Economy at Large Impact of Transport: GDP and Job Creation

AUTHOR: David

Courtesy:RDJConsulting

Transport infrastructure is a cornerstone of economic development, facilitating trade, enhancing productivity, and creating employment opportunities

The sector is a crucial component of the country's economy, significantly contributing to the Gross Domestic Product (GDP). According to recent data, the sector accounts for approximately 3-4 percent of Namibia's national GDP This contribution is fuelled by various modes of transport, including road, rail, air, and sea transport

In addition to its economic contributions, the transport sector is a major employer in Namibia. It provides jobs across multiple sub-sectors, employing around 5 percent of the workforce directly The sector's interconnected nature with other industries further amplifies its impact on employment, creating numerous indirect job opportunities

Namibia's extensive road network, spanning over 45,000 kilometres, is vital for the movement of goods and people. Road transport facilitates domestic trade and connects Namibia with its neighbouring countries, enhancing regional commerce Employment in road transport includes drivers, logistics managers, mechanics, and administrative staff. The growth of the logistics industry, driven by Namibia’s role as a transit hub, has created numerous job opportunities.

Transport infrastructure development has a transformative impact on regional development and trade facilitation The government’s focus on developing transport corridors, such as the Trans-Kalahari and Trans-Zambezi Corridors, enhances connectivity and promotes regional integration.

The national rail network, managed by TransNamib, covers approximately 2,500 kilometres and plays a crucial role in transporting bulk goods. Rail transport is essential for the mining and agriculture sectors, moving minerals and agricultural products to ports and markets. The expansion and modernization of Namibia's railway equipment and infrastructure are critical for enhancing the country's transport sector One of the primary focuses of Namibia's railway modernization efforts is the rehabilitation and upgrade of existing rail lines. This includes the rehabilitation of the Windhoek to Walvis Bay railway line, a crucial route that connects the capital city to the major port, enhancing freight transport efficiency

The Trans-Kalahari Railway is another significant project aimed at enhancing regional connectivity This proposed railway line will link the coalfields of Botswana to the Port of Walvis Bay in Namibia. The project, a collaborative effort between the governments of Namibia and Botswana, is expected to facilitate the export of coal and other minerals, reducing transportation costs and boosting trade volumes

These efforts would improve efficiency, safety, and connectivity, supporting economic growth and regional integration. TransNamib employs a substantial number of people in operations, maintenance, and management. Efforts to revitalize the rail network, through investments and modernization, are expected to create additional jobs and enhance operational efficiency

The aviation sector, centred around Hosea Kutako International Airport, supports tourism and business travel, linking Namibia to global markets. This connectivity boosts the tourism industry and facilitates international business operations The aviation sector provides employment in both local, regional and international airlines, airport operations, air traffic control, and ground services The terminal of Hosea Kutako International Airport (HKIA) has been expanded recently to increase capacity and improve passenger flow that ultimately support expansion of air services and the development of new routes are likely to create further employment opportunities (See our article on expanding aviation in this edition on page 24)

The Port of Walvis Bay, operated by Namport, serves as a key entry point for imports and exports Its strategic location on the west coast of Africa positions Namibia as a logistics hub for the Southern African Development Community(SADC)region Theport'sactivitiescontributeto the GDP by facilitating international trade Namport’s operations at Walvis Bay and Lüderitz ports generate employment in cargo handling, port management, and maritime services The ongoing expansion and modernization of port facilities are set to create additional jobs through the modernizing of its port facilities, particularly the Port of Walvis Bay, to enhance its role as a keylogisticshubinSouthernAfrica.

While the transport sector offers numerous benefits, it also faces challenges such as infrastructure maintenance, funding constraints, and the need for modernization. Addressing these challenges requires strategic investments, public-privatepartnerships,andpolicyreforms.

The transport sector is integral to Namibia’s economic development, contributing to GDP growth, job creation, and regional integration with investments in modernizing transport infrastructure positioning Namibia as a competitive logistics hub and so as always the conversation continues infocus@rdjpublishing.africa

Readings:

https://nsa org na https://www.transnamib.com.na https://www airports com na https://www namport com na https://www mwt gov na