WINDHOEK, July 31 — The reserve bank of Namibia is worried about the Low investment activities in the country warning that insufficient capital formation is limiting economic growth and infrastructure development.
In a media release issued Wednesday, the Bank of Namibia Governor Johannes Gawaxab said Namibia’s gross fixed capital formation remains below 10 percent of gross domestic product (GDP), a level significantly lower than that of emerging markets and developing economies.
“These insufficient investment levels hamper the nation’s capacity to expand productive sectors, upgrade vital infrastructure, and ignite the innovation necessary for sustainable economic growth,” he said.
Namibia recently launched a decade-long financial plan that outlines reforms to deepen capital markets, increase investment options, and channel finance into priority sectors such as micro, small and medium enterprises, agriculture, infrastructure, and green industries.
The Namibia Financial Sector Transformation Strategy 2025-2035 aims to build a more inclusive, innovative, and investment-driven financial system.
The mineral-rich country, recently downgraded to lower-middle-income status by the World Bank, has experienced slow and uneven growth, with its economy still heavily reliant on capital-intensive sectors such as mining and public spending.
Xinhua proud partner of the African Youth Newpaper
