‘Strive harder for Vision 2030’

MORE needs to be done if Namibia wants to achieve Vision 2030, which aims to see the country industrialised by that time.

The Bank of Namibia (BoN) says the economy needs to grow at an average of around 11 per cent per year for the goals of Vision 2030 to be reached, and yet Gross Domestic Product (GDP) growth in Namibia is estimated to have moderately improved to 4,6 per cent in 2006. The economy is projected to continue growing at around four per cent in the medium term on the back of increased mining output.Addressing a press conference on the state of the economy, BoN Governor Tom Alweendo said: “This growth rate, however, will not be sufficient to attain the goals of Vision 2030 and significantly reduce poverty.More would be required to put the country on a sustained accelerated growth trajectory.”At the occasion, BoN also released its annual report for 2006 and the first quarterly bulletin for the year.The Governor said it was high time Namibians’ attitude on work ethics and entrepreneurship changed for the better, adding that more people should be ready to take risks when doing business.On another note, Alweendo said over the past three years, there had been a conscious effort by the Government to consolidate the country’s fiscal position by reducing the budget deficit, but added that more could be done.”It would also be important to continue reviewing expenditure patterns to bring expenditure as a ratio of GDP closer to Government’s fiscal target of 30 per cent of GDP, while freeing up more resources for growth-critical areas,” he said.Alweendo also announced that the annual report would for the first time include a chapter on financial stability, which assesses the degree of stability in the financial system of Namibia – mainly its role in financing economic activities.”The findings of the review are that the Namibian financial system is sound and in a position to withstand shocks,” said Alweendo.”However, there are possible risks, including the possibility of a slowdown in the US economy, which could prove risk to trigger a broader, global deceleration and heighten the danger of inflationary pressures from more increases in oil prices.”Although inflation has managed to stay at single-digit levels, a higher South African current account deficit could further weaken the rand/Namibia dollar, which in turn would fuel inflation.The average rate of inflation of 2006 was recorded at 5,1 per cent.The economy is projected to continue growing at around four per cent in the medium term on the back of increased mining output.Addressing a press conference on the state of the economy, BoN Governor Tom Alweendo said: “This growth rate, however, will not be sufficient to attain the goals of Vision 2030 and significantly reduce poverty.More would be required to put the country on a sustained accelerated growth trajectory.”At the occasion, BoN also released its annual report for 2006 and the first quarterly bulletin for the year.The Governor said it was high time Namibians’ attitude on work ethics and entrepreneurship changed for the better, adding that more people should be ready to take risks when doing business.On another note, Alweendo said over the past three years, there had been a conscious effort by the Government to consolidate the country’s fiscal position by reducing the budget deficit, but added that more could be done.”It would also be important to continue reviewing expenditure patterns to bring expenditure as a ratio of GDP closer to Government’s fiscal target of 30 per cent of GDP, while freeing up more resources for growth-critical areas,” he said.Alweendo also announced that the annual report would for the first time include a chapter on financial stability, which assesses the degree of stability in the financial system of Namibia – mainly its role in financing economic activities.”The findings of the review are that the Namibian financial system is sound and in a position to withstand shocks,” said Alweendo.”However, there are possible risks, including the possibility of a slowdown in the US economy, which could prove risk to trigger a broader, global deceleration and heighten the danger of inflationary pressures from more increases in oil prices.”Although inflation has managed to stay at single-digit levels, a higher South African current account deficit could further weaken the rand/Namibia dollar, which in turn would fuel inflation.The average rate of inflation of 2006 was recorded at 5,1 per cent.