Namibia is largely desert, ranchland with a long coastline on the South Atlantic, and borders South Africa, Botswana
Real economic activity contracted by 1% in 2017, registering a contraction for four consecutive quarters. The continuation of the fiscal consolidation process led domestic consumption to stall. This process was done mostly throug
A positive signal for the Namibian economy came from the mining and agricultural activities. The mining sector activity increased by more than 15% on annual basis in 2017, due to the higher diamond and uranium production. The diamond production in 2017 has expended by more than 10% and reflects the base effect from the previous year when some of the offshore diamond extraction vessels were closed due to regular maintenance. The uranium production increased by more than 25% in 2017 and this is mostly a result of the start-up of operation of the Husab mine. The agricultural production also rebounded in 2017 from the previous droughts with a solid growth of 5%.
Economic growth is expected to restore very gradually in 2018, projected to 0.7%, and will reach up to 2% over the medium term. Medium-term recovery will be driven by the mining activity, especially uranium, as the Husab mine ramps up its production capacitary despite the currently low uranium
Despite recent policy correction, Moody’s and Fitch have downgraded Namibia’s sovereign credit rating due to the overall deterioration of the macroeconomic and fiscal position in recent years.
Namibia’s relatively strong economic growth has not been enough to deal with its levels of poverty, inequality, and unemployment. By the national poverty line (N$377.96), poor Namibians made up 28.7% of the total population in 2009/10, a drop of 9.0 percentage points from 37.7% in 2003/04.
Challenges to poverty reduction include slowing economic growth; adverse weather patterns, high inequality, and high unemployment. Typically,
Namibia’s government continues to exercise the requisite leadership in developing and financing the policies it needs to address its development challenges, policies such as the Harambee Prosperity Plan, and the fifth National Development Plan. Program implementation and delivery of public services lags behind and undermines sound policies.
Last Updated: Oct 10, 2018