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Namibia Namibia

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Namibia

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EconomicPoliticalStructural

Namibia – Quick View
ECR score47.65 (Mar 2011)
ECR rank77 (Mar 2011)
Economic
GDP 2010 (f)USD 11.79 billion
GNI per capita PPPUSD 6,323
FDI inflowUSD 528.06 million
Inflation Till Feb 20111.2%
Central bank assetsUSD 1,853,974.62
Unemployment rate 200851.2%
Government deficitUSD 436.96 million
Tax revenue 2010 FUSD 2,579.66 million
Political
Government typeRepublic
Recent political crisisNA
Economic freedom score73rd
Freedom of information score21st
Corruption perception index56th
Structural
Birth rate 200927 per ‘000
Population balance 2009Under 14- 36.9%
Population balance 2009Over 60-Male 6.2%
Population balance 2009Female 4.9%
Life expectancy years 2010Male 62.3 years
Life expectancy years 2010Female 60.3 years
Mortality rate 201035 per '000
Literacy rate88%
Internet access6%

[Top] Economic Overview

Namibia's economy has been on the recovery path since 2006-2010. The main sectors contributing to Namibia's economy are mining, agriculture, manufacturing and tourism.

Namibia's GDP grew steadily between 2006 and 2010. In 2010, GDP reached NAD 89.099 billion.

Namibia GDP and GDP Growth Rate

 

F- Forecasted

(Source: bon.com.na page: 7)

The GDP growth rate in Namibia declined between 2006-2009, however it reached 4.2% in 2010.

Namibia's GDP at constant price was NAD 52.67 billion in 2010 compared to NAD 51.07 billion in 2009.

GNI per capita ppp was USD 6,323 in 2010

(Source: bon.com.na, undp)

In Q1 2010, total exports of goods and services accounted for NAD 7,712 million.

Industry

Current Prices (NAD-million)

Contribution to GDP (%)

Manufacturing

10,521

13.5

Wholesale and retail trade, repairs

8,610

11.0

Mining and quarrying

8,104

10.4

Public administration and defense

8,088

10.3

Real estate and business services

5,960

7.6

Agriculture and forestry

3,941

5.0

(Source: bon.com.na)

 

Tax rate

In Namibia, the income tax rate on individual incomes varies between 27% and 37%.

Taxable income (NAD)

Tax Rate

Up to 40,000

0%

40,001 to 80,000

27%

80,001 to 200,000

32% plus NAD 10,800

200,000 to 750,000

34% plus NAD 49,200

Over 750,000

37% plus NAD 236,200

The Corporate Tax in Namibia is 35% and VAT is levied at 15%.

(Source: taxrates.cc)

Inflation rate

Namibia's rate of inflation has fluctuated from a high 12.3% in 2008 to a low1.2% in Feb 2011. The annual inflation rate in Namibia has been decreasing since 2008. The inflation rates have fallen to 1.2% in Feb 2011.

Namibia Inflation Rate

 

(Source: npc.gov.na Page: 1)

FDI Inflow

The FDI inflow in Namibia increased from USD 403.09 million in 2005 to USD 742.61 million in 2008 and decreased again to USD 528.06 million in 2009

Namibia FDI Net Inflows

 

(Source: data.worldbank.org)

Portfolio investments

The portfolio investments decreased between 2006 and 2007 and improved marginally in Q2 2010 to reach NAD -3,345 million.

Namibia Portfolio Investment

 

 (Source: bon.com.na)

Banking sector assets

The assets of the Central Bank of Namibia are:

Balance Sheet – Assets of Central Bank of Namibia (NAD)

 

31-Dec-09

31-Dec-08

Non-current assets

244,936

212,967

Current assets

14,143,151

13,048,996

Total assets

14,388,087

13,261,963

(Source: bon.com.na Page: 48)

[Top] Financial Indicators & Government Financial

Consumer price index

Namibia Consumer Price Index

 

(Source: npc.gov.na Page: 1)

Base year: December 2001 = 100

The consumer price index in Namibia has been increasing steadily. The CPI increased from 139.4 in 2007 to 179.6 in 2011 (until February), indicating that  there has been a  rise in the prices of consumer goods since the base year 2001.

Interest rate

Interest Rate 2010

Month

Prime lending rate

Deposit rates

Bank rate

Jan

14.75

8.27

10.00

Feb

13.75

8.46

9.00

Mar

13.75

7.47

9.00

Apr

12.75

6.84

8.00

May

12.13

6.48

7.50

June

11.56

5.78

7.00

July

11.44

5.55

7.00

Aug

11.44

5.35

7.00

Sep

11.38

5.27

7.00

Oct

11.31

5.15

7.00

Nov

11.25

5.15

7.00

Dec

11.25

5.11

7.00

(Source: bon.com.na Page: 209)

Money supply

 

 

Money Supply

 

Dec 2009

Dec 2008

Narrow Money Supply M1

21,019.6

18,681.8

Currency in circulation

1,156.7

1,140.4

Transferable deposits

19,863.0

17,541.4

Other deposits

10,067.7

10,666.4

Broad Money Supply M2

31,091.3

29,352.1

(Source: bon.com.na Page: 206)

Namibia has two measures of its monetary stock - M1and M2.

M1 includes currency in circulation and transferable deposits. M2 includes M1 and other deposits in NAD

Government expenditure

Namibia Government Expenditure

 

Government expenditure exceeds revenues between 2008 and 2010. Government expenditure was NAD 26,444.4 million in 2010; however, it was NAD 25,419.8 million in 2009.

(Source: bon.com.na) E-Estimated, F- Forecasted

 

Central government debt

 

Namibia Total Debt
(Source: bon.com.na)

Total debt in Q2 2010 was NAD 16.2 million, declining approximately 7% from the last quarter in 2009.

Official exchange rate 2009

NAD per USD rate in 2009 was 0.134. The exchange rate in 2008 was 0.101 NAD per USD. The official exchange rate increased by 32.6% in 2009.

Namibia Exchange Rate

(Source: bon.com.na)

 

Government finances

Fiscal balance

Namibia Fiscal Balance

 

E- Estimated

The fiscal balance increased between 2006 and 2008 and decresed in 2010. In 2010, the fiscal balance was in deficit of NAD 3,301.4 million.

(Source: bon.com.na  Page: 151)

Total revenue

Namibia's revenue in 2009 was NAD 21,428.1 million; however, it decreased to NAD 20,839 million in 2010

Namibia Total Revenue

 

E- Estimated, F- Forecasted

(Source: bon.com.na)

Tax revenue

Namibia Total Tax Revenue

 

E- Estimated, F- Forecasted

Total tax revenue in 2009 was NAD 20,179.5 million and decreased to NAD 19,490.7 million in 2010.

 

(Source: bon.com.na)

Total grants

Total grants in 2009 amounted to NAD 350 million and decreased to NAD 308 million in 2010.

Namibia Total Grants

 

E- Estimated, F- Forecasted

(Source: bon.com.na)

Current account balance – surplus and deficit

Between Q1 2009 and Q2 2010, the current account balance registered a deficit of NAD 45 million in Q2 2009, while being in surplus in subsequent quarters.

Namibia Current Account Balance

 

(Source: bon.com.na PG- 120)

Balance of payments

Balance of Payments (NAD Million)

 

2010 Q1

2010 Q2

2009 Q1

2009 Q2

2009 Q3

2009 Q4

Current account

balance

359

141

282

-45

1,255

443

Capital and financial

account excluding

reserves

-732

-402

-344

-293

575

-1,508

Net errors and

omissions

-773

-224

63

339

-502

210

Overall Balance

-1,147

-486

977

-361

1,327

-855

(Source: bon.com.na)

[Top] Labour Force and Employment Overview

The unemployment rate in Namibia in 2008 was 51.2%.

(Source:namibian.com.na)

The total Labour force participation rate in Namibia was 53.5%for women and 63.6% for men in 2008.

(Source:undp.org Page: 167)

[Top] Political Stability

Namibia has three branches of governmnet- the executive, the legislative and the judiciary.

The president isthe head of state and central government and is appointed for a term of five years.

the president, the prime minister and deputy prime minister are members of cabinet. The president appoints the ministers.

The political parties in Namibia:

  •          Communist Party
  •          Congress of Democrats (CoD)
  •          Democratic Party of Namibia (DPN)
  •          DTA of Namibia (DTA)
  •          Monitor Action Group (MAG)
  •          National Democratic Party of Namibia
  •          National Unity Democratic Organization of Namibia (NUDO)
  •          Republic Party of Namibia (RP)
  •          SWAPO Party of Namibia (SWAPO)
  •          United Democratic Front of Namibia (UDF)
  •          United People’s Movement (UPM)

(Source: grnnet.gov.na)

Regulatory environment in Namibia

The government in Namibia is based on a constitutional republic framework which means, the head of state is a representative of the people chosen by the people and is bound to govern by constitutional law. 

Namibia Ecnonomic Freedom Indices

 

(Source:heritage.org)

Namibia's economic freedom score is 62.7, making its economy the 73rd freest in the 2011 Index. Namibia ranks 4th out of 46 countries in Sub-Saharan Africa region. Namibia’s’ overall score is lower than the global and regional averages, making it the least free in terms of business.

Corruption perception

The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide. Namibia is ranked 56th on this list indicting the corruption levels in the public departments is moderate.

Its score is 4.4 in 2010 indicating perceived levels of corruption have decreased in Namibia.

(Source:transparency.org)

Freedom of information

The World Press Freedom Index 2010 ranks Namibia at 21st position with a score of 7, indicating that media in Namibia is not very restricted. Namibia's press system is highly regionalised and newspapers are privately owned.

(Source: BBC, rsf.org)

The important newspapers in Namibia are

  •          The Namibian
  •          Namibia Economist
  •          Die Republikein
  •          New Era
  •          Namibian Sun
  •          Windhoek Observer
  •          Allgemeine Zeitung

(Source: BBC)

Judicial system

The judiciary in Namibia consists of

  •          Supreme Court of Justice
  •          High Court
  •          Lower Court

The Supreme Court is the highest court of justice. The High Court deals with civil disputes and criminal prosecutions. The High Court has legal power to settle the appeals from Lower Court.

(Source: Republic of Namibia)

[Top] Demographic Overview

The total population of Namibia in 2009 was 2.10 million, an increase of approximately 1.44% over the previous year.

(Source: bon.com.na Page: 7)

The gender ratio in Namibia is almost balanced i.e. there are about 97.2 men for every 100 women.

(Source: UN, worldbank.org)

Namibia Population by Gender

 

 

Namibia's crude birth rate in 2009 was 27 (per 1,000 people)

(Source: World Bank)

The mortality rate of infants (per 1,000 live births) was 35.0 in 2010. The mortality rate for adults in 2008 for females was  327 deaths (per 1,000 female adult deaths) compared to 346 male deaths (per 1,000 male adult deaths).

The average life expectancy in Namibia was 62.1% in 2010. The life expectancy for men is 62.3 years and 60.3 years for women.

(Source: undp.org Page: 154, bbc.co.uk, UN, worldbank.org)

In 2009, the number of people below the age of 14 accounted for 36.9% of the total population. In 2009, 6.2% women and 4.9% men (% of total population) were above 60 years of age.

The international migrant stock until mid 2010 was 138,900 people. This was approximately 6.3% of the total population

(Source: UN)

The urban population growth rate in Nambia between 2005 and 2010 was 2.9% and the rural population growth rate was 0.4%. The total population growth rate was 1.9 (per 1,000).

(Source: UN )

Ethnic groups in Namibia are:

  •          Ovambo
  •          Nama
  •          Kavango
  •          Caprivians
  •          Herero
  •          Himba
  •          Whites
  •          Basters
  •          Bushmen
  •          Damara

A large proportion of the population in Namibia are Ovambo and Christianity is the biggest religious group in Namibia.

(Source: namibia-travel.net, npc.gov)

Namibia ranked 105th out of 182 countries on the Human Development index 2010 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and having a decent standard of living (measured by purchasing power parity, PPP, income). 

(Source: UNDP)

[Top] Soft Infrastructure

Literacy rate

Namibia's literacy rate between 2003 and 2008 was 88%.

(Source: UNICEF)

The education system in Namibia is well developed in comparison to other African countries. Primary-secondary gross enrolment ratio for women (per 100 women) between 2005 and 2008 was 95% and 91.7%m for men (per 100 men).

(Source: UN)

Health care

Government spending on the healthcare industry in Namibia amounted to NAD 5.19 billion in 2009 accounting for almost 53.62% of total expenditure. The government expenditure on the pharmaceutical industry in 2009 amounted to NAD 1.22 billion.

There were 30 public district hospitals, 44 health centers and 265 clinics in 2007. This health care facilities include medical and nursing care, primary and secondary curative health care.

The main hospitals in Namibia are:

  •          Medi-Clinic Cottage
  •          Grobabis Health Centre
  •          Medi-Clinic Otjiwarongo
  •          RC Hospital
  •          Tsumeb Private Hospital
  •          Welwitschia Hospital
  •          Medi-Clinic Windhoek

The healthcare system in Namibia has maintained a high standard of medical assistance at affordable rates. The Namibian healthcare system is provided through outreach points, clinics, health centers and district hospitals. The government of Namibia and international aid agencies have contributed through a variety of projects and health programs to improve the health sector across the country.

(Source: healthnet.org.na Page:5, healthnet.orghasa.co.za, pharmaceuticalsinsight)

[Top] Hard Infrastructure

The main mode of  public transport in Namibia is through road travel (mainly buses and cabs). Railways are operated by Namibian Railways.

Ports:  There are two ports in Namibia- Port of Luderitz and Port of Walvis Bay.

(Source:world port source)

Airports

Town

Airport name

Runway length (Ft.)

Arandis

Arandis

6,300

Gobabis

Gobabis

7,400

Grootfontein

Grootfontein

11,600

Kamanjab

Kamanjab

6,000

Karibib

Karibib

8,300

Katima Mulilo

Katima Mulilo

6,400

Keetmanshoop

Keetmanshoop

7,700

Luderitz

Luderitz

6,000

Mariental

Mariental

6,500

Mokuti Lodge

Mokuti Lodge

7,200

Ondangwa

Ondangwa

9,700

Outjo

Outjo

6,100

Rundu

Rundu

7,900

Walvis Bay

Walvis Bay

6,900

Windhoek

Eros

6,400

Windhoek

Hosea Kutako Intl

15,000

(Source: Air charter world)

Telecommunications networks

In 2010, the total number of internet userwas 127,500 i.e. 6% of the total population uses the internet. There was an increase of 325.0 % between 2000-2010.

(Source: internetworldstats.com)

The total number of fixed telephone lines in Namibia in 2009 was 142,100 , whereas fixed telephone lines per 100 inhabitants were 6.54.

The total number of mobile phone subscribers in Namibia in 2009 was 1,217,000, whereas mobile subscriptions per 100 inhabitants was 56.05.

(Source: ITU, ITU)

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