Namibia has reduced
its dependence on
commodities through
a programme of
diversification,
according
to finance
minister Calle
Schlettwein.
This will be
reflected in a
change in the mix of freight being
carried in the country.
Volumes of fast-moving consumer
goods and foodstuffs have risen
together with incomes and the
introduction of a social grant system.
Speaking in parliament he
said: “Namibia’s economy and
the tax base are considerably
more diversified now than was
the case in past decades, so
that commodity-linked revenue
has fallen
in relative
importance.
“The
mining sector
accounted for
just 29.5%
of company tax receipts in
2014/15, with company taxes
also being significantly less
prominent than individual
income tax, VAT and Sacu
(Southern African Customs
Union) receipts,” he said.
However, he warned
that “there will indeed be
challenging times ahead” due
to falling Sacu
revenue.
Schlettwein
said Namibia
had also
managed to
“decouple”
itself from the
South African
economy to
some extent.
“The South
African economy has faced a
number of key constraints that
do not aff lict Namibia, chief
among which are load-shedding
and major industrial relations
issues.
“In 2014, for instance, Namibia
registered a 6.4%
economic growth
rate, compared
to 1.5% for South
Africa, while the
corresponding
growth figures
for 2015 are
4.5% and 1.5%
respectively.
For 2016
the Namibian
government is forecasting
growth of 5% compared to less
than 1% in South Africa.
INSERT 1
5% Namibia's forecast growth for 2016
INSERT 2
The mining sector
accounted for just 29.5%
of company tax receipts in
2014/15.
