World Country Guide

Business Profile

Economy
The mining industry is the strongest part of the economy, the kernel of Namibia’s export economy, and accounts for about 20 per cent of GDP. Extracted minerals include silver, copper, lead, zinc, tungsten and uranium, and Namibia is also the source of some of the world’s highest-quality diamonds. A much larger proportion of the workforce – 45 per cent against 4 per cent engaged in mining – is engaged in agriculture and fishing. Livestock dominates the agricultural sector, although a substantial proportion of the agricultural workforce is engaged in subsistence farming of crops such as wheat, maize and millet. Agriculture is becoming increasingly difficult over time as the desert encroaches on previously fertile soil; it has also suffered chronic damage from the recurrent drought afflicting the whole region. Namibia enjoys exceptionally rich fishing grounds, although stocks of pilchard – the main species in the area – have been depleted by uncontrolled fishing in the period before Namibian independence. Commercial shipping activity has picked up since the return of Walvis Bay, the best deep-water port in Africa on the Atlantic side, to Namibian jurisdiction (the apartheid government in Pretoria tried to hang on to the port, even after independence). The establishment of a free-trade zone at Walvis Bay has further enhanced its status as a centre for regional trade. Manufacturing is mainly devoted to processing of raw materials and agricultural produce. Most of the country’s trade is with South Africa, essentially involving the exchange of raw materials for manufactured goods. Recent economic policy has seen many former state enterprises transferred to the private sector. The economy has performed reasonably well during the last decade with average annual growth of between 3 and 5 per cent; inflation is currently 7 per cent. Other than South Africa, the UK is the only other significant trading partner, followed far behind by the other larger EU countries, Cte d’Ivoire and the USA.

Business
Suits should be worn in winter, safari suits in summer. Prior appointments are necessary. English is widely spoken in business circles. The best times for business are February to May and September to November. Office hours: Mon-Fri 0800-1700.

Commercial Information
The following organisations can offer advice: Namibia Chamber of Commerce and Industry, PO Box 9355, Windhoek (tel: (61) 228 809; fax: (61) 228 009; e-mail: info@ncci.na; website: www.ncci.org.na).