Despite progress made on Namibia’s economy over the past year, financial exclusion remains a challenge in rural areas and the informal sector, and for micro, small and medium enterprises (MSMEs).

President Hage Geingob in his State of the Nation Address on Thursday noted that there is still a need to foster broad-based economic growth across all sectors of the economy and that Government will continue to expedite implementation of supportive supply-side policies to lessen constraints to economic activities and facilitate ease of doing business.

“Some have asked what plans are in place to address the high cost of living and inflation for low-income earners. The doubling of the minimum tax threshold from N.dollars 50 000 to 100 000 and the gradual reduction of the corporate tax rate from 32 per cent to 30 per cent are some of the responses Government is taking to provide relief to many of our low-income earners,” Geingob noted.

He added that the Bank of Namibia is currently coordinating the development of a new Financial Sector Transformation Strategy to achieve a higher degree of financial inclusion.

The Welwitschia Fund, Namibia’s first Sovereign Wealth Fund, was also launched last year to enhance national resilience and promote intergenerational prosperity, through redistribution of benefits from the country’s natural resource endowments.

“Government is also committed to the reform of public enterprises, including the commissioning of the centralised ownership model and the establishment of a holding company structure. Hence, the Namibian Public Enterprises Board Recruitment Guidelines have augmented the process of appointment of qualified and experienced board members without political interference,” the president expressed.

Geingob welcomed the return of the economy to a positive growth trajectory, emphasising that it brings about much-needed growth in revenue collection, as well as stemming the trend of declining per capita income.

Namibia has also attracted foreign direct investment worth N.dollars 13.2 billion or 7.2 per cent of Gross Domestic Product during the first nine months of 2022, primarily driven by equity injections for exploration activities following the offshore oil discoveries, he said.

Source: The Namibian Press Agency