The Governor of the Bank of Namibia, Johannes !Gawaxab, took centre stage today at Bloomberg’s flagship event in Namibia titled “Namibia in Focus” to underscore Namibia’s commitment to showcasing its vast potential as a prime investment destination.
In his keynote address, Governor !Gawaxab provided a comprehensive analysis of Namibia’s economic landscape, highlighting its accomplishments and addressing the challenges that lie ahead.
Namibia, with its abundant natural resources, robust institutions, and unwavering political stability, stands as a beacon of stability and progress. In his remarks, the Governor examined key factors that define Namibia’s economic outlook, offering insights into the nation’s strengths and areas for improvement.
“Namibia stacks up well despite the challenges posed by the country’s declining rate of Gross Fixed Capital Formation and the limited skills base,” Governor !Gawaxab affirmed, emphasising that while these challenges are daunting, they are not insurmountable. To navigate our way out of these challenges, the Governor noted that Namibia must first mobilise its domestic resources, build fiscal buffers, and engage in structural reforms.
The Governor also addressed the significant surge in global inflation and its implications, underscoring the need for central banks to carefully navigate this uncertain environment. He highlighted that Namibia’s inflation had decreased from its peak, providing a measure of stability in the nation’s economic landscape.
Governor !Gawaxab emphasised the critical role that inclusive institutions play in a nation’s success. He commended Namibia for its inclusive institutions, which promote political pluralism, safeguard property rights, and foster economic opportunity.
Discussing Namibia’s economic institutions, the Governor highlighted the Bank of Namibia’s strong role in maintaining monetary and financial stability which is the bedrock for economic progress. Said Governor !Gawaxab: “Our Monetary Policy Framework has proven its efficacy time and again. 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.”
Governor !Gawaxab also acknowledged the establishment of the Namibia Revenue Agency for its role in securing domestic resources and highlighted Namibia’s high tax compliance rates in Sub-Saharan Africa. In addition, he highlighted the significance of the Namibia Investment and Promotion Development Board (NIPDB) in attracting Foreign Direct Investment (FDI) through streamlined processes and competitive incentives.
The Governor underscored the importance of leveraging the private sector’s potential, referencing the successful listing of MTC and plans to revitalize underperforming commercial public enterprises.
Looking to the future, Governor !Gawaxab spoke optimistically about Namibia’s economic prospects, highlighting the potential of green hydrogen, and the light oil discoveries. He also discussed the establishment of Namibia’s Sovereign Wealth Fund, further demonstrating the nation’s commitment to prudent fiscal management while transferring wealth to the next generations.
Governor !Gawaxab concluded by issuing a boarding call, inviting the attendees to join Namibia in navigating the challenges and seizing the opportunities that lie ahead, as the nation propels itself toward a horizon of unparalleled promise and prosperity.