Prospects and challenges for sustainable foreign direct investment in Namibia: A comparative exploration of Ramatex textiles Namibia and Ohorongo Cement
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Date
2017
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Publisher
University of Namibia
Abstract
Despite the government of Namibia having identified Foreign Direct Investment (FDI) as instrumental to achieving national goals and objectives, the benefits do not accrue automatically. Experience with FDI, particularly Ramatex Textiles Namibia (RTN), has led to the creation of a negative perception by the general public towards FDIs. This required greater scrutiny so as to lend scope and explore whether all FDIs are detrimental towards government developmental goals and objectives by comparatively exploring RTN and Ohorongo Cement.
The mixed method research design, comprising of both quantitative and qualitative methods, was applied. Quantitatively, a structured questionnaire as well as a rating scale was used. Interview schedules were used to conduct open ended interviews. The population of the study was 7330 and the sample size comprised of 66 respondents who were selected using the purposive sampling and snowball sampling methods. The key findings of this study are that not all FDIs are detrimental towards government goals and objectives.
RTN had a relatively negative impact on the country, primarily through the pollution of underground water and violation of labour laws in the country. Contrastingly, this study found that Ohorongo Cement has had a far more positive impact on the development goals and objectives of the country. This positive impact was primarily realised through the Corporate Social Investment (CSI) activities the company has undertaken. In an effort to maximise on the positive prospects of FDI towards development, this study recommends that the current amended Export Processing Zone’s Act (Act No. 9 of 1995) be reviewed to ensure emphasis is placed on sustainable socio-economic development of the country. Trade unions should negotiate for better salaries and working conditions through collective bargaining. An education campaign to promote CSIs among foreign investors with a particular focus on its benefits for business success and the local community should be undertaken.
Description
A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Public Administration
Keywords
Direct investment