Domestic resources must be mobilizedto navigate financial challenges: !Gawaxab

Martin Endjala

For Namibia to navigate its way out of daunting financial challenges, the country must first mobilise its domestic resources, build fiscal buffers and engage in structural reforms.

“Namibia stacks up well despite the challenges posed by the country’s declining rate of Gross Fixed Capital Formation and the limited skills base. While these challenges are daunting, they are not insurmountable. To navigate our way out of these challenges, Namibia must first mobilise its domestic resources, build fiscal buffers and engage in structural reforms,” Bank of Namibia Governor, Johannes !Gawaxab said.

!Gawaxab spoke at Bloomberg’s flagship event in Namibia titled “Namibia in Focus” where he emphasized Namibia’s commitment to economic development by showcasing its vast potential as a prime investment destination.

!Gawaxab told delegates at the event that Namibia’s inflation had decreased from its peak, providing a measure of stability in the nation’s economic landscape.

He emphasised the critical role that inclusive institutions play in a nation’s success and commended Namibia for its inclusive institutions, which promote political pluralism, safeguard property rights and foster economic opportunity.

!Gawaxab indicated that the Bank of Namibia’s strong role in maintaining monetary and financial stability is the bedrock for the country’s economic progress.

He explained that the Monetary Policy Framework has proven its efficacy time and again, and added that the benefits of the one-to-one peg arrangement to the South African Rand outweigh any perceived disadvantages.

“This arrangement provides a stable anchor for our economy, shielding us from external volatility while fostering a conducive environment for sustainable growth,” he said.

He acknowledged the establishment of the Namibia Revenue Agency for its role in securing domestic resources, which gives Namibia high tax compliance rates in Sub-Saharan Africa.

He also highlighted the significance of the Namibia Investment and Promotion Development Board in attracting Foreign Direct Investment through streamlined processes and competitive incentives.

The Governor underscored the importance of leveraging the private sector’s potential, referencing the successful listing of Mobile Telecommunication (MTC) on the local stock exchange and plans to revitalise underperforming commercial public enterprises.

!Gawaxab said he is optimistic about Namibia’s economic prospects, with the potential of green hydrogen and oil discoveries.

He noted that the establishment of Namibia’s Sovereign Wealth Fund further demonstrates the nation’s commitment to prudent fiscal management to transferring wealth to future generations.

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