Namibia – land of the brave

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Basic Facts• 824,269 km2 • 2.1m population• Independent in 1990• Multi-party democracy• English = official language• Currency pegged to SA Rand

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Economic facts

• Upper middle income country• GDP $12.2bn• GDP per capita $6,126 (PPP), $4,500 (Atlas)• Sovereign credit rating: BBB- (Fitch), Baa3

(Moody’s) • Ease of Doing Business 87th (out of 185)• Global Competitiveness Index 92nd (out of 144)• Good Governance Index 6th (out of 52 in Africa)• Corruption Perception Index 58th (out of 176)

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Key economic points• Broad based economic growth • Member of WTO, SADC, SACU• Moderate GDP growth (4,7% in 2012) and stable

macro economic policies• Emerging oil and gas sector and marine service

industry• Large government/state-owned enterprise sector• Social safety Nets: Universal old-age grants and for

vulnerable groups• Bond market seal of approval

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Breakdown of GDP (2012)

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*Total Tourism contribution: 15.5%

Bilateral Trade

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• Total bilateral trade in 2012: £349m• UK-Nam trade in goods in 2012(exports): £76m 106%

=> metal manufactures, metalliferous ores, metal scrap, iron , steel, cars and miscellaneous manufactured articles

• Nam-UK trade in goods in 2012 (imports): £273m 39%=> diamonds, grapes, beef, beer, charcoal

• 3:1 imbalance (exports to imports)• Trade deficit improved by 52%

Strengths

• Macro Economic Stability• Low levels of government debt• Stable/pragmatic business-friendly govt• Openness to international trade/investment• Easy Access to Government decision makers (open

door policy)• Clear property rights• Independent courts and press• Good infrastructure

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Weaknesses• High unemployment • NEEEF (BEE) racially skewed (socio-economic injustice)• High GINI coefficient (income inequality) • Shortage of skilled labour• Underperforming education and training system• Deteriorating health sector (infant mortality)• Low labour productivity• Government bureaucracy• Work permit difficulties • Challenging taxes for extractive industry: withholding tax

(25%), VAT (15%), corporate tax on oil & gas (42%), royalties eg. oil & gas (5%)

• Slow judicial system

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Opportunities

• Minerals (including oil and gas)• Agriculture and Agro-industry potential• Infrastructure development• Transport and logistics hub, best port in Africa• Potential regional base• Proximity to SA and Angola

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FCO commercial support in country• BHC Windhoek = VSEP/micro mission 1UKB

• No UKTI support / in house new commercial officer• Active British Business Group eg. assist an AIM-listed company

to secure major investment financing• Networking/guest speakers• Facilitate UK business visits and key calls• Briefings / Doing Business Guide / Extractive Industry Report /

Working on ‘Easing the way for investment’ • Access and host events eg. Product launches

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UKinNamibia websitewww.gov.uk/world/namibia

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Thank you

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