It is the purpose of this discourse to unravel the oscillations and vacillations of foreign direct investment, debt, unemployment to economic growth nexus. People do not eat GDP people want food on the table. The nexus of good governance, unemployment, economic growth and FDI is essential. Good economic governance shows a positive effect on growth, attract FDI, reduces unemployment and attracts economic growth. Bad economic governance inclines to reduce economic growth, increases unemployment, reduces FDI, cause people to languish in debts and delays people in the investment process. A positive sign of corruption indicates that the higher the corruption, the lower the inward FDI. The researcher disagrees that corruption is suitable for foreign investors. The pendulum is tilted where investors prefer not to invest in countries with high corruption where there is a lack of enforcement laws.
Further, foreign investors have created an ecosystem where local small businesses cannot compete. More worrying is the state’s credit rating that has seen a consistent downgrade by major credit rating agencies, which now stands at sub-investment grade, or what is referred to as “junk status". The main reasons quoted for this declivity was going to the dogs of Namibia’s financial robustness due to massive fiscal lopsidedness, an astronomic debt excess baggage, COVID crisis and limited enterprise capacity to manage shocks and address long-term structural pecuniary rigidities. There has been a rift between the youth haves and have-nots in term of job allocation. The total household debt in Namibia is made up mostly of mortgages, car loans, student loans and credit card debt. The car loans, mortgages, credit cards and student loans make up most of 95% of Namibia household debt.
Statistics show that from 2009 to 2018, the net direct investments in Namibia were detrimental. In 2015 and 2016 the direct investments were at a low ebb having -16 00. In 2018- the direct investments not above 8000, while between 2009 to 2010, the direct investments were not less than 600. During the third quarter of 2017, the direct investment was 4000. Unemployment determinant has been identified as a hindrance to the repayment of student loans because when students graduate, there is no employment for them. When unproductive and less skilled graduates are sitting at home without jobs, they will be unable to pay back the loan. The promotion of Vocational Education, SMEs, and the establishment of polytechnic colleges offering vocational training and apprenticeship is long overdue in the country.
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