The Prime Minister's Office and the Ramatex Textile Factory have issued a joint statement, but with contradictory signals about the future of the factory's operations in Namibia.

On the one hand, the parties said they were "currently engaged in serious discussions on the project" with a view to finding an "amicable solution" and "settlement", while on the other not denying that the company's continued presence in the country depended on these factors.

"Ramatex intends to remain within the framework of the existing arrangements," said the statement, rubbishing recent media reports that the factory's future operations were hanging in the balance.

The statement, issued at the end of last week, comes in the wake of Ramatex recently indicating to Government its unwillingness to continue its operations under the current conditions and the two parties now making proposals to one another to allow the business to continue.

Following discussions between Prime Minister Nahas Angula and Ramatex Executive Director Albert Lim Poh Boon two weeks ago, Angula indicated to The Namibian that the factory was unhappy with productivity levels that had not reached expectations and had made certain "proposals" to Government.

"What is important is to take into account the national interests of the country and to promote the welfare and concern of the workers and not create a situation of uneasiness, uncertainty and tension," the joint statement said.

The parties allege that reports of Ramatex's closure have led to its service providers threatening to discontinue services to the factory or demanding advance payment before rendering services.

"In this regard Ramatex urges the service providers to honour their contractual obligations and not jeopardise the smooth operation of the factories.

Ramatex is very much in operation and contributing to the economy," the statement said.

The Office of the Prime Minister and Ramatex maintained that recent media reports regarding the factory's operations were "inaccurate, "premature" and presented a "distorted picture of the actual situation."

Government set up a special technical committee of Ministers and the National Union of Namibian Workers (NUNW) to deal with the Ramatex issue following Boon's visit to come up with solutions to stave off the factory's closure and the loss of jobs.

Ramatex has long complained that international attention on labour conditions at the factory, low productivity and ill-trained Namibians had led to the factory operating below expectations and that it had suffered millions in losses.

In last week's joint press release, Ramatex said the outcome of its negotiations with Government "should not be prejudiced".

"Under these circumstances, the Government of the Republic of Namibia and Ramatex wish to give their firm assurance that all efforts are being strenuously carried out with a view to achieving an amicable solution and request the concerned parties and the public to remain calm and allow the discussions to continue," said the statement.

The parties appealed for the confidentiality of the discussions and a reasonable period for negotiating parties to reach a "settlement" that would be in the best interests of Namibia and especially the Ramatex workers.

At roughly the same time the joint press release was issued last week, the official opposition, the Congress of Democrats, also issued a statement saying it was concerned about the potential loss of thousands of jobs at Ramatex in the wake of recent developments.

The CoD said it had from the start expressed concerns about the special treatment Ramatex was offered by Government in return for investment, and questioned the actual returns to Namibia and the irreparable costs to the environment.

"Addressing unemployment and grinding poverty is a concern we all share.

But throwing millions and millions of taxpayers' money at half-baked projects will do nothing to address the plight of tens of thousands of our unfortunate citizens," said the CoD's National Chairperson and MP, Tsudao Gurirab.

Relevant Links

Southern Africa

Company News

Namibia

Labour

Asia, Australia, and Africa

Industry and Infrastructure

AGOA

The CoD cautioned against Government investing further in Ramatex, saying other major investments in Air Namibia, the Windhoek Country Club, Ongopolo and Pidico had proven to be a failure.

"There is a lesson here for Government and that it must stop gambling with the hard-earned monies of its citizens through taxes but create the enabling environment and assist the business people to take the risks which they should," said the CoD.

The CoD advised that Government cut its losses on the Ramatex investment and instead focus on giving Ramatex workers opportunities to learn new skills and credit schemes that would allow them to employ themselves.

Latest AGOA Trade Data currently available on AGOA.info


Click here to view a sector profile of Namibia’s bilateral trade with the United States, disaggregated by total exports and imports, AGOA exports and GSP exports.

Other regularly updated trade statistics on AGOA.info include: (click each link to view)