By:Martin Johannes
Namibia Economic Freedom Fighters (NEFF) member of parliament Kalimbo Iipumbu has accused the government of consuming more than what it can produce as it allegedly borrows funds from the International Monetary Fund (IMF) in itsbid to eradicate poverty.
Speaking in the National Assembly on Wednesday, the parliamentarian argued that this formula will not work, but will ratherlead the country into more debts.
“It seems like the government is enjoying borrowing as if there is no tomorrow,” he charged.
Iipumbu, who is the NEFF deputy leader, said finance minister Iipumbu Shiimi is in a better position to address the country’s burden, which is to deal with and restructure the economic emancipation and debt.
The IMF last year approved Namibia’s N$3.9 billion (US$270.83 million) loan to address its financial needs caused by the Covid-19 pandemic.
In September this year, the board of directors of the African Development Bank also approved a loan of N$2.3 billion ($134.9 million) in co-financing for the second phase of Namibia’s Governance and Economic Recovery Support Programme.
The latest loan to government comes in the form of about N$8.9 billion to support the country’s renewable energy projects.
“We do not accuse him (the finance minister) for not blaming the Swapo-led government because that is where you get instructions. The overall spending remains at 56.9 % of the economy while the debt-to-GDP has increased to a shocking 60 percent.”
He bemoaned the fact that the country’s borrowing is “too scary.”
Iipumbu’s sentiments were echoed by Popular Democratic Movement (PDM) parliamentarian, Elma Dienda who lambasted government for its alleged borrowing spree, saying “there is no way to grow the economy by continuous borrowing”, casting doubt that the economy will grow by 2.8% during this year.
According to the Bank of Namibia’s September 2022 quarterly bulletin, Namibia’s current account deficit deteriorated, whereas the international investment position recorded a net liability position during the second quarter of 2022.
“The current deficit widened to 14.0 percent of GDP from 7.7% registered in the corresponding quarter of 2021. At the end of the second quarter of 2022, Namibia’s international investments position recorded a year earlier on the back of an increase in other investment and direct investment liabilities. The stock of international reserves rose to a level of N$46.0 billion at the end of the second quarter of 2022, equivalent to 5.1 months of import cover, mainly due to inflows over the past year in the form of an IMF SDR allocation, asset swaps, and revaluation gains,” the report said.
It further noted that the level of foreign reserves further increased to N$47.0 billion at the end of August 2022 partly due to SACU revenue and revaluation.
Nam Growing Debt Worries Parliamentarian
