Upbeat Calle preaches recovery

23 October 2019 | Economics

Finance minister Calle Schlettwein says the domestic economy is projected to gradually emerge from the recession in 2020 with a moderate growth rate of about 0.8% and about 1.3% by 2021, averaging 2% over the next Medium-Term Expenditure Framework (MTEF).

He has also announced realigned spending amounting to hundreds of millions of dollars and an SME financing strategy, while so-called 'tax holidays' are in the firing line. While delivering his midterm budget review in the National Assembly yesterday, Schlettwein said on the demand side: “We expect a moderate recovery in domestic consumption demand and other elements of final demand, as some of the planned public and private sector investment come on line and the rebound of exports from mining activity. “On the supply side, the recovery will be similarly anchored by moderate positive growth in all main economic sectors. “The projected recovery in the primary industry sector is expected to perform better in the mining and agricultural sectors, as temporary factors in the diamond subsector and rain prospects improve.” Schlettwein also anticipates growth in secondary industries.“Tertiary industries are projected to post-moderate recovery as domestic demand gathers pace with positive effects on the wholesale and retail trade and real estate subsectors,” the finance minister said.





Schlettwein said the domestic economy has been adjusting to shocks and recalibrating to a more sustainable growth pattern.



In 2019 the economy is estimated to contract by about 1.5% relative to the growth rate of 0.2% estimated in the budget.



This marks a third consecutive year of recession.







Realigned spending



An amount of N$96.65 million was allocated to the ministry of agriculture for personnel expenditure, utilities and dryland crop production. Government's drought-relief efforts were strengthened with an allocation of N$67.3 million.



A total of N$88 million was allocated to the orphans and vulnerable children programme under the child welfare ministry to cater for expanded coverage, while N$36 million was allocated to the ministry of home affairs for the Visa Stickers project.



A total of N$184.1 million was allocated to the ministry of education for the recruitment of teachers, the purchase of textbooks and for the ministry's school feeding programme.



Health received N$210.72 million for pharmaceuticals and clinical suppliers, as well as the recruitment of health professionals.



A total of N$88 million was allocated to the ministry of poverty eradication for social grants.







Tax



Schlettwein announced that the launch of the Namibia Revenue Agency (Namra) had been shifted to March 2020 to allow for the finalisation of the transitional processes and staff recruitment.



Amendments to the Income Tax Act, Value-Added Tax Act and Export Levy Act were also being mooted according to Schlettwein. These, according to him, would entail the taxation of trusts and certain commercial entities, eliminating base-eroding tax holidays and preferential tax rates accorded only to some manufacturers and exporters of manufactured goods, for a more uniform treatment of taxpayers through the establishment of the Special Economic Zones.



While not cast in stone, the government was also studying the possibility of introducing a profit tax on betting and gaming entities of 37%.



Schlettwein also outlined intent to investigate the possibility of introducing a lower tax regime for small businesses, as a means of encouraging entrepreneurship and business growth.







Inducing growth



To induce growth, Schlettwein said plans were in place to accelerate the turnaround time for public procurement adjudication and awards, particularly for high-value projects across economic sectors, specifically the roll-out of energy investment projects by NamPower.

Government was also putting work into launching an SME financing strategy that would be housed at the Development Bank of Namibia (DBN), starting with a credit guarantee scheme, mentorship and training programme and a skills-based lending facility for youth entrepreneurs, Schlettwein added. STAFF REPORTER

Similar News

 

Consumers caught in debt trap

18 hours ago | Economics

Jo-Maré Duddy – The average amount Namibians borrow at microlenders at a time have catapulted over the last decade, contributing to individuals’ over-indebtedness.Statistics from the...

Grootfontein municipality avails 1120 plots

18 hours ago | Economics

Over 300 residents of Grootfontein in need of housing gathered at the Kap en Bou informal settlement where they were informed of the 1 120...

Sudan foreign aid to assist poor families

18 hours ago | Economics

The EU and World Bank have signed a deal for almost US$190 million in direct financial aid to poor families in Sudan, official news agency...

App matches Zim farmers with vacant plots

18 hours ago | Economics

Farai Shawn Matiashe - For more than a year, Lionda Mhonda searched for a plot of land to buy in northeastern Zimbabwe, but struggled to...

Mutorwa inaugurates new Transportation Commission

1 day - 29 September 2020 | Economics

Minister of works and transport John Mutorwa inaugurated the newly-appointed members of the Transportation Commission of Namibia.President Hage Geingob appointed the members in accordance with...

DBN supports Omboga powdered spinach soup

1 day - 29 September 2020 | Economics

Development Bank of Namibia (DBN) has celebrated the culmination of its support to 2018 Innovation Award winner VNA Foods at the launch of the fledgling...

Libya seeks to revive oil industry

1 day - 29 September 2020 | Economics

Libya's National Oil Company said it expected oil production to rise to 260 000 barrels per day (bpd) next week, as the OPEC member looks...

Uganda's public debt surges in coronavirus crisis

1 day - 29 September 2020 | Economics

Uganda's public debt surged 20.5% in the 12 months to June as the east African country soaked up new credit to help deal with the...

Payroll deductions strengthens the collateral base

2 days ago - 28 September 2020 | Economics

Payroll deductions strengthen the collateral base of borrowers, which has a major impact on credit deepening, a report on Namibia’s experience with microlending and payroll...

Shivute vows to hunt tax dodgers

2 days ago - 28 September 2020 | Economics

OGONE TLHAGEThe newly appointed commissioner of the Namibia Revenue Agency (Namra), Sam Shivute, has vowed to chase after tax defaulters in his new position. ...

Latest News

Paratus announces solid annual financial...

18 hours ago | Business

PHILLEPUS UUSIKUListed telecommunications operator, Paratus Namibia Holdings Ltd (PNH), announced its annual financial results yesterday for the period ended 30 June 2020.PNH delivered commendable revenue...

Karasburg small business owners remain...

18 hours ago | Business

It was a life lesson for me. Many of us with small businesses do not save. Felicity Isaaks, Business owner: Karasburg

Sanlam donates two isolation units...

18 hours ago | Business

Sanlam Namibia unveiled two isolation units adapted to cater for Covid-19 patients and handed it over to the Ministry of Health and Social Services at...

Swapo’s old warhorses bite the...

18 hours ago | Politics

OGONE TLHAGEWINDHOEKAn increase in youth appetite for political office has seen some of the old guard in the ruling party Swapo missing out on nomination...

I was misquoted – Itula

18 hours ago | Politics

OGONE TLHAGEWINDHOEKIndependent Patriots for Change (IPC) leader Dr Panduleni Itula says he was misinterpreted when he told Namibian Sun that he is not a ‘contemporary’...

Governor threatens Covid corpse thieves...

18 hours ago | Crime

ESTER KAMATIOTJIWARONGORefugees at Osire who stole a Covid-19-positive corpse from the refugee camp’s mortuary on 18 September and buried it the same day have been...

Grootfontein municipality avails 1120 plots

18 hours ago | Economics

Over 300 residents of Grootfontein in need of housing gathered at the Kap en Bou informal settlement where they were informed of the 1 120...

More Fishrot answers needed

18 hours ago | Opinion

The so-called ‘Fishrot Seven’ have hinted lately that they have been made the sacrificial lambs of a much bigger syndicate whose other architects are roaming...

Psemas administration tender closes

18 hours ago | Health

HENRIETTE LAMPRECHTWINDHOEKThe tender for a new administrator of the Public Service Employee Medical Aid Scheme (Psemas) closed last week.The bidding period had been extended by...

Load More