What does a "desert" country live on?
Namibia is vast and sparsely populated. The country has one of the lowest population densities in the world after Mongolia, with three inhabitants per square kilometer. As a large part of the territory is desert, neither life nor culture can flourish here.
With an economy dominated by South Africa before its belated independence in 1990, Namibia is now mainly in the hands of white Namibians. Like its neighbor to the south, Namibia's economy remains heavily dependent on the primary sector. The mining sector is responsible for 12% of Namibia's GDP, but its influence is far greater, accounting for 50% of total Namibian exports. As rich in profitability as it is in diversity, the main commodity is diamonds, from which Namibia derives half of its foreign exchange earnings. The country also mines uranium, with the opening of the giant Husab mine near the town of Erongo in 2016. Already the largest employer in the sector, this mine puts the country in the running to become the world's third-largest uranium producer. Zinc is also mined at the Skorpion mine to the south. The towns of Tsumeb and Otavi are known for their subsoil rich in lead, germanium, silver, lithium and copper. The Uis region contains tin. On the Atlantic coast, salt is extracted from the Walvis Bay salt mines, the largest in the world. It's the fate of every region to have its soil exploited.
Land redistribution
The agricultural sector accounts for only 6% of GDP, but between 25% and 50% of the population is dependent on this activity, which is at the heart of the agrarian reform. In fact, 1% of the population, the white population, controls 44% of the country's arable land. An agrarian law provides for the acquisition of half of this private land by the state and its redistribution for resettlement purposes. The new black farmers will also receive loans to develop their land. Despite criticism of its implementation, such as the lack of training for new farmers and corruption, this reform appealed to many Namibians, who saw it as a continuation of the ideology of independence. But these promises are slow to materialize.
People living on "communal" land raise different types of livestock, depending on their culture and habitat. But livestock farming is mainly export-oriented. Extensive cattle rearing is regulated by strict legislation to facilitate the export of meat from these "commercial" areas to Europe. In recent years, game ranching has developed alongside the farming of game animals such as ostrich and oryx.
Fishy waters, and therefore to be protected
With 1,400 km of coastline, Namibia's waters are rich in fish and attract the interest of many foreign vessels. Accounting for 3% of GDP in 2019, fishing has grown steadily since independence. Today, sardines, anchovies, mackerel and hake are caught in abundance. But competition from foreign boats and overexploitation of resources are hard on fishermen, and the risks to the sustainability of the sector and the economy of coastal towns are very real. While several fishing quotas are already in force, other political and technical solutions are still in the pipeline. Now Namibia's second-largest export, the industrial sector is still growing slowly, despite the success of certain activities such as meat and fish processing. Food and beverages account for half of the sector's workforce, with the Namibian Breweries exporting on a massive scale to South Africa and the rest of the continent. It has to be said that braai, or barbecue, means plenty of beer!
Swapo still in charge of the country
Namibia's politics are fairly stable, and for good reason: the ruling party hasn't changed since the 1990s and the first elections as an independent country. The South West Africa People's Organization (SWAPO) monopolizes the country's political scene. Attempts by opposition parties to create a common front have always failed. Sam Nujoma was re-elected in 1994 and 1999. SWAPO's dominance was such that two of its ministers succeeded him as head of state. Between 2005 and 2015, Hifikepunye Pohamba was even awarded the Mo Ibrahim Prize for "good governance" in Africa. Namibia thus stands out as a model of African democracy. Hage Geingob took over in 2015. However, in the last election in 2019, the party achieved its lowest ever score (56%). Some see this as a punishment for its inability to address inequality and land reform. Also, to avoid legislation that investors might perceive as hostile to business, the president will have to strike a delicate balance between pressure from SWAPO cadres, a section of the electorate and an unfavorable economic context.
A vulnerable economy despite its strengths
Despite its strengths, the economy remains vulnerable to weather conditions and dependent on the mining sector and South Africa's economic and political health. With a growth rate of 5% in 2015, the country experienced a marked slowdown from 2016 onwards, followed by an entry into recession in 2017. In 2019, the poor performance of agriculture and the mining industry will maintain this recession. However, these sectors recovered overall from 2020 onwards. But it was the Covid-19 pandemic's turn to knock out the Namibian economy and the effects of this recovery. In 2020, GDP fell by 8% and the tourism sector was halted in its tracks. How will Namibia recover? Slowly. Step by step, the recovery of the economy is supported by the mining sector. According to the Treasury Department, the big challenge for the authorities is to complete the pending structural reforms to boost growth, and then "pursue fiscal adjustment without undermining the recovery".
Namibia looks to the future
Namibia has a number of assets that will enable it to resume solid growth: its modern infrastructure, tourism potential and political stability ensure that it has a good image to attract and reassure foreign investors. Nonetheless, despite relatively low levels of corruption, the country's attractiveness - ranked 84th out of 138 by the World Economic Forum - and its business environment - ranked 108th out of 189 by the World Bank's Doing Business index - are still inadequate. Nevertheless, in view of the need to diversify the country's productive base, the authorities intend to attract investment in new sectors such as tourism and the tertiary sector. Indeed, the economy remains heavily dependent on mining, while the limited demand for unskilled labor means that work is concentrated in subsistence agriculture.
What about tourism?
Like the country itself, the development of tourism in Namibia is very recent. Rapidly becoming an essential source of foreign currency, tourism is also a powerful lever for employment and the development of local communities. Every year, thousands of tourists visit national parks such as Etosha Game Reserve, the Kalahari and Namib deserts, Damaraland and the West Atlantic coast. The majority, 70% of tourists, are Germans and South Africans, with an increase in visitors from Italy and France in recent years. As a result of major investments, the number of accommodation facilities has increased considerably, but with a trend towards quality tourism of the ecotourism type, or even luxury tourism, and towards travel on a human scale, rather than so-called "mass" tourism. The trend towards guest farms and small lodges confirms this trend. And so much the better!
Do resources benefit everyone?
Most of the country's resources have already been developed, and current supply remains dynamic, adapting to new market demands. Despite this optimism, one of the major challenges for this predominantly white-controlled activity is to integrate the black population at the highest level of its hierarchy so that resources really do benefit everyone. The promotion of black employees in some of the sector's "classic" establishments and the development of community tourism managed in an inclusive way are solutions already in place. These reforms will take time to bear fruit, but Namibians are determined to tackle them together.
The birth of community tourism
Numerous cultural camps and villages have recently sprung up throughout Namibia. This program consists of setting up demarcated protected areas called conservancies and having them accepted as local management units in rural areas. This unit deals with conservation issues and economic development within the conservancy, ensuring a more equitable sharing of resources with the communities involved and directly affected. An original initiative that promotes the development of sustainable tourism. Those in search of an authentic vision of Namibia can spend a few nights in one of these restcamps or campsites immersed in local life.
Towards an agreement on the first genocide of the 20th century
It was not until May 2021 that Germany asked for forgiveness from the namibian people and officially recognized the herero and nama genocide between 1904 and 1908. Germany promised 1.1 billion euros in aid to help develop the persecuted communities. But today, in 2022, with the agreement still not adopted, the main opposition party, the People's Democratic Movement, led by McHenry Venaani, is demanding that the agreement be put back on the negotiating table, regretting that the people primarily concerned, the Herero and Nama communities, were not sufficiently mobilized in the discussions. Are relations between the two countries on the right track?
