Namibia Economy Profile 2008

Economy - overview

The economy is heavily dependent on the extraction and processing of minerals for export. Mining accounts for 8% of GDP, but provides more than 50% of foreign exchange earnings. Rich alluvial diamond deposits make Namibia a primary source for gem-quality diamonds. 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. A high per capita GDP, relative to the region, hides one of the world's most unequal income distributions. The Namibian economy is closely linked to South Africa with the Namibian dollar pegged one-to-one to the South African rand. Increased payments from the Southern African Customs Union (SACU) put Namibia's budget into surplus in 2007 for the first time since independence, but SACU payments will decline after 2008 as part of a new revenue sharing formula. Increased fish production and mining of zinc, copper, uranium, and silver spurred growth in 2003-07, but growth in recent years was undercut by poor fish catches and high costs for metal inputs.

GDP (purchasing power parity)

$10.67 billion (2007 est.)

GDP (official exchange rate)

$6.707 billion (2007 est.)

GDP - real growth rate

4.5% (2007 est.)

GDP - per capita (PPP)

$5,200 (2007 est.)

GDP - composition by sector

agriculture: 10.6%
industry: 30.8%
services: 58.6% (2007 est.)

Population below poverty line

the UNDP's 2005 Human Development Report indicated that 34.9% of the population live on $1 per day and 55.8% live on $2 per day

Household income or consumption by percentage share

lowest 10%: 0.5%
highest 10%: 64.5% (2003)

Inflation rate (consumer prices)

6.7% (2007 est.)

Investment (gross fixed)

29.1% of GDP (2007 est.)

Labor force

660,000 (2007 est.)

Labor force - by occupation

agriculture: 47%
industry: 20%
services: 33% (1999 est.)

Unemployment rate

5.3% (2006 est.)

Distribution of family income - Gini index

70.7 (2003)

Budget

revenues: $2.561 billion
expenditures: $2.483 billion (2007 est.)

Public debt

23.9% of GDP (2007 est.)

Industries

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

Industrial production growth rate

4.6% (2007 est.)

Electricity - production

1.688 billion kWh (2005)

Electricity - consumption

2.863 billion kWh (2005)

Electricity - exports

78 million kWh (2005)

Electricity - imports

1.567 billion kWh; note - electricity supplied by South Africa (2005)

Oil - production

0 bbl/day (2005 est.)

Oil - consumption

18,400 bbl/day (2005 est.)

Oil - imports

17,580 bbl/day (2004)

Oil - exports

0 bbl/day (2004)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2005 est.)

Natural gas - consumption

0 cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

59.75 billion cu m (1 January 2006 est.)

Current Account Balance

$1.065 billion (2007 est.)

Agriculture - products

millet, sorghum, peanuts, grapes; livestock; fish

Exports

$2.87 billion f.o.b. (2007 est.)

Exports - commodities

diamonds, copper, gold, zinc, lead, uranium; cattle, processed fish, karakul skins

Exports - partners

South Africa 33.4%, US 4% (2006)

Imports

$2.82 billion f.o.b. (2007 est.)

Imports - commodities

foodstuffs; petroleum products and fuel, machinery and equipment, chemicals

Imports - partners

South Africa 85.2%, US (2006)

Reserves of foreign exchange and gold

$750 million (31 December 2007 est.)

Debt - external

$1.429 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$NA

Stock of direct foreign investment - abroad

$NA

Market value of publicly traded shares

$541.8 million (2006)

Economic aid - recipient

ODA, $123.4 million (2005 est.)

Currency (code)

Namibian dollar (NAD); South African rand (ZAR)

Exchange rates

Namibian dollars per US dollar - 7.18 (2007), 6.7649 (2006), 6.3593 (2005), 6.4597 (2004), 7.5648 (2003)

Fiscal year

1 April - 31 March