EAN pushes for local procurement in 2026 budget

Economists and industry leaders are calling for structural changes to the Namibian economy to ensure that current growth translates into meaningful job creation and social equity. This follows a high-level public discussion convened by the Economic Association of Namibia (EAN), in partnership with Capricorn Group and the Hanns Seidel Foundation Namibia (HSF), to deliberate on the 2026/2027 National Budget.

Under the theme, “The National Budget at a Pivotal Moment: Choices, Trade-offs and Economic Direction,” experts gathered to examine the fiscal priorities ahead of the budget tabling by finance minister Ericah Shafudah.

Cons Karamata, CEO of the EAN, said the discussion was a critical platform for highlighting expert recommendations. “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?” Karamata said.

He said the development budget, higher education, and the Youth Development Fund remain the primary issues requiring urgent attention. “I urge you to participate in this discussion, because together we can influence the fiscal policy of our country,” he said.

Salomo Hei, Managing Director of High Economic Intelligence (HEI), said that while the economy is showing signs of growth, it remains non-inclusive. “We do not have a growth problem; the reality is that our growth is not inclusive. It is important that this growth becomes inclusive, becomes bigger, and starts taking into account the greater participation of the population. For us to get to the inclusive growth we want to see, the structure of the Namibian economy needs to change,” Hei said.

Hei said the oil and gas discoveries present a unique opportunity to address systemic issues. “We must try to use this as an opportunity to deal with our issues of high unemployment, high inequality, and exclusive growth,” he said.

Helena Mboti said there is a need to evaluate whether tax incentives for venture capital effectively unlock new investment or simply subsidise existing activity. She said the banking sector remains cautious due to high default risks and structural issues like low incomes.

“We need to build a venture capital culture to support entrepreneurs, using national savings for riskier, long-term investment. Incentives like tax benefits should be measured for effectiveness, and more focus is needed on their uptake and conversion to permanent opportunities,” she said.

Jesaya Hano-Oshike said the government must be willing to pay more in the short term to build domestic manufacturing capacity through strategic procurement.

“Right now, Namibia is sitting at 44% youth unemployment, so government procurement is perhaps one of those levers that we can use to really help build our economy. We need more local procurement by the government in the manufacturing sector,” Hano-Oshike said.

He said that prioritising local manufacturers is a direct path to job creation. “If you are able to support local manufacturers who create local jobs, that is one way we can definitely decrease unemployment in the country, especially when you look at the GDP structure in this country,” he said.