OBSERVER DAILY | Tot siens, Botswana: The end of an era in the second car dealership in Namibia

A quiet revolution is unfolding at the Namibian border posts. A policy shift, announced by the Ministry of Industrialisation and Trade, has barred the importation of second-hand vehicles older than 12 years from outside the Common Customs Area (CCA). This change, while perhaps anticipated in policy circles, has hit with the sudden force of a desert storm for many young Namibians whose livelihoods depend on the second-hand motor vehicle trade.

For years, the phrase “Dankie, Botswana” marked the informal farewell uttered by hopeful entrepreneurs as they crossed into our neighbour, heading to Durban or other major ports, returning weeks later with used Japanese or UK-imported cars. These vehicles, often more than a decade old but still roadworthy, became the lifeblood of Namibia’s affordable vehicle market.

Today, that era is drawing to a close.

The government’s stated aim is clear: to align Namibia’s import policies with regional standards, reduce the influx of ageing, potentially unsafe vehicles, and promote road safety. According to deputy director for trade promotion Salutus Kapenda, this move is also about ensuring vehicles meet environmental and technical compliance standards consistent with the region.

On paper, these are laudable goals. No one disputes that Namibia’s roads should be safe and its environment protected from pollution caused by high-emission vehicles. Equally, a nation cannot forever be the dumping ground for ageing cars that longer-serving economies are discarding.

However, while the vision is clear, the context on the ground is more complex.

The second-hand car trade is not just about old vehicles; it’s a cornerstone of informal entrepreneurship in Namibia. It represents hustle, resilience, and the innovative spirit of young people who, amid limited formal job opportunities, chose commerce over crime. For many, importing a car, refurbishing it, and selling it was their first brush with financial independence. It paid for school fees, rent, groceries, and even funded expansion into other small business ventures.

The government’s policy shift will have ripple effects far beyond the customs post. Hundreds of informal dealerships, especially in urban townships and peri-urban centres, depend on a steady supply of affordable second-hand cars from outside the CCA. Many of these cars come via Botswana or Walvis Bay after landing from Japan, Singapore, or the UK. These are the very imports now being targeted under the new restrictions.

Let us be honest: Namibia’s economy, still recovering from the shocks of Covid-19 and weathering the weight of a stubbornly high unemployment rate, cannot afford sweeping policies that choke informal enterprise without offering viable alternatives.

We saw a similar outcry not long ago when the second-hand clothing industry was briefly placed under threat of prohibition. That, too, was a sector dominated by informal traders, predominantly women, who made an honest living from the resale of affordable, imported garments. The public backlash prompted the government to reconsider, leading to a more measured approach.

That same sensitivity and awareness is required now.

The move to regulate imports through Walvis Bay is understandable. Centralising inspections is a good administrative step, provided it doesn’t become a bottleneck. But the core of the problem lies not in logistics but in the economic fallout from the 12-year rule. A young Namibian cannot afford a brand-new pickup truck. A government clerk from Oshakati looking to buy a reliable double cab for family or farm use isn’t eyeing a showroom model. These buyers need options and affordable, decent-quality used vehicles, and for years, the market met that need through imports just outside this new age threshold.

Some will argue that the solution lies in supporting local vehicle financing, growing domestic dealerships, or boosting intra-CCA trade. Indeed, stimulating trade within SADC is commendable. However, vehicles manufactured or traded within the CCA are often still priced out of reach for many Namibians. The two-year import window from CCA partners offers some relief, but it is narrow and may not significantly ease the shock to the market.

Let us also not forget the deeper problem: Namibia has a youth unemployment crisis. Every regulation that inadvertently eliminates a self-created job must be weighed against the harsh economic landscape. The government’s swift and heavy-handed clampdown on “order-with-me” businesses, another area where enterprising youth carved out income from importing Chinese goods, showed what happens when policies are implemented without regard to livelihood preservation.

There must be a balance.

Regulations should not suffocate innovation, nor should national safety and environmental standards be held hostage to economic challenges. But the balance lies in gradualism, consultation, and support.

Could the policy have included a phase-in period, allowing importers to adjust? Could there have been a formal consultation process with informal vehicle traders and associations? Could microfinancing facilities or training support be offered to help these entrepreneurs transition into compliant business models?

Ultimately, Namibia must decide whether its policies serve only the macroeconomic goals of alignment and compliance or whether they reflect the socio-economic realities of its people.

We urge the Ministry of Trade, together with its sister ministries, to engage stakeholders, especially young importers, and develop a parallel support strategy. Whether it is training, seed funding, or easing intra-CCA trade routes, something must be done.

Otherwise, we risk trading away an entire ecosystem of youth enterprise for the sake of policy neatness.

Totsiens, Botswana? Maybe. But let it not be Tot siens to youth entrepreneurship as well.

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