Chairman of the Economic Association of Namibia, Jason Kasuto, informed Observer Money that the emergence of the oil sector and the development of green hydrogen present unique opportunities for Namibia, particularly in job creation.Â
He added that the private sector is vital for driving economic growth and job creation in Namibia. By investing in local enterprises and creating value chains that prioritise local procurement, companies can enhance their socio-economic impact, Kasuto added.
Observer Money (OM): What is the EAN’s position on the rate of unemployment in Namibia and what measures can be taken to create employment in Namibia?
Jason Kasuto (JK): The Economic Association of Namibia recognises unemployment as a major issue that affects many Namibians. We advocate a transformative approach that prioritises local resources and capabilities. To create sustainable employment, we must invest and develop strategic partnerships in sectors that leverage Namibia’s unique resources, such as agriculture, mining, oil and gas, renewable energy and tourism. This can be achieved through targeted development finance initiatives that support local enterprises, as well as enhancing vocational training to align workforce skills with the needs of these industries.
OM: What are some of the measures that the government can undertake to create job opportunities in Namibia?
JK: Economic growth theory alone is not going to suffice. While creating a conducive environment for the private sector, government should play a larger role in the provision of basic needs, such as housing, education and healthcare. This in turn has a large multiplier effect on job creation and socio-economic transformation. Pace is also very crucial; therefore, fast-tracking investments (public and private) in enabling infrastructure will facilitate the growth of industries and move Namibia towards industrialisation and inevitably job creation. Furthermore, not only creating an enabling environment but also supporting the market entrance, capability growth, development funding and tax incentives environment for small and medium enterprises (SMEs) will spur job creation and local economic development. Additionally, aligning public procurement policies to favour local products and services can boost domestic industries and create jobs.
OM: How will, in the opinion of the EAN, new opportunities like oil and green hydrogen help create employment opportunities?
JK: The emergence of the oil sector and the development of green hydrogen present unique opportunities for Namibia, particularly in job creation. These industries can attract significant investment and stimulate economic growth, creating direct employment opportunities. Additionally, developing a local supply chain for these sectors can generate further jobs in related fields, such as logistics, manufacturing, and support services. However, it is critical that these developments incorporate local content to ensure that the benefits of resource extraction are equitably shared.
OM: What are some of the hindrances that Namibia faces in creating employment?
JK: There are a few realities: (1) the level of domestic and foreign investment in Namibia is not high enough to create the number of jobs needed; (2) Namibia relies on a few primary sectors for revenue, which creates vulnerability, making it essential to diversify the economy to enhance resilience and job creation; (3) there still exist bureaucratic impediments that hinder business development in the ease of doing business; (4) although we have made strides, infrastructure deficits in certain areas still impede economic activity.
OM: What role can the private sector play in creating employment in Namibia?
JK: The private sector is vital for driving economic growth and job creation in Namibia. By investing in local enterprises and creating value chains that prioritise local procurement, companies can enhance their socio-economic impact. Additionally, businesses have a unique opportunity to engage in capacity building by offering internships, apprenticeships, and training programs that strengthen the skills of the workforce. Collaboration between the private sector, government, and civil society can foster an environment conducive to sustainable employment creation.
OM: What incentives should the government put in place to help the private sector grow and create employment?
JK: The low-hanging fruit is really fast tracking government processes that stand as gatekeeper or pathway for private sector commence or scale their business. To stimulate employment growth in the private sector, the government can implement several incentives including but not limited to tax incentives for SMEs or companies that invest in local job creation and support local SMEs. Policies focusing on developing local content requirements in public contracts can also encourage businesses to hire locally. Additionally, enhancing access to infrastructure and providing support for innovation can strengthen the business environment, ultimately leading to more job opportunities.
