The Namibian economy has a modern market sector, which produces most of the country's wealth, and a traditional subsistence sector. Although the majority of the population engages in subsistence agriculture and herding, Namibia has more than 200,000 skilled workers and a considerable number of well-trained professionals and managerials.
|Economy of Namibia|
|Currency||Namibian dollar (NAD)|
South African rand (ZAR)
|1 ZAR = 1 NAD|
|1 April – 31 March|
|WTO, SADC, SACU|
|GDP||$14.148 billion (nominal, 2018 est.) $27.505 billion (PPP, 2018 est.)|
|GDP rank||125th (nominal, 2018) 133rd (PPP, 2018)|
|0.6% (2016) -0.9% (2017) 0.7% (2018e) 1.8 (2019f) |
GDP per capita
|$5,923 (nominal, 2018 est.) $11,516 (PPP, 2018 est.)|
GDP per capita rank
|91st (nominal, 2017) 101st (PPP, 2017)|
GDP by sector
|agriculture: 6.3% industry: 26.3% services: 67% (2016 est.)|
|5.7% (2019f est.) 3.5% (2018f est.) 6.1% (2017)|
Population below poverty line
|17.4% (2015, World Bank)|
|59.1 high (2015, World Bank)|
|956,800 (2017 est.)|
Labour force by occupation
|agriculture: 31% industry: 14% services: 54% (2013 est.) [note 1]|
|Unemployment||34% (2016 est.)|
|meatpacking, fish processing, dairy products, pasta, beverages; mining (diamonds, lead, zinc, tin, silver, tungsten, uranium, copper)|
|Exports||$3.995 billion (2017 est.)|
|diamonds, copper, gold, zinc, lead, uranium; cattle, white fish and mollusks|
Main export partners
| South Africa 27.1% |
Botswana 14.9% Switzerland 12% Zambia 5.7% China 4.6% Italy 4.4% (2017)
|Imports||$5.384 billion (2017 est.)|
|foodstuffs; petroleum products and fuel, machinery and equipment, chemicals|
Main import partners
|South Africa 61.4% (2017)|
|-$438 million (2017 est.)|
Gross external debt
|$7.969 billion (31 December 2017 est.)|
|41.3% of GDP (2017 est.)|
|-5.5% (of GDP) (2017 est.)|
|Revenues||4.268 billion (2017 est.)|
|Expenses||5 billion (2017 est.)|
|Economic aid||recipient: ODA, $160 million (2000)|
|$2.432 billion (31 December 2017 est.)|
Namibia is a higher middle income country with an estimated annual GDP per capita of US$5,828 but has extreme inequalities in income distribution and standard of living. It leads the list of countries by income inequality with a Gini coefficient of 59.7 (CIA) and 74.3 (UN), respectively.
Since independence, the Namibian Government has pursued free-market economic principles designed to promote commercial development and job creation to bring disadvantaged Namibians into the economic mainstream. To facilitate this goal, the government has actively courted donor assistance and foreign investment. The liberal Foreign Investment Act of 1990 provides guarantees against nationalisation, freedom to remit capital and profits, currency convertibility, and a process for settling disputes equitably. Namibia also is addressing the sensitive issue of agrarian land reform in a pragmatic manner. However, Government runs and owns a number of companies such as Air Namibia, Transnamib and NamPost, most of which need frequent financial assistance to stay afloat.
The country's sophisticated formal economy is based on capital-intensive industry and farming. However, Namibia's economy is heavily dependent on the earnings generated from primary commodity exports in a few vital sectors, including minerals, especially diamonds, livestock, and fish. Furthermore, the Namibian economy remains integrated with the economy of South Africa, as the bulk of Namibia's imports originate there.
In 1993, Namibia became a signatory of the General Agreement on Tariffs and Trade (GATT) signatory, and the Minister of Trade and Industry represented Namibia at the Marrakech signing of the Uruguay Round Agreement in April 1994. Namibia also is a member of the International Monetary Fund and the World Bank, and has acceded to the European Union's Lomé Convention.
Given its small domestic market but favourable location and a superb transport and communications base, Namibia is a leading advocate of regional economic integration. In addition to its membership in the Southern African Development Community (SADC), Namibia presently belongs to the Southern African Customs Union (SACU) with South Africa, Botswana, Lesotho, and Swaziland. Within SACU, there is no customs on goods produced in, and being transported amidst, its members. Namibia is a net receiver of SACU revenues; they are estimated to contribute 13.9 billion NAD in 2012.
The Namibian economy is closely linked to South Africa with the Namibian dollar pegged to the South African rand. Privatisation of several enterprises in coming years may stimulate long-run foreign investment, although with the trade union movement opposed, so far most politicians have been reluctant to advance the issue. In September 1993, Namibia introduced its own currency, the Namibia Dollar (N$), which is linked to the South African Rand at a fixed exchange rate of 1:1. There has been widespread acceptance of the Namibia Dollar throughout the country and, while Namibia remains a part of the Common Monetary Area, it now enjoys slightly more flexibility in monetary policy although interest rates have so far always moved very closely in line with the South African rates.
Namibia imports almost all of its goods from South Africa. Many exports likewise go to the South African market, or transit that country. Namibia's exports consist mainly of diamonds and other minerals, fish products, beef and meat products, karakul sheep pelts, and light manufactures. In recent years, Namibia has accounted for about 5% of total SACU exports, and a slightly higher percentage of imports.
Namibia is seeking to diversify its trading relationships away from its heavy dependence on South African goods and services. Europe has become a leading market for Namibian fish and meat, while mining concerns in Namibia have purchased heavy equipment and machinery from Germany, the United Kingdom, the United States, and Canada. The Government of Namibia is making efforts to take advantage of the American-led African Growth and Opportunity Act (AGOA), which will provide preferential access to American markets for a long list of products. In the short term, Namibia is likely to see growth in the apparel manufacturing industry as a result of AGOA.
The following table shows the main economic indicators in 1990–2017.
|GDP in $
|5.55 Bln.||7.60 Bln.||9.82 Bln.||13.92 Bln.||14.91 Bln.||15.87 Bln.||16.61 Bln.||16.78 Bln.||18.02 Bln.||19.32 Bln.||20.68 Bln.||22.19 Bln.||24.02 Bln.||25.74 Bln.||26.35 Bln.||26.51 Bln.|
|GDP per capita in $
|...||4.1 %||3.5 %||4.7 %||3.9 %||3.6 %||2.7 %||0.3 %||6.0 %||5.1 %||5.0 %||5.6 %||6.4 %||6.0 %||1.1 %||−1.2 %|
|...||11.1 %||10.2 %||2.3 %||5.0 %||6.5 %||9.1 %||9.5 %||4.9 %||5.0 %||6.7 %||5.6 %||5.3 %||3.4 %||6.7 %||6.1 %|
(Percentage of GDP)
|...||20 %||21 %||27 %||25 %||19 %||19 %||16 %||16 %||27 %||25 %||25 %||25 %||40 %||45 %||46 %|
Namibia is heavily dependent on the extraction and processing of minerals for export. Taxes and royalties from mining account for 25% of its revenue. The bulk of the revenue is created by diamond mining, which made up 7.2% of the 9.5% that mining contributes to Namibia's GDP in 2011. Rich alluvial diamond deposits make Namibia a primary source for gem-quality diamonds. Namibia is a large exporter of uranium and over the years the mining industry has seen a decline in the international commodity prices such as uranium, which has led to the reason behind several uranium projects being abandoned. Experts say that the prices are expected to rise in the next 3 years because of an increase in nuclear activities from both Japan and China. The mining industry in Namibia is supposedly going to reach US1.79bn by the year 2018.
Diamond production totalled 1.5 million carats (300 kg) in 2000, generating nearly $500 million in export earnings. Other important mineral resources are uranium, copper, lead, and zinc. The country also extracts gold, silver, tin, vanadium, semiprecious gemstones, tantalite, phosphate, sulphur, and mines salt.
Namibia is the fourth-largest exporter of nonfuel minerals in Africa, the world's fifth-largest producer of uranium, and the producer of large quantities of lead, zinc, tin, silver, and tungsten. Namibia has two uranium mines that are capable of providing 10% of the world mining output. The mining sector employs only about 3% of the population while about half of the population depends on subsistence agriculture for its livelihood. Namibia normally imports about 50% of its cereal requirements; in drought years food shortages are a major problem in rural areas.
During the pre-independence period, large areas of Namibia, including off-shore, were leased for oil prospecting. Some natural gas was discovered in 1974 in the Kudu Field off the mouth of the Orange River, but the extent of this find is only now being determined.
About half of the population depends on agriculture (largely subsistence agriculture) for its livelihood, but Namibia must still import some of its food. Although per capita GDP is five times the per capita GDP of Africa's poorest countries, the majority of Namibia's people live in rural areas and exist on a subsistence way of life. Namibia has one of the highest rates of income inequality in the world, due in part to the fact that there is an urban economy and a more rural cash-less economy. The inequality figures thus take into account people who do not actually rely on the formal economy for their survival. Although arable land accounts for only 1% of Namibia, nearly half of the population is employed in agriculture.
About 4,000, mostly white, commercial farmers own almost half of Namibia's arable land. The governments of Germany and Britain will finance Namibia's land reform process, as Namibia plans to start expropriating land from white farmers to resettle landless black Namibians.
Agreement has been reached on the privatisation of several more enterprises in coming years, with hopes that this will stimulate much needed foreign investment. However, reinvestment of environmentally derived capital has hobbled Namibian per capita income. One of the fastest growing areas of economic development in Namibia is the growth of wildlife conservancies. These conservancies are particularly important to the rural generally unemployed population.
The clean, cold South Atlantic waters off the coast of Namibia are home to some of the richest fishing grounds in the world, with the potential for sustainable yields of 1.5 million metric tonnes per year. Commercial fishing and fish processing is the fastest-growing sector of the Namibian economy in terms of employment, export earnings, and contribution to GDP.
The main species found in abundance off Namibia are pilchards (sardines), anchovy, hake, and horse mackerel. There also are smaller but significant quantities of sole, squid, deep-sea crab, rock lobster, and tuna.
At the time of independence, fish stocks had fallen to dangerously low levels, due to the lack of protection and conservation of the fisheries and the over-exploitation of these resources. This trend appears to have been halted and reversed since independence, as the Namibian Government is now pursuing a conservative resource management policy along with an aggressive fisheries enforcement campaign. The government seeks to develop fish-farming as an alternative.
In 2000, Namibia's manufacturing sector contributed about 20% of GDP. Namibian manufacturing is inhibited by a small domestic market, dependence on imported goods, limited supply of local capital, widely dispersed population, small skilled labour force and high relative wage rates, and subsidised competition from South Africa.
Walvis Bay is a well-developed, deepwater port, and Namibia's fishing infrastructure is most heavily concentrated there. The Namibian Government expects Walvis Bay to become an important commercial gateway to the Southern African region.
Namibia also boasts world-class civil aviation facilities and an extensive, well-maintained land transportation network. Construction is underway on two new arteries—the Trans-Caprivi Highway and Trans-Kalahari Highway—which will open up the region's access to Walvis Bay.
Tourism is a major contributor (14.5%) to Namibia's GDP, creating tens of thousands of jobs (18.2% of all employment) directly or indirectly and servicing over a million tourists per annum. The country is among the prime destinations in Africa and is known for ecotourism which features Namibia's extensive wildlife.
There are many lodges and reserves to accommodate eco-tourists. Sport Hunting is also a large, and growing component of the Namibian economy, accounting for 14% of total tourism in the year 2000, or $19.6 million US dollars, with Namibia boasting numerous species sought after by international sport hunters. In addition, extreme sports such as sandboarding, skydiving and 4x4ing have become popular, and many cities have companies that provide tours. The most visited places include the Caprivi Strip, Fish River Canyon, Sossusvlei, the Skeleton Coast Park, Sesriem, Etosha Pan and the coastal towns of Swakopmund, Walvis Bay and Lüderitz.
While many Namibians are economically active in one form or another, the bulk of this activity is in the informal sector, primarily subsistence agriculture. A large number of Namibians seeking jobs in the formal sector are held back due to a lack of necessary skills or training. The government is aggressively pursuing education reform to overcome this problem.
Namibia has a high unemployment rate. "Strict unemployment" (people actively seeking a full-time job) stood at 20.2% in 1999, 21.9% in 2002, and spiraled to 29,4 per cent in 2008. A 2012 study by the Namibia Statictics Agency (NSA) determined the rate of unemployment to be 27.4%. This study included subsistence farmers, work without pay, and any non-zero amount of weekly working hours, and did not count as unemployed people not actively seeking for a job.
Under a much broader definition (including people that have given up searching for employment) two different studies determined the unemployment rate to be 36.7% (2004) and 51.2% (2008), respectively. This estimate considers people in the informal economy as employed. 72% of jobless people have been unemployed for two years or more. Labour and Social Welfare Minister Immanuel Ngatjizeko praised the 2008 study as "by far superior in scope and quality to any that has been available previously", but its methodology has also received criticism. The total number of formally employed people stood at 400,000 in 1997 and fell 330,000 in 2008, according to a government survey. The NSA 2012 study counted 396,000 formal employees. Of annually 25,000 school leavers only 8,000 gain formal employment—largely a result of a failed education system.
Namibians in the informal sector as well as in low-paid jobs like homemakers, gardeners or factory workers are unlikely to be covered by medical aid or a pension fund. All in all only a quarter or the working population have medical aid, and about half have a pension fund.
Namibia's largest trade union federation, the National Union of Namibian Workers (NUNW) represents workers organised into seven affiliated trade unions. NUNW maintains a close affiliation with the ruling SWAPO party.
In the financial year March 2009 – February 2010, every Namibian earned 15,000 N$ (roughly 2,000 US$) on average. Household income was dominated by wages (49.1%) and subsistence farming (23%), with further significant sources of income being business activities (8.1%, farming excluded), old-age pensions from government (9.9%), and cash remittance (2.9%). Commercial farming only contributed 0.6%.
Every Namibian resident had on average 10,800 US$ of wealth accumulated in 2016, putting Namibia on third place in Africa. Individual wealth is, however, distributed very unequally; the country's Gini coefficient of 0.61 is one of the highest in the world. There are 3,300 US$-millionaires in Namibia, 1,400 of which live in the capital Windhoek.
This article incorporates public domain material from the CIA World Factbook website https://www.cia.gov/library/publications/the-world-factbook/index.html.
The Bank of Namibia is the central bank of the Republic of Namibia, whose establishment is enshrined in Article 128 of the Namibian Constitution located in the capital city of Windhoek. The Bank of Namibia was established in 1990 by the Bank of Namibia Act, 1990 (Act 8 of 1990). The Bank of Namibia is the only institution that is permitted to issue the Namibian dollar by authority that has been given to it under an Act of the Namibian Parliament. The head of the Bank of Namibia is the Governor of the Bank of Namibia.Banking in Namibia
Banking in Namibia started in when German colonists formed the Deutsche-Afrika Bank, in June 1906, which would become the First National Bank of Namibia. Following Namibia Independence in 1990s, the Namibian banking sector came under the control of the new government which restructured the sector and created the Bank of Namibia as the central bank. Today banking is dominated by South African commercial operating subsidiaries in Namibia.Governor of the Bank of Namibia
The governor is the head official of the Bank of Namibia. He is responsible for implementing Namibia's monetary policy and chairing the meetings of the bank's board of directors.Land reform in Namibia
Land reform is an important political and economic topic in Namibia. It consists of two different strategies: resettlement, and transfer of commercially viable agricultural land. Resettlement is aimed at improving the lives of displaced or dispossessed previously disadvantaged Namibians. Farms obtained by government for resettlement purposes are usually split into several sections, and dozens of families are being resettled on what had previously been one farm. Transfer of commercial agricultural land is not directly conducted by government. Would-be farmers with a previously disadvantaged background obtain farms privately or through affirmative action loans. In both cases, the "Willing buyer, willing seller" principle applies.
Namibia contains about 4,000 commercial farms. Almost 1000 of them have been obtained by previously disadvantaged Namibians since independence, some by means of private transactions, and some through government-facilitated loans. Until 2020, a further 15 Mio hectares of commercial agricultural land are to be transferred to blacks, a third of this area for resettlement purposes, two thirds for agriculture.Letshego Bank Namibia
Letshego Bank Namibia is a commercial bank in Namibia. It is licensed by the Bank of Namibia, the central bank and national banking regulator.List of Namibian regions by Human Development Index
This is a list of Namibian regions by Human Development Index as of 2017.Note: the HDI values are calculated using the pre-2013 regional borders, so the Kavango Region is included in the data which represents the current Kavango East and Kavango West regions.Mining in Namibia
Mining is the biggest contributor to Namibia's economy in terms of revenue. It accounts for 25% of the country's income. Its contribution to the gross domestic product (10.4% in 2009, 8.5% in 2010, 9.5% in 2011, 12.3% in 2012, 13.2% in 2013, 11.6% in 2014) is also very important and makes it one of the largest economic sectors of the country. The majority of revenue (7.2% of GDP in 2011) comes from diamond mining.NSFAF
Namibia Students Financial Assistance Fund (NSFAF) is a government student bursary and loan scheme which provides loans for undergraduate students to help pay for the cost of their tertiary education. It was formed in 1995 and is run under the Ministry of Higher Education.It helps give financial loans to students from the University of Namibia, Namibia University of Science and Technology and International University of Management.Namibia Chamber of Commerce and Industry
The Namibia Chamber of Commerce and Industry is the industrial and Chamber of Commerce in Namibia. It is headquartered in the capital Windhoek. In March 2013, the Chamber had about 2,500 members.Namibian Stock Exchange
The Namibian Stock Exchange (NSX) (Afrikaans: Namibiese Effektebeurs; German: Börse Namibia) is the only stock exchange in Namibia. Based in Windhoek, it is one of the largest stock exchanges on the African continent. It has a partnership with JSE in neighbouring South Africa. The NSX is only open on weekdays, and trades continuously from 09:00 to 17:00 (WAT), excluding public holidays.The stock exchange operates under a license from the Namibian non banking financial regulator NAMFISA. The stock exchange is regulated by the Stock Exchanges Control Act (1985 and 1992).Poverty in Namibia
Namibia has an economic growth rates averaging 4.3% according to the World Bank. Namibia is one of nine nations in Africa classified by the World Bank as upper center pay. Poverty in Namibia, notwithstanding, is common with an unemployment rate of 29.9%, poverty incidence of 26.9% and HIV prevalence of 16.9%.Prostitution in Namibia
Prostitution in Namibia is legal and a highly prevalent common practice. Related activities such as solicitation, procuring and being involved in the running of a brothel are illegal. A World Bank study estimated there were about 11,000 prostitutes in Namibia.Human trafficking, child prostitution and HIV are problems in the country.Red Line (Namibia)
The Red Line, also referred to as the veterinary cordon fence (VCF) is a pest-exclusion fence separating northern Namibia from the central and southern country parts. It encases several northern regions: Oshana Region, Kavango East Region, Omusati Region, Zambezi Region, Omaheke Region, Kunene Region, and parts of Khomas Region and Oshikoto Region. South of the fence today there commercial farms where the farmers, many of which are white, own the land. Most of these farms are fenced in and are accessible by constructed farm roads. North of the line, on the other hand, all farm land is communal and operated mostly by black farmers. Livestock is not constrained by fences and often ventures onto roads. The red line is a highly guarded line which has roadblocks to check every vehicle which passes.Seal hunting in Namibia
Seal culling in Namibia is a contentious issue, with animal rights groups opposing the practice as brutal, but the government supporting it and claiming the seal population may damage the fishing industry which is strategic to the Namibian economy. Seal harvesting in Namibia targets 86,000 seal pups and 6,000 adult bulls. This seal harvest takes place in three places namely, Cape Cross, Wolf Bay and Atlas Bay.Sperrgebiet
The Sperrgebiet (German, meaning "Prohibited Area") (also known as Diamond Area 1) is a diamond mining area in southwestern Namibia, in the Namib Desert. It spans the Atlantic Ocean-facing the
coast from Oranjemund on the border with South Africa, to around 72 kilometres (45 mi) north of Lüderitz, a distance of 320 km (200 mi) north. The Sperrgebiet, recently renamed Tsau ǁKhaeb National Park, extends to around 100 km (62 mi) inland, and its total area of 26,000 km2 (10,000 sq mi), makes up three percent of Namibia's land mass. However, mining only takes place in five percent of the Sperrgebiet, with most of the area acting as a buffer zone. Members of the public are banned from entering most of the area, despite the creation of a national park there in 2004.Taxation in Namibia
This is an overview of taxes charged to individuals and companies in Namibia.Walvis Bay Export Processing Zone
The Walvis Bay Export Processing Zone (WBEPZMC) is a free trade zone in the coastal city of Walvis Bay, Namibia. Rather than being a specific area or complex, the Zone encompasses the entire city. The Walvis Bay EPZ was opened in 1996, two years after the city rejoined Namibia.Windhoek Show
The Windhoek Industrial and Agricultural Show (WIAS, short: the Windhoek Show) is an annual trade fair in Windhoek, the capital of Namibia. It combines an agricultural exhibition, several industrial and retail offerings, and a range of entertainment facilities. The Windhoek Show was first held in 1899 and is since 1966 conducted annually. Held during the first week of October, the Windhoek Show is the biggest industrial and agricultural exhibition in Namibia. It attracts close to 100,000 visitors per year.
States with limited