Title:

APP-003888: Proposed development of !Nara Namib Free Economic Industrial Zone on Portions 2, 3 and 4 of Farm 58, Walvis Bay, Erongo Region

Publication Year:
2022
Abstract:

The opportunity to make use of good port infrastructure and growing transportation infrastructure to a large sub-continental African hinterland, through industrial value addition has long been recognised. To this end, land for a large green field industrial development with excellent access to the Port of Walvis Bay, the International Airport and proximity to utilities and road-rail transport infrastructure has been identified and earmarked. To make this project a reality, the Namibian Industrial Development Agency (NIDA) procured a joint development partner for the development of !Nara Namib Free Industrial Economic Zone (!NNFEIZ). !NNFEIZ is a new port-centric free economic zone industrial development at Walvis Bay. The !NNSEZ development entity entered into a Memorandum of Understanding (MoU), laying the foundation for a strategic partnership with DP World, a Dubai-based specialist port and free zone operator. DP World operates port centric free zones internationally, with a flagship project at Jebel Ali responsible for US$83.1 in annual trade creating 150 000 permanent jobs. The importance of the strategic partnership is underscored by DP World's ability to generate trade volume flows through Walvis Bay due to its international trade logistical role. Master Planning for a world class industrial estate at !NNFEIZ is now progressing to provide serviced industrial stands and bespoke industrial superstructures to an international customer base. The development is conceptualised in a modular manner to optimise infrastructure, allow a flexible response to market needs and seamless expansion. A first phase of 50ha is currently being designed, as part of a 403ha site allocated to NIDA by the Municipality of Walvis Bay. NIDA and the proponent has entered into a partnership through a special purpose vehicle known as !Nara Namib Free Economic Industrial Zone (!NNFEIZ). Trade logistical efficiencies, according to a recent World Bank study, impacts on up to 70% of GDP growth. Trade logistics are also key to the creation of quality jobs as localities with poor access to international trade corridors remains uncompetitive. !NNFEIZ is therefore key to the industrialisation targets set for Namibia through leveraging off investments in making the country a trade logistical hub. Importantly, an initial investment of N$308 million into serviced stands on the 1st phase will unlock an estimated N$1.7 billion in industrial superstructures. This investment will ramp up over the development period to a total potential development value of over N$50 billion. The potential GDP impact of investment at this scale is significant and equates to 25% of Namibia's economic value. Another benefit is that Namibia is seen as a trade logistic alternative to South African and East-African trade channels that are experiencing challenges including multiple inefficient border crossings, worsening security, xenophobia and social instability. Namibia is becoming an increasingly attractive investment option for South African manufacturers, mining companies seeking to beneficiate resources and logistics enterprises seeking a more cost effective location. Customers that understand the comparative advantages of Namibia and the strategic value of the !NNFEIZ partnership will benefit from choosing Walvis Bay as an investment location. It is thus the opportune time for !NNFEIZ and the established strategic partnership has the potential to unlock the right incentives, value creation and investment returns to make this project an international success. !NNFEIZ, as a port-centric special economic zone development, holds national significance for Namibia by growing its economic impact beyond the limits of the domestic economy

Item Type:
Report
Language:
en
Last date for commenting on this EIA: Thursday, 16 June 2022

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