Public procurement bottlenecks, youth unemployment, development spending and policy certainty dominated discussions at a high-level dialogue on the 2026/2027 National Budget convened by the Economic Association of Namibia (EAN) in partnership with Capricorn Group and the Hanns Seidel Foundation Namibia.
The discussion focused on the key policy trade-offs facing government ahead of the national budget, with participants questioning whether structural constraints, weak inclusivity in economic growth and persistently high unemployment would be meaningfully addressed.
Presenting on the global, regional and domestic economic outlook, Salomo Hei, Managing Director of High Economic Intelligence and an EAN associate member, said Namibia’s core challenge lies not in growth itself but in the structure of the economy and the inclusivity of that growth.
“We don’t have a growth problem; the reality is that our growth is not inclusive. For us to get to the inclusive growth we want to see, the structure of the Namibian economy needs to change,” Hei said.
He added that emerging sectors such as oil and gas could provide an opportunity to address unemployment and inequality if managed strategically.
“The oil and gas discoveries present opportunities. We must therefore try to use this as an opportunity to deal with our issues of high unemployment, high inequality and exclusive growth, and bring it into inclusive growth,” he said.
On financing growth, Standard Bank Namibia economist Helena Mboti cautioned that incentives must produce measurable outcomes rather than simply subsidising existing activity.
“The banking sector is cautious due to high default risk and structural economic issues such as youth unemployment and low incomes. Incentives like tax benefits should be measured for effectiveness, and more focus is needed on their uptake and conversion to permanent opportunities,” she said.
EAN Vice-Chairperson Jesaya Hano-Oshike highlighted youth unemployment, estimated at 44%, and called for more deliberate use of government procurement to support domestic manufacturing and job creation.
“Government procurement is one of those levers that we can use to really help build our economy. We need more local procurement by the state in the manufacturing sector. If you are able to support local manufacturers who create local jobs, that is one way we can decrease unemployment in the country,” he said.
Hei also stressed the importance of policy clarity in attracting investment, noting that inconsistent policy environments discourage long-term capital commitments.
“Without clear, persistent policies and governance, sectors struggle to attract and retain investment. Structural reforms and clarity in economic plans are crucial,” he said.
Floris Bergh of Capricorn Asset Management pointed to structural mismatches between available capital and investment needs, particularly in relation to public-private partnerships.
“Fund management operates based on members’ mandates, leading to a mismatch between available capital types and investment needs. Regulatory initiatives have pushed pension funds to invest in unlisted strata, offering structures for asset managers to handle such funds with defined mandates,” Bergh said.
EAN Chief Executive Officer Cons Karamata said the dialogue was intended to sharpen expectations ahead of the budget and assess whether previously proposed reforms would translate into policy action.
“What can we expect from the Minister? Will we see the recommendations proposed last year to address bottlenecks in public procurement reflected in her budget speech?” he asked.
Karamata said the development budget, higher education funding and the Youth Development Fund remain critical areas requiring closer scrutiny as government prepares to table the 2026/2027 national budget.
“I urge you to participate in this discussion, because together we can influence the fiscal policy of our country,” he said.
