The Bank of Namibia has maintained an accommodative policy stance to support a revival of the domestic economy. The Bank launched its strategic plan for the next three
years, projecting the domestic economy to grow by 1.5% in 2021 and improve in 2022.
What has become clear is that Namibia will not see a sharp and quick economic bounce back many have been hoping for but will in all likelihood see a 12 to 24-months gradual recovery amidst Covid-19 of managing a rebuild and growth plan.
The National Development Plans are very important in redefining the future of Namibia Economic recovery and growth plan. The implementation of the NDP’s and HPP’s are crucial.
Proper implementation of the National Development Plans would restructure the economy and could put the country onto a sustained higher growth path. The plans focus on the critical capabilities needed to transform the economy and society.
Achieving these capabilities is not automatic, nor will they emerge if the country continues on its present trajectory. Rising levels of frustration and impatience suggest that time is of the essence; failure to act will threaten democratic gains. Namibia must find ways to urgently reduce alarming levels of youth unemployment and to provide young people with broader opportunities.
The NDPs and HPPs aims to eliminate inequality by 2030. Namibia can realise these goals by drawing on the energies of its people, growing an inclusive economy, building capabilities, enhancing the capacity of the state, and promoting leadership and partnerships throughout society.
Namibia should reinforce the African Growth and Opportunity Act (AGOA) strategy. The purpose of the strategy is to provide a comprehensive plan on how Namibia can increase its exports to the USA under the AGOA.
Namibia has made remarkable progress in the transition from apartheid to democracy. To accelerate progress, deepen democracy and build a more inclusive society, Namibia must translate political emancipation into economic wellbeing for all.
It is up to all Namibians to fix the future, starting today. It is our responsibility to hold the government accountable by bringing our strategies to accelerate future economic recovery and growth. The success will depend on all Namibians taking responsibility for the plan, led by the President and Cabinet. We are likely to see a rapid erosion of the principles of free trade that could delay future economic recovery and growth. The current crisis will leave lasting scars in the new but challenging world order.
The ability to counter the crisis and adapt will require a change in many stagnant political systems of Namibia that continue to impede change, now more than ever before. If this shift does not take place, then the quest for structural reform and inclusive growth will remain unachievable.
It is imperative that whilst government and private sector remain focused on the immediate response and support required, we lift our heads and look forward to crafting an integrated recovery and growth plan. In addition, with the inflation outlook within the targeted band (3.50% to 3.60%), it is projected to remain around 4.5% through 2026.
The severe of Omicron variant will lead to demand-supply mismatch, which will influence the inflation rate. However, this alone will not be enough to support a recovery and growth plan, which will require significant investment and stimulus over years driven by an integrated and collaborative effort from government, private sectors and its local and international funding partners.
The pandemic has proven that we are a global economy and reliant on each and every market for our success. This unity and joint action will be the crucial factor that will determine our successful rise and recovery, which will see developed and stronger economies supporting the emerging markets.
A further stimulus could be provided by reducing the tax burden on the private sector, ensuring more funds are available for investment and savings.
We will likely see this coming through in the form of incentives as opposed to rates being dropped.
We will also see a renewed focus on the already established regional trade areas, which can effectively be used to leverage trade and enhance relations. What is required is a unified approach, both during the crisis and for any long-term growth plan. There is also reason to hope that the pandemic has opened a window to create new ways, including more effective measures to stop the trend toward greater inequality.
The economy is now going through the imminent fourth wave of the pandemic and the future recovery and growth will depend on how effectively it is managed. It is clear that we cannot return to previous ways of doing business. We now need to look at public policies to ensure that these benefits become permanent.
Having been catapulted into the digital future, we must make the most of this opportunity by doubling down on digital transformation. Investing in new digital capacities, infrastructures and technologies will be a key element of the recovery effort.
In conclusion, e-business in the broad sense will become much more important. Many more common business transactions will move to the web and many additional business processes will be automated by intelligent software.
Governments have gone through an accelerated digital learning cycle due to the pandemic. It is imperative that governments capitalise on what they have learned and double down on digital transformation.