The achievement of economic growth and development, a reduction in the productivity gap and improvement of resilience will require a paradigm shift.
Corruption, low productivity, subpar implementation and poor performance by community leaders are some of the reasons for the economy’s long-term underperformance.
The most effective way to reduce corruption in contracting processes is to establish policies and procedures that are clear and practical.
I further recommend that president-elect Netumbo Nandi-Ndaitwah has a fiery discussion with her Cabinet members and take meaningful action against anyone who does not act in Namibians’ best interests.
Additionally, it is projected that the economy will expand by roughly 4% in 2025 – this is an improvement but still insufficient.
I also expected Namibia’s debt-to-gross domestic product (GDP) ratio to continue declining to 57%, which would indicate strong nominal GDP growth.
Prioritising domestic revenue financing, concentrating on industries like manufacturing, mining, energy and agriculture, and encouraging non-traditional industries like logistics, are all things the government should do.
Besides that, the nation is anxiously awaiting the 2025 national budget.
To improve resilience to economic shocks, the budget must address the country’s debt levels.
It should also prioritise increasing financing from domestic revenue.
In the context of bringing the country’s debt levels down to 57%, this is especially important for enhancing fiscal sustainability.
If state-owned businesses, ministries, governors, councils and mayors are unable to rethink and create a system to increase revenue, they should all be removed from office.
Without significantly changing the tax structure, the government should strive for domestic revenue contributions of at least 70% of the overall budget.
It is imperative to analyse portfolio duplication.
As a result, I propose removing the positions of governor and deputy minister.
Additionally, Namibia can significantly decrease income inequality by providing more jobs for the unemployed and ensuring that corruption is addressed.
Investors will only make large investments in countries where they are safe.
Namibia does not produce enough for export or domestic consumption.
Additionally, 70% of workers are employed in low-productivity sectors, such as the informal economy and agriculture.
This indicates a lack of employment opportunities for the type of jobs that would help raise incomes.
The new leadership must create a plan for social and economic inclusion in consultation with stakeholders.
Increasing the standard of living for Namibians must be the primary objective of such an action plan.
A workable plan for structurally transforming the economy, which involves shifting investment and labour from low-productivity to high-productivity sectors, must also be part of this.
Agriculture cannot support as many people as the manufacturing sector, which is far more productive.
Namibian manufacturing would flourish because of the African Continental Free Trade Area’s adoption of a single market.
Addressing the growing sector deficit that inhibits the economic sectors’ ability to compete must be Nandi-Ndaitwah’s top priority.
To increase economic resilience against vulnerability and future shocks, the government will also need to reform trade and industrial policies that aim to promote scale, efficiency and competitiveness.
Namibia must diversify.
The economy has also not grown inclusively and has struggled with low productivity.
Emphasis should be placed on long-term growth and sustainability.
Furthermore, Namibia should put in place more proactive and efficient policies, prioritise high-quality development, encourage greater independence and keep up a strong pace of social and economic progress.
Moreover, what matters most to the world is how Trump’s tariff threat could lead to a terrible global trade war that could cost countries with ties to the Brics group and trap many United States trading partners.
In conclusion, Namibia needs to address long-standing and possibly binding growth constraints to maintain stronger growth.
Improving trade facilitation, joining Brics, enhancing the business climate,and other vital economic drivers are all necessary to achieve this.
– Josef Sheehama is an independent economic and business researcher.
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