President Netumbo Nandi-Ndaitwah says Namibia must be cautious about taking on debt, particularly international debt, as she pushes for greater mobilisation of capital within the country to finance development and revive the economy. Nandi-Ndaitwah made the remarks yesterday during a courtesy meeting with Capricorn Group at State House, where the financial services group told her... The post NNN warns against foreign debt appeared first on New Era .
President Netumbo Nandi-Ndaitwah says Namibia must be cautious about taking on debt, particularly international debt, as she pushes for greater mobilisation of capital within the country to finance development and revive the economy.
Nandi-Ndaitwah made the remarks yesterday during a courtesy meeting with Capricorn Group at State House, where the financial services group told her it has more than N$40 billion in loans and advances, close to N$70 billion under asset management and more than N$10 billion already exposed to SMEs this year.
Capricorn Group CEO David Nuyoma said the group has “ample resources” to invest in Namibia.
“With regard to capital mobilisation, that is our core business. We briefed her excellency about the various groups and subsidiaries and the role they play at the bank level. The loans and advances that we have are over 40 billion. And we have Capricorn asset management, which is close to 70 billion,” he said.
He added Capricorn also remained willing to invest in different sectors of the economy, including emerging areas such as oil and gas, while continuing to support SMEs.
“And so, it is part and parcel of what we do. And we continue to have the appetite to invest in the various sectors of Namibia, including the emerging sector of oil and gas,” Nuyoma said.
He added that Capricorn had already exposed more than N$10 billion to the SME sector this year alone.
“I won’t say funds are unlimited, but I can say we have ample resources,” he said.
Nuyoma said the key was to identify investment opportunities where risks could be managed and where capital could have a full impact on the ground.
He said capital mobilisation is at the heart of Capricorn’s business, and that the group remains willing to invest across different sectors of the Namibian economy.
“And with regard to capital mobilisation, that is our core business,” Nuyoma said.
He said the group continued to have an appetite to invest in various sectors of Namibia, including emerging industries.
“We continue to have the appetite to invest in the various sectors of Namibia, including the emerging sector of oil and gas,” Nuyoma said.
The group also highlighted its involvement in supporting SMEs, which are widely regarded as important to employment and economic activity.
Nuyoma said Capricorn had already provided significant exposure to the sector this year.
He said the next step was to identify opportunities where investment risks could be managed while ensuring that capital produces a meaningful impact in the economy.
“It’s a question of identifying the opportunities where we can mitigate the risks in investing and for us to realise full impact as we would like to see it on the ground, but also in terms of retaining such money,” he said.
The comments came after Nandi-Ndaitwah told the Capricorn delegation that Namibia needs to mobilise capital to implement its development programmes.
“All of us are following the world economic trend. We are all following the economic activities in our country, and as a government, on behalf of everybody, we have set ourselves as targets for development,” Nandi-Ndaitwah said.
The President, however, made it clear that she was concerned about increasing Namibia’s debt burden.
“I’m very cautious not to go into the country into debt. It is even worse… it is even worse if we can have international debt,” she said.
Nandi-Ndaitwah said domestic capital would provide a better option for injecting energy into the economy.
“But really, if we have capital in the country, that will be the best way for us to revive, I mean to put energy into our economy,” she said.
Her comments appeared to strike a chord with Capricorn, whose delegation had presented the group’s role in mobilising capital and creating opportunities in Namibia. Capricorn Group chairperson Gerhard Fourie said the purpose of the visit was to introduce the group and highlight its contribution to Namibia’s development over more than four decades.
He said Capricorn wanted to reaffirm its commitment to the country’s prosperity and to working with government on national priorities.
“The purpose of our visit here today is really to introduce the Capricorn Group and its contribution to the Namibian development during the past 40-odd years, to share the role of our business in mobilising capital in the country and to create opportunities in the country,” Fourie said.
The group, which describes itself as a proudly Namibian financial services group established 44 years ago by Namibian entrepreneurs, said it sees itself as part of the solution to the country’s economic challenges.
Nandi-Ndaitwah believed the availability of domestic capital is important, as the government seeks to implement its development agenda while avoiding excessive reliance on foreign borrowing.
She said meeting a group such as Capricorn gave her confidence that government and the private sector could work together to address Namibia’s challenges.
“So, meeting now a group like yours, for me, is giving me some level of comfort. That’s how we, as a country, can work together in order to take care of our people,” she said.
Nandi-Ndaitwah looks forward to discussions on how government and the private sector could work together to confront the challenges facing the country.
“I’m really happy with the way you have started introducing yourself. Once again, I say I’m looking forward to a good discussion on how we can together face the challenges that we have in our country,” she said.
*-ljason@nepc.com.na *
The post NNN warns against foreign debt appeared first on New Era.
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