Namibia’s drop in economic rankings ’cause for concern’

NAMIBIA’S continued slide down global economic rankings has sparked concern among the business community as it could deter investors, the Namibia Chamber of Commerce and Industry (NCCI) has said.

Namibia dropped to 84th position from 79th last year on the WEF Global Competitiveness Report, which was released last week. NCCI Chief Executive Officer Tarah Shaanika said the organisation was extremely disappointed with the continuing slide in the World Economic Forum (WEF) economic competitiveness rankings for the past three years.Shaanika said this was cause for concern, as it would have negative effect on those willing to bring investment into the country.”This drop clearly indicates that the perception of businesspeople and investors from different parts of the world may be less positive about Namibia’s competitiveness levels and general business environment than four years ago.”This is very worrying for us because it has the potential to cost the country Foreign Direct Investment and business opportunities with other countries,” he said.Ministry of Finance Permanent Secretary Calle Schlettwein said in an interview on Friday that the WEF reports should be taken seriously, as they carried a lot of weight.He added, however, that it was because of other sectors – and not necessarily the country’s economic performance – that the country had slid on the annual WEF index.Namibia was noted to have weakened in a number of areas – including education, politics and health.”We must take this report seriously, analyse it and look at the areas where we are failing, and then address the matter in a comprehensive manner,” Schlettwein said, adding that if no measures were put in place to remedy the situation, the effect on the country would be negative.He said it was unfortunate that individual countries had no say in the compiling of this important report.Local economist Martin Mwinga told The Namibian that some sectors such as education needed improvement.”We need to reform our education system …to build a skilled workforce,” he said.Mwinga said there was room for improvement in all sectors of the economy, adding that it was vital that politicians became cautious in whatever statements they made, as foreign investors were very sensitive to a country’s political environment.In this respect he referred to the land reform statements made earlier this year by the Deputy Minister of Lands and Resettlement, Isak Katali, about emulating the controversial Zimbabwean method.Mwinga also said Government needed to spend public funds on projects that would translate into economic growth as opposed to extravagant ones that would turn out to be white elephants.Shaanika said it was time for Government, the private sector and other role players to come together for a high-level dialogue on the issue.”It is important that as a country we put our act together and present an enhanced image to the global business community in order to change its perception about us and hopefully improve their confidence in doing business with Namibia,” he said.NCCI Chief Executive Officer Tarah Shaanika said the organisation was extremely disappointed with the continuing slide in the World Economic Forum (WEF) economic competitiveness rankings for the past three years.Shaanika said this was cause for concern, as it would have negative effect on those willing to bring investment into the country.”This drop clearly indicates that the perception of businesspeople and investors from different parts of the world may be less positive about Namibia’s competitiveness levels and general business environment than four years ago.”This is very worrying for us because it has the potential to cost the country Foreign Direct Investment and business opportunities with other countries,” he said.Ministry of Finance Permanent Secretary Calle Schlettwein said in an interview on Friday that the WEF reports should be taken seriously, as they carried a lot of weight.He added, however, that it was because of other sectors – and not necessarily the country’s economic performance – that the country had slid on the annual WEF index.Namibia was noted to have weakened in a number of areas – including education, politics and health.”We must take this report seriously, analyse it and look at the areas where we are failing, and then address the matter in a comprehensive manner,” Schlettwein said, adding that if no measures were put in place to remedy the situation, the effect on the country would be negative.He said it was unfortunate that individual countries had no say in the compiling of this important report. Local economist Martin Mwinga told The Namibian that some sectors such as education needed improvement.”We need to reform our education system …to build a skilled workforce,” he said.Mwinga said there was room for improvement in all sectors of the economy, adding that it was vital that politicians became cautious in whatever statements they made, as foreign investors were very sensitive to a country’s political environment.In this respect he referred to the land reform statements made earlier this year by the Deputy Minister of Lands and Resettlement, Isak Katali, about emulating the controversial Zimbabwean method.Mwinga also said Government needed to spend public funds on projects that would translate into economic growth as opposed to extravagant ones that would turn out to be white elephants.Shaanika said it was time for Government, the private sector and other role players to come together for a high-level dialogue on the issue.”It is important that as a country we put our act together and present an enhanced image to the global business community in order to change its perception about us and hopefully improve their confidence in doing business with Namibia,” he said.