It cost the Namibian government N$120 million in public funds to set up the infrastructure needed to chase foreign direct investment from an international company. Given this expense, the financial support that the company received was the equivalent of its salaries to its 7000 workers for almost three years. This is according to a study from the Labour Resource and Research Institute (LaRRI), which casts doubts on the benefits of foreign direct investment. Low wages, poor working conditions,...read more
It cost the Namibian government N$120 million in public funds to set up the infrastructure needed to chase foreign direct investment from an international company. Given this expense, the financial support that the company received was the equivalent of its salaries to its 7000 workers for almost three years. This is according to a study from the Labour Resource and Research Institute (LaRRI), which casts doubts on the benefits of foreign direct investment. Low wages, poor working conditions, everyday work accidents and verbal abuse were all par for the course at textile company Ramatex's plant in Windhoek. Rametex produces for Nike, Adidas, Puma, Otto Versand, Target, Wal-Mart and Sears Woolworth. "The experiences in Namibia are in line with international trends of Transnational Corporations (TNCs) spreading their operations globally in search for increased profits. The fact that Ramatex managed to play out three Southern African countries against each other shows how TNCs utilise their bargaining position to gain increasing concessions from host countries, which are desperate to attract investors."