Economy of Namibia
Encyclopedia
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 worker
s, as well as a small, well-trained professional and managerial class.
Namibia is a low middle income country with an estimated annual GDP
per capita of US$5,155 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 70.7 (CIA) and 74.3 (UN), respectively.
Namibia is heavily dependent on the extraction and processing of minerals for export. Taxes and royalties from mining
account for 25% of its revenue
. Rich alluvial diamond deposits make Namibia
a primary source for gem-quality diamond
s. 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
. 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.
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.
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.
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.
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.
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, no tariffs exist on goods produced in and moving among the member countries.
Ninety percent of Namibia's imports originate in South Africa, and many Namibian exports are destined for the South African market or transit that country. Namibia's exports consist mainly of diamond
s 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.
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
.
in 2007, of which diamond mining activities represented 5%. 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 is a source of gold
, silver
, tin
, vanadium
, semiprecious gemstones
, tantalite
, phosphate
, sulfur
, and salt
.
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.
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 (sardine
s), 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 stock
s 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.
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.
The Walvis Bay Export Processing Zone
operates in the key port of Walvis Bay
.
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. Under a broader definition (including people that have given up searching for employment) unemployment rose from 36.7% in 2004 to 51.2% in 2008. This estimate considers people in the informal economy as employed. 72% of jobless people have been unemployed for two years or more. The study that arrived at these results has been hailed "by far superior in scope and quality to any that has been available previously" by Labour and Social Welfare Minister Immanuel Ngatjizeko
.
The total number of formally employed people is decreasing steadily, from about 400,000 in 1997 to 330,000 in 2008, according to a government survey. Of annually 25,000 school leavers only 8,000 gain formal employment—largely a result of a failed education system
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.
Skilled worker
A skilled worker is any worker who has some special skill, knowledge, or ability in their work. A skilled worker may have attended a college, university or technical school. Or, a skilled worker may have learned their skills on the job...
s, as well as a small, well-trained professional and managerial class.
Namibia is a low middle income country with an estimated annual GDP
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
per capita of US$5,155 but has extreme inequalities in income distribution
Income distribution
In economics, income distribution is how a nation’s total economy is distributed amongst its population.Income distribution has always been a central concern of economic theory and economic policy...
and standard of living. It leads the list of countries by income inequality with a Gini coefficient
Gini coefficient
The Gini coefficient is a measure of statistical dispersion developed by the Italian statistician and sociologist Corrado Gini and published in his 1912 paper "Variability and Mutability" ....
of 70.7 (CIA) and 74.3 (UN), respectively.
Namibia is heavily dependent on the extraction and processing of minerals for export. Taxes and royalties from mining
Mining
Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, vein or seam. The term also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock...
account for 25% of its revenue
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
. Rich alluvial diamond deposits make Namibia
Namibia
Namibia, officially the Republic of Namibia , is a country in southern Africa whose western border is the Atlantic Ocean. It shares land borders with Angola and Zambia to the north, Botswana to the east and South Africa to the south and east. It gained independence from South Africa on 21 March...
a primary source for gem-quality diamond
Diamond
In mineralogy, diamond is an allotrope of carbon, where the carbon atoms are arranged in a variation of the face-centered cubic crystal structure called a diamond lattice. Diamond is less stable than graphite, but the conversion rate from diamond to graphite is negligible at ambient conditions...
s. Namibia is the fourth-largest exporter of nonfuel minerals in Africa, the world's fifth-largest producer of uranium
Uranium
Uranium is a silvery-white metallic chemical element in the actinide series of the periodic table, with atomic number 92. It is assigned the chemical symbol U. A uranium atom has 92 protons and 92 electrons, of which 6 are valence electrons...
, and the producer of large quantities of lead
Lead
Lead is a main-group element in the carbon group with the symbol Pb and atomic number 82. Lead is a soft, malleable poor metal. It is also counted as one of the heavy metals. Metallic lead has a bluish-white color after being freshly cut, but it soon tarnishes to a dull grayish color when exposed...
, zinc
Zinc
Zinc , or spelter , is a metallic chemical element; it has the symbol Zn and atomic number 30. It is the first element in group 12 of the periodic table. Zinc is, in some respects, chemically similar to magnesium, because its ion is of similar size and its only common oxidation state is +2...
, tin
Tin
Tin is a chemical element with the symbol Sn and atomic number 50. It is a main group metal in group 14 of the periodic table. Tin shows chemical similarity to both neighboring group 14 elements, germanium and lead and has two possible oxidation states, +2 and the slightly more stable +4...
, silver
Silver
Silver is a metallic chemical element with the chemical symbol Ag and atomic number 47. A soft, white, lustrous transition metal, it has the highest electrical conductivity of any element and the highest thermal conductivity of any metal...
, and tungsten
Tungsten
Tungsten , also known as wolfram , is a chemical element with the chemical symbol W and atomic number 74.A hard, rare metal under standard conditions when uncombined, tungsten is found naturally on Earth only in chemical compounds. It was identified as a new element in 1781, and first isolated as...
. 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
Drought
A drought is an extended period of months or years when a region notes a deficiency in its water supply. Generally, this occurs when a region receives consistently below average precipitation. It can have a substantial impact on the ecosystem and agriculture of the affected region...
years food shortages are a major problem in rural areas.
The Namibian economy is closely linked to South Africa
Economy of South Africa
The economy of South Africa is the largest in Africa, accounts for 24% of its Gross Domestic Product in terms of PPP, and is ranked as an upper-middle income economy by the World Bank, which makes the country one of only four countries in Africa represented in this category...
with the Namibian dollar
Namibian dollar
The dollar has been the currency of Namibia since 1993. It is normally abbreviated with the dollar sign $, or alternatively N$ to distinguish it from other dollar-denominated currencies...
pegged to the South African rand
South African rand
The rand is the currency of South Africa. It takes its name from the Witwatersrand , the ridge upon which Johannesburg is built and where most of South Africa's gold deposits were found. The rand has the symbol "R" and is subdivided into 100 cents, symbol "c"...
. Privatisation of several enterprises in coming years may stimulate long-run foreign investment, although with the trade union
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
movement opposed, so far most politicians have been reluctant to advance the issue.
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
Livestock
Livestock refers to one or more domesticated animals raised in an agricultural setting to produce commodities such as food, fiber and labor. The term "livestock" as used in this article does not include poultry or farmed fish; however the inclusion of these, especially poultry, within the meaning...
, and fish
Fish
Fish are a paraphyletic group of organisms that consist of all gill-bearing aquatic vertebrate animals that lack limbs with digits. Included in this definition are the living hagfish, lampreys, and cartilaginous and bony fish, as well as various extinct related groups...
. Furthermore, the Namibian economy remains integrated with the economy of South Africa, as the bulk of Namibia's imports originate there.
Since independence, the Namibian Government
Politics of Namibia
Politics of Namibia takes place in a framework of a presidential representative democratic republic, whereby the President of Namibia is both head of state and head of government, and of a pluriform multi-party system. Executive power is exercised by the government. Legislative power is vested in...
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
Land reform
[Image:Jakarta farmers protest23.jpg|300px|thumb|right|Farmers protesting for Land Reform in Indonesia]Land reform involves the changing of laws, regulations or customs regarding land ownership. Land reform may consist of a government-initiated or government-backed property redistribution,...
in a pragmatic manner.
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
Exchange rate
In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency...
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
Common Monetary Area
The Common Monetary Area links South Africa, Lesotho and Swaziland into a monetary union. It is allied to the Southern African Customs Union . Namibia automatically became a member upon independence, but withdrew with the introduction of the Namibian dollar in 1993...
, 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.
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
Southern African Development Community
The Southern African Development Community is an inter-governmental organization headquartered in Gaborone, Botswana. Its goal is to further socio-economic cooperation and integration as well as political and security cooperation among 15 southern African states...
(SADC), Namibia presently belongs to the Southern African Customs Union
Southern African Customs Union
The Southern African Customs Union is a customs union among five countries of Southern Africa: Botswana, Lesotho, Namibia, South Africa and Swaziland.-History:SACU is the oldest still existing customs union in the world...
(SACU) with South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
, Botswana
Botswana
Botswana, officially the Republic of Botswana , is a landlocked country located in Southern Africa. The citizens are referred to as "Batswana" . Formerly the British protectorate of Bechuanaland, Botswana adopted its new name after becoming independent within the Commonwealth on 30 September 1966...
, Lesotho
Lesotho
Lesotho , officially the Kingdom of Lesotho, is a landlocked country and enclave, surrounded by the Republic of South Africa. It is just over in size with a population of approximately 2,067,000. Its capital and largest city is Maseru. Lesotho is a member of the Commonwealth of Nations. The name...
, and Swaziland
Swaziland
Swaziland, officially the Kingdom of Swaziland , and sometimes called Ngwane or Swatini, is a landlocked country in Southern Africa, bordered to the north, south and west by South Africa, and to the east by Mozambique...
. Within SACU, no tariffs exist on goods produced in and moving among the member countries.
Ninety percent of Namibia's imports originate in South Africa, and many Namibian exports are destined for the South African market or transit that country. Namibia's exports consist mainly of diamond
Diamond
In mineralogy, diamond is an allotrope of carbon, where the carbon atoms are arranged in a variation of the face-centered cubic crystal structure called a diamond lattice. Diamond is less stable than graphite, but the conversion rate from diamond to graphite is negligible at ambient conditions...
s 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
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
, the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, and Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
. The Government of Namibia is making efforts to take advantage of the American-led African Growth and Opportunity Act
African Growth and Opportunity Act
In May 2000, the U.S. Congress approved legislation known as the African Growth and Opportunity Act, or AGOA . The purpose of this legislation was to assist the economies of sub-Saharan Africa and to improve economic relations between the United States and the region...
(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.
In 1993, Namibia became a signatory of the General Agreement on Tariffs and Trade
General Agreement on Tariffs and Trade
The General Agreement on Tariffs and Trade was negotiated during the UN Conference on Trade and Employment and was the outcome of the failure of negotiating governments to create the International Trade Organization . GATT was signed in 1947 and lasted until 1993, when it was replaced by the World...
(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
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
and the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
, and has acceded to the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
's Lomé Convention
Lomé Convention
The Lomé Convention is a trade and aid agreement between the European Community and 71 African, Caribbean, and Pacific countries, first signed in February 1975 in Lomé, Togo.- History :...
.
Mining and energy
Mining contributed 12.4% to GDPGross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
in 2007, of which diamond mining activities represented 5%. Diamond
Diamond
In mineralogy, diamond is an allotrope of carbon, where the carbon atoms are arranged in a variation of the face-centered cubic crystal structure called a diamond lattice. Diamond is less stable than graphite, but the conversion rate from diamond to graphite is negligible at ambient conditions...
production totalled 1.5 million carats (300 kg) in 2000, generating nearly $500 million in export earnings. Other important mineral
Mineral
A mineral is a naturally occurring solid chemical substance formed through biogeochemical processes, having characteristic chemical composition, highly ordered atomic structure, and specific physical properties. By comparison, a rock is an aggregate of minerals and/or mineraloids and does not...
resources are uranium
Uranium
Uranium is a silvery-white metallic chemical element in the actinide series of the periodic table, with atomic number 92. It is assigned the chemical symbol U. A uranium atom has 92 protons and 92 electrons, of which 6 are valence electrons...
, copper
Copper
Copper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...
, lead
Lead
Lead is a main-group element in the carbon group with the symbol Pb and atomic number 82. Lead is a soft, malleable poor metal. It is also counted as one of the heavy metals. Metallic lead has a bluish-white color after being freshly cut, but it soon tarnishes to a dull grayish color when exposed...
, and zinc
Zinc
Zinc , or spelter , is a metallic chemical element; it has the symbol Zn and atomic number 30. It is the first element in group 12 of the periodic table. Zinc is, in some respects, chemically similar to magnesium, because its ion is of similar size and its only common oxidation state is +2...
. The country also is a source of gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
, silver
Silver
Silver is a metallic chemical element with the chemical symbol Ag and atomic number 47. A soft, white, lustrous transition metal, it has the highest electrical conductivity of any element and the highest thermal conductivity of any metal...
, tin
Tin
Tin is a chemical element with the symbol Sn and atomic number 50. It is a main group metal in group 14 of the periodic table. Tin shows chemical similarity to both neighboring group 14 elements, germanium and lead and has two possible oxidation states, +2 and the slightly more stable +4...
, vanadium
Vanadium
Vanadium is a chemical element with the symbol V and atomic number 23. It is a hard, silvery gray, ductile and malleable transition metal. The formation of an oxide layer stabilizes the metal against oxidation. The element is found only in chemically combined form in nature...
, semiprecious gemstones
Gemstones
Gemstones is the third solo album by Adam Green, released in 2005. The album is characterised by the heavy presence of Wurlitzer piano, whereas its predecessor relied on a string section in its instrumentation.-Track listing:#Gemstones – 2:24...
, tantalite
Tantalite
Tantalite, [2O6], is a mineral group that is close to columbite. The two are often grouped together as a semi-singular mineral called coltan or "columbite-tantalite" in many mineral guides. However, tantalite has a much greater specific gravity than columbite...
, phosphate
Phosphate
A phosphate, an inorganic chemical, is a salt of phosphoric acid. In organic chemistry, a phosphate, or organophosphate, is an ester of phosphoric acid. Organic phosphates are important in biochemistry and biogeochemistry or ecology. Inorganic phosphates are mined to obtain phosphorus for use in...
, sulfur
Sulfur
Sulfur or sulphur is the chemical element with atomic number 16. In the periodic table it is represented by the symbol S. It is an abundant, multivalent non-metal. Under normal conditions, sulfur atoms form cyclic octatomic molecules with chemical formula S8. Elemental sulfur is a bright yellow...
, and salt
Salt
In chemistry, salts are ionic compounds that result from the neutralization reaction of an acid and a base. They are composed of cations and anions so that the product is electrically neutral...
.
During the pre-independence period, large areas of Namibia, including off-shore, were leased for oil
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
prospecting. Some natural gas was discovered in 1974 in the Kudu Field off the mouth of the Orange River
Orange River
The Orange River , Gariep River, Groote River or Senqu River is the longest river in South Africa. It rises in the Drakensberg mountains in Lesotho, flowing westwards through South Africa to the Atlantic Ocean...
, but the extent of this find is only now being determined.
Fishing
The clean, cold South Atlantic waters off the coast of Namibia are home to some of the richest fishingFishing
Fishing is the activity of trying to catch wild fish. Fish are normally caught in the wild. Techniques for catching fish include hand gathering, spearing, netting, angling and trapping....
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 (sardine
Sardine
Sardines, or pilchards, are several types of small, oily fish related to herrings, family Clupeidae. Sardines are named after the Mediterranean island of Sardinia, around which they were once abundant....
s), anchovy
Anchovy
Anchovies are a family of small, common salt-water forage fish. There are 144 species in 17 genera, found in the Atlantic, Indian, and Pacific Oceans. Anchovies are usually classified as an oily fish.-Description:...
, hake
Hake
The term hake refers to fish in either of:* family Phycidae of the northern oceans* family Merlucciidae of the southern oceans-Hake fish:...
, and horse mackerel
Horse mackerel
A horse mackerel is a large fish, such as the tuna, and the scad or saurel of the Pacific coast:*Australian bonito *various Jack mackerels*Pilot fish...
. There also are smaller but significant quantities of sole, squid, deep-sea crab, rock lobster, and tuna.
At the time of independence, fish stock
Fish stock
Fish stocks are subpopulations of a particular species of fish, for which intrinsic parameters are the only significant factors in determining population dynamics, while extrinsic factors are considered to be insignificant.-The stock concept:All species have geographic limits to their...
s 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.
Manufacturing and infrastructure
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.
The Walvis Bay Export Processing Zone
Walvis Bay Export Processing Zone
The Walvis Bay Export Processing Zone 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....
operates in the key port of Walvis Bay
Walvis Bay
Walvis Bay , is a city in Namibia and the name of the bay on which it lies...
.
Labour
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. Under a broader definition (including people that have given up searching for employment) unemployment rose from 36.7% in 2004 to 51.2% in 2008. This estimate considers people in the informal economy as employed. 72% of jobless people have been unemployed for two years or more. The study that arrived at these results has been hailed "by far superior in scope and quality to any that has been available previously" by Labour and Social Welfare Minister Immanuel Ngatjizeko
Immanuel Ngatjizeko
Immanuel Ngatjizeko is a Namibian politician. A member of the South West Africa People's Organization, Ngatjizeko has been a member of the National Assembly of Namibia since 2000 and member of the Cabinet since May 2003...
.
The total number of formally employed people is decreasing steadily, from about 400,000 in 1997 to 330,000 in 2008, according to a government survey. Of annually 25,000 school leavers only 8,000 gain formal employment—largely a result of a failed education system
Education in Namibia
Education in Namibia is compulsory for 10 years between the ages of 6 and 16. There are approximately 1500 schools in Namibia of which 100 are privately owned...
Namibia's largest trade union
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
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.
External links
- Namibia latest trade data on ITC Trade Map
- MBendi Namibia overview
- Namibia Economic Policy Research Unit autonomous economic policy research organization