. these measures included the enactment of the foreign direct investment act 1990, which provides generous tax breaks and other concessions to investors and the export processing zones ( epz ). a further measure is the disproportionate allocation of national expenditure to education and health. as we all know, namibia is blessed with a significant supply of natural resources, such as diamonds, uranium, zinc and natural gas. unfortunately these natural resources, particularly diamonds and uranium, have been susceptible to exogenous influences in the form of demand or price shocks. chart composition of exports comp os it ion of e xp or t s 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0 % 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 mineral exports non - mineral exports the share of minerals in total export declined from about 65 % of total exports in 1990 to about 50 % in 1994. following an increase in subsequent years, the share fell to 49 % in 1999. apart from demand and price shocks, namibia is also susceptible to other natural shocks, which influence growth. recurrent drought spells, for example, caused agricultural output to decline by over 40 % in the last three months of 1995. as nearly 70 % of namibians derive their livelihood directly and indirectly from the land, these droughts have caused declines in agricultural exports and farmers ’ incomes. chart saving and investment s avings and inve s t me nt as % gdp 40 % 30 % 20 % 10 % 0 % 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 savings investment let me now turn to savings. as the saying goes : “ to have more tomorrow you have to have less today. ” to provide funds for investment at the national level there needs to be a healthy level of savings. for a greater part of the period after independence, investment has lagged behind savings. at an annual average of about 25 % of gdp for the period 1991 - 99, the savings rate ranks among the highest in sub - sahara africa. given the savings - investment gap, namibia has witnessed a constant outflow of capital and a matching current account surplus for a greater part of the period under consideration. gross fixed capital formation as a percentage of gdp hovered around 21 % for the period. both private and public investment has been on the decline, though this has been more pronounced for private investment. two important factors that have contributed to the decline in private investment are the slowdown in government investment and the high interest rates that emerged after the financial

ipumbu shiimi : financial capability and the role of the financial services industry – achievements, challenges and opportunities statement by mr ipumbu shiimi, governor of the bank of namibia, at the launch of the financial literacy initiative, windhoek, 15 march 2012. * * * director of ceremonies, honourable samuel nuyoma ; governor of khomas region honourable saara kuugongelwa - amadhila ; minister of finance honourable members of parliament, dr. romeo bertolini, counsellor for development cooperation ; embassy of the federal republic of germany your worship elaine trepper ; mayor of the city of windhoek members of the diplomatic corps, industry captains members of the media, distinguished ladies and gentlemen good morning it is my pleasure to join you this morning and to be associated with the official launch of the national financial literacy initiative ( f. l. i ). this event is a remarkable milestone in the annals of our financial landscape. the launch and roll - out of the financial literacy program here today will serve as a catalyst for financial inclusion for all. i, therefore, wish to congratulate you honourable minister and all fellow f. l. i partner institutions for the conceiving of, and embarking on this program. the bank of namibia has had the privilege to play a key role in the formulation of the financial sector strategy, whose overarching objective is to elevate the role of the financial sector in the economy. financial education is an important part of the financial sector development strategy and the financial sector charter adopted by the industry way back in 2009. indeed, the financial literacy initiative constitutes a transmission channel for the expanded participation in the mainstream financial system. i am therefore gratified that this initiative has kicked - off at the time when we are preparing for the launch of the financial sector strategy. honourable minister, ladies and gentlemen, the objectives of this initiative and the tasks ahead should be understood in the wider context of the potential role of the financial services sector in the economy. finance is a key catalyst for economic development and wealth creation. financial products and services such as secure savings and insurance play an important role to absorb changes in income during difficult economic times as well as reducing poverty and vulnerability. in fact, secure savings is a source of financial security for households and individuals. director of ceremonies a week ago, i have had the honour to officiate at the launch of the findings of the 2011 finscope survey. this survey follows on the similar