How is Namibia’s economy compared to South Africa?

Comparison In 2021, South Africa ranked 59 in the Economic Complexity Index (ECI 0.098), and 34 in total exports ($143B). That same year, Namibia ranked 97 in the Economic Complexity Index (ECI -0.77), and 124 in total exports ($4.72B)

Gross Domestic Product & Income

StatNamibiaSouth Africa
GDP$14.5B$368.3B
GDP growth, 1 year-0.1%0.8%
GDP growth, 5-years average2.4%1.1%
Population2.5M57.7M
GDP per capita$5.9k$6.4k
GDP per capita growth-2.4%-0.57%
Purchasing Power Parity conversion factor7.076.16
Price level ratio of PPP conversion factor GDP to market exchange rate0.530.47
GDP per capita, PPP adjusted$11k$14k
GNI, Atlas method$12.8B$332.3B
GNI per capita$5.2k$5.8k
GNI, PPP adjusted$26.6B$765.8B
GNI per capita, PPP adjusted

Government debt & reserves

“South Africa is Namibia’s major import partner of about 66 percent to 80 percent of total imports. It is early to tell if economic sanctions will be imposed against South Africa, should it be true as alleged by Western countries that South Africa aids material support to countries in conflict, the effects of any sanction will affect Namibia’s economy and local market, even if we don’t have the same problems as South Africa, we are still exposed to all the external factors,” he told Xinhua.

Sheehama said with Namibia’s current narrow industrial and export base, it is going to be difficult to withstand the external shocks.

“Our economy is reliant on a portion of sectors such as fishing, diamonds, and uranium mining. Therefore, should the variables influencing the pair continue at their current state, the rand/Namibia dollar will find it difficult to regain any momentum,” he said.

According to Sheehama, there is a need to understand that a weaker currency could increase the cost of imports, as Namibia uses U.S. dollars to buy oil and other commodities and the negative market sentiments cause capital flight.

Sheehama is of the view that the geopolitical shifts are likely to put incremental pressure on the rand/Namibia dollar over time.

“However, cumulatively, they may start to change investors’ minds on the currency. If they do, the rand/Namibia dollar has a long way to fall given relative depreciation. If momentum builds behind a weakening rand/Namibia dollar, it will have significant repercussions across financial markets,” he concluded.

According to the Bank of Namibia’s economic outlook update report in March, Namibia’s economic growth already is expected to weaken over the next two years as global demand declines and consumer spending power reduces.

StatNamibiaSouth Africa
Central government debt, % of GDP47.1%56.7%
External debt stocks, % of GNIN/A50.6%
External debt stocksN/A$179.3B
Short-term debt, % of total reservesN/A70.9%
Total debt service, % of exports and primary incomeN/A19.9%
Adjusted net savings including particulate emission damage, % of GNI4.5%0.6%
Gross savings, % of GDP14%14.9%
Gross capital formation, % of GDP12.6%17.9%
Total reserves including gold$2.1B$51.6B
Foreign direct investment net inflows$199.6M$5.5B
$11k

Financial system and Human development

StatNamibiaSouth Africa
Income Tax Rate37%45%
Corporate Tax Rate34%28%
Inflation, consumer prices4.3%4.6%
Inflation, GDP deflator7%3.9%
Unemployment23.1%27%
Economic Freedom Index60.958.8
Personal Freedom Index7.156.92
Human Freedom Index6.976.78
Property Rights Index58.958.4
Judical Effectiveness Index58.538
Business Freedom Index65.662
Fiscal Health Index28.764
Labor Freedom Index84.958.8
Investment Freedom Index6545
Financial Freedom Index4050
Trade Freedom Index83.275.8
Monetary Freedom Index75.975.9
Government Spending Index58.167.4
Tax Burden Index65.763.7
Government Integrity Index4646.6
Corruption Perceptions Index5343
Life expectancy at birth, years6363.5
Suicide mortality rate, per 100,000 people8.711.6
Mortality caused by road traffic injury, per 100,000 people30.425.9
Intentional homicides, per 100,000 people17.135.9
International tourism, number of arrivals1.5M10.5M

$13k

Exports, imports and economic structure

StatNamibiaSouth Africa
Exports of goods and services, % of GDP38.7%29.9%
Imports of goods and services, % of GDP44.9%29.6%
Current account balance (balance of payments)-$354.5M-$13.4B
Revenue excluding grants, % of GDP31.6%30.9%
Grants excluding technical cooperation, BoP$127.9M$817.9M
Personal remittances received$53.7M$929M
Industry including construction value added, % of GDP29.3%25.9%
Agriculture, forestry and fishing value added, % of GDP7.2%2.2%
Charges for the use of intellectual property, payments BoP$1.3M$1.8B
Charges for the use of intellectual property, receipts BoP$1.4M$120.7M
Expense, % of GDP31.1%34.4%
Government Expenditure, % of GDP37.4%33%

“South Africa is Namibia’s major import partner of about 66 percent to 80 percent of total imports. It is early to tell if economic sanctions will be imposed against South Africa, should it be true as alleged by Western countries that South Africa aids material support to countries in conflict, the effects of any sanction will affect Namibia’s economy and local market, even if we don’t have the same problems as South Africa, we are still exposed to all the external factors,” he told Xinhua.

Sheehama said with Namibia’s current narrow industrial and export base, it is going to be difficult to withstand the external shocks.

“Our economy is reliant on a portion of sectors such as fishing, diamonds, and uranium mining. Therefore, should the variables influencing the pair continue at their current state, the rand/Namibia dollar will find it difficult to regain any momentum,” he said.

According to Sheehama, there is a need to understand that a weaker currency could increase the cost of imports, as Namibia uses U.S. dollars to buy oil and other commodities and the negative market sentiments cause capital flight.

Sheehama is of the view that the geopolitical shifts are likely to put incremental pressure on the rand/Namibia dollar over time.

“However, cumulatively, they may start to change investors’ minds on the currency. If they do, the rand/Namibia dollar has a long way to fall given relative depreciation. If momentum builds behind a weakening rand/Namibia dollar, it will have significant repercussions across financial markets,” he concluded.

According to the Bank of Namibia’s economic outlook update report in March, Namibia’s economic growth already is expected to weaken over the next two years as global demand declines and consumer spending power reduces.

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