By Josef Kefas Sheehama
On 16 March 2023, His Excellency Dr Hage G. Geingob, President of the Republic of Namibia, will deliver the State of the Nation Address (SONA), with many anticipating that he will focus on reshaping economic activity and building the resilience of the economy.
The SONA is an eagerly anticipated event wherein the President outlines priorities for the year, the state of the economy and its achievements, and implementation plans. We expect the President to focus on renewable energy, oil discovery, corruption, the Russia-Ukraine unrest, COVID-19, Public-Private Partnerships, and narrowing the income gap, among other things. The State of the Nation Address provides an opportunity for the President to articulate the plans and progress made thus far in the application of national values and principles. The fight against corruption, which has robbed public resources, requires bold legislative and policy reforms. There is a need now more than ever to restructure the economy and set the country on the pathway of economic recovery.
We expect the President to provide clear economic implementation action plans that demonstrate the government’s commitment to the Economic Recovery Plan, including policies to train youths moving forward. The President should address the need to resuscitate the education system and enlighten Namibians on the Financial Action Task Force (FATF) placing South Africa on the grey list.
As he addresses the nation, the President should address the high cost of living in the country and the uncertainty that the country has witnessed in the petroleum industry, regarding the possible increase in fuel pump prices. It is important for the government to state its position and possible resolutions made with the private sector and Namcor. The President should also clear any uncertainty surrounding the plan to retrench civil servants to cut the wage bill as the government struggles to pay its 107,000 employees. His Excellency should address the inflation rate increasing to 7 percent in January 2023 and advise on what the government is doing to mitigate the impacts of the high cost of living in Namibia.
Furthermore, creating an enabling environment for business is critical for attracting investment and helping to solve the unemployment and low economic growth challenge in Namibia. The success or failure of government in this regard will be a decisive factor in determining whether Namibia’s agricultural sector lives up to its potential or stalls as the nation’s infrastructure and vital services continue declining. The job of the government is to create a conducive policy environment with working infrastructure and effective service delivery. Only then will the agricultural sector be able to accelerate the expansion of these employment statistics, creating a wealth of opportunity for a generation of workers in the rural communities that most need them? In this same collaborative spirit, the government must be willing to hear the voices of the sector as we propose solutions to some of the most significant problems facing the industry and the country, especially regarding land reform.
It is important for the Head of State to come out strongly on the matter of Namibia and Botswana launching the use of national identity cards as travel documents. His Excellency should address the implementation of the African Continental Free Trade Area Agreement (AfCFTA) and the African Sovereign Africa Rating (SAR) agency viewed as catalysts for long-term continental prosperity and integration. It is important for His Excellency to advise on potential tax reductions, both corporate and individual.
Going forward, whatever level of increased economic activity would trigger is worth implementing because the unemployment situation is so desperate. Furthermore, the problems in the Namibian economy are deep and structural. Structural reforms to support SMEs, investments in infrastructure and the emergence of new sectors will drive a turnaround in economic growth driven by private sector growth. Adopting truly transformative pathways will require viewing the roadblocks on the journey to sustainable development through a transformative lens. One way to clear the path is to prioritize policies and initiatives that support innovation and entrepreneurship, particularly in emerging sectors such as renewable energy, digital technologies, and sustainable tourism. Encouraging private sector investment in these areas can create new job opportunities, drive economic growth, and help to address the underlying structural issues in the economy. In addition, implementing measures to improve access to finance, reduce bureaucratic barriers, and foster skills development can further support the growth of SMEs and drive a more inclusive and sustainable economic transformation. – Namibia Daily News
