Once the busiest border town in the country, Oshikango has now become a ghost town as business between Angola and Namibia, which ten years ago generated about half a billion dollars a month, has all but collapsed.
It has been reported that this slowdown is the result of the global economic downturn and low oil prices, which have eroded the buying power of the Angolans that used to drive business at Oshikango.
Many businesses have closed down, which has resulted in massive job losses.
This was confirmed by the chairperson of the Oshikango Business Association and owner of International Commercial (Pty) Limited and
Oshikango Bonded Warehouse, Raed Hijazi.
“We are going through a very challenging and difficult time where we can have a week pass without a single client walking into our business. Most of the companies are offering their stock below cost just to meet their expenses and to avoid total goods loss due to expiry dates,” he told Namibian Sun.
He added that many businesses have closed down, and the majority of the businesses that are still operational have downsized their operations and reduced their workforce to the minimum just to keep their doors open.
“In February this year, 1 700 jobs were already lost and the number has increased since that time, but we do not have the latest figures. We are assuming that the number of employees that were retrenched have reached a very disturbing and alarming level,” Hijazi said.
Oshikango is one of the seven townships run by the Helao Nafidi Town Council. In May last year, Mayor Eliaser Nghipangelwa spent two weeks in Windhoek consulting with the minister of trade, industrialisation and SME development, minister of finance and Bank of Namibia (BoN) on alternative measures to rescue the situation in Oshikango.
He told Namibian Sun that a proposal made by the finance ministry was still in the pipeline.
“They are busy with BoN trying to see if electronic purchases can be introduced because of the quantity involved in exchange with the Angolan currency. The exchange rate has gone down, N$10 can buy 420 kwanza, but the quantity is very large. Angolans are coming to sell in Oshikango in order to get a stronger currency,” said Nghipangelwa.
Nghipangelwa said they hope the situation will improve because Helao Nafidi depends on Oshikango for income generation.
Like Nghipangelwa, Hijazi said hope is the only thing that is keeping their businesses open.
“Finance officials as well as BoN assured that us that they will not spare any effort to ease the situation and we are counting on their efforts.
“The business community already submitted some ideas about possible solutions and they are studying these proposals. It is at a time of crisis that government intervention is needed. We have all to work together to come up with creative solutions,” Hijazi said.
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