IMF tackles high jobless rate

The world expects Namibia to urgently address its unemployment rate and ensure that its economic growth becomes inclusive.This was among the findings and recommendations reported this week by a visiting delegation from the Washington DC-based International Monetary Fund (IMF).The delegation, led by the IMF’s mission chief for Namibia, Geremia Palomba, made the recommendations after two weeks of consultations with the government and the private sector.The delegation hailed Namibia for its efforts at keeping its economy going under tough global conditions, but also called for greater urgency in addressing domestic threats.“The IMF projects 2016 growth at 2.5%, compared to 5.3% in 2015, as the government starts consolidating and construction activity slows down,” Palomba told a press conference in Windhoek.“The performance is expected to accelerate to above 5% in 2017 and 2018 as production from new mines ramps up,” he said.“Namibia’s key challenges going forward are to preserve macro-economic stability and make inroads in reducing high unemployment and income inequality.”The government has already put in place measures to counter declining SACU revenues (previously accounting for up to a third of GDP) and rising inflation, the IMF noted.It urged the government to move on plans to strengthen revenue collection and administration, improve spending efficiency and improve its management of state-owned enterprises.“The government is taking actions on various fronts to tackle high unemployment, particularly among the youth, and reduce income inequality,” Palomba said.“A well-focused package of structural reforms to address the lack of skilled workers, improve the employability of the less skilled labour force, and to simplify business regulations, has the potential to significantly boost employment.” Comments about the country’s financial sector were positive, though escalating property prices, high private debt and “complex and extensive linkages” across financial institutions were identified as risks.The IMF representative welcomed the government’s commitment to releasing a mid-year budget review policy statement at end of October.The IMF delegation will prepare a report based on these findings, to be presented to the IMF’s Executive Board.DENVER ISAACS

IMF tackles high jobless rate

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Namibian Sun 2025-05-21

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IMF tackles high jobless rate

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Namibian Sun 2025-05-21

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