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To reduce inequality we firstly need to create value in our economy, says CEO Martin Inkumbi.
To reduce inequality we firstly need to create value in our economy, which requires an increase in real gross domestic product (an increase in GDP, less inflation) of our economy. Only when the economic cake is continuously expanding, will there be a possibility for every Namibian to get a slightly bigger piece or even better, to give vulnerable citizens proportionally larger slices.
Generally individuals will invest and work hard to increase their fortunes in an environment that is open, transparent, fair and that encourages meritocracy. Growing the economy requires us to create and maintain such an environment. A value creating and expanding economy will present the best opportunities for employment creation. It can generate more resources for social infrastructure such as housing, education and health care, which can be provided by both the private and public sectors.
A growing economy allows the State more capacity to support and care for the more vulnerable citizens, because firstly, more tax can be collected and, secondly, an expanding economy generally creates more employment opportunities, thus reducing the number of vulnerable citizens.
Specific action plans, will include expanding agriculture to increase the proportion of locally grown food in Namibian’s consumption basket. This requires an overhaul of the entire value chain from production, logistics to market shelf space.
I also think we should pay more attention to expanding the services sector. For example international private universities and healthcare centres in beautiful places such as Swakopmund and Henties Bay, with the foreign market as their target markets can complement the tourism industry. This requires targeting specific international investors in these sectors and bringing in the required skills. An expanding services sector increases consumption demand, which creates opportunities for the primary and secondary sectors.
The main challenge for Namibia in my view is skills, both technical, management and technological capacity rather than financial capital, which can be sourced internationally if one can present a viable investment proposition.
I think we need a targeted strategy to attract investment with a strong focus on bringing in the required skills and technology, capitalizing on the very attractive quality of life Namibia’s environment offers. Our development plan must have a strategy to leapfrog some of the challenges we have such as the shortage of skills and technology. The focus should be on game changing investments, as opposed to those that will merely crowd out Namibian entrepreneurs. In time, Namibia can claw back on the skills gap.