Schlettwein details economic recovery and growth stimulus plan

The Minister of Finance Calle Schlettwein details a four interdependent components of the economic recovery and growth stimulus plan during the tabling of the Mid-Year Budget Review for the 2019/20 financial year on Tuesday.

Schlettwein said MoF plans to roll out a public expenditure and growth stimulus package consisting of increasing development of N.dollars 8 billion.

This includes the roll-out of a N.dollars 4 billion African Development Bank (AfDB) funded project financing agricultural mechanisation, rail as well as road infrastructure and educational facilities rehabilitation programme.

This will further be reinforced by water infrastructure rehabilitation and expansion programme, to the value of N.dollars 2.5 billion in the initial roll-out phase, Schlettwein said in the National Assembly.

He promised that this package will be boosted with the roll-out of the Small and Medium Enterprise (SME) financing facilities at the Development Bank of Namibia, starting with the launch of a series of efforts including the Credit Guarantee Scheme, Mentorship and Training Programme, and the Skills-based lending facility for the youth.

The second element will be realise private sector direct investment from the 2019 Namibia Economic Summit under the high-level economic panel which was held on 31 July to 01 August.

A minimum of an additional N.dollars 20 billion from the domestic private sector investment is committed to the economy over the next three years and additionally, private sector development activity will be greatly enhanced with the targeted capitalization of the Development Bank of Namibia, AgriBank and the Equipment Aid Scheme at the Ministry of Industrialization, Trade and SME Development, Schettwein added.

Another component, state assets will be leveraged as well as listed and Public private partnership (PPP) project proposals will be brought to the market to open up an investment space which will start with the partial listing and divestiture of public shares in the telecommunication sector.

Also, to promote the ease of doing business and business confidence across various parameters, it will implement the priority structural policy reforms and related reforms which was raised at the Summit.

Schlettwein further said the implementation of some of these measures has already started, and these will speed up over the Medium-Term Expenditure Framework (MTEF).

Effective and mutually beneficial partnerships between the Government, the private sector and non-state actors will be necessary for timely delivery of these commitments, Schlettwein said.

Source: Namibia Press Agency