Retaining Profits in the Namibian Economy

Namibia is crying today because our economic policies are at times too diplomatic.

An Independence Day endowment would shake Namibia’s wealth bag so that all Namibians may eat and live above the poverty line.

There is no doubt an urgent need for a policy that mandates companies to reinvest profits in various industries that would boost employment creation and reduce inequality in Namibia.

Many of our challenges today can be attributed to Namibia’s colonial past, but we are a sovereign nation now and we have the power to make policies that are beneficial for Namibia and its future generations.

Our huge inequalities continue to disintegrate our unity as a nation and are beginning to threaten our peace and stability.

Although peace and stability have benefited us all, it continues to profit the bourgeoisie far beyond what we can imagine.

The reality is that Namibia has billions of dollars in private wealth, but this belongs to a small handful of the population, shooting the country’s Gini coefficient up to 59,1 (World Bank, 2015).

The rest of the wealth generated in Namibia is exported to other countries, and the government is left with little money from taxes and royalties to address socio-economic challenges.

Inequality and economic depression can be addressed using wealth generated from the country by introducing wealth-retaining policies. This would ensure that a percentage of profits (wealth) generated in Namibia undergoes a reinvestment cycle into a priority area that would reduce inequality and address socio-economic challenges.

Attempts to force the bourgeoisie to share the means of production have proven to be ineffective, therefore we should rather compel them to reinvest the profits generated from the sweat of the Namibian proletariat.

An example of this concept would be the following: If a bank in Namibia declares N$100 million in profits, 30% of that should be reinvested in a specific area, such as agriculture or technology.

This is also a question of the morality of capital (some monopoly capital), where entities are proud to announce hundreds of millions in profits in a country with such a high unemployment rate and inequalities.

This policy is premised on the moral compass of the need to share in the spirit of ubuntu.

This policy would also encourage innovation and competition within the country. By compelling companies to invest in sectors that would boost the economy, the government can create an environment in which companies are motivated to find new and innovative ways to grow their businesses.

This, in turn, would increase competition and drive innovation, which would benefit the entire economy enormously.

Finally, by introducing this policy, the Namibian government could help create jobs, contribute to the country’s overall development and encourage innovation and competition.

Efraim Paulus

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