Economy

Statistics

GDP: US$5.5 billion (2004). Main exports: Minerals, beef, cattle and fish. Main imports: Foodstuffs, construction material and manufactured goods. Main trading partners: South Africa, UK, Spain, Japan and USA

The pillars of the Namibian economy are mining, fishing, tourism and agriculture. The largest single contributor to employment in Namibia is government, followed by the agricultural and fishing sectors. Commercial shipping activity has picked up since the return of Walvis Bay, the best deep-water port in Africa on the Atlantic side, to Namibian

Zebra and Oxry

jurisdiction (the apartheid government in Pretoria tried to hang on to the port, even after independence). The establishment of a free-trade zone at Walvis Bay has further enhanced its status as a centre for regional trade. Manufacturing in Namibia is mainly limited to the processing of raw materials and agricultural produce. Most of the country's trade is with South Africa, essentially involving the exchange of raw materials for manufactured goods. Recent economic policy has seen many former state enterprises transferred to the private sector. The economy has performed reasonably well during the last decade. Annual growth in 2004 was 5.7 per cent and inflation was 4.1 per cent. However, unemployment hovers at around 35 per cent.

Mining

The mining industry is the backbone of the economy, the kernel of Namibia's export economy, and accounts for about 20 per cent of GDP. Extracted minerals include silver, copper, lead, zinc, tungsten and uranium, magnesium, cadmium, arsenic, pyrites, gold, lithium minerals, dimension stones. Semi-precious stones such as agate, amethyst, tourmaline, rose quartz, aquamarine, garnet, chrysolla, chalcedony and dioptase are also extracted in Namibia. Namibia is also the source of the world's highest-quality gem diamonds, which are the largest earner of foreign exchange earner. Despite being a medium-sized producer of these diamonds, Namibia averages the highest carat value in the world. Namdeb Diamond Corporation is involved in onshore and offshore mining operations and recovery plants and has satellite mines at Elizabeth Bay and Auchas.

Fishing

Namibia is one of the leading countries in the international fishing industry. Effective conservation and fisheries management policies have ensured the post-independence recovery of the country's seriously depleted fish stocks (as a result of uncontrolled fishing prior to March 1990), ensuring exceptionally rich fishing grounds. The main commercial fish found in Namibian waters are hake, monk, pilchard, anchovy and Cape hors-mackerel.

Rock lobster, orange roughie, alfonsino, kingklip, tuna, sole, crab and snoek are also plentiful, while oysters and mussels are framed and Swakopmund, Walvis Bay and Lüderitz.

Fishing

Agriculture

The Namibian government encourages agricultural diversification and commercialization. The commercial agricultural sub-sector is the major contributor to agriculture (78%), while the communal sector contributes 2.6%. Livestock dominates the agricultural sector.

Sheep

Namibia exported 32,000 tons of beef to the value of N$594 million in 2004 and is also the largest exporter of small stock in Southern Africa. Major crops in the agronomy sector are mahangu (pearl millet), wheat, maize, groundnuts, beans, cotton and sorghum. Some non-traditional crops are table grapes, dates, cotton, oriental tobacco and lucerne. Approximately 600 tons of devil's claw are exported annually. Namibia is the driest country south of the Sahara and agriculture becomes increasingly challenging over time as the desert encroaches on previously fertile soil; it has also suffered chronic damage from recurrent drought afflicting the whole region

Energy

The energy sector plays a vital role in Namibia's economy as all the other sectors, such as tourism, transport and communication, are largely dependent on petroleum fuel for transporting good and services. Natural energy resources found in the country are natural gas, wind, sun and biomass. Because of limited water resources, the country depends largely on imports of electricity to meet national demands. The Kudu Gas Field was discovered in 1973 off the Orange River in the southern offshore area, about 170km from Oranjemund. Development of Kudu Gas Field commenced in 2003 and production is envisaged to commence by late 2006.