Import substitution the way to go

Namibia recorded a trade deficit of N$2 billion in April compared to a deficit level of N$1.8 billion recorded in both March 2021 and April 2020.

08 June 2021 | Economics

Activity in mining and agriculture have started showing signs of recovery. Johannes !Gawaxab, Governor: Bank of Namibia (BoN)

PHILLEPUS UUSIKU

To ensure that the domestic economy revives on a long-term basis, import substitution, export promotion and investments should all be considered as feasible policy choices, and pursued aggressively.

These remarks were made by the governor of the Bank of Namibia (BoN), Johannes !Gawaxab at a stakeholders meeting in the Erongo region last week aimed at exchanging views on pressing economic matters facing the region and the country at large.

There is a need to give local firms the assistance they need through local procurement and promoting a culture of shopping locally. This is in addition to policy recommendations such as the Harambee Prosperity Plan II, which must be executed with the appropriate urgency in order to achieve the much-needed economic recovery, he said.

According the Namibia Statistics Agency (NSA), for the month of April, Namibia spent about N$10.4 billion on foreign goods, an increase of N$3 billion or 40.5% when compared of an amount of N$7.4 billion in April last year. In March, imports stood at N$10.2 billion, a slight increase of 2%.

The value of exports in April 2021 declined by 0.8% to N$8.3 billion from its level of N$8.4 billion recorded in March 2021. However, when compared to N$5.7 billion recorded in April 2020, exports increased by 47.6%.

Following these developments, Namibia recorded a trade deficit to the tune of N$2 billion compared to a deficit level of N$1.8 billion recorded in both March 2021 and April 2020, NSA pointed out.

Sectors

In order to boost exports and reduce imports, it of critical importance to ensure that key sectors receive the necessary investments to enhance economic growth.

!Gawaxab notes that activity in mining and agriculture have started showing signs of recovery, while the tourism sector is still awaiting the return of international tourists.

He adds the Erongo region is a key pillar for the domestic economy due to the number of activities taking place such as mining, the blue economy, logistics, services, and tourism.

In terms of the country's economic challenges, which were exacerbated by the Covid-19 epidemic, resulted in Namibia's Gross Domestic Product (GDP) shrinking by 8% in 2021, eliminating jobs and hobbling businesses while also putting pressure on the government debt. The governor highlighted that the country cannot afford another hard lockdown since it would jeopardise more jobs and businesses.

Finally,!Gawaxab reminded stakeholders that "vaccination policy is economic policy. As such, for the economy to recover, we need successful vaccination, investments and stability of the financial sector."

Similar News

 

Plot prices in Keetmans nearly halve

15 hours ago | Economics

The Keetmanshoop municipality has dropped the price per plot in the new Brukharos extension to N$16 900 per plot for low-income earners to afford housing.The...

Employers should come to the party

15 hours ago | Economics

RUNDU – The chairperson of the Wages Commission, Marius Kudumo, says the voices of employers and their organisations have not been satisfactory at its recently...

IMF approves US$772 mln payment to Angola

3 days ago - 11 June 2021 | Economics

The International Monetary Fund's executive board has approved a disbursement to Angola of about US$772 million after completing a fifth review of the African oil...

Minimum wage discussions continue at Rundu

3 days ago - 11 June 2021 | Economics

The newly established Wage Commission is in Rundu to investigate the possibility of introducing a national minimum wage in the country.At a meeting held at...

South Africa posts modest growth in Q1

4 days ago - 10 June 2021 | Economics

South Africa's economy maintained a steady growth trajectory in the first quarter of this year ticking up by more than one percent compared to the...

IMF approves US$650 mln in aid for Senegal

5 days ago - 09 June 2021 | Economics

The International Monetary Fund (IMF) has approved US$650 million in aid to Senegal to support the West African country's Covid-19 recovery, it said in a...

US restricts visas over Cameroon conflict

5 days ago - 09 June 2021 | Economics

The United States on Monday announced visa restrictions on individuals accused of fuelling violence in western Cameroon, which has seen vicious fighting for four years...

OPEC sees oil stocks falling further

5 days ago - 09 June 2021 | Economics

The Organization of the Petroleum Exporting Countries (OPEC) and its allies expect oil inventories to fall further in the coming months, OPEC's secretary general said...

Import substitution the way to go

6 days ago - 08 June 2021 | Economics

PHILLEPUS UUSIKUTo ensure that the domestic economy revives on a long-term basis, import substitution, export promotion and investments should all be considered as feasible policy...

Cryptocurrencies show inflows after record outflows

6 days ago - 08 June 2021 | Economics

GERTRUDE CHAVEZ-DREYFUSSCryptocurrencies posted inflows last week after hitting record outflows the previous two, as investors took advantage of price declines in the market, data from...

Latest News

Starlile wins Winter Cup

15 hours ago | Sports

LIMBA MUPETAMIStarlile from the Okahandja Racing Club beat the likes of You Touch My Heart (second place) and Newton Spark (third place) to the finish.Starlile...

Bronze for Du Plooy

15 hours ago | Sports

Namibia’s triathlon champion Divan du Plooy took bronze at the just-ended African continental championship in Egypt.The Namibian was competing in the Under-23 category in Sharm...

Plot prices in Keetmans nearly...

15 hours ago | Economics

The Keetmanshoop municipality has dropped the price per plot in the new Brukharos extension to N$16 900 per plot for low-income earners to afford housing.The...

President too quiet in crisis...

15 hours ago | Health

STAFF REPORTERWINDHOEKFormer health minister Dr Richard Kamwi is among those who believe that President Hage Geingob’s silence, as the country endures its worst wave of...

Covid-19: Six SA tourists die...

15 hours ago | Health

NEWS24JOHANNESBURGSix elderly tourists died from Covid-19 after 37 out of 40 travellers on a bus trip in Namibia tested positive for the coronavirus.According to Netwerk24,...

Covid-19’s impact on sports

15 hours ago | Sports

Limba MupetamiThe effects of Covid-19 continue to flow through Namibia’s health, educational, financial, and commercial institutions and the sport sector is no different.Matches and competitions...

Won’t do it - Kanalelo

15 hours ago | Sports

KickOffThe former Mamelodi Sundowns goalkeeper Fillemon ‘Ronnie’ Kanalelo worked at both Bloemfontein Celtic and Maritzburg United as a keeper trainer, and had his last coaching...

SA govt sells majority stake...

15 hours ago | Business

Nqobile Dludla - The South African government is selling a 51% stake in South African Airways (SAA) to Takatso consortium, which will initially commit more...

EDITORIAL: President must address the...

15 hours ago | Opinion

The clarion calls for President Geingob to crawl from under his rock and provide leadership insofar as the deadly surge in Covid-19 infections is concerned...

Load More