WINDHOEK, Dec. 8 (Xinhua) -- Namibian governmenton Sunday said it will take consolidation measures and policy stance interventions following a downgrade of the economy by Moody's ratting agency this weekend.
Minister of Finance Calle Schlettwein released a statement saying the downgrade was expected because of challenging economic environment locally and globally.
He reiterated the need to find ways to improve the economic performance. Namibian economy according to Schlettwein has been receding for the past two years.
"The government reiterates its commitment to a growth-friendly fiscal consolidation and the package of structural policy reforms to support domestic economic activity, improve business confidence, policy certainty and bring about recovery of the domestic economy and sustainable public debt management, " he said.
The government, in collaboration with the private sector, has already commenced with the implementation of growth enhancing measures, implementation of an increased development budget by 42.2 percent as a lever for supporting domestic economic activity, he said.
He said policy interventions include implementation of the project financing arrangements with the African Development Bank to the tune of 4 billion Namibia dollars (274 million U.S. dollars) over the next three years for the agricultural mechanization program, rail and road infrastructure projects as well as essential public infrastructure projects in the education sector.
He also added that procurement of these projects have reached an award stage and poised to inject activity and enhance the productive capacity of the economy while implementation of SME and youth entrepreneurship financing facilities at the Development Bank of Namibia which were launched in early November 2019 and already became effective on December 1, 2019 are expected to bear fruit.
