Namibia Economy - 2021

Economic overview

Namibia’s economy is heavily dependent on the extraction and processing of minerals for export. Mining accounts for about 12.5% of GDP, but provides more than 50% of foreign exchange earnings. Rich alluvial diamond deposits make Namibia a primary source for gem-quality diamonds. Marine diamond mining is increasingly important as the terrestrial diamond supply has dwindled. The rising cost of mining diamonds, especially from the sea, combined with increased diamond production in Russia and China, has reduced profit margins. Namibian authorities have emphasized the need to add value to raw materials, do more in-country manufacturing, and exploit the services market, especially in the logistics and transportation sectors.

Namibia is one of the world’s largest producers of uranium. The Chinese-owned Husab uranium mine began producing uranium ore in 2017, and is expected to reach full production in August 2018 and produce 15 million pounds of uranium a year. Namibia also produces large quantities of zinc and is a smaller producer of gold and copper. Namibia's economy remains vulnerable to world commodity price fluctuations and drought.

Namibia normally imports about 50% of its cereal requirements; in drought years, food shortages are problematic in rural areas. A high per capita GDP, relative to the region, obscures one of the world's most unequal income distributions; the current government has prioritized exploring wealth redistribution schemes while trying to maintain a pro-business environment. GDP growth in 2017 slowed to about 1%, however, due to contractions in both the construction and mining sectors, as well as an ongoing drought. Growth is expected to recover modestly in 2018.

A five-year Millennium Challenge Corporation compact ended in September 2014. As an upper middle income country, Namibia is ineligible for a second compact. The Namibian economy is closely linked to South Africa with the Namibian dollar pegged one-to-one to the South African rand. Namibia receives 30%-40% of its revenues from the Southern African Customs Union (SACU); volatility in the size of Namibia's annual SACU allotment and global mineral prices complicates budget planning.

Real GDP growth rate

-1.56% (2019 est.)

1.13% (2018 est.)

-1.02% (2017 est.)

Inflation rate (consumer prices)

3.7% (2019 est.)

4.2% (2018 est.)

6.1% (2017 est.)

Credit ratings

Fitch rating: BB (2019)

Moody's rating: Ba3 (2020)

Real GDP (purchasing power parity)

$24.04 billion (2019 est.)

$24.316 billion (2018 est.)

$24.147 billion (2017 est.)

note: data are in 2010 dollars

GDP (official exchange rate)

$12.372 billion (2019 est.)

Real GDP per capita

$9,637 (2019 est.)

$9,932 (2018 est.)

$10,051 (2017 est.)

note: data are in 2010 dollars

Gross national saving

8.6% of GDP (2019 est.)

12% of GDP (2018 est.)

12.8% of GDP (2017 est.)

GDP - composition, by sector of origin

agriculture: 6.7% (2016 est.)

industry: 26.3% (2016 est.)

services: 67% (2017 est.)

GDP - composition, by end use

household consumption: 68.7% (2017 est.)

government consumption: 24.5% (2017 est.)

investment in fixed capital: 16% (2017 est.)

investment in inventories: 1.6% (2017 est.)

exports of goods and services: 36.7% (2017 est.)

imports of goods and services: -47.5% (2017 est.)

Ease of Doing Business Index scores

Overall score: 61.4 (2020)

Starting a Business score: 72.2 (2020)

Trading score: 61.5 (2020)

Enforcement score: 63.4 (2020)

Agricultural products

roots/tubers nes, milk, maize, onions, beef, grapes, fruit, pulses nes, vegetables, millet

Industries

meatpacking, fish processing, dairy products, pasta, beverages; mining (diamonds, lead, zinc, tin, silver, tungsten, uranium, copper)

Industrial production growth rate

-0.4% (2017 est.)

Labor force

956,800 (2017 est.)

Labor force - by occupation

agriculture: 31%

industry: 14%

services: 54% (2013 est.)

note: about half of Namibia's people are unemployed while about two-thirds live in rural areas; roughly two-thirds of rural dwellers rely on subsistence agriculture

Unemployment rate

34% (2016 est.)

28.1% (2014 est.)

Population below poverty line

17.4% (2015 est.)

Gini Index coefficient - distribution of family income

59.1 (2015 est.)

70.7 (2003)

Household income or consumption by percentage share

lowest 10%: 2.4%

highest 10%: 42% (2010)

Budget

revenues: 4.268 billion (2017 est.)

expenditures: 5 billion (2017 est.)

Taxes and other revenues

32.2% (of GDP) (2017 est.)

Budget surplus (+) or deficit (-)

-5.5% (of GDP) (2017 est.)

Public debt

41.3% of GDP (2017 est.)

39.5% of GDP (2016 est.)

Fiscal year

1 April - 31 March

Current account balance

-$216 million (2019 est.)

-$465 million (2018 est.)

Exports

$6.087 billion (2019 est.)

$6.225 billion (2018 est.)

$5.347 billion (2017 est.)

Exports - partners

China 27%, South Africa 18%, Botswana 8%, Belgium 7% (2019)

Exports - commodities

copper, diamonds, uranium, thorium, gold, radioactive chemicals, fish (2019)

Imports

$9.921 billion (2019 est.)

$9.611 billion (2018 est.)

$9.249 billion (2017 est.)

Imports - partners

South Africa 47%, Zambia 16% (2019)

Imports - commodities

copper, refined petroleum, delivery trucks, diamonds, cars (2019)

Reserves of foreign exchange and gold

$2.432 billion (31 December 2017 est.)

$1.834 billion (31 December 2016 est.)

Debt - external

$7.969 billion (31 December 2017 est.)

$6.904 billion (31 December 2016 est.)

Exchange rates

Namibian dollars (NAD) per US dollar -

13.67 (2017 est.)

14.7096 (2016 est.)

14.7096 (2015 est.)

12.7589 (2014 est.)

10.8526 (2013 est.)