Govt must stop avoiding major decisions – IPPR
ELLANIE SMIT
WINDHOEK
The latest quarterly economic review from the Institute for Public Policy Research (IPPR) says the knock to the gross domestic product, incomes and employment in Namibia due to the coronavirus pandemic was substantial last year.
Throughout last year, government has focused on its immediate response to the pandemic and avoided taking major decisions, it added.
“With only subdued economic growth on the cards for 2021 at best, it is hard to see these decisions being avoided for another year.”
The economic review for the last quarter of 2020 looks at economic developments between October and December and assesses the impact of the pandemic on the economy throughout the year.
The IPPR said it is not yet clear how long-lasting this impact will be and how many businesses will not recover from the damage inflicted.
According to surveys commissioned by the Namibian Employers’ Federation conducted between May and July, covering 517 businesses, some 19% of surveyed enterprises stopped operating due to the pandemic.
The worst affected enterprises were primarily small businesses and those from the hotel and tourism, food, beverage and restaurant, and construction sectors.
The surveys showed that about 26% of enterprises had to lay staff off and a further 8% planned retrenchments, while 39% of businesses implemented wage cuts.
Poor shape
“The coronavirus arrived after the economy had been suffering from four years of low or negative growth and many businesses were already in poor shape,” the IPPR said.
Government has announced that the second phase of its Harambee Prosperity Plan will be launched this month and will constitute a recovery plan for the economy, the IPPR said.
“Whatever it contains, three main issues need to be addressed in the course of 2021. The first is government’s vaccination programme following the initial down-payment of N$29 million as part of the international Covax facility.”
Secondly, the IPPR said, is the redemption or roll-over of government’s US$500 million Eurobond, which matures this year.
Lastly, the IPPR said government will have to grasp the nettle of public enterprise reform, starting with Air Namibia.
“The airline has been making steady losses for years, even as Namibia’s tourism industry has grown and international air travel has expanded. What future can there be now that the coronavirus looks set to cast a pall over the international airline industry for years to come?”
WINDHOEK
The latest quarterly economic review from the Institute for Public Policy Research (IPPR) says the knock to the gross domestic product, incomes and employment in Namibia due to the coronavirus pandemic was substantial last year.
Throughout last year, government has focused on its immediate response to the pandemic and avoided taking major decisions, it added.
“With only subdued economic growth on the cards for 2021 at best, it is hard to see these decisions being avoided for another year.”
The economic review for the last quarter of 2020 looks at economic developments between October and December and assesses the impact of the pandemic on the economy throughout the year.
The IPPR said it is not yet clear how long-lasting this impact will be and how many businesses will not recover from the damage inflicted.
According to surveys commissioned by the Namibian Employers’ Federation conducted between May and July, covering 517 businesses, some 19% of surveyed enterprises stopped operating due to the pandemic.
The worst affected enterprises were primarily small businesses and those from the hotel and tourism, food, beverage and restaurant, and construction sectors.
The surveys showed that about 26% of enterprises had to lay staff off and a further 8% planned retrenchments, while 39% of businesses implemented wage cuts.
Poor shape
“The coronavirus arrived after the economy had been suffering from four years of low or negative growth and many businesses were already in poor shape,” the IPPR said.
Government has announced that the second phase of its Harambee Prosperity Plan will be launched this month and will constitute a recovery plan for the economy, the IPPR said.
“Whatever it contains, three main issues need to be addressed in the course of 2021. The first is government’s vaccination programme following the initial down-payment of N$29 million as part of the international Covax facility.”
Secondly, the IPPR said, is the redemption or roll-over of government’s US$500 million Eurobond, which matures this year.
Lastly, the IPPR said government will have to grasp the nettle of public enterprise reform, starting with Air Namibia.
“The airline has been making steady losses for years, even as Namibia’s tourism industry has grown and international air travel has expanded. What future can there be now that the coronavirus looks set to cast a pall over the international airline industry for years to come?”
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