Main Content

Planning officials view Namibia’s reduced population growth rate as sustainable based on the country’s economic growth over the past decade. Prior to independence in 1990, Namibia’s relatively small population grew at about 3% annually, but declining fertility and the impact of HIV/AIDS slowed this growth to 1.4% by 2011, rebounding to close to 2% by 2016. Namibia’s fertility rate has fallen over the last two decades – from about 4.5 children per woman in 1996 to 3.4 in 2016 – due to increased contraceptive use, higher educational attainment among women, and greater female participation in the labor force. The average age at first birth has stayed fairly constant, but the age at first marriage continues to increase, indicating a rising incidence of premarital childbearing.

The majority of Namibians are rural dwellers (about 55%) and live in the better-watered north and northeast parts of the country. Migration, historically male-dominated, generally flows from northern communal areas – non-agricultural lands where blacks were sequestered under the apartheid system – to agricultural, mining, and manufacturing centers in the center and south. After independence from South Africa, restrictions on internal movement eased, and rural-urban migration increased, bolstering urban growth.

Some Namibians – usually persons who are better-educated, more affluent, and from urban areas – continue to legally migrate to South Africa temporarily to visit family and friends and, much less frequently, to pursue tertiary education or better economic opportunities. Namibians concentrated along the country’s other borders make unauthorized visits to Angola, Zambia, Zimbabwe, or Botswana, to visit family and to trade agricultural goods. Few Namibians express interest in permanently settling in other countries; they prefer the safety of their homeland, have a strong national identity, and enjoy a well-supplied retail sector. Although Namibia is receptive to foreign investment and cross-border trade, intolerance toward non-citizens is widespread.

Namibia’s economy is heavily dependent on the extraction and processing of minerals for export. Mining accounts for about 12.5% of GDP, but provides more than 50% of foreign exchange earnings. Rich alluvial diamond deposits make Namibia a primary source for gem-quality diamonds. Marine diamond mining is increasingly important as the terrestrial diamond supply has dwindled. The rising cost of mining diamonds, especially from the sea, combined with increased diamond production in Russia and China, has reduced profit margins. Namibian authorities have emphasized the need to add value to raw materials, do more in-country manufacturing, and exploit the services market, especially in the logistics and transportation sectors.

Namibia is one of the world’s largest producers of uranium. The Chinese-owned Husab uranium mine began producing uranium ore in 2017, and is expected to reach full production in August 2018 and produce 15 million pounds of uranium a year. Namibia also produces large quantities of zinc and is a smaller producer of gold and copper. Namibia's economy remains vulnerable to world commodity price fluctuations and drought.

Namibia normally imports about 50% of its cereal requirements; in drought years, food shortages are problematic in rural areas. A high per capita GDP, relative to the region, obscures one of the world's most unequal income distributions; the current government has prioritized exploring wealth redistribution schemes while trying to maintain a pro-business environment. GDP growth in 2017 slowed to about 1%, however, due to contractions in both the construction and mining sectors, as well as an ongoing drought. Growth is expected to recover modestly in 2018.

A five-year Millennium Challenge Corporation compact ended in September 2014. As an upper middle income country, Namibia is ineligible for a second compact. The Namibian economy is closely linked to South Africa with the Namibian dollar pegged one-to-one to the South African rand. Namibia receives 30%-40% of its revenues from the Southern African Customs Union (SACU); volatility in the size of Namibia's annual SACU allotment and global mineral prices complicates budget planning.

concerns from international experts and local populations over the Okavango Delta ecology in Botswana and human displacement scuttled Namibian plans to construct a hydroelectric dam on Popa Falls along the Angola-Namibia border; the governments of South Africa and Namibia have not signed or ratified the text of the 1994 Surveyor's General agreement placing the boundary in the middle of the Orange River; Namibia has supported, and in 2004 Zimbabwe dropped objections to, plans between Botswana and Zambia to build a bridge over the Zambezi River, thereby de facto recognizing a short, but not clearly delimited, Botswana-Zambia boundary in the river