Opinion – Namibia’s economic performance under NNN

Opinion – Namibia’s economic performance under NNN

As an independent economic and business researcher and board member of the African Council on Foreign Relations, I would like to celebrate Namibian history by extending my heartfelt congratulations to H.E. Netumbo Nandi-Ndaitwah, Namibia’s first female president-in-waiting and, therefore, first female president of SADC.

One must be familiar with Iceland’s first female president, Vigdís Finnbogadottir, who was elected in 1980. During that time, Icelandic citizens were experiencing social unrest, a severe economic crisis, and a general sense of disillusionment. Notwithstanding the worldwide trend, Iceland’s GDP has grown by 6.3% since she took office, outpacing the 4.9% growth rate in prior years. 

Another significant individual is Her Excellency Ellen Johnson Sirleaf, the president of Liberia and the continent’s first democratically elected female Head of State. The economy shrank by 90%, and government buildings, schools and hospitals were in ruins. After being elected president in 2006, Sirleaf inherited this disaster. Restoring basic services, maintaining peace, and raising the country’s credit rating were the main goals of president Sirleaf’s strategic plan. 

In 2006, Liberia’s gross domestic product (GDP) increased by 8.5%, surpassing previously recorded growth of 5.9%. Furthermore, Namibia’s first female president-in-waiting and its first female president of the Southern African Development Community (SADC) is H.E. Netumbo Nandi-Ndaitwah, the president-elect. 

Namibia is presently experiencing socioeconomic effects. The most important and urgently needed plan is the N$85 billion job creation plan, which calls for the creation of jobs in key sectors. H.E. Nandi-Ndaitwah firmly believes in diversity and that everyone should be included, regardless of political affiliation. Namibians would have more autonomy and be treated as equals in a more equitable and balanced relationship. 

Advice

The economy is dynamic and diverse, allowing people to find good jobs and reviving industrial growth and manufacturing to create jobs and produce goods and services that enhance the ordinary person’s daily life. The main goal of economic policy should be to promote economic prosperity driven by rapid growth rates. In fact, the majority of our societal issues are a direct result of the absence of prosperous growth. Opportunity is limited in the absence of growth. And there are serious social issues when there are no opportunities. Namibia’s economy is growing slowly, and there are significant obstacles to innovation in both the public and private sectors. To fully benefit from the digital economy and enhance our ability to create jobs, advance long-term economic growth, and build society, we need more intelligent policies. As they grapple with social and economic issues, policymakers should prioritise this focus. The president should take concrete measures to encourage investment by analysing laws, regulations, and investment policies and eliminating provisions that impede seamless investments, such as erratic policies, an unstable tax structure, and unnecessary bureaucracies. Namibia needs to make changes to its educational system. Expecting Namibia to become industrialised without taking the necessary steps to enhance the educational system is unrealistic. 

Furthermore, the government should prioritise land reform and include it on its agenda. Because it aimed to mend the divisions of the past, create a society founded on democratic values, social justice, and fundamental human rights, and enhance the standard of living for all citizens while unleashing the potential of every individual, the Namibian Constitution has been referred to as a transformative constitution. In Namibia, land reform is a key tool for achieving social justice and economic advancement. Thus, resolving the land reform matter will guarantee that the rights of all Namibians, not just those who currently own land, are reinforced rather than undermining property rights. 

Additionally, investors value good corporate governance, and under its principles and practices, shareholders have rights and expectations. Controlling corruption is the most important factor influencing economic development and can have an effect on economic growth. Make openness a top priority in procurement and contracting procedures to fight corruption. Among the biggest sources of corruption are contracting procedures. The best methods to reduce corruption in contracting processes are to create straightforward and workable policies and procedures, along with fair and consistent rulings and a way to hold contractors and the contracting agency responsible for their actions. 

Grafting activities may be curbed by putting controls in place, such as requiring dual authorisation for audits and expenditures. Namibia should enact rules for standardising the creation of competitive, transparent, and open contracting processes. The operation’s financial credibility, essential services, and vital resources are all at risk, and these factors outweigh the need for increased efficiency. 

It becomes ingrained as a persistent barrier to inclusive growth, and both the market and the State must operate efficiently to accomplish it. 

Additionally, H.E. Nandi-Ndaitwah should promote energy prosperity. This means that our president should support prudent energy policies that let supply and demand be balanced by free markets, guaranteeing future energy that is dependable and reasonably priced. Against this backdrop, policy support mechanisms are crucial for the penetration of green hydrogen into multiple sectors and to promote sector coupling in order to realise the true potential of hydrogen locally and to reap the benefits. 

Green hydrogen can free up more space for renewable energy sources. Furthermore, with public debt exceeding 60% of GDP and in the midst of numerous macroeconomic disruptions. H.E. Nandi-Ndaitwah needs to get rid of SOEs’ inefficient assets and obsolete, excess capacity. Instead of focusing on enhancing corporate governance, the current wave of SOE reform has emphasised the State’s drive for consolidation through mergers and acquisitions. The Fourth Industrial Revolution must also be in line with NDPs in order to advance knowledge and close the inequality gaps. 

Thus, to help Namibia meet the economic challenges of the next stage of its development, H.E. Nandi-Ndaitwah and the corporate sector must make changes at the macroeconomic level. It might be necessary to change State laws and policies to improve the lot of individuals. 

In conclusion, I recommend that in order to foster and develop a thriving entrepreneurial network, H.E. Nandi-Ndaitwah create a framework to improve connectivity and visibility of innovation, encompassing investors, business support organisations, research institutions, and entrepreneurs. 

Prioritise industrial and trade policies and cultivate goodwill with foreign businesses to draw in investors and raise their investment levels in Namibia. As a result, it can help Namibians prosper and realise their full economic potential. 

Thus, H.E. Nandi-Ndaitwah should prioritise infrastructure development, economic revitalisation, and opportunity provision for all Namibians.