Issuance of Chinese yuan can boost Namibia's economic growth: researcher

A senior research and development manager with a Namibian bank has said the introduction of the Chinese Yuan has potential to boost Namibia's economic growth.

The Rand Merchant Bank Namibia, a sister company to the First National Bank of Namibia, started issuing Chinese yuan notes last Thursday.

Namene Kalili, who is with the First National Bank Namibia, said this in a document released Friday after the Rand Merchant Bank Namibia launched the Chinese yuan notes to make global business easy.

Trade between China and Namibia stood at 5.6 billion dollars last year, and Kalili said this is set to expand.

Kalili also said Namibia's economic outlook is positive in view of the significant infrastructure upgrades that are most likely to push up production levels.

"Improved transport networks and electricity generation, coupled with increased port and water storage capacity should allow the country to position itself as an efficient and reliable logistics hub in the region, " Kalili said.

He further said that these investments should also allow Namibia to continue increasing its trade ties with faster growing economies in southern Africa and Asia.

In addition, he said through its export of raw materials to Namibia, China was contributing to the growth of Namibia's industries.

Kalili was referring to imports such as chemicals used in the processing of ore, machinery, iron and steel.

He however said the decline in global commodity prices has had negative impact on Namibia's mining exports. Endit