By: Nghiinomenwa-vali Erastus
The country’s Gross National Income stood at N$178.4 billion in 2021 as compared to N$173.5 billion recorded in 2020, representing an expansion of N$5.0 billion.
This represents the income generated by the country’s economic resources, both human and others, which, if properly utilised, will bring about a flow or output of goods and services.
This is revealed by the Namibia Statistics Agency (NSA) as it released the 2021 National Account 2021.
The national accounts indicate that the utilisation of domestic factors of production to produce goods and services has improved, posting a growth of 2.7 per cent compared to a contraction of 8 per cent registered in 2020.
According to NSA, Gross National Income (GNI) represents the income generated by Namibian factors of production both inside and outside of Namibia.
By economic understanding, this also means that those who control the factors of production made/benefited from the income (N$178,4 billion) generated by the country’s resources.
The National accounts show that the country’s riches, as combined with its productivity, have been generating more than N$160 billion for those who own and utilise them since 2017 (N$168,4 billion).
Covid-19 has, however, impacted the utilisation of the country’s economic resources as the income generated decreased by N$3,3 billion from 2019 to the end of 2020.
Compared to the pre-pandemic era of 2019, it shows that the country only utilises its economic endowment by N$1,7 billion in 2021, more than 2021.
This shows that as much as this was economic progress in 2021, there was not much utilisation of the factors of production if GNI is a measurement.
According to NSA, the country has utilised its economic resources (factors of production) to produce goods and services domestically valued at N$136,8 billion.
Most of the economic activities in the country were done in the tertiary sector, valued at N$82,8 billion, through public services, which contributed N$17,2 billion.
This is followed by the education and wholesaler sector, which contributed N$13,8 billion and N$12,5 billion, respectively.
After the tertiary sector, the country has utilised its factor of production more through the primary sector, which produced N$24,3 billion worth of goods and services.
Most of the primary sector goods and services were produced through the mining and quarrying sub-sector accounting for N$13,1 billion in value of production.
The agricultural sub-sector added N$11,2 billion of production for the year.
The last sector in terms of production is the secondary sector (manufacturing, electricity, and construction) which is struggling to utilise the country’s factors of production.
By 2021 the country could only manufacture N$15,4 billion worth of goods.
The manufacturing sector has around 15 industries, with only four industries that manage to manufacture goods that are worth more than a billion last year.
These are other foods processing worth N$3,2 billion, then grain mill products and beverages that were worth N$2,8 billion.
Diamond processing through sorting and polishing activities was worth N$1,5 billion.
Overall, Namibia’s weak utilisation of its resources is also showcased by the fact that most of the country’s GDP is mostly consumption.
Total private consumption constituted 75.1 per cent of GDP in 2021, making it a crucial component of economic growth in Namibia, according to Simonis and Storm’s analysis.
Consumption spending mainly took place in the food, housing and education sectors during 2021. Email: erastua@thevillager.com.na
