Businesswomen in Namibia recently met in Windhoek, the country’s capital to discuss ways to stay afloat in business against the backdrop of mounting inflation, occasioned by spiralling global oil and bitting food prices. These factors have become an economic worry, because, as analysts say, they are here to stay for a longer period than anticipated.
At the forum, Fouche Brand, chief investment officer of Capricorn Asset Management, advised Namibian businesswomen to adjust projected revenue and expenses to new data. ” Global financial situation is in trouble and we are going through a rough time with sevrere financial losses, low consumer confidence, credit squeeze and spiralling food and energy prices,” Brand said. He warned that businesses should cut down spending on non-essentials with planning being the guiding principle at all times.
Brand confirms that high inflation in the country, erodes the purchasing power of customers and puts pressure on the turnover. ” Despite inflation being a global issue. it is also a domestic concern that can easily lead to poverty and unemployment. This is revealed in constant price adjustments, labour disruptions, misallocation of resources and consumers becoming more price-sensitive,” B says. Analysts are still warning that global oil trends are cutting into consumer spending and eroding corporate profits.