Economist warns Swapo plan risks corruption, empty promises

Economist Robin Sherbourne has raised red flags about the N$85.7-billion Swapo Manifesto Implementation Plan.
He says it could be used to drive corruption to benefit individuals connected to the ruling party.

Sherbourne said this in a quarterly economic review report of the Institute for Public Policy Research (IPPR), which was released on Monday.
The report examined some of the main commitments contained in the 66-page Swapo implementation strategy.

The implementation plan is touted by president Netumbo Nandi-Ndaitwah as her flagship policy for 2025 to 2030, aimed at delivering on election promises.

Sherbourne credited the president for the implementation plan as being a unique document in Namibia’s history.

“The president is to be congratulated for putting forward a detailed, concrete, measurable and cost programme for her term in office linked to her manifesto that will allow voters to clearly see what progress is and is not being made,” he said.

However, Sherbourne flagged several problems with the plan.

He said it includes a wide range of state-led projects and proposals that risk reinforcing patronage and corruption.

Patronage refers to the practice of giving jobs, contracts, or other advantages, often funded by public resources, to friends, supporters, or political allies, rather than awarding them based on merit or competition.

“Namibia’s record of creating genuinely entrepreneurial previously disadvantaged-owned businesses is poor,” he said.

Sherbourne added: “Firm management will be required to ensure this does not simply become a recipe for massive corruption. The government’s track record on this issue is poor to say the least.

“A new and untested minister of finance does not offer hope of a hardline against graft and mismanagement.”

Some of the plans in the implementation strategy include creating 250 000 jobs in the next five years, and spending N$3 billion to revive Air Namibia, including N$20 million on a feasibility study.

The government has in the past been accused of enabling corruption through the Targeted Intervention Programme for Employment and Economic Growth (Tipeeg) and a mass housing project under former president Hifikepunye Pohamba.

One of the critics of the Tipeeg programme was then Popular Democratic Movement deputy chief whip in parliament Vipuakuje Muharukua.

In 2016, he said the N$14.5 billion Tipeeg, launched during the 2011/12 financial year, only succeeded in creating a few millionaires overnight, rather than reducing unemployment and poverty.

According to New Era, Muharukua said Tipeeg and other policies and projects, such as the mass housing project, failed to provide the much-needed boost to the economy.

“Tipeeg only succeeded in creating overnight millionaires and tenderpreneurs.

Nepotism, corruption and the self-enrichment of the well-connected elite denied Namibia an opportunity to create a self-sustaining permanent industry that would continue to create job opportunities after the initial capital injection from government,” he charged.

Muharukua is now the Kunene region’s governor on Swapo’s ticket.

‘SPECULATIVE, UNFOUNDED’

Swapo Party Youth league leader Ephraim Nekongo yesterday said the claim that the implementation plan could be used to drive corruption for individuals aligned to the party is speculative and unfounded.

“Allegations of corruption are taken seriously, and we invite any concrete evidence to be brought forward so it can be addressed through the proper channels,” he said.

As a party, Nekongo said Swapo welcomes constructive criticism and will always strive to do better in the interest of Namibia.
He, however, urged all stakeholders to recognise the collective effort and consultation put into the party’s plan.

“We are the people’s movement, and our implementation plan is a living document constantly evolving to address new challenges and ensure inclusive, sustainable development,” he said.

‘SAME OLD, SAME OLD’

New minister of finance Ericah Shafudah, who has worked at the same ministry for over 20 years, yesterday referred questions to the ministry’s spokesperson.

Sherbourne has criticised the downgrading of public enterprise reform, pointing to the renaming of the Ministry of Finance and Public Enterprises to simply the Ministry of Finance as symbolic of a shift away from reform.

He warned this was a step back, particularly as state-owned enterprises are expected to play key roles in oil and gas, energy, water, and transport.
The IPPR review highlights Swapo’s implementation plan’s failure to improve the country’s business and investment climate.

“Virtually no space is devoted to improving Namibia’s business and investment environment,” Sherbourne said, adding that the private sector is the real driver of job creation and economic growth.

The economist said it is not clear if sufficient research and analysis have been conducted to support the proposed measures.
The IPPR said the most obvious example of this is the emphasis on mineral beneficiation.

“While it sounds good to many voters and politicians, talk about generalities does not seem to have made progress to talk about specifics.

Without a sound economic basis, this and many other proposals are likely to end up in frustration and wasted public resources,” Sherbourne said.

Nekongo said Swapo’s manifesto and its implementation plan are not abstract documents created in isolation, but rather the product of extensive nationwide consultation with the Namibian people.

“… from youth and women groups to workers, farmers, entrepreneurs, and traditional leaders. We listened to their hopes, their challenges, and their recommendations, ensuring that the manifesto truly reflects the will and priorities of the nation.”

GREEN HYDROGEN

Sherbourne also questioned the silence on green hydrogen, once a major policy focus, which has hardly received any mention in the plan.

In March, The Namibian reported that Nandi-Ndaitwah asked government officials to explain the viability of Namibia’s green hydrogen programme after speculation hinted that the new administration is leaning toward the ‘tried-and-tested’ oil sector.

Green hydrogen programme spokesperson Jona Musheko told The Namibian the programme has a mandate to continue providing advisory services to the government until February 2028.

“As an emerging sector, green hydrogen presents Namibia with an opportunity to diversify its economy, create employment and establish a global presence in renewable energy. The programme remains committed to executing its mandate through strategic partnerships, infrastructure development and policy alignment,” he said.

Nekongo said the absence of green hydrogen from the plan does not mean it will be ignored.

“Just because we haven’t spoken about it doesn’t mean we are not going to attend to it. It’s already an ongoing programme, but we prioritised catalysts for urgent issues like unemployment.”

NO QUESTIONS, NO ANSWERS

Sherbourne expressed concern over a proposed 30% free carry in the oil and gas sector, saying this could delay projects crucial for economic growth.

“All in all, the implementation plan fails in that it does not ask or provide convincing answers to the question: What is holding back economic growth and employment creation?

“The key to growth and employment creation surely lies in creating a more attractive investment regime for genuine entrepreneurs and serious investors. The plan fails to address this challenge,” he said.

Nekongo said regarding the assertion that “our manifesto does not provide convincing answers to the barriers to economic growth and employment creation, we respectfully disagree”.

“As a people-driven party, Swapo’s Manifesto Implementation Plan directly responds to the real challenges Namibians face: unemployment, economic inequality, lack of access to opportunities, and the need for skills development.

Our plan outlines targeted strategies,” he said.

He said this includes investment in education and vocational training to equip Namibians with skills for the modern economy.
Support for small and medium enterprises to drive job creation and innovation.

Value addition in key sectors like agriculture and mining to ensure that Namibian resources benefit Namibian people.

Others, according to Nekongo, are rural development initiatives to spread growth and opportunity across the country, as well as infrastructure development to unlock economic potential and attract investment.

“These measures are not theoretical; they are being implemented, monitored, and refined based on ongoing feedback from the very people we serve,” he said.

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