I N N O V AT I O N F O C U S
STEVE GALLOWAY DOING THINGS DIFFERENTLY
BY STEVE GALLOWAY, FORMER EXECUTIVE DIRECTOR OF NAMIBIA INVESTMENT CENTRE AND INVESTMENT BANKER We need to build on our solid foundations but do things differently. As President Geingob proclaims in his recent book "The Time is Now".
STEADY AS SHE GOES
Namibia has a track record now approaching three decades of peace, stability, responsible governance and overall policy predictability. We have gone some way towards reducing the inequities and skewed development of the past, in growing a successful mixed economy and in establishing a young nation state which can stand its ground in the company of much larger, more mature and better resourced nations. Our leadership has stood out in world-class examples of both political and corporate leaders, yet gaps are evident and overall productivity and competitiveness is average at best. Reconciliation, careful consideration of diverse and sometimes conflicting interests and pragmatic policy frameworks and development plans brought us to a relatively comfortable position in 2010-2015; maybe too comfortable?
STANDING STILL OR SLIPPING - "Could do better"
While Mauritius and Botswana stuck to the secrets of their respective successes, and Rwanda, Ethiopia, Ghana, Kenya and Tanzania reformed policy environments rapidly, Namibia stayed put and even slid backwards. Complacency and inappropriate and uncoordinated policy reforms saw us being overtaken by others in competitiveness and attractiveness rankings in 2011-2013. This sideways shift turned to backsliding when well-intended but unguided policy frameworks like the New Equitable Economic Empowerment Framework ("NEEEF") and Namibia Investment Promotion Act ("NIPA") raised their ugly heads in 2015/16, creating a confidence crisis with a resultant freeze on investment and capital outflows through 2016 and 2017.
Steve Galloway "If you always do what you always did, you will always get what you always got" Albert Einstein Political and policy stability are pre-conditions for a new country to build a trust base and track record. Innovation and business unusual are keys to outperformance in public and private sectors and provide a platform for superior growth, job creation and economic diversification. The Asian Tigers teach us how dramatic transformation and fasttracking of economic growth, social equity and innovation is within reach of even resource-poor economies. Multi-resource countries like Namibia cannot claim the resource-curse and Dutch disease to look for excuses for mediocre performance, especially as we move into the 3rd and 4th industrial revolutions – digital and knowledge-based economies built on education and niche competitive advantages including those in the blue and green economies.
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Compared with the consensus private and government competitiveness targets to top SADC or even Africa by 2020, Namibia slipped to a mediocre ranking of 6-9 in Africa in most categories, with an occasional top 5 in SADC. "Could do better" is the obvious report card comment given our strong start and considerable potential.
CALL TO ACTION
The incoming Geingob administration identified and addressed the malaise and flagging economic growth in 2015 and introduced the exciting Harambee Prosperity Plan ("HPP") in April 2016, a fast-track plan to jump-start the economy and catch up to some of the key job-, development- and growth targets missed in NDP 4 and prior plans. Regretably enterprise (private and public) has been unable to muster a coordinated response to HPP in its first 18 months, focusing instead on remedial action to specific unguided policies. A second opportunity has been afforded through the incorporation of HPP into NDP 5. The time is now to rise to the call of a rejuvenated government with a strengthened mandate but over-stretched resources. The time is now to accept co-ownership of national development plans and initiatives across all those who consider themselves to be part of "enterprise" in Namibia from small-, sole- and micro- to public- to large private- enterprise and listed enterprises.
