Namibia Bans Chinese Investment in Beauty Salons, Africa

Namibia will ban foreign investment in small and medium-sized public-transport businesses and in hair and beauty salons because of increased Chinese involvement in the industries.

The government will enforce legislation and make foreign investors obtain permits to invest in any form of retailing, Trade and Industry Minister Hage Geingob said in an e-mailed statement today in the capital, Windhoek. The move comes amid concern that foreigners are dominating small-scale business in the country, he said.

Much of this concern has been sparked by activities of Chinese business persons, he said.

Bilateral trade between Namibia and China amounted to $526 million in 2008, China s ambassador to Namibia, Ren Xiaoping, said in October. In the first six months of 2009, trade volumes totaled $309 million, more than double the amount a year earlier, according to Ren.

Namibia, a southwest African nation with 2.1 million people, is Africa s biggest uranium producer. The country relies on the nuclear fuel and other minerals including lead, zinc, tin, silver and tungsten to generate 50 percent of total foreign-exchange earnings.

Geingob said he had held meetings with Chinese government officials on complaints that Chinese nationals engage in illegal business practices in Namibia and do not adhere to the southern African nation s labor laws.

Namibian Laws

Geingob said the Chinese officials told him that Namibian laws should be allowed to run their course concerning any Chinese citizen engaged in illegal practices.

A spokesman of the Chinese embassy in Windhoek said in a telephone interview that the embassy hadn t seen Geingob s statement and so couldn t comment. China s Commerce Ministry in Beijing didn t immediately respond to a faxed request for comment.

Last week, the Namibian Chamber of Commerce and Industry said in a statement that the government should ban foreign investors who don t create jobs or boost economic growth.

China is increasing its investment in African energy and mineral resources to feed its growing economy. In 2008, the country invested $7.8 billion in the continent. At a summit in November, China said it will offer $10 billion in preferential loans to Africa over the next three years to develop infrastructure and social programs. It also plans to write off the debt of some of the poorest nations.