Namibian government acts to stem raw materials outflow
In a move aimed at stemming the outflow of livestock and hides to neighbouring South Africa, the Namibian government has introduced a new round of export levies applicable to livestock and hides.
Effective from November 2003, all exports of slaughter-ready mature cattle, cattle hides and exotic material will be subject to a levy of 30%. Exports of live sheep, live goats and skins and the skins from both will carry a levy of 15%.
An unspecified percentage of the levies collected will be allocated to a newly created Livestock and Tannery Sector Development Fund which will be aimed at bringing a greater degree of conformity between the country’s livestock and leather sectors with international practices.
In announcing the measures, the Minister of Trade and Industry cited studies carried out by government and the United Nations Industrial Organisation (UNIDO), between 1998-2001 which pointed to a continuing decline in the availability of hides and skins to the domestic tanning sector. The main reason identified was the continuous large scale export of livestock for slaughter and hides to neighbouring South Africa,
The Cabinet also resolved that the Ministries of Trade and Industry and Agriculture, Water and Rural Development should explore the possibility of amending the Meat Industry Act in order to transfer from the Meat Board of Namibia the responsibility of issuing trading licenses to foreign buyers of livestock animals from Namibia and such function be performed by the Ministry of Trade and Industry instead.
