Complacency robs Namibia of investment

Complacency robs Namibia of investment The government needs to do more now than ever before if it wants to attract private-sector investment, a financial expert says.

This an appeal by finance minister Calle Schlettwein to the private sector to assist the government.

Independent analyst Klaus Schade says Namibia is bearing the brunt of the government’s complacency.

“Because of complacency and indecisiveness on the part of officials Namibia has lost out on potential foreign direct investment and so far none of the investments announced at the Investor Conference have materialised,” Schade says.

He feels that policy interventions such as the New Equitable Economic Empowerment Framework should be finalised as a matter of urgency.

“Our policies, such as the New Equitable Economic Empowerment Framework, the Namibia Investment Promotion Act and the Special Economic Zone Act, need to be in line with international best practice in order to attract private-sector investment,” Schade says.

He also advises the government to hold regular meetings with the private sector if it wants to convince them to invest.

“Overall, the government could consider introducing regular, structured meetings at the highest level with the private sector to discuss the business environment, challenges and opportunities for both the private and public sector and agree on steps to address the shortcomings.

“The prevailing dichotomy whereby foreign direct investment finds investible opportunities in the domestic economy on the one hand, while domestic savings perpetually flow out of the country, should be addressed in the spirit of partnerships,” Schade says.

While Schlettwein has urged businesses to invest in the economy, the ease of doing business in Namibia has not improved.

In fact, Namibia has dropped on the World Bank’s Ease of Doing Business Index.

Namibia has dropped to 107th out of 190 countries in the 2018 World Bank Ease of Doing Business index, down from 106th place last year.

In terms of starting a business, Namibia is now ranked 172nd. The report shows it takes ten procedures to register a business in Namibia, a process which takes 66 days.

In terms of dealing with construction permits, Namibia was ranked 83rd: the process involves 12 procedures and takes 160 days, according to the report.

With the government calling for more private-sector involvement in the economy, Schade notes that no progress has been made to encourage investment in the economy.

“Namibia's ranking in the latest competitiveness reports clearly indicates that next to no progress has been made over the past years in improving the country's competitiveness although it has been one of the national development priorities,” Schade points out.

OGONE TLHAGE