"Though the borrowing strategy is to largely fund the funding needs from the domestic market, the 2020/21 financial year's budget deficit is significantly large to be sourced from the domestic market as per the norm.
During the budget speech, Shiimi said primary industries are expected to contract further in 2020, due to an expected lower output from all the mining sectors and agriculture, forestry and fishing as the impact of Covid-19 takes its toll on global demand for commodities in all the sub-sectors.
Nevertheless, growth for 2021 is expected to recover and expand as restocking continues with increase in demand as the lockdown impact dissipates in livestock farming and crop farming as the sector goes into a recovery and rebalancing.
The fishing and fish processing on board sector is estimated to contract as the impact of Covid-19 lockdown and travel restrictions takes its toll on the sector with reduced domestic and external demand in 2020.
These sectors were affected by the travel ban, partial and total lockdown from most of Namibian's tourist origins, while the financial sector is expected to be affected through the loss of revenue and increase in non-performing loans coupled with the impact of the reduced repo rate.
