Transcript Namibia – land of the brave

Namibia – land of the brave
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Basic Facts
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824,269 km2
2.1m population
Independent in 1990
Multi-party democracy
English = official language
Currency pegged to SA Rand
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Economic facts
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Upper middle income country
GDP $12.2bn
GDP per capita $6,126 (PPP), $4,500 (Atlas)
Sovereign credit rating: BBB- (Fitch), Baa3
(Moody’s)
Ease of Doing Business 87th (out of 185)
Global Competitiveness Index 92nd (out of 144)
Good Governance Index 6th (out of 52 in Africa)
Corruption Perception Index 58th (out of 176)
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Key economic points
• Broad based economic growth
• Member of WTO, SADC, SACU
• Moderate GDP growth (4,7% in 2012) and stable
macro economic policies
• Emerging oil and gas sector and marine service
industry
• Large government/state-owned enterprise sector
• Social safety Nets: Universal old-age grants and for
vulnerable groups
• Bond market seal of approval
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Breakdown of GDP (2012)
Education, 8.6
Agriculture and forestry,
5.1
Mining and quarrying,
11.3
Public administration
and defence, 10.2
Manufacturing; 11,3
Real estate and business
services, 7.4
Financial intermediation,
5.2
Transport, and
communication, 4.8
Wholesale and retail
trade, repairs, 11.7
*Total Tourism contribution: 15.5%
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Bilateral Trade
• Total bilateral trade in 2012: £349m
• UK-Nam trade in goods in 2012(exports): £76m 106%
=> metal manufactures, metalliferous ores, metal scrap,
iron , steel, cars and miscellaneous manufactured articles
• Nam-UK trade in goods in 2012 (imports): £273m 39%
=> diamonds, grapes, beef, beer, charcoal
• 3:1 imbalance (exports to imports)
• Trade deficit improved by 52%
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Strengths
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Macro Economic Stability
Low levels of government debt
Stable/pragmatic business-friendly govt
Openness to international trade/investment
Easy Access to Government decision makers (open
door policy)
• Clear property rights
• Independent courts and press
• Good infrastructure
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Weaknesses
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High unemployment
NEEEF (BEE) racially skewed (socio-economic injustice)
High GINI coefficient (income inequality)
Shortage of skilled labour
Underperforming education and training system
Deteriorating health sector (infant mortality)
Low labour productivity
Government bureaucracy
Work permit difficulties
Challenging taxes for extractive industry: withholding tax
(25%), VAT (15%), corporate tax on oil & gas (42%), royalties
eg. oil & gas (5%)
• Slow judicial system
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Opportunities
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Minerals (including oil and gas)
Agriculture and Agro-industry potential
Infrastructure development
Transport and logistics hub, best port in Africa
Potential regional base
Proximity to SA and Angola
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FCO commercial support in country
• BHC Windhoek = VSEP/micro mission 1UKB
• No UKTI support / in house new commercial officer
• Active British Business Group eg. assist an AIM-listed company
to secure major investment financing
• Networking/guest speakers
• Facilitate UK business visits and key calls
• Briefings / Doing Business Guide / Extractive Industry Report /
Working on ‘Easing the way for investment’
• Access and host events eg. Product launches
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UKinNamibia website
www.gov.uk/world/namibia
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Thank you
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