Create Wealth and Fortune in Namibia

Pieter van NiekerkAS WITH ALL things in the world, it lies within the power of man to not only change their lives, but the lives of future generations as well. One would wish to leave a lasting legacy for future generations.

To create wealth for Namibia and her children, we will need to agree on changes. By creating a better nation for our children, we begin to ensure a shared vision and a personal commitment towards that goal.

Thousands of years ago, our ancestors across the globe created communities, farmed, and traded with one goal in mind –– to ensure that if they work hard today, their families and communities would be better off tomorrow. This is the basis of economics and wealth creation, and thus the answer to ‘why’ questions.

The whole idea is to create more for our future today, so we have enough in difficult times, and that future generations have more. Thus, postponing short-term pleasures for as long as possible.

Namibia, like many other countries, has been experiencing hardships due to adverse weather and an economic downturn which has devastated many households. We want to see improvement in our lives. Yes, inequality is a problem, yes, we need to work on solutions, but it remains a global problem which we will not solve in isolation or without wealth. First, we will need to create wealth.

Namibia, her government and people, have done positive work in the right direction: notable poverty reduction since 1990, as no previous generation has enjoyed a better quality of life than what Namibia enjoys today. There are incentives for investments (e.g. manufacturing allowances, no dividend taxes, no capital gains taxes); a friendly mining environment; capital investments into infrastructure – roads, electricity grid, harbour, etc.; and long-term economic growth.

With the groundwork already being established, the next step is to leap into the new global arena as a prospering economy.

For guidance on how to achieve prosperity for our nation, one can look at successful developing countries, and what they have done to achieve wealth creation through sound economic development practices.

We have seen countries like Singapore, Mauritius, Ethiopia and South Korea grow far beyond expectation. In contrast, countries which have focused more on wealth redistribution than creation, like Venezuela, Iran and Zimbabwe, have some of the highest inflation rates and lowest economic development in the world.

One can clearly see that focussing on wealth creation rather than wealth redistribution propels nations forward.

As with many things, to create wealth one needs honest and hard work. It will ask minimal government intervention to facilitate trade, profit motives and, above all, a willingness to change and adapt (or innovate when needed).

This may not appeal to all, but it will ensure a strong and prosperous legacy for all. We will see a more prosperous Namibia faster than we think.

Small adjustments to current policies that can assist the country to reach its full potential are: government organisations not adding value to the industries or markets they should be serving should be probed, and if found wanting, terminated, while giving more support to those that fulfil their mandate; merge private sector management into SOEs’ (state-owned enterprises) boards; develop labour laws that support productivity; and advocacy against outdated socialistic concepts (double taxes, redistribution frameworks, etc. as these only serve to the betterment of selected people, and not the country as a whole).

Other policy adjustments needed are support and incentives for commercial farming so that successful large-scale farmers can assist small-scale farmers more efficiently; zero tolerance on corruption… “For what shall it profit a man if he gain the whole world to forfeit his soul” – Mark 8:36; citizenship incentives for new investments above US$1 million, with a 2% government administration fee for social projects like housing (just 1 000 citizenships in this manner would see N$15 billion being injected into the economy).

The global community is currently facing their own respective problems. Thus, we cannot rely on them alone, but it is within our reach if we work together to create a more prosperous Namibia. Together, we can and will achieve a greater Namibia.

• Pieter van Niekerk has a BComm degree, and is a commercial manager at a local fast-moving consumer goods company, which focuses on sustainable job creation and value-addition of products.