Economy

While water is a notably scarce resource in Namibia, the land has been blessed with other natural resources.   Add to this the vibrancy of its human resources, and the economic potential of Namibia inspires hope for the future.   However, the road to economic stability is fraught with many challenges, including the restructuring of the economy in the post-apartheid era; the affect of HIV-AIDS on the working population; dominance of South African goods in the region; and the need to expand markets.

Namibia has very little arable land and normally imports about 50% of its cereal requirements; in drought years food shortages are a major problem in rural areas. While per capita Gross Domestic Product (GDP) is high, relative to the region, it is important to note that poverty takes its toll on a high percentage of the population.   Over 50% of Namibians still depend on subsistence agriculture.

Mining accounts for approximately 20% of the GDP in Namibia.   Rich alluvial diamond deposits make it a primary source for gem-quality diamonds. The country is also the fourth-largest exporter of non-fuel minerals in Africa, the world's fifth-largest producer of uranium, and a producer of large quantities of lead, zinc, tin, silver, and tungsten.

The Namibian economy is closely linked to South Africa with the Namibian dollar pegged to the South African rand. Privatization of several enterprises in coming years may stimulate long-run foreign investment.   Mining of zinc, copper, and silver and increased fish production led growth in 2003-04.   Tourism is also a major industry with potential for growth.