As indicated in CDIS education and social participation dimensions, further efforts should be made toward the thinking of Namibian citizens [ 1 ]. Due to the horrific events in former times, e. Mostly there is low recognition of significant benefits emerging out of their multicultural society [ 1 ]. If changing these societal perspectives to preferable ones, the equality conditions will be favored in Namibia. Due to the fact that women and the young population are affected, it is interlinked to the previous topic of inequality.
According to data from Trading Economics , the unemployment rate in Namibia has increased from Current numbers monitor a minor decrease to The youth unemployment rate of Adolescents between the ages of 20 and 24 are majorly affected [ 39 ].
Compared to the previous numbers, the female unemployment rate is slightly lower. Latest data from monitor the female unemployment rate achieving This is due to a high informal market within the nation [ 21 ]. Yet, women are not the only ones suffering in the Namibian labor market. Also, certain ethnic groups experience disadvantages in the job market due to historic events, cultural habits, and different values.
For instance, members of the ethnic group San, which are mainly working in the service sector, are the first ones to be fired, because of their nomadic behavior.
In addition, there is the presence of dealing with unemployment: Once Namibians are unemployed, their majority is seeking for assistance of families or friends, in order to get a new job. An additional observation made by the Namibian Labor Survey states that the majority of unemployed citizens stays without employment for at least 1 year. This indicates whether there is a low amount of available jobs, labor institutions need to improve, or inhabitants are indolent when it comes to finding new employment [ 39 ].
There are different reasons for the current situation of Namibia. First, it is explained by the historic labor movements. At the beginning of the twentieth century, Namibia was a cattle-based society, and wealth was equivalent to a high stock in cattle. However, all of these growing herds needed to be managed. This evoked a labor migration which resulted in a higher population and later in less labor due to changing professions [ 40 ].
One aim of the Namibian government is to promote the domestic labor market, especially for women. This rate can be traced back to the minor degree of access to the labor market, as well as the disadvantageous situation for women when competing against men [ 21 ]. The Namibia Labour Force Survey states that the unemployment rate of a nation is directly linked to its economic growth.
It is explained as follows: a decreasing unemployment rate, as it is hardly visible in Namibia, is a sign for economic growth. An increasing rate, as there are in the unemployment rates of women and youth, indicates an economy that is not able to absorb the people in working age [ 39 ].
Though to the slow but almost steady economic growth described under Section 12 which results in job creation then, there is an improvement in sight [ 2 ]. Another correlation is being made between unemployment and poverty, which arose in post-independent times and will be discussed in the following section.
The third aspect of Namibian governmental triple challenge is the fight against poverty. Poverty goes hand in hand with inequality and especially with unemployment and thereby arises the difficulty of monitoring the aspects of poverty isolated. Namibia is reflecting poverty particularly in female-headed households, extended families, inhabitants with a low level of education, and farmworkers.
When separating the occurrence of poverty into regions and economic sectors, it holds true for the rural communal land and the informal urban sector [ 2 ]. Nevertheless, which leverage yields out for Namibian inhabitants? Even worse is the fact that the majority has to deal with an annual income of less than USD [ 33 , 34 ]. Plenty of inhabitants call upon urbanization, in the hope of better access to resources and professions, but mostly end up in worse conditions or the black market.
Wealth and income are distributed by far unequal, as already indicated with the Gini coefficient under Section 3. This also clarifies why the World Bank classified the nation in as an upper-middle-income nation while having tremendous poverty issues [ 2 ]. In terms of the Human Development Index HDI , which focuses on people and their capabilities by analyzing data from three different dimensions—long and healthy life, being knowledgeable, and decent standard of living—Namibia ranked itself in position out of countries.
This refers to a medium human development, which is surprisingly higher than the average in sub-Saharan Africa [ 33 , 34 ]. Again, the contribution of history influences the current situation. Former drastic events, as already mentioned under Section 4, are responsible for the dominant degree of poverty in Namibia. Decades of suppression, exploitation, and slaughtering native population has long-lasting effects on their self-perception.
Those effects are staying within the Namibian population and do not erase with their national independence or any other progressive event. It takes time to change the social and economic thinking toward favoring the nation and a self-decision-making concept. Namibian population is currently still suffering from former times.
CDIS describes that such is especially visible in the gap of tolerating, trusting, and accepting other cultures [ 21 ]. Health and nutrition are also influencing the degree of poverty within Namibia.
A constant nationwide supply leads to food security, agricultural production, and higher wages, which in return has a positive impact on the degree of poverty [ 28 ].
Namibian governmental efforts would be wasted if their inhabitants refuse to change. An example of the majorly nonexisting long-term thinking is described by Sylvain. In her article, she characterizes the San—besides their unfavorable economic situation—as spending all their wages on payday [ 30 ]. Efforts against poverty have been made by the Namibian government by doing it carefully and always in regard to the possible side effects, e. The direct way is tackling health, education, housing, pension, and resources, while the indirect form is dealing with topics as investment promotion and taxes [ 28 ].
Hence, Namibia was able to succeed by reducing the national poverty line from Besides the Triple Three challenge, sustainable economic growth is an additional objective that wants to be achieved by the Namibian government [ 28 ]. Humavindu and Stage are describing the current domestic economy as the combination of a modern market sector industry with farming while mainly focusing on sectors that have been successful in the past, e.
Furthermore, the level of industrial activities remains low which represent an obstacle for sustainable economic growth. As one possible solution, the economic diversification of Namibia has been announced by Krugmann [ 28 ]. Additional assistance to achieve sustainable growth is generally given by the implementation of economic favoring policies.
However, Namibia, as well as other emerging markets, is often confronted with institutional voids, which result in a lack of the governmental implementation process. Multinational enterprises MNEs are able to recognize the favorable situation as comparative advantages while the local content is remaining low. To a great extent, these are fundamental obstacles in order to achieve sustainable development [ 41 ].
Namibians have a high level of consumption of foreign goods, services, and activities. This has developed a domestic economy that is highly dependent on imports and exports [ 2 ]. The main imported goods are to the greatest extent represented in consumer goods, e. On the other hand, there are exported goods largely consisting of raw materials and semifinished goods, for instance, copper, cut diamonds, gemstones, granite, lead products, marble, uranium, and zinc.
A large proportion of exported goods are represented in beef, which is mostly transferred to South Africa and the European Union [ 42 ].
The steady increasing economic growth of African emerging markets is favoring the economic situation of Namibia. Primarily responsible are their neighboring countries, such as Angola, Botswana, and South Africa [ 2 ].
Defining economic key sectors is essential for any domestic economic growth. Key sectors represent the largest amount of independence among the rest of the economy.
If investing in them, the probability of economic growth will be higher than investments into several non-key sectors [ 33 , 34 ]. One possibility to highlight key sectors of any economy is the use of a social accounting matrix SAM. The matrix merges data from all international and regional transactions, as well as transfers within the target economy.
The most common sectors are resulting out of these data sets, defined as key sectors. In order to process a reliable output, a vast number of national data are needed [ 43 ]. Thus, the number of SAMs of emerging markets is slightly poor. Even if an emerging market succeeded in applying a social accounting matrix , their government often will not be able to encourage or invest in the defined key sectors.
Namibia achieved its first and last SAM in , determining mining, mineral processing, and manufacturing as key sectors. According to the output, the nation is highly dependent on trade as already described in its domestic GDP. Also relying on such information is the governmental policy-making process. Hence, the government is able to tailor policies to the needs of the domestic economy. Again, institutional voids may hinder such process, as described under Section Additionally, the nation is globally known as the fifth biggest uranium producer [ 42 ].
In , it experienced a peak of According to Trading Economics , the number of arrivals has reached almost 1. The agricultural sector of Namibia accomplished 6. Main catches are hake and horse mackerel which are mostly exported to the neighboring countries, as well as the European Union [ 44 ].
It represents the second least populated country in the world—directly after Mongolia—with a population density of 3. The number of inhabitants is still increasing and indicates a relatively young population with high unemployment rates, as already mentioned under Section The young population correlates with the national median age of A few cautionary notes are in order at this point. The Namibian economy is highly trade-dependent, and even those sectors which are identified as having stronger-than-average linkages to the rest of the economy may be relatively weakly linked in absolute terms.
In addition to this, since the Namibian economy is fairly small, and several of the key sectors identified here are small subsets of it, many sectors consist of only a few companies. This means that the entry of a single new company or the exit of an old one could change the structure of a sector enough to shift it from one category in the analysis to another.
It also means that if a sector were to expand rapidly, it is uncertain whether the domestic markets would be sufficient to provide the additional inputs needed, or to absorb the additional output. In practice, constraints in other sectors might create problems—especially for those sectors identified as having multiplier effects, albeit only on a few other sectors.
Nonetheless, as long as one is contemplating interventions that are either relatively limited in scope or that will unfold over extended periods of time, key sector analysis can help identify interventions that are likely to have the greatest knock-on effects in respect of other sectors in the Namibian economy. Key sector analysis can contribute to that goal.
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Namibia Overview. Economic Outlook After experiencing average annual growth of 4. Development Challenges Since its independence in , Namibia had achieved notable progress in reducing poverty, halving the proportion of Namibians living below the national poverty line to Last Updated: Mar 16, What's New. Please check after some time. In Depth. Oct 06,
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