Namibia risks diving deeper into debt, as new economic policies aimed at alleviating poverty may lead to more borrowing from the international markets.
Among the anti-poverty interventions are the establishment of food banks to feed the destitute, provision of grants for low income earners, and a solidarity tax to be introduced during the next financial year, reports the Southern Times.
“The government is good at coming up with proposals but when it comes to say how they will be funded they are not so good at it. If there is no clear plan as to how all these new proposals are going to be funded, the country will be forced to invest heavily in these projects and this will put massive pressure on the foreign reserves,” said University of Namibia economist Omu Kakujaha-Matundu.
