Inside the rescue plan

The high-level panel on the economy, led by financial guru Johannes !Gawaxab, has recommended a bunch of proposals to rescue Namibia and place the country on a trajectory of growth.The proposed measures include donating land free of charge to all Namibians currently occupying it in urban informal settlements, as well as placing a moratorium on the awarding of all fishing rights, quotas and mineral licences until the current framework is replaced by a transparent bidding processThe plan is also to attract N$40 billion in foreign and local investment and introduce a national internship programme. The panel has also called for the construction of a desalination plant this year and it wants tax revenue and collection increased, while clamping down harder on illicit outflows.The plan was handed to President Hage Geingob recently but was not made public until yesterday.The panel proposed that occupants of land in informal areas be given land to own.“The recommendation is limited to the lower-income group and people who have been occupying those plots for at least one year on condition that the erf can be properly demarcated,” the panel said.This would be a one-off offer for occupants of land in informal settlements to apply, with a predetermined cut-off date.“The objective of this offer is to eliminate shantytowns and informal settlements and to allow those who can afford it to migrate to new, affordable neighbourhoods that will be established. These plots cannot be alienated within ten years to avoid speculation,” the panel recommended.Upon receiving ownership of land, the panel said these new landowners should then be assisted properly when the title deeds are registered. “Beneficiaries must be assisted with the transfer of title deeds in their own names so as to protect them against unscrupulous developers.”The panel further encouraged landowners to build their houses with prefabricated structures or alternative building materials.To assist these new landowners with the costs of constructing their houses, the panel proposed that the mandate of the National Housing Enterprise be altered slightly while it is given sufficient money to lend to would-be landowners.“Repurpose the mandate and recapitalise the National Housing Enterprise [NHE] and consider bringing in partners with financial resources to enable the NHE to finance low-income earners to build their own houses,” the panel said.“Consider amending the NHE's mandate to build multi-storey flats for low-income earners,” it added.Changes to the National Housing Policy are also proposed in the lengthy document shared with Geingob.“The existing National Housing Policy, as it has, failed us… it is recommending impractical minimum erven sizes and has not helped in alleviating the housing challenge,” the panel said.According to the panel, the proposal will give people living in informal areas access to collateral and ownership while it will eliminate shantytowns.The proposal will also stimulate the construction industry.Commercial reforms proposedAmong the reforms proposed by the panel is the divesture of the Windhoek Country Club and Resort, the Roads Contractor Company, as well as the Zambezi and Lüderitz waterfront companies.The panel also recommended mergers between several public entities that performed almost similar functions. The proposed recommendations would affect Air Namibia and the Namibia Airports Company and a similar mooted merger between the Roads Authority and the Road Fund Administration.Motivating a merger of the two transport companies, the panel noted: “Air Namibia needs to exit international routes in the most cost-economical and contractually de-risked manner and become a regional and domestic airline with proper board and management.” The panel said Air Namibia in its current form should be liquidated.Another idea proposed was to retain NamWater, Namcor and NamPower in their current forms while opening up TransNamib to a joint-venture partner or a private company who would run the rail operator for an unspecified amount of time.Guarding future generationsThe panel proposed the establishment of sovereign wealth funds as part of its recommendations.A sovereign wealth fund is a state-owned investment fund that is used to benefit the country's economy and citizens.“It is important for Namibia to translate the current earnings from natural resources, which accrue to a few individuals and thus exacerbate inequality in the country, into sustainable and future stable income for the next generation,” it said.“In terms of its operationalisation, it is proposed that rights not be allocated to individuals but, rather that these rights remain the property of government which then sells them in an open, transparent process. The proceeds, which currently do not accrue to the government, should be utilised to fund, amongst other sources, the establishment of sovereign wealth funds,” the panel said.The panel deemed it necessary to establish two funds, one of which would be used as a vehicle for the intergenerational transfer of funds. This fund wold be called the National Reserve Fund. The second would be utilised to fund socio-economic projects across the country and would be called the National Welfare Fund, the panel said.OGONE TLHAGE

Inside the rescue plan

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Namibian Sun 2025-07-07

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Inside the rescue plan

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Namibian Sun 2025-07-07

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