namibian economy strengths and weaknesses

Notwithstanding the impact of COVID-19, and the restrictions and precautionary measures introduced under the respective state of emergency, the executive has refrained from any undue interventions and has continued to pay full respect to the democratic governance structures in place. The coalescence of social activism into politically organized forms of advocacy (through either strengthening existing or forming new parties) has increased markedly. Due to the pandemic, the already relatively high degree of household debt increased further, but it is too early to draw any conclusions regarding the likely effects of this development. WebThe Namibian economy was severely impacted by the COVID-19 pandemic, experiencing a dip of 8.5 per cent in 2020. For Exports, FDI and GDP measures, a higher rank (closer to 100%) indicates a stronger economy. WebThe Strengths and Weaknesses of Namibia Welcome to Displore and thanks for watching. Due to the coronavirus pandemic, a state of emergency was proclaimed for six months by the head of state, under which various restrictions were applied. Between 2018 and 2022, several commercial banks issued green bonds to finance eligible renewable energy projects, showing the potential for private climate finance. The minister of agriculture, water and forestry disclosed to the parliament that all felling and transportation of timber until the end of November 2018 had occurred without the legally required Economic Clearance Certificate. While there is an institutionalized anti-corruption body, the state body remains understaffed and underfunded, and its political autonomy is widely questioned. Strengths and weaknesses of forensic accounting: an implication on the socio-economic development - Author: Hashem Alshurafat, Mohannad Obeid Al Shbail, Ebrahim Mansour it can contribute to business and socio-economic development.,The literature on forensic accounting is extensive and varied. But there was an increase in animosity among political office-bearers in the governing party (including State House) toward the activities of investigative journalists and the role of media practitioners. Since 2016, Namibia has been in economic decline and has faced a full-blown recession. Recent macroeconomic and financial developments. Among the pros of sustainable development , obviously its objective, This suggests that informal means of control have a limited effect on freedom of opinion and the articulation of dissenting views. Namibia was initially applauded by observers for its coronavirus-related crisis management and in particular the immediate measures to ease the social misery triggered by the lockdown through a NAD 750 grant to those in need euphemistically labeled as low-income groups (though not all those who should have been entitled were among the beneficiaries). If government employment (86,864) and employment in state-owned enterprises (30,654) is subtracted, the number of formally employed people in the private sector drops to 189,549, out of an estimated total population of 2.4 million people. Frustration is also rising with regard to the continued unequal distribution of privately owned land, which is a relic of Namibias settler-colonial history and limited nationalization. In addition, the government has implemented policies to attract more investment in the sector, which in turn can create additional employment opportunities and stimulate economic growth. Due to the impact of COVID-19, legislative initiatives to further regulate the economic environment and foreign investments continue to stagnate. The Namibian dollar was introduced as a local currency after independence but is pegged to the South African rand. US economy maintains resilience in Q2. In a 2019 Afrobarometer survey, two-thirds of respondents favored democracy, while almost one-third would not object to authoritarian or even military rule. This is a decline of two ranks over the 20142019 period. WebAdvantages of sustainable development. For Exports, FDI and GDP measures, a higher rank (closer to 100%) indicates a stronger WebOverview. Other institutional bodies (e.g., the ombudsman, auditor-general and Anti- Corruption Commission) face material constraints (e.g., financial and staffing constraints), which negatively affect their performance. Unlocking Namibias economic growth and opportunities in Health care services at times lack basic medical supply and patients do not receive proper treatment due to constraints. The STRENGTHS and WEAKNESSES of NAMIBIA - YouTube This includes a lack of investment in maintenance (e.g., of roads and other infrastructure). 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. It will contribute to the diversification of the countrys economy and increase its export earnings. WebNamibia Country Strategy Paper - African Development Bank Namibia has occasionally closed its eyes to human rights violations in other countries with which it maintains friendly relations. Emergency measures introduced in response to the coronavirus pandemic required a slightly modified annual budget for 2020/21. While several parties have national appeal and secure support in many if not most regions, several others have clearly rooted ethnic-regional support bases and affiliations. The Office of the Auditor-General remains understaffed and underfunded, and while it often makes critical assessments these remain largely ineffective. Meanwhile, property transactions are well regulated and allow business based on clear standards, although on occasions shady deals (especially with regard to urban land transactions) point to forms of embezzlement and self-enrichment by members of the new elite. The report highlights that the short- to medium-term outlook (2023-2024) will be challenging, despite slightly lower inflation providing relief to consumers. The lingering impacts of the pandemic, which led to a sharp economic downturn in 2020, and the ongoing war in Ukraine continue to weigh on the countrys growth performance. Economy Contrary to the promises about the green economy in Namibia, the degree of lenience in the administration and governing institutions, members of which are beneficiaries of resource exploitation, is still quite high. The head of state (and party president) has, however, explicitly recognized the results and confirmed that the results should be respected. Environmental policy, for example, is hampered by conflicting interests between the ministries of mining, fisheries, nature conservation and the environment, which has in the past led to contradictory policies and blocked necessary interventions. The decision to fully recognize democracy in practical terms is one of the new emerging strategic matters. WebFor example, Namibias Exports rank is higher than 28.8% of the countries in the dataset. It will contribute to the diversification of the countrys economy and increase its Namibia is a secular state with a constitution that embraces and protects religious freedom. Namibias literacy rate is above 80% (the higher official figure of 91% seems unrealistic given the chronic inefficiency of the school system). Namibia's Fifth National Development Plan In recent years, however, there has been a marked increase in Pentecostal churches and the growing influence of African prophets, which erodes the hitherto unchallenged hegemony of the established churches. As well as strengths, we considered critical weaknesses. Market competition is hampered in particular by the Namibia Investment Promotion Act (NIPA), which was passed by the parliament in 2016. Namibias founding president, Sam Nujoma (SWAPO), was following a constitutional change entitled to run for a third five-year presidential term. Namibia Economic Outlook - African Development Bank The effects of climate change have added pressure on the environment, while the continued over-exploitation of Namibias natural resource base has put the country on an unsustainable development path. Deforestation in the northeastern region has already resulted in the irreversible loss of natural habitat and environmental degradation of devastating dimensions. The ever-growing debt spiral will further reduce the scope of reform strategies in the medium term. SWAPO has been the dominant political force for nation-building. Namibia is blessed with an abundance of natural resources, and the mining industry is another major contributor to the economy of the country. Understanding Pensions in Namibia in 2023 - Part 3, Understanding Pensions in Namibia in 2023 - Part 2, Step into the fray of dealing with your own company to find the biggest pressure points, Geingob briefed on key geopolitical and macroeconomic developments by top central bank execs, Inaugural Youth Climate Change Summit to be hosted in Windhoek, Nine Bills under review at 6th National Council, Communications regulator appoints Finance and Administration Executive, Namibias economic outlook: Managing global change and taking advantage of new opportunities, Rosh Pinah to Aussenkehr district road re-opens, NCCI State of Business Address: The Case of Rethink, Redefine and Trade Policy reform, Ministry of Agriculture to start with stock brands awareness campaign, Namwater Dam Bulletin on Monday 03 July 2023. US economy holding up; China's economic challenges continue Namibia Religion plays no role in conflicts, but interethnic sentiments have become more strongly articulated, and have caused the head of state on several occasions to warn of the risk that tribalism poses to social peace and stability. WebLast update 27.03.2019 Namibia Country rating Strengths & weaknesses Economic overview Trade structure Country rating HIGH RISK FOR ENTERPRISE Economic risk Hence, structural constraints have increased. Similarly, education and health care services in some of the remoter regions (in particular in the northwest and east of the country) are difficult to access and not fully secured. The exception are those that articulate private sector economic interests and have stronger relations with the government. NAMIBIA This weekly round-up brings you the latest stories from the world of economics and finance. The fiscal deficit is projected to decline, driven by strong domestic resource mobilization and tax compliance efforts by the new Namibia Revenue Authority and spending rationalization efforts. While the strength of this system declined in the 2019 and 2020 elections, and the opposition has become stronger, there is no strong veto power in sight. The headcount poverty ratio stood at 17.4% in 2019. - Source: Coface While the government has stressed the need to regain control over the debt, it faces an uphill battle and has yet to convincingly document how its budgetary policies will support fiscal stability. [2] History [ edit] The first rough estimate took place in 1989, when it was The BTI Transformation Index is a project of. However, there is a lack of WebFor example, Namibias Exports rank is higher than 28.8% of the countries in the dataset. COVID-19 had no impact on the November 2020 elections, which had a higher voter turnout than the previous regional and local authority elections due to the increased competition, and campaigning by opposition parties and candidates. We defined areas of economic strength as specific economic or other dimensions in which a country has an advantage relative to other countries. While poverty has been reduced, a large proportion of the population continue to live in poverty or even extreme poverty. The country risk assessments are your North Star metrics to make the right decision for your business and understand the risks in international trade. Girls are enrolled to a similar degree to boys but are confronted by high rates of sexual molestation and teenage pregnancies. The notion of solidarity is not a common feature in interactions between strangers, despite a number of initiatives displaying human compassion and humanitarian purposes. For the first time, the clashes between members of the opposition and the dominant party have resulted in confrontations in the National Assembly that have bordered on physical violence. Only 10% of Namibias vegetation is estimated to be composed of woody plants above the height of one meter and less than 1% of Namibias surface is covered by trees higher than five meters, mainly along the border area previously called the Caprivi Strip. It remains to be seen how the new composition of the National Assembly and the National Council, with the increase in representation of other parties, will influence this trend. Furthermore, the provision of clean water and electricity by the state monopolies, Namwater and Nampower, is uneven and does not benefit all inhabitants fully. This has for a limited period eased the pressure slightly, but it has not solved the immense challenges regarding growing poverty and the frustration this fuels. Fiscal prudence is a key strategic goal that needs to be addressed in order to regain some modest ability to induce investment for economic growth. As a result, these communities continue to be less well integrated and have not internalized the concept of the Namibian nation-state to the same extent as most other population groups. Dis-Chem Pharmacies (DCPJ) is listed on Johannesburg stock exchange. Many of these are no longer part of an accumulated knowledge or on public record. Hence, the considerable increases in cash transfers have not prevented a decline in real purchasing power. Sustainability Report & other publications. Nevertheless, no party advocates any form of undemocratic political system. But de-centrifugal tendencies have so far not been a significant risk factor for social stability and individual attacks on specific population groups (not least the white minority) during 2020 by senior office-bearers have been met by strong protests from a wide panorama of political agencies that are not anchored in the white community. Foreign direct investments have stagnated, and incentives need to be created to regain the confidence and trust of local and foreign companies. While the situation is satisfactory for urban populations that do not live in so-called informal settlements, the large number of shack dwellers (estimated to be 40% of the countrys total population) often have limited access to a bulk water supply and no proper electricity connection. The current account turned to a deficit of 9.8% of GDP in 2021 and 8.4% of GDP in 2022, from a 2.8% surplus in 2020, after higher fuel import payments and declining SACU receipts. The Chinese presence has also provoked anti-Chinese sentiments among large parts of the population. While fundamental pillars of democracy and a market-based economy are recognized in all plans, the lack of delivery undermines credibility. It is critical to address this issue comprehensively and effectively in order to mitigate its negative impacts on society. In tendency, however, the degree of animosities and confrontation seems to be on the rise, though still take largely non-violent forms at present. REPUBLIC OF NAMIBIA - African Development Bank The countrys Gini coefficient, which measures income inequality, remains among the highest in the world. In May, Moodys downgraded its rating for Namibia from Baa3 stable to Ba2 negative. Compared to other African countries, Namibia still ranks in the middle tier. As the agency observed, very large gross borrowing requirements point to material liquidity risks. Moodys expected an increase in the debt burden to 72% of GDP and an increase of the interest bill to 15.5% of revenue income in the current fiscal year (at 5% five years ago). Namibias government secured a relatively high degree of stability and social capital both at home and abroad. The current account deficit is projected to decline on higher diamond and tourism earnings. The coronavirus pandemic has seemingly had no negative effect on approval or support for democracy among Namibians, given the increase in voter turnout in the regional and local authority elections of late November 2020. It secures fundamental civil rights and liberties, including the protection of private property rights. 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. Further details on the current economic downturn have been presented elsewhere in this review. It has tended to focus on the systemic level of analysis. Development paradigm does not need to be either or! Asia pushes back on 'excessive' currency moves amid enduring The breath-taking dimensions of corruption disclosed at the highest levels of government, which are tantamount to state capture, require a credible strategy to regain the trust and confidence of citizens and potential investors. The increase in popular support for opposition parties since November 2019 did not result in any organized infringements on civil and political rights. International reserves rose marginally, to 5.7 months of import cover in December 2022 from 5.6 months in 2021. Furthermore, the 2021 growth projection of 2.2 per cent was While SWAPO is still recognized and respected for its role as an anti-colonial liberation movement, there is growing dissatisfaction with the lack of policy achievements. They were born with that. While poverty has been reduced in Namibia, inequality remains among the highest in the world. The ongoing recession since 2016 has triggered a debt spiral and public borrowing has reinforced dependencies, further limiting the governments financial liquidity. The rand has depreciated considerably over recent years and took a further downturn during the coronavirus crisis (at the end of 2020, ZAR 1 = 0.054), which triggered debates about whether the Namibian currency should end its dependency on the rand. Therefore, a certain degree of uncertainty remains, which has contributed to a growing wait and see attitude among potential local as well as foreign investors. WebThe Namibian economy, until recently, recorded strong and steady economic growth while the countrys poverty rate was reduced significantly from 69% in 1993 to 17.4% in 2018.
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