Towards a better investment climate

THE Minister of Finance, Saara Kuugongelwa-Amadhila, has described the ever-increasing gap between the rich and the poor as worrisome and a threat to society as well as the economy.

Addressing participants gathered for the seventh annual Economist Business Forum held in Windhoek this week, Kuugongelwa-Amadhila said there was need for the country’s fiscal policy to be on a broad base in order for finances to be managed in a sustainable way and accelerate the integration of the poor into the economy. She added that growth and investment were instrumental in the fight against poverty while delivering her presentation entitled ‘Curbing capital outflows and creating a better investment climate’.Kuugongelwa-Amadhila also said when comparing the savings generated by the economy and investment undertaken in the country, the results were unimpressive.National accounts reveal that from 1999 to 2003 net fixed capital amounted to 62 per cent of domestic, which according to the Minister, suggests that a large part of the savings generated has not been used to fund domestic investments.”A snapshot of the needs of our country on the one hand and the use of savings on the other hand shows that something is not going well here.Something is obstructing the matching between local savings and local investments.”It is our joint obligation to identify and tackle the reasons that have caused this situation,” she told the delegates.Those gathered were told that the Government was not only prepared to improve the investment climate but that the public sector also had to ensure that incentives put in place were effective to encourage the deployment of local savings in the local economy, and that it was high time the private sector showed increased determination to invest in Namibia.”A lot remains to be done, but I am confident we – the Government and the private sector – can create a better investment climate by doing our homework,” said Kuugongelwa-Amadhila.She added that growth and investment were instrumental in the fight against poverty while delivering her presentation entitled ‘Curbing capital outflows and creating a better investment climate’.Kuugongelwa-Amadhila also said when comparing the savings generated by the economy and investment undertaken in the country, the results were unimpressive.National accounts reveal that from 1999 to 2003 net fixed capital amounted to 62 per cent of domestic, which according to the Minister, suggests that a large part of the savings generated has not been used to fund domestic investments.”A snapshot of the needs of our country on the one hand and the use of savings on the other hand shows that something is not going well here.Something is obstructing the matching between local savings and local investments.”It is our joint obligation to identify and tackle the reasons that have caused this situation,” she told the delegates.Those gathered were told that the Government was not only prepared to improve the investment climate but that the public sector also had to ensure that incentives put in place were effective to encourage the deployment of local savings in the local economy, and that it was high time the private sector showed increased determination to invest in Namibia.”A lot remains to be done, but I am confident we – the Government and the private sector – can create a better investment climate by doing our homework,” said Kuugongelwa-Amadhila.