WINDHOEK, July 31 (Xinhua) -- Namibia's economy is on the recovery and better than what is currently being portrayed in the public domain, President Hage Geingob said Monday.
Addressing a press conference at State House in Windhoek, Geingob said, as a matter of fact, the underpinning fundamentals of Namibia's economy are stronger today than they were a year ago.
The press conference was called to address several issues, among them the liquidation of the SME Bank and unresolved corruption cases involving high ranking officials.
Geingob also said he believed that the economy had been through the brunt of the downturn and was now on a recovery path.
He said the finance minister and the economic advisor to the president have tried their level best to provide clarity on the state of the economy and to project a positive trajectory and narrative of economic recovery.
As proof that the economy was recovering, Geingob said liquidity conditions have improved remarkably and that where subscriptions to government bonds had at times been as low as 30 percent this time last year, this year bond issuances are fully subscribed to.
"A credit facility with the African Development Bank, in South African denominated currency and at favorable terms, has immensely contributed to the improved liquidity situation in the country," he said.
He further said that there are encouraging signs of economic recovery in Sub-Saharan Africa, in particular in South Africa and Angola, Namibia's two key trading partners.
"South Africa has reduced its lead interest rate by 25 basis points, citing an improved inflationary outlook and the need to stimulate economic activities," he said.
According to Geingob, another proof is the consumer price inflation that has been on a downward trajectory during the past six months and hit a low of 6.1 percent in June 2017.
He said the fact that food price inflation is much lower than it was during the same period, last year means low-income earners who spend relatively more of their income on food items, are relatively shielded from the full impact of inflation compared to the same period last year.
Geingob said all companies that were owed money by the government will now be paid.
As a government, Geingob said he deeply regrets the accumulation of unsettled invoices that came about as a result of weak revenue collection caused by the economic downturn.
"We understand the serious impact this has on business operations, in particular on small and medium sized enterprises. We empathize with those businesses that had to close down as a result of the economic downturn and those employees who lost jobs as a result of such foreclosures," he said.
