Guest Contributor | Feb 20, 2024 | 0
!Gawaxab delivers empowering keynote address at Bloomberg’s flagship event
Bank of Namibia Governor Johannes !Gawaxab stated that Namibia’s political stability, robust institutions, and abundant natural resources make it a beacon of progress and stability.
!Gawaxab made these remarks during his keynote address at Bloomberg’s flagship event on Tuesday in Windhoek, titled “Namibia in Focus” to underscore the country’s commitment to showcasing its vast potential as a prime investment destination.
During the event, the governor provided a thorough analysis of Namibia’s economic landscape, highlighting its achievements and addressing upcoming challenges.
He further examined the main factors that define the country’s economic outlook, providing insights into Namibia’s strengths and opportunities for progress.
“Namibia stacks up well despite the challenges posed by the country’s declining rate of Gross Fixed Capital Formation and the limited skills base,” !Gawaxab asserted, adding that while these challenges are daunting, they are not insurmountable.
The Governor said that Namibia must first mobilize domestic resources, build fiscal buffers, and engage in structural reforms to navigate its way out of these challenges.
He also addressed the significant surge in global inflation and its implications, underscoring the need for central banks to carefully navigate this uncertain environment.
Additionally, he highlighted that Namibia’s inflation had decreased from its peak, providing a measure of stability in the nation’s economic landscape.
!Gawaxab emphasized the critical role that inclusive institutions play in a nation’s success, commending Namibia for its inclusive institutions, which promote political pluralism, safeguard property rights, and foster economic opportunity.
When discussing Namibia’s economic institutions, the Governor underscored the Bank of Namibia’s significant role in ensuring monetary and financial stability, which he noted is “the foundation for economic progress.”
“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,” he added.
Moreover,!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. He also 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 emphasized the significance of leveraging the private sector’s potential, citing MTC’s successful listing and plans to revitalize underperforming commercial public enterprises.
!Gawaxab expressed optimism about Namibia’s economic prospects looking ahead and highlighted the potential of green hydrogen and light oil discoveries. Meanwhile, he also mentioned Namibia’s Sovereign Wealth Fund, pointing out the nation’s commitment to prudent fiscal management while transferring wealth to future generations.
He concluded by inviting attendees to join Namibia in navigating challenges and seizing opportunities for prosperity.