Nedbank Namibia, Simonis Storm review budget

Experts discussed the effect of the budget on ordinary Namibians and the business sector.

30 April 2019 | Economics

Keeping in mind that businesses are under immense pressure, there are not many initiatives in the budget aimed at tackling the tough situation. – Dr Edward Turner, Head: Nedbank Corporate and Investment Banking

A panel consisting of experts from Nedbank Namibia and Simonis Storm which reviewed the 2019/20 National Budget agreed that finance minister Calle Schlettwein presented a fair and neutral budget, but the real test remains in its implementation.

The panel discussion which aired live on the Nedbank Facebook page, took place just after Schlettwein tabled the budget in parliament. It was moderated by the managing director of Simonis Storm (SS), Bruce Hansen, and included the head of Nedbank corporate and investment banking, Dr Edward Turner, the head of Nedbank business banking, Britt du Plessis, the head of research at SS, Megameno Shetunyena, and SS economist, Indileni Nanghonga.

The discussion aimed to give an overview of the budget and identify potential outcomes of the minister’s budget speech, as well as determine what these outcomes signal about the economic road ahead.

“The greatest challenge is to balance a limited fiscal capacity with the need to make politically tough decisions,” Hansen commented on the challenges of the national budget.

Consumer

A number of items raised in the National Budget were unpacked at the discussion, and one issue highlighted was its effect to the man on the street. Commenting on this, Du Plessis said: “It is commendable to see that the budget is focused on the individual in these economic times by keeping the income tax rate unchanged.”

Nanghonga said that even though the income tax rate has not increased, the increase of the fuel levy and sin tax could ultimately burden the consumer.

“Consumers are currently under distress, and it seems like increasing the fuel levy and sin tax are easy to implement without necessary getting public rejections. However, what we need to look at is, what the real effects of those increases are on the household. Increasing the fuel levy last year lead to taxi drivers demanding an increase in taxi fare, which resulted in the burden being carried by the consumer,” she said.

Business

Furthermore, Turner pointed out: “Keeping in mind that businesses are under immense pressure, there are not many initiatives in the budget aimed at tackling the tough situation. However, the Whistle Blowers Act will be implemented, which should help with the prevention of corruption and that could have a positive effect on foreign direct investment.”

Adding to this point, Shetunyena said: “The business investor community is looking for certainty around policy. Further delays in specific policies will determine if investors will deploy their capital in Namibia or not. We need certainty around tax amendments.”

“The budget’s purpose to make more income available to improve our lives. However we operate honestly, diligently, with the common good as our only objective in mind. This forum will keep monitoring the budget implementation and provide regular feedback,” concluded Hansen.

To date, the Nedbank’s live budget review video received 13 552 views.

Similar News

 

Life compared to the Big Apple

4 hours ago | Economics

Jo-Maré Duddy – Consumers’ burden over the past 12 months has lightened somewhat compared to fellow shoppers elsewhere in Africa: Namibia is currently rated as...

Keeping up with the neighbours

4 hours ago | Economics

LuandaYou would need around US$2 535.97 in Windhoek to maintain the same standard of living that you can have with US$7 600 in Luanda, assuming...

Zim inflation almost doubles, stirring memories of economic chaos

4 hours ago | Economics

MacDonald Dzirutwe and Karin Strohecker - Prices of cooking oil and other basics soared in Zimbabwe as inflation nearly doubled in June, piling pressure on...

German investors turned off

4 hours ago | Economics

German Bundesrat (Federal Council) president Daniel Günther says German investors are ready to invest in Namibia, but policy uncertainties around wealth redistribution and property rights...

Refugees target global markets with luxury crafts

4 hours ago | Economics

Nita Bhalla - Rwandan refugee Anita Claudine knows the odds are stacked against her, but the fashion designer is unfazed in her ambition to one...

Filing tax returns online

1 day - 16 July 2019 | Economics

Elizabeth Joseph The Integrated Tax Administration System (ITAS) is a technology solution that allows taxpayers to file their returns online, which creates ease and comfort.A...

Economic panel targets N$14bn

1 week ago - 04 July 2019 | Economics

The high-level panel on the Namibian economy is scheduled to host an investment summit at the end of this month, which will ignite the process...

West African 'eco' dream gives economists nightmares

2 weeks ago - 03 July 2019 | Economics

Philippe Siuberski and Malick Rokhy - For decades it was a dream of West African finance ministers: ushering in a regional single currency to boost...

Not everybody a winner in record US expansion

2 weeks ago - 03 July 2019 | Economics

Trevor Hunnicutt - Last month Pink Floyd frontman David Gilmour sold his guitar collection for US$21.5 million, including one piece - his famed "Black Strat"...

Hunger for beef offers rewards, risks for pastoralists

2 weeks ago - 03 July 2019 | Economics

Célia Lebur - With over 200 million people and an emerging middle class, Nigeria is witnessing a boom in demand for meat that offers potential...

Latest News

Keeping up with the neighbours

4 hours ago | Economics

LuandaYou would need around US$2 535.97 in Windhoek to maintain the same standard of living that you can have with US$7 600 in Luanda, assuming...

88 schoolgirls fall pregnant in...

4 hours ago | Education

Eighty-eight learners, including two girls in Grade 7, fell pregnant in the Oshana Region during the first term of 2019. Oshana governor Elia Irimari...

Stop blaming Aawambo - Kapofi

4 hours ago | Government

Home affairs minister Frans Kapofi has cautioned against tribalism and pointed out that there is a growing perception that only the Aawambo are beneficiaries of...

Mom begs for mercy

4 hours ago | Justice

A mother of three minor children is asking the High Court to reduce her four-year prison sentence, or fine her instead, after she pleaded guilty...

Relevant IFRS themes: Anytime, anywhere

4 hours ago | Business

A good understanding of International Financial Reporting Standards (IFRS) is crucial to the financial reporting process of IFRS reporters. Banks and Insurers in particular have...

Standard Bank faces strike vote

4 hours ago | Labour

ELVIRA HATTINGH Members of the Bank Workers Union of Namibia (Bawon) are to vote on whether to strike...

Let us tread carefully

4 hours ago | Opinion

When expectations are not met, citizens wronged in this regard should have channels, means and ways to air their grievances and have them addressed effectively.In...

Big banks target South Africa's...

4 hours ago | Business

Emma Rumney - South Africa's biggest banks are betting cut-price accounts, big mortgages and offers on everything from Adidas backpacks to Xboxes will help them...

Zim inflation almost doubles, stirring...

4 hours ago | Economics

MacDonald Dzirutwe and Karin Strohecker - Prices of cooking oil and other basics soared in Zimbabwe as inflation nearly doubled in June, piling pressure on...

Load More