Moneycontrol
you are here: HomeNewsWorld
Feb 05, 2018 01:56 PM IST | Source: Moneycontrol.com

Days after sending its Army on leave, economic crisis hit Namibia bans govt officials' foreign travel

As per economic expert Henning Melber, the crisis is a result of external factors that were made worse by internal mismanagement of the economy

Moneycontrol News @moneycontrolcom

Namibian President Hage Geingob has banned politicians and civil servants from travelling abroad for business. The decision comes days after the country, which is facing a severe economic crisis, asked its troops to go on a leave due to their inability to pay for their food.

As per a report in Deutsche Welle, the President, who had taken a commercial flight to cut down the expenditure of travelling in his private jet to attend the African Union summit is taking the action to cut down government spending. As per the report, President’s spokesperson was quoted saying in an agency report that the ban will prevail at least till the end of the month.

The actions are a result of an unprecedented economic crisis that has befallen on the country situated in South-West Africa. As per economic expert Henning Melber, the crisis is a result of external factors that were made worse by internal mismanagement of the economy. These included the drought caused by the El Nino weather effect, decline in fish stocks and the issues in the mining industry that has resulted in the rise of unemployment.

In addition, the recent bad performance by the South African currency with which the nation’s currency is pegged in has further aggravated the situation.

"It's clearly an indication that the government continues to face a strong economic crisis and is not able to mobilize funds to enhance growth by investing in infrastructure,” Melber was quoted as saying in the report.

However, he alleges that the policies taken by the President including the decision to expand his ministry and increase the number of advisors made matters worse.

“The unsustainable public sector and civil servant wage bill amounts to more than 50 percent of the annual budget." He also stated that more stern cuts will be required to salvage the country from the crisis. Meanwhile, people have different opinions about the actions. While some welcomed the move, others considered it as a mere publicity stunt.
Sections
Follow us on
Available On