Rapidly Expanding Economy of Namibia

Namibia is a country on the Atlantic coast in Southern Africa. It is famous for the Etosha Park safari and the Atlantic coast tourist spot of Swakopmund and Walvis Bay. The Namibian economy is based on mining, manufacturing and foreign currency flows from eco tourism.

Namibia is the world’s fourth largest manufacturer of Uranium. Apart from this ranking the country also holds the fourth rank in non-fuel minerals exports in Africa. The Economy of Namibia is closely tied with South Africa. The country is Namibia’s largest trade partner and accounts for four fifths of Namibia’s imports. Almost all of Namibia’s consumables and manufacturing equipment is imported form South Africa. Namibia also has rich deposits of gem quality diamonds. The De Beers diamond company of South Africa has mining operations in Oranjemund and in Elizabeth Bay near Luederitz.

The country also produces large quantities of lead, zinc, tin, silver and tungsten. Agriculture is the second most important economic sector in the country. This sector generates almost half of the jobs in the country but constitutes only a small fraction of the GDP. Fish processing is another important sector. A 2000 mile seamile-zone is demarcated for fishing activities of only Namibian companies. Fish processing and canneries are slowly becoming a major economic contributor to the Namibian economy.

The Namibian economy has a modern market sector, which produces most of the country's wealth, and a traditional subsistence sector. Although the majority of the population engages in subsistence agriculture and herding, Namibia has more than 200,000 skilled workers, as well as a small, well-trained professional and managerial class.

The country's sophisticated formal economy is based on capital-intensive industry and farming. However, Namibia's economy is heavily dependent on the earnings generated from primary commodity exports in a few vital sectors, including minerals, especially diamonds, livestock, and fish. Furthermore, the Namibian economy remains integrated with the economy of South Africa, as the bulk of Namibia's imports originate there.

Given its small domestic market but favourable location and a superb transport and communications base, Namibia is a leading advocate of regional economic integration. In addition to its membership in the Southern African Development Community (SADC), Namibia presently belongs to the Southern African Customs Union (SACU) with South Africa, Botswana, Lesotho, and Swaziland. Within SACU, no tariffs exist on goods produced in and moving among the member countries.

Ninety percent of Namibia's imports originate in South Africa, and many Namibian exports are destined for the South African market or transit that country. Namibia's exports consist mainly of diamonds and other minerals, fish products, beef and meat products, karakul sheep pelts, and light manufactures. In recent years, Namibia has accounted for about 5% of total SACU exports, and a slightly higher percentage of imports.

The Namibian economic policies are closely associated with the South African economic policies. The interest rates in the country are high to keep inflation low. Though the Namibian economy is third in Africa, per capita incomes are still low. Almost 40% of the employable population in the country is unemployed.

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Namibia's Economy is quite a wonder in African world. However it's mostly dependent on tourist and hunting, as well as the popular Namibia wildlife. However Namibia hotels make up a big share of country's domestic revenues.

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