By Tjivingurura Mbuende
The global economy is facing a new set of challenges in 2023, as inflation, geopolitical tensions, and the ongoing signs of the COVID pandemic continue to affect countries worldwide. Namibia is no exception, and the domestic economy is expected to experience steady but slow growth in the next few years. However, there are signs of improvement and opportunities for growth in specific sectors.
According to the International Monetary Fund (IMF), Namibia’s real GDP growth is expected to reach 3% by 2024, which is good news for Namibian individuals and businesses alike. Certain industries contributing positively, including agriculture, mining, and tourism, are anticipated to propel this growth.
Namibia has a resilient agricultural sector, with a significant proportion of the population relying on it for their livelihoods. The sector is expected to continue growing in the next few years, driven by increased investment in irrigation and other infrastructure projects, as well as good rainfall predicted for 2023. According to a recent report by the Namibia Statistics Agency (NSA), export earnings for agriculture, forestry, and fishing products amounted to N$3.7 billion for Q3 of 2022, so their contribution to foreign currency earnings should not be underestimated.
Namibia is blessed with an abundance of natural resources, and the mining industry is another major contributor to the economy of the country. The increased demand for minerals such as uranium, gold, and diamonds is expected to drive the industry’s growth over the next few years. In addition, the government has implemented policies to attract more investment in the sector, which can create additional employment opportunities and stimulate economic growth.
Namibia is known for its breathtaking landscapes and diverse wildlife; as a result, the tourism industry is a significant source of employment and foreign exchange for the country. Like many countries globally, the sector was negatively impacted by the health pandemic, leading to reduced tourism revenues and decreased investment spending. Until the devastating 2020 fall in GDP to 9.8%, this productive sector had shown continued growth. According to the World Travel and Tourism Council (WTTC), travel and tourism contributed approximately 14.7% of the GDP in Namibia, and 15.4 % to total employment in 2019. However, despite the COVID-19 damage, international tourist arrival trends to Namibia from January to December 2021 indicated that 37.81% of the lost market was regained when compared to 2020 figures, and the year 2022 delivered continued international arrivals.
