This weekly round-up brings you the latest stories from the world of economics and finance. Unemployment stood at 33.4% in 2018, with youth unemployment at 46.1% and female unemployment at 48.5%. Rather, local companies tend to transfer capital abroad. While this gives the president a strong and decisive role in appointments (e.g., appointments to the army and other security organs), and the sole decision-making power over the composition of the cabinet, and other public institutions and offices, the governance structures remain intact and are based on the results of general elections. WebNamibia Risk Namibia: Risk Assessment Country Risk Rating View All Countries C A very uncertain political and economic outlook and a business environment with many troublesome weaknesses can have a significant impact on corporate payment behavior. The ever-growing debt spiral will further reduce the scope of reform strategies in the medium term. 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. Source: African Economic Outlook (AEO) 2023, Macro-economics Policy, Forecasting and Research, Independent Development Evaluation (IDEV). Public services are provided in all parts of the territory, but to various degrees of outreach and efficiency. 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. Namibia Economy It has tended to focus on the systemic level of analysis. Thus, although the overall circumstances for investment do not appear unattractive, there is a lack of institutional incentives. But despite the considerable increases in pensions, the actual purchasing power of the money transferred has decreased and poverty remains a constant feature for a considerable proportion of the population. (In 2014, Hage Geingob won a record 86% of the vote, becoming Namibias third elected president). Some people, like some of the women I know, have a black belt in spending. While poverty has been reduced in Namibia, inequality remains among the highest in the world. It obtained a two-third parliamentary majority five years later and won more than 80% of the votes in the parliamentary elections in November 2014. The US economy grew more than previously estimated in the Their political role and societal appreciation are still very much shaped by their strong support for SWAPO during the independence struggle. While this has been channeled into political competition within the institutional framework, it is not a risk to the established system on the national, regional or local levels. The Japanese currency was hovering at about 144 against the greenback in Asia trade on Thursday. The shifts in the political landscape, which have reduced the hegemony of the former liberation movement on the national, regional and local levels of governance, have also to some extent been a result of new initiatives that challenge established and deeply rooted sentiments that stand in the way of full emancipation. The increased demand for minerals such as uranium, gold, and diamonds is expected to drive the industrys growth over the next few years. Tourism in Namibia Since independence, the former liberation movement SWAPO consolidated its position as the party of government. The ethics of civil servants and political office-bearers remain at times dubious, and misbehavior is by-and-large rather generously reprimanded. Two newspapers, The Namibian and New Era, which had been pro-government in the past are now quite critical of the government a clear sign of investigative journalism in Namibia. In the most well-known case to date (dubbed #fishrot), which came to public attention in late 2019, the main perpetrators have been placed under arrest while the investigations remain ongoing. The coronavirus pandemic has added to these constraints, since the initial lockdown and the economic consequences have restricted many peoples survival strategies, not least people working in the informal sector, but also for many people working in the retail, services, construction and tourism sectors. Country Office Annual Report 2021 Namibia - UNICEF Civil society organizations engaged in wider social interests (e.g., ecology and environment) lack broad support bases and activists focus mainly on sociopolitical matters. WebWEAKNESSES Dependence on the mining sector and South Africa; High unemployment, persistent inequality, tensions over land ownership, high prevalence of AIDS; Agricultural sector exposed to climatic hazards; High public debt limits fiscal room for manoeuvre The claim to business as usual reduced the already low ability and willingness to learn within the ranks of the dominant party. This will result in increased import prices and a more challenging economic environment for consumers in 2023, as the country relies heavily on imports to meet domestic economic activity. As a result of a combination of factors (a decline in the global market prices for local raw materials, especially in the mining sector; economic decline in the important neighboring economies of Angola and South Africa; a long period of drought; and a fiscal policy that exceeds the countrys means), a continued recession has since 2016 drained the state coffers, which will have lasting negative consequences. 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. The continued economic deterioration has produced a worrying level of state debt, which will limit the recovery process and poses new challenges for fiscal prudence. 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. The vocal dispute about the victims of the colonial genocide and the question of adequate compensation has led to noticeable conflicts between some ethnic leaders. This freedom is also widely respected in the public sphere and practiced by a number of independent local media (print and radio, and less so television services). After 30 years of independence, Namibia is at a crossroads regarding its political future. This also includes late gay parades, despite LGBTI rights not being fully recognized in the legal framework and members of the community being subject to individual discrimination. While there remains a local desire for autonomy among members of this group, no further violence has occurred and the state is in full control of the region. Economic The level of trust in government policy is lower and there is a reluctance to make new investments. The Office of the Auditor-General remains understaffed and underfunded, and while it often makes critical assessments these remain largely ineffective. Cabinet positions continue to be (with few exceptions) filled on the basis of political loyalty rather than competence. The increase in people voting, mainly in urban areas, is another indicator of growing peaceful citizen activism. The sector remains largely controlled by the established banking outlets of international banks, which enhances stability. But Namibia received a record number of votes when elected for a second time to be a member of the U.N. Human Rights Council. Single Parent Single parent families consist of one parent with one or more kids. Furthermore, the 2021 growth projection of 2.2 per cent was revised to 1.9 per cent, reflecting the lingering impacts of the pandemic. They were born with that. Webthe people in local communities. In combination with the inherited structural constraints from a century of settler-colonial rule, socioeconomic disparities, and the high degree of inequality and poverty continue to present huge challenges for governance. The government will have to decide on the nature of the development path, and to what extent the natural resource-based trajectory of the country can be modified or replaced. While the overwhelming dominance in the National Assembly of the governing party (SWAPO) has declined from 80% to 65% since the beginning of the current legislative period in March 2020, the features of competitive authoritarianism are still effective and limit the influence of other political parties. As IPPR concludes, the current level of uncertainty and the expected five-year timeframe to finalize all the legal implications will not enhance investment plans and may even cultivate a reluctance among local and foreign potential investors due to the anticipated thicket of regulation. If you know how to take stock of the strengths, weaknesses, opportunities, and threats, you are more likely to plan and act effectively. Past experience suggests that ministerial resistance to the proposed cuts will be very strong. In the U.N.-supervised elections for Namibias first constituent assembly following independence, SWAPO secured an absolute majority of votes. Conflicts (e.g., border disputes and conflicts with Botswana) are negotiated peacefully. 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 if the support the party wins is based on fair competition and a result of improved governance, or on coercion through the monopoly over state power that is vested in the military and police loyal to SWAPO. But following independence, many of those engaged in civil resistance (e.g., churches and trade unions) were coopted into the new state and administration. Namibia has signed all relevant international agreements and adheres to a large extent to global normative frameworks. At Nedbank Namibia CIB, seeing money differently is about more than finding solutions for current problems. This weekly round-up brings you the latest stories from the world of economics and finance. The nonperforming loans ratio fell to 5.6% at end-2022 from 6.4% the year before. The government recognizes the role of external support for its development strategies and goals, and welcomes assistance if it does not impose any limitations. This has not resulted in any direct obstructions in traditional or social media (e.g., Facebook, Twitter), with very harsh criticism of the government occasionally posted on social media platforms without any interference. Namibia is a secular state with a constitution that embraces and protects religious freedom. Market competition is hampered in particular by the Namibia Investment Promotion Act (NIPA), which was passed by the parliament in 2016. With the tight monetary policy stance, inflation is projected to remain below the central bank target of 6.0% in the medium term. 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. But the outcome is poor and no strict policy is applied. According to an estimate, it contributes more than 49 billion dollars annually to the US economy. The formal economy remains dependent on government investment in material infrastructure. WebFor example, Namibias Exports rank is higher than 28.8% of the countries in the dataset. The latest information leaked from the investigations include suspicions that the highest levels of the party leadership may have been aware of large-scale corruption for several years that amounts to billions of Namibian dollars, and that furthermore the party and its president might have benefitted in terms of political campaign donations. Namibia Namibia Country Strategy Paper - African Development Bank Inflation is always an important factor when analysing any countrys economy. It secures fundamental civil rights and liberties, including the protection of private property rights. Despite this positive outlook, there are structural challenges such as a lack of diversification and high unemployment rates that continue to weigh on the economy. The coronavirus pandemic was not used to limit these freedoms. While civil society was restricted during the period of white minority rule (in particular civil society initiatives among the black majority), anti-colonial resistance was a fertile ground for organizing against injustice and illegal governance. The number of people living on the margins of society, typically in rural areas, has increased. Development paradigm does not need to be either or! Government policy has addressed fiscal constraints and the liquidity crisis by rapidly expanding public debt, which will put further pressure on future fiscal policy. strengths and weaknesses The decision to fully recognize democracy in practical terms is one of the new emerging strategic matters. The depreciation of the Namibian dollar against the US dollar is expected, with the exchange rate forecast to reach 17.48 NAD/USD from 16.4 NAD/USD in 2022. 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. As observed in the last BTI and confirmed by the results of the 2019 national and presidential elections, and the 2020 regional and local elections, regional-ethnic particularities and identities are increasingly influencing voter behavior. Namibia is a higher-middle-income country with an estimated annual GDP per capita of US$5,828 but has extreme inequalities in income distribution and standard of living. 6 Family Types And Their Unique Dynamics - BetterHelp Natural capital is valued at $19.6 billion, $17.2 billion of which is renewable. The exception are those that articulate private sector economic interests and have stronger relations with the government. But it is too early to judge to what degree this marks a turning point toward potentially violent forms of contestation. However, these resources are threatened by both climate change and weak resource governance. 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. A Guest Contributor is any of a number of experts who contribute articles and columns under their own respective names. Strengths and Weaknesses of Online As a result of this and exacerbated by the effects of the coronavirus-related economic decline, a large proportion of people (particularly women) living in rural communities and on the margins of urban areas continue to live in poverty with little hope of escaping it. MBA SWOT : Windhoek Nature Reserve: Financing a Sustainable University students complain about a lack of financial support services and a lack of employment opportunities after graduation. 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 opened a new chapter in the countrys history and paved the way for a wide-ranging political transformation under a legitimately elected government. This has strengthened political pluralism by peaceful means and added to a broader panorama of political voices on the ground. Given the vast, often sparsely inhabited regional parts of the country, the judicial system, tax authorities and law enforcement are skewed, and in some lesser populated areas under-represented or difficult to access. The capital adequacy ratio of 17.0% in 2022 was above the 10% statutory requirement. Almost all political leaders are practicing Christians and the head of state often displays his Christian belief. In some cases, officeholders have been prosecuted and punished reluctantly, with the culprits allowed to remain within the highest ranks of the ruling party. It also makes it more difficult to delegate decisions and their implementation to ministries, since State House and the president often resume responsibilities. Namibia is no exception, and the domestic economy is expected to experience steady but slow growth in the next few years. Meanwhile, the growing strength of the opposition has been accepted as democratic by most relevant actors, which speaks in favor of respecting the normative rules. The soldiers of the former SWA Territorial Force and its notorious Koevoet unit continue to be disqualified from the benefits available to veterans who fought on the side of the anti-colonial movement. With the results of the regional and local authority elections of November 2020, political diversity has been enhanced, with several parties making inroads and for the first time a large number of independent candidates campaigning. While ethnicity is a secondary aspect that can enhance opportunities if one belongs to an influential community, homophobic discrimination remains common. But the system lacks efficiency and, while primary school enrollment rates are high, the drop-out rate after primary education is high, with very few students entering lower secondary and fewer still passing with the grades required for higher secondary. Top economy stories: US economy maintains resilience in Q2, China's The bank acts without direct orders or interference from the government, and its decisions have always been accepted by official policymakers. The head of state (and party president) has, however, explicitly recognized the results and confirmed that the results should be respected. WebPowerPoint Learn how to conduct a SWOT Analysis to identify situational strengths and weaknesses, as well as opportunities and threats. Nevertheless, reconciliation is still a key word in Namibia and political demands for reconciliation have not faded away. Inequality is high, with a Gini coefficient of .572 in 2015. Although the South African economy and banking sector is losing some resilience, the capital market is still well established in the world market. The coronavirus pandemic had no significant impact on Namibias credibility, since the country lacks the material capacity to strengthen international relief measures. Formal employment, which provides access to some forms of social protection, declined from 365,703 in 2013 to 307,067 in 2018. In the regional and local authority elections of November 2020, the trend accelerated markedly and the opposition made significant inroads. For both groups, reconciliation or recognition of past injustices rings hollow. Some general targets set for NDP5 include average GDP growth of 4.6% per year, reducing the unemployment rate to below 24%, reducing inequality measured by a drop in the Gini coefficient from 0.552 to 0.500. Until the devastating 2020 fall in GDP to 9.8%, this productive sector had shown continued growth. This could prevent any meaningful re-allocation of funds. Trade union membership has been declining for a long time, while the increase in unemployment due to the ongoing recession seems to have led to fewer rather than more collective survival strategies. Second, Namibia has been able to diversify moredifferentiallythan the average Namibia Overview Such differences are not always clarified but lead to blockages and inactivity, which allows for loopholes to be exploited not in the public interest but for private gain. While at the time of independence in 1990, forested land amounted to some 8.7 million hectares, by 2015, forested land had reduced to seven million hectares. This allows the dominant party and the president with his strong executive functions to dominate almost uncontrolled. However, few of the policy-related acknowledgments are more lip service and followed by determined policy, and have made any meaningful contribution to improvements. At times, this has been a contributing factor to international donors reducing or stopping assistance, given the Namibian governments lack of determination and coherence in rigorously working toward its declared goals. These three blueprints overlap but all share to a greater (Vision 2030) or lesser (NDP5) extent a preference for wishful thinking and lack of realism. At this moment in time, it remains to be seen to what extent this might restore credibility and trust in the governments anti-corruption agenda. It remains to be seen whether the drastic cuts proposed by the minister of finance for the 20212022 budget (about NAD 4 billion) will be accepted by the cabinet and passed by the parliament. The new cabinet appointed for the legislative period 2020 to 2025 has replaced several veteran officeholders with fresh blood. But it remains to be seen whether this will result in any meaningful improvements. Under the coronavirus-related restrictions that were imposed under the state of emergency, police officers have at times abused their powers, mistreating individuals accused of violating the regulations and physically harming some individuals. This has exacerbated the countrys economic woes and represents a major setback for the important tourism sector. WebWeaknesses: Wide gap between the rich and poor (only 1% owned more than 100 slaves), Cotton plantations were wasteful and harmful to the soil, Economic structure was monopolistic - dependent on the price of one crop, Due to slave labor, immigrants mostly settled in the North - led to more manpower in North, Caused the South to buy more slaves, Top economy stories: US economy maintains resilience in Q2, China's economic malaise deepens; Central bank leaders reaffirm policy tightening bias. Socioeconomic discrepancies were further exacerbated by the recession that began in 2016. Namibias close relations with Zimbabwe resulted in SWAPO backing ZANU-PF policy and the downplaying of the repressions in Zimbabwe. This has since resulted in a reduced state budget and a worrying debt spiral due to the need to borrow in order to maintain fiscal liquidity. For years, a conflict over offshore marine phosphate mining has dragged on, with a final court decision still pending.
