Moreover, a significant portion of Namibia’s foreign direct investment inflow has been coming from South Africa, thus partly offsetting the outflows in the long-term funds. Further, Namibia’s savings continue to be in excess of the country’s present investment demand, implying that efforts must be made to create investment opportunities in order to increase the level of investment.
Here, the government and the private sector have a joint responsibility. Loss of seignorage Joining the CMA has also involved costs such as the loss of seignorage. The issue could be viewed from two perspectives. In a growing economy, there is a need for individuals and businesses that participate in economic activities to increase their holdings of financial balances for economic transactions.