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.[7]
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.[11][12]
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.
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.[7][citation needed] Namibia is a net receiver of SACU revenues; they are estimated to contribute 13.9 billion NAD in 2012.[6]
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.[7] 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.
Namibia is heavily dependent on the extraction and processing of minerals for export. Taxes and royalties from mining account for 25% of its revenue.[14] 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.[15] 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.[4][16]
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.[7]
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.[5] 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.[17]
About 4,000, mostly white, commercial farmers own almost half of Namibia's arable land.[18] 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.[19]
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.[20] 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.
An aquifer called "Ohangwena II" has been discovered, capable of supplying the 800,000 people in the North for 400 years.[21] Experts estimate that Namibia has 7720 km3 of underground water.[22][23]
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.[24] The country is among the prime destinations in Africa and is known for ecotourism which features Namibia's extensive wildlife.[25]
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.[26] 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.[27]
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.[28] 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.[4]
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",[3] but its methodology has also received criticism.[28] 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.[4][29]
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.[30]
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$) on average. Household income was dominated by wages (49.1%) and subsistence farming (23%), with further significant sources of income being business activities (8.1%, farming excluded), old-age pensions from government (9.9%), and cash remittance (2.9%). Commercial farming only contributed 0.6%.[31]
Every Namibian resident had on average 10,800 US$ 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.[32]
^A value of 0 represents absolute equality, and a value of 100 absolute inequality. Inequality in income or expenditure / Gini indexArchived 17 October 2009 at WebCite, Human Development Report 2007/08, UNDP, accessed on 3 February 2008. Note: Because the underlying household surveys differ in method and in the type of data collected, the distribution data are not strictly comparable across countries.
^"Government income from SOEs 2013/2014-2015-2016". Insight Namibia. April 2013. p. 21.
^"Payments and transfers to SOEs 2013/2014-2015-2016". Insight Namibia. April 2013. p. 22.
^Humavindu, Michael N.; Barnes, Jonothan I (October 2003). "Trophy Hunting in the Namibian Economy: An Assessment. Environmental Economics Unit, Directorate of Environmental Affairs, Ministry of Environment and Tourism, Namibia". South African Journal of Wildlife Research. 33 (2): 65–70.
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Economy of Burkina Faso
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Economy of the Central African Republic
The Central African Republic (CAR) is classified as one of the world's least developed countries, with an estimated annual per capita income of $547 PPP (2014).
Economy of Chile
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Economy of Denmark
The economy of Denmark is a modern market economy with comfortable living standards, a high level of government services and transfers, and a high dependence on foreign trade. The economy is dominated by the service sector with 80% of all jobs, whereas about 11% of all employees work in manufacturing and 2% in agriculture. Nominal gross national income per capita was the tenth-highest in the world at $55,220 in 2017. Correcting for purchasing power, per capita income was Int$52,390 or 16th-highest globally. Income distribution is relatively equal, but inequality has increased somewhat during the last decades, however, due to both a larger spread in gross incomes and various economic policy measures. In 2017 Denmark had the seventh-lowest Gini coefficient among the 28 European Union countries. With 5,789,957 inhabitants, Denmark has the 39th largest national economy in the world measured by nominal gross domestic product (GDP) and 60th largest in the world measured by purchasing power parity (PPP).
Economy of Kyrgyzstan
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Economy of Lesotho
Lesotho is geographically surrounded by South Africa and economically integrated with it as well. The economy of Lesotho is based on agriculture, livestock, manufacturing, mining, and depends heavily on inflows of workers’ remittances and receipts from the Southern African Customs Union (SACU). The majority of households subsist on farming. The formal sector employment consist of mainly the female workers in the apparel sector, the male migrant labor, primarily miners in South Africa for 3 to 9 months and employment in the Government of Lesotho (GOL). The western lowlands form the main agricultural zone. Almost 50% of the population earn income through informal crop cultivation or animal husbandry with nearly two-thirds of the country's income coming from the agricultural sector.
Economy of Malawi
The economy of Malawi is predominantly agricultural, with about 80% of the population living in rural areas. The landlocked country in south central Africa ranks among the world's least developed countries. In 2017, agriculture accounted for about one-third of GDP and about 80% of export revenue. The economy depends on substantial inflows of economic assistance from the IMF, the World Bank, and individual donor nations. The government faces strong challenges: to spur exports, to improve educational and health facilities, to face up to environmental problems of deforestation and erosion, and to deal with the problem of HIV/AIDS in Africa.
Economy of Mauritius
The economy of Mauritius refers to the economic activity of the island nation of Mauritius.
Economy of Niger
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Economy of Nigeria
Nigeria is a middle-income, mixed economy and emerging market, with expanding manufacturing, financial, service, communications, technology and entertainment sectors. It is ranked as the 27th-largest economy in the world in terms of nominal GDP, and the 22nd-largest in terms of purchasing power parity. It is the largest economy in Africa; its re-emergent manufacturing sector became the largest on the continent in 2013, and it produces a large proportion of goods and services for the West African subcontinent. In addition, the debt-to-GDP ratio is 11 percent, which is 8 percent below the 2012 ratio.
Economy of the Republic of the Congo
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Economy of Sierra Leone
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Economy of Solomon Islands
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Economy of the Western Cape
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