Economic lifeline

President Hage Geingob has signalled serious moves to boost the ailing Namibian economy by placing his top technocrat, Tom Alweendo, at the mines and energy ministry during his much-anticipated cabinet reshuffle yesterday.

He also sent a clear signal of stability to the markets by retaining Calle Schlettwein as finance minister.

The appointment of Alweendo, who swapped ministries with Obeth Kandjoze, has been widely welcomed by analysts, who said he is the right man for the job at the right time.

The mining sector's contribution to GDP is targeted to reach 15.2% in 2022, from the current 12.5% under the Fifth National Development Plan (NDP5), while the country's electricity supply, which is still highly dependent on South Africa and other neighbouring countries, is critical for future economic growth.

Namibia's mineral resources include diamonds, copper, lead, zinc, gold and uranium, but these are still largely in foreign hands, which is a contributor to the country's current economic woes.

Geingob, who announced several changes to his executive yesterday at the first cabinet meeting of the year, also made a critical change in the works ministry, where former agriculture minister John Mutorwa now sits, following a straight swap with his predecessor, Alpheus !Naruseb.

!Naruseb had been at the centre of ongoing turf battles, lawsuits and other shenanigans at parastatals residing under the works ministry, including the Namibia Airports Company (NAC).



As expected, Nickey Iyambo was replaced as vice president, but instead of Geingob's deputy in the party, deputy prime minister Netumbo Nandi-Ndaitwah, it was former Swapo secretary-general Nangolo Mbumba who was announced as his replacement.



Geingob is also hoping that former information minister Tjekero Tweya, who was replaced by George Simataa, will be able to breathe new life into the trade and industry ministry, which is another critical arm of the government's battle to turn around the ailing economy.



Since 2014 a total of 129 644 Namibians have lost their jobs because of drought and a global recession, a situation that has been aggravated by the poor performance of the construction sector.



The Bank of Namibia (BoN) projects a growth rate of 2.2% for 2018.



In an effort to cut costs, the government is limiting foreign trips for civil servants, exercising control over the use of state vehicles, and saving on paper by using email.



Ironically, while downgrading Namibia's long-term foreign-currency issuer default rating (IDR) to 'BB+' from 'BBB-', with a stable outlook late last year, ratings agency Fitch actually predicted yesterday's cabinet reshuffle, as well as a host of government reforms aimed at boosting the economy .



“We expect the fiscal and growth-enhancing reform drive to gain momentum after the congress. A government reshuffle seems likely, and we expect a new cabinet to initiate some major reforms - including the overhaul process of the SOE sector.



“We also expect the government to retract the most controversial provisions of the New Equitable Economic Empowerment Framework (NEEEF) draft bill and the National Investment Promotion Act (NIPA), and submit revised versions of the two bills to parliament in 2018,” Fitch said in November last year, shortly before the Swapo elective congress.



Yesterday analysts applauded Geingob for his choice of candidates for some key ministries, while others felt he should have been more aggressive.







Disturbed by corruption



Geingob said he was particularly disturbed by allegations of corruption, maladministration and incompetency - mostly directed at the works, health, mines and energy ministers as well as the attorney-general's office.



As a result, attorney-general Sacky Shanghala was moved to the ministry of justice to replace Albert Kawana, who will take up the AG position.



Former trade and industry minister Immanuel Ngatjizeko replaces presidential affairs minister Frans Kapofi, while deputy international relations minister Peya Mushelenga will replace Sophia Shaningwa as minister of urban and rural development.



Shaningwa is leaving the ministry to take up the fulltime post of Swapo secretary-general post.



Deputy minister of home affairs Erastus Utoni has replaced Jerry Ekandjo as sport minister, while Kapofi will be heading the home affairs ministry left vacant by Pendukeni Iivula-Ithana. Ekandjo and Iivula-Ithana were both fired last Thursday.



Although Geingob emphasised that people cannot just be prosecuted without due process, he warned ministers not to use this as an obstacle to take people to task.



He warned that “some reckoning would mean the heads of big fish must roll”.



Local constitutional expert Nico Horn was impressed by Alweendo being shifted to mines and energy, saying he might just be the man the country needed at this moment.



“But overall there is not much of a surprise. It is interesting to see that that Shanghala was taken from the AG's office, it seems as if the president opted for the calmer and conservative choice,” Horn commented.



Economist Omu Kakujaha-Matundu echoed Horn's sentiments that Alweendo was the right candidate for the job, but was sceptical about !Naruseb's abilities in his new portfolio.



“Tweya is not new in trade; he was the deputy of Geingob when he was the trade minister. Perhaps the president is convinced that he can aggressively drive the vision of industrialisation. The other thing is, we are struggling with energy. Alweendo is a go-getter. He is a guy who can make it happen. And is he is passionate about development,” he said.



Political commentator Ndumba Kamwanyah believes there is nothing “impressive” about the reshuffling.



But Kamwanyah is certain that the president's decision to stick with Calle Schlettwein as finance minister sends a strong message to the markets.



“Calle has proven to be responsible and he has been stopping all the questionable deals,” he said.

JEMIMA BEUKES