Tsivele supports local investors
ABG Department of Economics Secretary, Mr Steven Tsivele is in the favor of supporting local investors as a way forward to transforming the economic growth.
“The local investors who have taken many risks since the conflict ended need support, encouragement, developing plans and mechanisms for the incentives they need. Foreigners should be encouraged to operate in other sectors where domestic investors do not have the capacity,” Mr Tsivele said.
Mr Tsivele described the current state of the economy as;
- Very small economy, which is export, oriented.
- Vulnerable to exogenous shocks due to openness and reliance on narrow basket of exported commodities, i.e unexpected or unpredictable events from outside the economic system, that affects the economy. Examples: short stint political events, changes in government policies, natural disasters, etc.
- Largely, informal economy- Economy that is neither taxed nor monitored by any form of government agencies.
- Previously productive assets remain unproductive.
- Low levels of private investments and innovation.
Mr Tsivele is however, optimistic about the future. “Our view of prospects to 2020 are that the volume of exports will grow and slowly diversify and that there will be an increase in the number of economic activities.”
"For Fiscal Self-Reliance to be achieved, we must work hard to increase value added, company profits and job creation whilst also working on compliance issues."
"Of course we also need to move towards compliance issues- but compliance itself will not generate fiscal self reliance."
"Discussions over we need money, we need to raise revenue can be replaced with discussions over how to reduce the costs and risks facing businesses, how to increase sales, how to increase the number of jobs, how to increase salary levels (quality of jobs) and how to increase value added while improving compliance."
[ Back to News ]
