Namibia’s private sector is expected to be the main driver of economic development. That’s a key role of the private sector as a driver for economic recovery and the country’s future prosperity. Agriculture, construction, manufacturing and care services have the highest potential to generate decent employment for Namibians.
The NDP5 aims to promote structural change through industrialisation in key focus areas such as enterprise development, manufacturing, agriculture, rural economic development, the so-called blue economy, mining, fisheries, tourism and research and innovation. Vocational training efforts to improve employment outcomes should better calibrate training programmes to the needs of the labour market. The stereotype about recognised vocation in society contributed to the huge unemployment of large groups of graduates who are not needed by the labour market, while there are other sectors that need vocation workers, not university graduates.
Private sector engagement is essential to tackle socio-economic issues and to advance inclusive, sustainable development in the longer term. The ultimate goal is to increase the engagement and participation of the domestic workforce in the private sector businesses, and therefore enhance economic activity and social cohesion in the respective regions of Namibia.
The budget of 2022/2023 should focus on driving economic recovery, rebuilding national resilience and catalysing reforms across the private and public sectors.
The worst-hit sectors such as tourism and its related industries should be prioritised, while businesses will be encouraged to enhance their competitive edge and venture into new growth areas to build resilience and withstand future adversities. To achieve the vision of recovering from the pandemic and becoming a prosperous, inclusive and sustainable nation, the government has to introduce the concept of co-operation and collaboration between stakeholders, irrespective of political affiliation or ideological differences. The existing procedures should be reviewed to promote efficiency in the public service, and enhance its quality to fulfil stakeholders’ requirements.
In addition, the government should foster closer collaboration with various organisations to empower them to partake in national development. A lot of the mismatches that we see between government solutions and the problems that we have is because the government is making policy for an economy. This slow progress has been attributed to a number of factors, including a lack of urgency from government in creating and implementing economic policies. After the first part of the Harambee Prosperity Plan (HPP), launched in 2016 and lasting till 2020, President Hage Geingob introduced the second part (HPP II) on 18 March 2021, covering the period from 2021 to 2025. The plan aims at implementing policy programmes which enhance service delivery, economic recovery such as inclusive growth, and to strengthen Namibia in terms of socio-economic challenges and preparing it for global opportunities in relation to the Covid-19 pandemic. It’s also to develop an implementation plan to attract private sector investment into the green and blue economies. Implementation plans are the backbone of a strategic overall plan.
The private sector could drive the country’s economic recovery efforts following the ravages of the Covid-19 pandemic. I believe that a well-performing private sector would increase Government’s tax mobilisation efforts, create jobs for the teeming youth and propel Namibia beyond aid. Private corporations are the engines of the economy. The development of private enterprises means reducing public debt for the State. Namibia should review its policies to promote the development of large private economic groups, and consider them as the driving force for development. The legal system related to business still has many inconsistent procedures and conditions, causing obstacles for private enterprises.
To improve the capacity of the private sector in Namibia, the government should support enterprises to restore production and minimise the negative impacts of the Covid-19 pandemic as well as improve the business investment environment. It should promote the development of technology, innovation and digital transformation, taking advantage of the achievements of the Fourth Industrial Revolution; and develop policies to promote private enterprises to deeply participate in the value chain. Strengthen the connection and linkage along the value chain between private enterprises and FDI enterprises. Promote the development of small and medium-sized private enterprises, while developing a number of large private economic groups with strong potential and regional and international competitiveness.
Furthermore, rebuilding business confidence is a fundamental starting point to resuscitating investment. We all have much work to do for Namibia to regain its economic momentum that will deliver the inclusive growth to make lives better for all. The private sector has strong links to higher investments in education and vocational training to bridge skills gaps in the economy, facilitating skills, creating partnerships with educational institutes and experts and, most importantly, creating a future-ready and talented workforce. Private investments by the corporate sector are critical to higher growth rates and economic development. Corporates are integral to fostering innovation and entrepreneurship, and ensuring the future progress of an economy.
In conclusion, private enterprises are the chief agents in creating employment, providing funds, building competitiveness and driving innovation. The private sector’s role in encouraging a country’s growth and economic development cannot be overstated. Effective partnerships between the government and the private sector in critical areas of infrastructure and long-term investments would expedite development.
The private sector plays the leading role in research and development spending, working with universities and institutions to translate new research into markets and crafting innovative business models.