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Namibia is rich in natural resources, above all minerals,
but is unsuitable for agriculture. The country has a highly
extractive economy, where most of what is produced is
exported - and where most of what is consumed is imported.
About 80% of Namibia's production, mainly minerals and meat,
is exported; about. 70% of the country's consumption
consists of imported goods. About half of the food
consumption is also imported. This pattern was established
under German and South African rule, and is difficult to
change, partly because the Namibian economy is strongly
linked to the South African, but also because the country's
natural conditions presuppose substantial production of meat
in agriculture, and that the Namibian domestic market is
small, and does not invite industrial production. During the
South African occupation, to independence in 1990.
According to
COUNTRYAAH, the economic activity and structure that developed into
1990 is mainly continued by the once socialist-oriented SWAPO government, which pursues a liberal policy mostly
according to the Scandinavian social democratic model.
Namibia's economy is considered to be one of the most open
in Africa, where conditions are geared to foreign investors,
and the country has succeeded in attracting significant
investment, most from South Africa. Namibia has ambitions to
establish itself as a leading offshore financial center in
the region. Since independence, the Namibian economy has
become more diversified. in that the government has
facilitated business activities, including in favorable
terms for private investment, i.a. in export-oriented
production zones. At the same time, the government has
prioritized public investment in health and education, which
was tried in the apartheid era. Namibia may therefore point
to social improvements, but these - and economic
developments - are threatened by the prevalence of HIV/
AIDS.
Namibia a relatively rich country also measured in gross
national income per capita, which is one of the highest in
Africa. Statistics show that wealth is very unevenly
distributed, both in terms of ownership and income; First
and foremost among the country's white and black residents,
where around 1/3 of the citizens, in
reality, all black, live in widespread poverty. Namibia's
economy is distinctly two-fold. The traditional sector
includes subsistence agriculture of the African population,
especially in Ovamboland in the far north of the country.
The modern sector is found in white agriculture, in the
fishing industry, mining and in the service industries in
the cities. Tourism is a significant sector of growth, based
on Namibia's partly unique nature.
Through investments, infrastructure and established trade
links, Namibia remains economically closely linked to South
Africa. After the regime change in South Africa in 1994, the
two countries have governments with fairly similar
backgrounds and political orientation, which contributes to
enhanced cooperation. Some time after independence, South
African currency was still used and the Namibian dollar is
linked to the South African rand. Namibia is also linked to
South Africa through the SACU Customs Union. A new SACU
secretariat opened in Windhoek, 2002. A controversy over
Namibian debt to South Africa, from the time of South
African rule, was resolved in 1997, when South Africa agreed
to write off the debt before Namibia's independence.
Agriculture
The very fragile ecology makes only small parts of
Namibia suitable for agriculture, and especially for
livestock. The most important products from this sector are
traditionally beef, fur from the karakul seed and some
ostrich, as well as - from the early 2000s - grapes produced
on the Orange River in the south, essential for export to
the EU. Alongside some areas of artificial irrigation, most
of the food production is done by the African small farmers,
and essentially for their own consumption; blue. corn, beans
and potatoes. Agriculture is sometimes affected by drought.
Around 35% of the country's labor force is employed in
agriculture, which in 2003 accounted for just over 10% of
GDP. At independence, approx. 4,000 white big farmers 36.2
million hectares, while small farmers disposed of 33.5
million hectares. A land distribution policy led to some
land redistribution in the 1990s,
Fishing and hunting
The cold Benguela flow makes Namibian waters among the
richest in the world. During South African occupation, the
stocks were over-taxed. At independence it became, among
other things. With the help of Norwegian aid, a new
management regime has been implemented which has helped to
increase the stock, with opportunities for increased fishing
- and for the once extensive processing industry to be
revitalized. The sector is two-fold and consists partly of
coastal fishing and partly of deep sea fishing. It is
believed that Namibian waters will again be among the
richest in the world and that fisheries will be Namibia's
most important source of income.
Mining and industry
Namibia is rich in minerals, and mining has for many
years been the largest value sector, but with the
development of other parts of the economy, its relative
importance has decreased, and the sector's share of GDP in
2002 was only approx. 14%, against approx. 50% around 1980.
In 2002, minerals accounted for almost 70% of total export
value. In particular, the extraction of diamonds, copper,
zinc and uranium has been important, but Namibia also has
large production of lead and copper, as well as significant
deposits of especially tin, lithium and cadmium. Gas
deposits have been detected and oil is believed to be
present.
Diamonds alone account for around 40-50% of export
revenue. Diamond extraction at Oranjemund makes Namibia the
world's largest jewelry diamond manufacturer, with approx.
30% of the world's total production of such. About. 98% of
the diamonds mined in Namibia are of jewelery quality.
Diamond deposits have been declining through decades of
extraction, and extraction has largely shifted from land
areas south of the country to seabed offshore in the same
area. Namibia is the only country to excavate diamonds from
the seabed.
Namibia has the world's largest uranium mine, Rössing,
and is normally the world's fifth largest producer, but
declining demand and low prices have reduced profitability.
A new uranium mine was started in 2003, at Langer Heinrich,
south of Rössing. While the large copper mines at Tsumeb
have been depleted and closed in 1997, zinc has become a
major export item, based on extraction from the Scorpion
mine, opened in 2000, with an annual capacity of 150,000
tonnes. Namibia is Africa's second largest producer of zinc,
and is also the region's largest producer of salt.
During the 1990s, oil exploration was conducted on the
country's continental shelf, where a consortium of Norwegian
oil companies (Norsk Hydro, Saga and Statoil) was awarded
the first licenses for sample drilling. Geological surveys
gave positive indications in all four basins surveyed, but
in 2005, drift deposits were not yet detected. On the other
hand, there are viable deposits of gas found in the Kudu
field outside Lüdertiz, and the South African electricity
company Eskom presented plans for the construction of a gas
power plant that will make Namibia self-sufficient in
energy. Plans for the development of the Epupa Falls in the
Kunene River, on the border between Namibia and Angola, have
been met with international environmental protests. Not
least, the Luba people, who are based in this area, have
been urged to shrug off the plans.
Industry
Namibia's industrial sector is small, and consists
essentially of the processing of raw materials for export
(minerals, meat and fish), as well as the production of
consumer goods for the domestic market. The pragmatic
economic policy with emphasis on private investment, i.a. In
1995, so-called export production zones, with the first in
Walvis Bay, have only to a limited extent succeed in
attracting investors. Malaysian capital has invested in
textile production. Industrial development in Namibia is
hampered by a small domestic market and strong competition
from a well-developed industrial sector in South Africa.
Foreign Trade
Namibia's historical affiliation with South Africa has
been continued after independence, and South Africa is the
country's most important trading partner, especially for
imports. The main export products are minerals (primarily
diamonds and zinc) as well as foods (mainly meat and
grapes), and exports are mainly to the US, Japan and the EU.
Transport and Communications
Namibia has a well-developed transport sector, with
railways linking the country to South Africa, and a road
network with connections to both South Africa in the south
and Botswana, Zimbabwe and Zambia in the east. Walvis Bay is
the only major port. in order to receive larger container
ships. Namibia has an international airport at Windhoek.
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