April 26, 2024
Economy

Entrepreneurs hold the key to Namibia’s shared prosperity chest

March 13, 2023
Entrepreneurs hold the key to Namibia’s shared prosperity chest

Namibia is blessed with abundant natural resources yet a significant portion of her population continues to languish in poverty.

The gap between the rich and the poor in Namibia is one of the widest in the world. While the government is committed to addressing this issue, entrepreneurs should be a key component of the solution.

I want to use this article to share my thoughts on how entrepreneurs can unlock the chest of shared prosperity to benefit all Namibians.

The struggle was for “shared prosperity”

The current status quo of poverty and economic inequality in Namibia should not remain unchallenged. The struggle for independence was about a shared prosperity for everyone in the Namibian house. We will be celebrating 33 years of independence in a few days. While the masses are grateful for the prevailing peace; there is a call for accelerating the delivery of shared prosperity to all Namibians. We cannot keep doing what we have been doing for the past 33 years and expect a different outcome. We need to find a more effective alternative solution.

Government jobs no solution

Here is why the President was right when he said it was not the government’s responsibility to create jobs for everyone. The government is not a capitalistic instrument and this is a good thing. To illustrate my point, let us look at jobs as a “vehicle” for distributing wealth into society.

Consider a 100 thousand jobs created by the government versus another 100 thousand created by entrepreneurs. Which set of jobs do you think will create more wealth for the national economy? Definitely not the government jobs. Government jobs are, to a certain extent, what one would call an “economic zero-sum game”.

They do not create any new economic value in themselves. Since the government is not profit oriented, it does not make a profit from its operations, nor should it be expected to. So, when the government is encouraged to create more jobs, it may seem like wealth creation but in some cases it may actually be wealth destruction. On the other hand, entrepreneurs empowered by capitalism have proven to be efficient wealth creators.

Capitalism: The most efficient way to create wealth

Hate or love it, capitalism is a proven efficient approach to creating wealth. The world’s richest persons have all acquired their wealth through capitalistic vehicles. Jeff Bezos created a trillion US dollar business, Amazon, in less than 15 years. The South African born and raised Elon Musk created a trillion US dollar Business Empire in less than 25 years. For context, let’s compare this amount to our national budget.

Namibia’s national budget for the 2023/2024 financial year is N$84.6 billion which is equivalent to about US$5.7 billion. One trillion US dollars can fund the current Namibian budget for more than 175 years. In 15 years, Jeff Bezos created wealth that can fund the Namibian economy for more than 175 years. This is enough proof of how efficient capitalism is at creating wealth. There is a problem in today’s capitalism though.

German Socialist Max Weber defined capitalism as an economic system that seeks profits for society and not for the individual. This does not reflect the capitalism we are experiencing in our society today. While I am advocating for capitalism, I am also advocating entrepreneurs to adopt a different mind-set, an altruistic mind-set.

A Call for Altruistic Entrepreneurs

With the latest discoveries of oil, Namibia is on the cusp of an unprecedented economic growth. With the government’s commitment to creating a conducive environment for entrepreneurs. We are expecting a significant amount of wealth to be created by entrepreneurs. I want to call on entrepreneurs to recognise their social responsibility and take up the role of wealth distribution to benefit all Namibians. Entrepreneurs need to use their businesses as tools for social transformation.

Global business guru and Kyocera founder Dr Kazuo Inamori advised entrepreneurs to adopt an altruistic mind-set because, as human beings they are the most creative force on earth empowered with economic resources to create a better world for society and all living things.

Summary

  1. Entrepreneurs can unlock the chest of shared prosperity to benefit all Namibians.
  2. The President was right, it is not the government’s job to create jobs for everyone.
  3. Capitalism has been proven to be the most effective way of maximising wealth creation across the world.
  4. Capitalism has lost its original purpose and needs to be restored.
  5. Entrepreneurs need to adopt an altruistic mind-set for the benefit of all Namibians.

*Victor Songa Musiwa is a Certified Customer Experience Professor as well as a participant in the JICA Africa Business Education (ABE) Initiative programme.

 

 

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Last modified on Tuesday, 14 March 2023 12:47
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