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Namibia vs. Zambia

Economy

NamibiaZambia
Economy - 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.

Zambia had one of the world's fastest growing economies for the ten years up to 2014, with real GDP growth averaging roughly 6.7% per annum, though growth slowed during the period 2015 to 2017, due to falling copper prices, reduced power generation, and depreciation of the kwacha. Zambia's lack of economic diversification and dependency on copper as its sole major export makes it vulnerable to fluctuations in the world commodities market and prices turned downward in 2015 due to declining demand from China; Zambia was overtaken by the Democratic Republic of Congo as Africa's largest copper producer. GDP growth picked up in 2017 as mineral prices rose.

Despite recent strong economic growth and its status as a lower middle-income country, widespread and extreme rural poverty and high unemployment levels remain significant problems, made worse by a high birth rate, a relatively high HIV/AIDS burden, by market-distorting agricultural and energy policies, and growing government debt. Zambia raised $7 billion from international investors by issuing separate sovereign bonds in 2012, 2014, and 2015. Concurrently, it issued over $4 billion in domestic debt and agreed to Chinese-financed infrastructure projects, significantly increasing the country's public debt burden to more than 60% of GDP. The government has considered refinancing $3 billion worth of Eurobonds and significant Chinese loans to cut debt servicing costs.

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
$61.985 billion (2019 est.)

$61.104 billion (2018 est.)

$58.735 billion (2017 est.)

note: data are in 2017 dollars
GDP - real growth rate-1.56% (2019 est.)

1.13% (2018 est.)

-1.02% (2017 est.)
3.4% (2017 est.)

3.8% (2016 est.)

2.9% (2015 est.)
GDP - per capita (PPP)$9,637 (2019 est.)

$9,932 (2018 est.)

$10,051 (2017 est.)

note: data are in 2010 dollars
$3,470 (2019 est.)

$3,522 (2018 est.)

$3,485 (2017 est.)

note: data are in 2017 dollars
GDP - composition by sectoragriculture: 6.7% (2016 est.)

industry: 26.3% (2016 est.)

services: 67% (2017 est.)
agriculture: 7.5% (2017 est.)

industry: 35.3% (2017 est.)

services: 57% (2017 est.)
Population below poverty line17.4% (2015 est.)54.4% (2015 est.)
Household income or consumption by percentage sharelowest 10%: 2.4%

highest 10%: 42% (2010)
lowest 10%: 1.5%

highest 10%: 47.4% (2010)
Inflation rate (consumer prices)3.7% (2019 est.)

4.2% (2018 est.)

6.1% (2017 est.)
9.1% (2019 est.)

7.4% (2018 est.)

6.5% (2017 est.)
Labor force956,800 (2017 est.)6.898 million (2017 est.)
Labor force - by occupationagriculture: 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
agriculture: 54.8%

industry: 9.9%

services: 35.3% (2017 est.)
Unemployment rate34% (2016 est.)

28.1% (2014 est.)
15% (2008 est.)

50% (2000 est.)
Distribution of family income - Gini index59.1 (2015 est.)

70.7 (2003)
57.1 (2015 est.)

50.8 (2004)
Budgetrevenues: 4.268 billion (2017 est.)

expenditures: 5 billion (2017 est.)
revenues: 4.473 billion (2017 est.)

expenditures: 6.357 billion (2017 est.)
Industriesmeatpacking, fish processing, dairy products, pasta, beverages; mining (diamonds, lead, zinc, tin, silver, tungsten, uranium, copper)copper mining and processing, emerald mining, construction, foodstuffs, beverages, chemicals, textiles, fertilizer, horticulture
Industrial production growth rate-0.4% (2017 est.)4.7% (2017 est.)
Agriculture - productsroots/tubers nes, milk, maize, onions, beef, grapes, fruit, pulses nes, vegetables, milletsugar cane, cassava, maize, milk, vegetables, soybeans, beef, tobacco, wheat, groundnuts
Exports$6.087 billion (2019 est.)

$6.225 billion (2018 est.)

$5.347 billion (2017 est.)
$8.216 billion (2017 est.)

$6.514 billion (2016 est.)
Exports - commoditiescopper, diamonds, uranium, thorium, gold, radioactive chemicals, fish (2019)copper, gold, gemstones, sulfuric acid, raw sugar, tobacco (2019)
Exports - partnersChina 27%, South Africa 18%, Botswana 8%, Belgium 7% (2019)Switzerland 29%, China 16%, Namibia 12%, Democratic Republic of the Congo 9%, Singapore 5% (2019)
Imports$9.921 billion (2019 est.)

$9.611 billion (2018 est.)

$9.249 billion (2017 est.)
$7.852 billion (2017 est.)

$6.539 billion (2016 est.)
Imports - commoditiescopper, refined petroleum, delivery trucks, diamonds, cars (2019)refined petroleum, crude petroleum, delivery trucks, gold, fertilizers (2019)
Imports - partnersSouth Africa 47%, Zambia 16% (2019)South Africa 29%, China 14%, United Arab Emirates 12%, India 5% (2019)
Debt - external$7.969 billion (31 December 2017 est.)

$6.904 billion (31 December 2016 est.)
$11.66 billion (31 December 2017 est.)

$9.562 billion (31 December 2016 est.)
Exchange ratesNamibian 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.)
Zambian kwacha (ZMK) per US dollar -

21.065 (2020 est.)

15.3736 (2019 est.)

11.855 (2018 est.)

8.6 (2014 est.)

6.2 (2013 est.)
Fiscal year1 April - 31 Marchcalendar year
Public debt41.3% of GDP (2017 est.)

39.5% of GDP (2016 est.)
63.1% of GDP (2017 est.)

60.7% of GDP (2016 est.)
Reserves of foreign exchange and gold$2.432 billion (31 December 2017 est.)

$1.834 billion (31 December 2016 est.)
$2.082 billion (31 December 2017 est.)

$2.353 billion (31 December 2016 est.)
Current Account Balance-$216 million (2019 est.)

-$465 million (2018 est.)
-$1.006 billion (2017 est.)

-$934 million (2016 est.)
GDP (official exchange rate)$12.372 billion (2019 est.)$25.71 billion (2017 est.)
Credit ratingsFitch rating: BB (2019)

Moody's rating: Ba3 (2020)
Fitch rating: RD (2020)

Moody's rating: Ca (2020)

Standard & Poors rating: SD (2020)
Ease of Doing Business Index scoresOverall score: 61.4 (2020)

Starting a Business score: 72.2 (2020)

Trading score: 61.5 (2020)

Enforcement score: 63.4 (2020)
Overall score: 66.9 (2020)

Starting a Business score: 84.9 (2020)

Trading score: 56.9 (2020)

Enforcement score: 50.8 (2020)
Taxes and other revenues32.2% (of GDP) (2017 est.)17.4% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-5.5% (of GDP) (2017 est.)-7.3% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 38%

male: 37.5%

female: 38.5% (2018 est.)
total: 26%

male: 24.7%

female: 27.6% (2018 est.)
GDP - composition, by end usehousehold 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.)
household consumption: 52.6% (2017 est.)

government consumption: 21% (2017 est.)

investment in fixed capital: 27.1% (2017 est.)

investment in inventories: 1.2% (2017 est.)

exports of goods and services: 43% (2017 est.)

imports of goods and services: -44.9% (2017 est.)
Gross national saving8.6% of GDP (2019 est.)

12% of GDP (2018 est.)

12.8% of GDP (2017 est.)
39.7% of GDP (2019 est.)

41.8% of GDP (2018 est.)

36.3% of GDP (2017 est.)

Source: CIA Factbook