Namibia is a country located in southern Africa. With a population of around 2.5 million people, Namibia is one of the most sparsely populated countries in the world. The country gained independence from South Africa in 1990 after years of struggle against apartheid rule. Since then, Namibia has worked to establish itself as a stable, democratic nation. However, it continues to face challenges in terms of poverty, inequality, and economic development. So is Namibia a rich or poor country? The answer is complex. In some respects, Namibia is quite well-off, blessed with abundant natural resources, well-developed infrastructure, and upper middle income status. However, there are still high levels of income inequality, and much of the population lives in poverty. Namibia has one of the highest levels of income inequality in the world. Let’s take a deeper look at the evidence on both sides of this debate.
Arguments for Namibia being a rich country
Here are some of the reasons why Namibia can be considered a relatively prosperous nation:
– Upper middle income status – According to the World Bank, Namibia is classified as an upper middle income country, with a GNI per capita of $4,170 in 2019. This places it above the average for sub-Saharan Africa.
– Abundant natural resources – Namibia is rich in natural resources like uranium, zinc, diamonds, copper, and gold. These resources provide an important source of export revenues for the country. Diamond mining alone accounts for over 10% of GDP.
– Well-developed infrastructure – Namibia has a relatively modern and extensive transport infrastructure system compared to many African nations. This includes well-maintained roads, railways, ports, and airports. Walvis Bay port is a vital regional logistics hub.
– Tourism potential – Namibia has a well-developed tourism industry centered around its striking natural landscapes, game reserves, and national parks. In 2018, over 1.7 million tourists visited Namibia. Tourism accounts for over 15% of GDP.
– Stable democracy – Since gaining independence, Namibia has enjoyed relative political stability and democratic governance. This provides a beneficial environment for economic development.
– Strategic location – Situated on the Atlantic coast, Namibia provides a strategic gateway for trade between South Africa and other sub-Saharan African countries. It is a member of SACU, SADC, and other African economic communities.
Arguments for Namibia being a poor country
However, there are also several factors indicating that poverty remains a major challenge in Namibia:
– High income inequality – Namibia has one of the highest income inequality rates in the world, with a Gini coefficient of 0.572. The richest 10% of the population receive over 60% of total income. This skew in income distribution is a legacy of the apartheid era.
– Poverty remains widespread – Although poverty has fallen since independence, still over 20% of Namibians live below the international poverty line. In rural areas, about 30% of the population lives in poverty.
– High unemployment – Unemployment remains stubbornly high in Namibia at over 30%. Job opportunities are especially scarce for youth. Almost 50% of young Namibians are unemployed.
– World’s most unequal country in terms of land distribution – Due to the legacy of colonialism and apartheid, land distribution in Namibia is highly unequal. In the 2018 Land Inequality Report, Namibia ranked as the country with the most unequal land ownership in the world.
– Public health challenges – Namibia suffers from poor public health outcomes relative to its income level. Life expectancy is just 65 years. Diseases like tuberculosis and malaria remain common. Access to medical services is limited in rural regions.
– Climate vulnerability – As an arid, drought-prone country, Namibia is vulnerable to the effects of climate change. Water scarcity and food insecurity are key challenges.
– Small industrial sector – While mining is important, Namibia has a relatively small manufacturing and industrial sector. This limits employment opportunities and diversification of the economy.
Economic Indicators
To evaluate Namibia’s level of economic development, let’s look at some key economic indicators and how they compare to other countries:
| Economic Indicator | Namibia | South Africa | Botswana |
|---|---|---|---|
| GDP per capita (PPP) | $11,528 | $13,865 | $18,825 |
| GDP growth rate | 0.7% (2019) | 0.2% (2019) | 3.5% (2019) |
| Unemployment rate | 33.4% (2018) | 29.1% (2019) | 18.5% (2017) |
| Inflation rate | 4.1% (2019) | 4.1% (2019) | 3.2% (2019) |
| Depth of poverty | 10.7% (2015) | 18.9% (2015) | 6.4% (2015) |
This table compares key economic metrics in Namibia versus regional peers South Africa and Botswana. On measures like GDP per capita and inflation, Namibia is roughly on par with South Africa. However, on unemployment and poverty, Namibia performs worse. Meanwhile, neighbouring Botswana has superior economic indicators, suggesting it is more developed than Namibia on the whole.
Human Development Indicators
The UN Human Development Index (HDI) measures development not only in economic terms, but also using health and education indicators. Here’s how Namibia compares on the HDI and its components:
| Human Development Indicator | Namibia | South Africa | Botswana |
|---|---|---|---|
| HDI Score (2018) | 0.647 | 0.705 | 0.735 |
| Life Expectancy | 64.2 years | 63.9 years | 69.1 years |
| Mean Years of Schooling | 6.0 years | 10.1 years | 8.9 years |
| % Population below Poverty Line | 29.6% | 18.9% | 16.3% |
In terms of HDI, Namibia ranks 130th globally, in the medium human development category. It lags behind South Africa and Botswana, which both rank in the high human development bracket. Key areas of weakness for Namibia are education, poverty, and life expectancy.
Gini Coefficient
Namibia’s high level of inequality is illustrated by its Gini coefficient of 0.572 (World Bank, 2018). The Gini coefficient measures income distribution on a scale from 0 to 1, with higher values indicating greater inequality.
Namibia has one of the highest Gini coefficients in the world, exceeded only by a few countries like South Africa and Brazil. For comparison, the world average is around 0.38. The extreme inequality in Namibia is due to factors like concentrated land ownership, lack of redistribution, and unemployment. Tackling inequality remains one of Namibia’s biggest socioeconomic challenges.
Ease of Doing Business
Namibia performs reasonably well in terms of having a conducive environment for business according to the World Bank’s Ease of Doing Business rankings. In the 2020 index, Namibia ranked 104th out of 190 countries globally. It scores relatively well on measures like getting electricity, registering property, and resolving insolvency. However, challenges remain around trading across borders, paying taxes, and access to credit. Namibia’s business environment is average for sub-Saharan Africa.
Perceptions of Corruption
On Transparency International’s Corruption Perceptions Index (CPI) for 2019, Namibia scored 53/100 and ranked 56th out of 180 countries. On the CPI scale, 0 represents high corruption while 100 is very clean. With a score just above 50, corruption is perceived to be a moderate problem in Namibia. However, the country still performs better than many peers in sub-Saharan Africa. Efforts to combat corruption should remain a priority.
Conclusion
In conclusion, while classifying Namibia as a rich or poor country may be an oversimplification, the evidence suggests it is somewhere in the middle. Key advantages like natural resource wealth and infrastructure are counterbalanced by challenges like poverty, inequality, unemployment, and limited human development. Namibia is neither as impoverished as some sub-Saharan nations like Malawi or Mozambique, nor as prosperous as peers like Botswana or South Africa. It faces continued hurdles around inequality, diversification, and human development. With sound policymaking, Namibia has the potential to achieve more inclusive economic growth and realize its goal of becoming an upper middle income country in the years to come. But it must make meaningful progress on issues like poverty and unemployment reduction to get there.