According to the international market share prediction for this year, China holds the highest portion, making up 19.6% of the world economy. Brazil (2.3%), Indonesia (2.4%), Russia (3.4%), and India (8.5%). Namibia’s decision to join BRICS to take advantage of the bloc’s economic power is further supported by the analysis which shows that Namibia’s trade with the group reached an astounding N$97 billion in 2022.
Namibia already has strong commercial and diplomatic ties with BRICS, and joining will increase reciprocal trade benefits. The group would enthusiastically welcome Namibia, and diversification would assist Namibia in mitigating severe trade shocks by stabilizing export revenues. This means that Namibia’s economy will expand and change structurally in response to the commodities traded. Namibia’s inclusion in BRICS+ can significantly contribute to economic development by diversifying exports. Namibia will work with the BRICS countries to achieve macroeconomic objectives such as long-term economic development, stable balance of payments, job creation, and income redistribution. Given the aforementioned and the focus on the BRICS objectives of strengthening economic, social, and political cooperation among its members and enhancing the Global South’s clout in international affairs, Namibia stands to gain significantly from joining the BRICS by luring investors and so on. Membership will have a significant economic impact on Namibia and may offer a market for Namibian commodities. It’s also a tremendous opportunity as current trading partners attempt to subvert the benefits that African countries enjoy.
Tariffs imposed on countries will negatively impact various parts of the economy. Global trade is expected to suffer as a result of the United States’ current trade policies; hence alternatives must be explored. BRICS is the best solution available right now. Joining the BRICS could help Namibia in the long run by encouraging industrial innovation, technology transfer, and long-term economic growth. In 2024, Africa’s trade with China is projected to reach US$300 billion, surpassing its trade with the US at US$71.6 billion. At a recent meeting in Hunan province, China declared its intention to remove tariffs for all 53 African countries with which it has diplomatic ties.
Moreover, it is clear that the countries that move first will fare better; therefore, I urge Namibia’s government to make confident decisions and join BRICS countries that understand what it takes to operate in fast-changing environments and respect trading partners without undermining sovereignty, as well as economic cooperation and shared development. Having trading partners who understand economic dynamics, trade and specific domestic conditions, such as BRICS, can make all the difference in turning potential into opportunities for the vibrant countries that drive the global economy. Although the BRICS bloc remains an important and necessary player in Namibia and Africa, African states must work hard to successfully implement the African Continental Free Trade Area (AfCFTA) to facilitate trade among themselves, even if some African countries object to joining the BRICS bloc. The AfCFTA provides an opportunity to strengthen BRICS-Africa commitment.
In conclusion, Namibia has tremendous potential to promote its agenda by joining the BRICS nations, which could culminate in an economic revolution. Today’s decisions will have long-term implications for Namibia’s economic development. It is not only a leadership moment, but also one of society responsibility.
Josef Kefas Sheehama has more than 21 years banking experience serving as Manager Credit, Branch Manager and now Centralize Credit Head Office at Bank Windhoek. He holds a Certified Associate Institute Bankers CAIB (SA), Associate Institute Bankers AIB(SA), Chartered Banking Professional CHBP (SA) e.t.c
Economist Namibia
