Namibia 

Namibia country policy

Policy established 12 April 2006

• No Restrictions
• The country ceiling is 1500 mln euro
• Early warning signal 150 mln euro
• - of which was used as at 2011-12-31 0 mln euro

Country class: 3

Namibia country facts

Atradius DSB Economic Research
Country Report last updated :  18 August 2008
Country :  NAMIBIA

Political Situation
Relatively Stable

Head of state
President Hifikepunye Pohamba of South West Africa People's Organisation (SWAPO), since November 2004.

Form of government
SWAPO (55 out of 72 seats in parliament) forms the government.

Internal Economic Situation
High Economic Growth

General situation
Largest income inequality in the world. The economy is heavily dependent on the extraction and processing of minerals for export. Mining accounts for 20% of GDP.  The Namibian economy is closely linked to South Africa. Mining sector is currently affected by the power crisis in SA, leading to lower than expected growth in this sector. Despite high economic growth in the past years unemployment (>30%) and poverty is still high.

External Economic Situation
Good Solvability, But Weak Liquidity

Main sources of foreign exchange
Diamonds (39%), metals 15% (copper, gold, zinc, lead, uranium) fish (17%), agricultural products (meat, hides) and tourism.

Main foreign markets
EU (79%, UK 15%, Spain 10%), SA (28%), Angola (14%).

Main expenses of foreign exchange
Capital goods (27% of imports), energy (30%) and chemical products (9%), food (6%).

Balance of payments 
Persistent high prices for commodities (diamonds and metals) boost current account, but imports grow faster than exports. Current account surplus is supported by tourism receipts and a large amount of transfers from SACU.