State of the Namibian Economy 2024 reveals lack of public sector reform

Economist Robin Sherbourne has stressed that good governance and well-crafted policies are more crucial for a country’s long-term economic success than natural resources or the size of its population. Speaking in his recent analysis, Sherbourne argued that the foundation of sustainable economic growth lies in the strength of a nation’s institutions and the effectiveness of its policies.

In the same report titled “State of the Namibian Economy 2024,” Sherbourne outlines key policy developments and economic trends shaping the country’s future. He said that Namibia has made progress in several areas, including efforts to avoid greylisting and the development of critical legislation, such as the Namibian Investment Promotion and Facilitation Bill and the National Equitable Economic Empowerment Bill, both of which are currently under legal review. Moreover, Sherbourne discusses the advancement of green hydrogen legislation and the slow but ongoing progress in the power sector.

However, the report also highlights areas of concern, including the lack of significant public sector reform and the continued uncertainty in the investment environment. With elections on the horizon, Sherbourne questions whether any political figure will emerge to champion the necessary reforms, especially as interest rates begin to decline and the economy shows signs of recovery from the COVID-19 setback. Despite these positive signs, Sherbourne notes that, for the first time since 2015, the average Namibian voter may be facing the upcoming election with diminished economic prospects.

Sherbourne’s tagline for this year’s report is “The economy, stupid,” a phrase originally coined by Jim Carville in 1992. Often remembered as “It’s the economy, stupid,” this line was part of a televised comment by Carville, who served as a strategist for Bill Clinton during his successful 1992 U.S. presidential campaign against incumbent George H. W. Bush. The phrase was one of three key messages Carville directed at campaign workers, emphasizing the importance of focusing on the economy, advocating for change over continuity, and not forgetting healthcare.

Here is a link to the full report https://ippr.org.na/publication/state-of-the-economy-2024/?fbclid=IwY2xjawFC0Y9leHRuA2FlbQIxMQABHdL8A_iMbulA45bFVm_TMx_fJI_-ICp4liAgkLaLH_pTcaGIev0JiLreUQ_aem_-TZYBxA_E-66W45z8dQyGA