Geingob promises investor-friendly policies
Gross fixed capital formation or net investment in Namibia last year amounted to about N$30.5 billion – the lowest since 2012.
Jo-Maré Duddy
Government intends “crafting a modern and targeted set of investment promotion laws and incentives that will seek to attract, foreign direct investment from every corner of the globe”, president Hage Geingob has said.
Speaking at the digital opening plenary of the Horasis extraordinary meeting on Thursday, Geingob said these laws and incentives will deployed alongside government's own funding into targeted areas of the economy that will lead to a diversified export basket.
Horasis, an international visions community, gathered 1 000 of its most senior members, including several heads of governments and key ministers to discuss “the profound economic, political and social disruptions caused by Covid-19”.
Addressing the meeting, Geingob said investment promotion has been central to government's economic development agenda. However, he did not elaborate on the planned investment promotion laws and incentives.
'Innovative financial tools'
Data released by the Namibia Statistics Agency (NSA) recently show gross fixed capital formation (GFCF) or net investment in 2019 amounted to about N$30.5 billion – the lowest since 2012. GFCF has been plummeting since 2014 and 2015 when it peaked at more than N$45 billion per year.
Local analysts blame much of the slump on policy uncertainty, as well as the controversial Namibia Investment Promotion Act (NIPA) and the New Equitable Economic Empowerment Bill (NEEEB).
Geingob further said Namibia aims to develop a suite of innovative financial tools, including green, blue, transition bonds and international carbon credits “as a way to facilitate the needed evolution of our economic structure”.
Developing nations, such as Namibia face the “twin-challenge” of high income inequality and poverty, he said.
'Tripple challenge'
“Additionally, a steadily growing population combined with slower economic growth due to independent intervening variables, namely reduced commodity prices, persistent drought and now Covid-19, has resulted in rising unemployment levels, in particular youth unemployment, giving birth to what is referred to as the 'triple-challenge' of inequality, poverty and high unemployment,” he added.
Geingob continued: “Moreover, the adverse socio-economic effects of the Covid-19 pandemic, have compounded existing challenges such as high debt burdens, reduced fiscal revenues, capital outflows and lack of adequate and sufficient access to financial markets. If not urgently addressed, the unfolding crisis could halt or reverse gains on poverty eradication, food security and inequality.”
Namibia supports debt for climate swaps and endeavour to create conditions for African research and development to allow locally relevant innovation to flourish, Geingob said.
“We look forward to working closely with the international community in designing and refining the menu of options to meet the needs of Namibia, and other emerging economies facing similar challenges,” he said.
Government intends “crafting a modern and targeted set of investment promotion laws and incentives that will seek to attract, foreign direct investment from every corner of the globe”, president Hage Geingob has said.
Speaking at the digital opening plenary of the Horasis extraordinary meeting on Thursday, Geingob said these laws and incentives will deployed alongside government's own funding into targeted areas of the economy that will lead to a diversified export basket.
Horasis, an international visions community, gathered 1 000 of its most senior members, including several heads of governments and key ministers to discuss “the profound economic, political and social disruptions caused by Covid-19”.
Addressing the meeting, Geingob said investment promotion has been central to government's economic development agenda. However, he did not elaborate on the planned investment promotion laws and incentives.
'Innovative financial tools'
Data released by the Namibia Statistics Agency (NSA) recently show gross fixed capital formation (GFCF) or net investment in 2019 amounted to about N$30.5 billion – the lowest since 2012. GFCF has been plummeting since 2014 and 2015 when it peaked at more than N$45 billion per year.
Local analysts blame much of the slump on policy uncertainty, as well as the controversial Namibia Investment Promotion Act (NIPA) and the New Equitable Economic Empowerment Bill (NEEEB).
Geingob further said Namibia aims to develop a suite of innovative financial tools, including green, blue, transition bonds and international carbon credits “as a way to facilitate the needed evolution of our economic structure”.
Developing nations, such as Namibia face the “twin-challenge” of high income inequality and poverty, he said.
'Tripple challenge'
“Additionally, a steadily growing population combined with slower economic growth due to independent intervening variables, namely reduced commodity prices, persistent drought and now Covid-19, has resulted in rising unemployment levels, in particular youth unemployment, giving birth to what is referred to as the 'triple-challenge' of inequality, poverty and high unemployment,” he added.
Geingob continued: “Moreover, the adverse socio-economic effects of the Covid-19 pandemic, have compounded existing challenges such as high debt burdens, reduced fiscal revenues, capital outflows and lack of adequate and sufficient access to financial markets. If not urgently addressed, the unfolding crisis could halt or reverse gains on poverty eradication, food security and inequality.”
Namibia supports debt for climate swaps and endeavour to create conditions for African research and development to allow locally relevant innovation to flourish, Geingob said.
“We look forward to working closely with the international community in designing and refining the menu of options to meet the needs of Namibia, and other emerging economies facing similar challenges,” he said.
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