Former Namibia PM emerges as leadership contender

By John Grobler

WINDHOEK, April 8 (Reuters) - Namibian President Hifikepunye Pohamba on Tuesday named former Prime Minister Hage Geingob to his cabinet, putting him in line to challenge for the leadership of the African nation as early as next year.

Geingob, who was elected deputy president of Pohamba's ruling South West African People's Organisation (SWAPO) late last year, was named minister of trade and industry in a cabinet reshuffle announced by Pohamba.

The appointment was part of an ongoing political rehabilitation for Geingob, who was abruptly demoted by former President Sam Nujoma in 2002.

Namibia, rich in diamonds and wedged between economic powerhouse South Africa and oil-producing Angola, has enjoyed an extended period of political and economic prosperity that has made its 1.9 million people the envy of many in Africa.

But, disenchantment with Pohamba over rising poverty and unemployment, and divisions within SWAPO have led to speculation that Nujoma, who is still party president, or another senior party official could lead the party in the 2009 elections.

Pohamba also announced on Wednesday that the departments responsible for information technology and broadcasting would be combined into one ministry in a move designed to speed up the modernisation of telecommunications.

Legislation to liberalise the sector, including an expansion of cellphone and Internet service, had been stymied by bureaucratic wrangling within the government.

"I'm advised that this is an international trend so that those seeking to invest in this sector can deal with one central authority," Pohamba said at a press conference in Windhoek to announce the changes.