Investment flows weakened over past 10 years: Schlettwein

Investment flows have weakened over the past 10 years, with public investments declining and private investment turning negative, Minister of Agriculture, Water and Land Reform Calle Schlettwein has said.

Speaking at a one-day annual conference of the Economic Association of Namibia in Windhoek on Thursday, Schlettwein said this is due to more capital outflows than inflows and it is a worrying trend when this happens, regardless of whether the economy grows or shrinks.

“The private sector maintains that the causes for these trends are uncertainty as a result of empowerment and redistributive policies of the government.

This, therefore, becomes a challenge that must be soberly discussed and resolved. Perpetual inequality and severely skewed wealth distribution are unsustainable and will cause political instability if not addressed meaningfully,” he said.

He added that the options are not whether or not to proceed with empowerment and redistribution policies to erode inequality, but about finding how to achieve a more equal society and a more dignified lifestyle for all Namibians in the shortest possible time.

Public investment in the agricultural sector, the minister said, has been on a decline, having dropped from an average of 4.6% of the national budget 10 years ago to 3.6% now.

“This low public sector investment in the agriculture sector highlights the large scope for public-private sector partnerships through integrated and coordinated public-private investment in the agriculture sector.

The way in which agricultural production and agro-processing value chains are developed and interlinked into the domestic and export markets will determine the appetite for private sector investment. Our job is to enhance the appetite,” Schlettwein said.

He further noted that the hindrances to doing business – red tape and bureaucracy – are an area where Namibia is consistently rated below global averages and it is one of the softer matters that can and should be addressed swiftly.

“We have started with relaxing visa requirements, especially for business persons. We are checking all regulatory requirements as to whether they actually add value; if not, they will be abolished,” Schlettwein said.