Balancing act
Pre-budget discussions
Economic commentators have predicted a delicate balancing act when newly appointed Finance Minister Ericah Shafudah tables the 2025/2026 budget on 27 March 2025.On Tuesday, Capricorn Group, in collaboration with the Economic Association of Namibia, the Hans Seidel Foundation, and High Economic Intelligence (HEI), co-hosted a national pre-budget public discussion inspired by the theme: Balancing Growth and Social Upliftment: The National Budget in a New Dispensation.
The annual discussion highlighted the alignment of expected government spending and related fiscal reforms with the nation's development priorities under the administration of President Netumbo Nandi-Ndaitwah. Capricorn Group CEO David Nuyoma noted the upcoming budget would carry the weight of expectations.
Government shareholders
“The shareholders of the government are the people. They have made their demands on political parties, which have been expressed through manifestos. Now, it is time for a reality check. Therefore, priorities must be set to realise that balancing act. It requires all of us as citizens, in our various formations, not just to throw stones but to continue the constructive contributions through engagement with those who have this enviable task of doing what needs to be done,” said Nuyoma.
Managing Director of the High Economic Intelligence Salomo Hei gave an insightful economic outlook, which included allocations made by the previous administration.
The new administration has promised to invest heavily in sports infrastructure, youth empowerment initiatives, quality education and training, creative industry, quality health and social welfare, and land, housing, and sanitation areas.
“We are 35 years into this journey and should not be experimenting after 35 years. We need to be clear and have clarity of purpose in understanding our problems,” said Hei.
Calls for transformation
He also called for a total transformation of the economy, saying the country does not have a growth problem. “What we need is inclusive growth, and this can only happen when we change the structure of the economy,” he added.
Economic Association of Namibia chairperson and renowned economist Jason Kasuto called for a pragmatic approach to tackling the nation's issues. “We are five years away from Vision 2030 and are still trying to achieve those dreams. Thus, we need to see how things can be done more pragmatically.”
Floris Bergh, the Chief Economist at Capricorn Asset Management, emphasised the need for a budget that contributes to the nation’s macroeconomic stability. “We cannot just throw money at problems. We should not be reinventing the wheel all the time. I hope the new brooms in the Cabinet will be swept clean. Let us give them a chance to step up. Everything falls and stops at leadership.”
On her part, Associate Dean at the Namibia University of Science and Technology Professor Teresia Kaulihowa emphasised economic growth should be impactful and translate into job creation.