By: Josef Kefas Sheehama
Namibia is one of Africa’s most resource-rich countries in terms of people and minerals alike. Namibia’s position, in my opinion, can be improved by changing the people’s mindset, which is characterised by a high level of dependency.
The mindset of the leadership at various levels – dominated by a diverse group of people who are financially motivated rather than developmental – could also do with some improvement.
A ticking time bomb for the country is the rising levels of inequality and lack of economic opportunity, especially among the youth.
The high unemployment rate is caused by a number of serious factors, such as the inadequate implementation of the Harambee Prosperity Plans (HPPs), and the failure to adequately implement all the goals of the National Development Plans (NDPs).
It hurt to hear the news that Namibia had been downgraded from an upper-middle-income to a lower-middle-income country in the World Bank’s most recent income classification update.
This could have a negative effect on the planned launch of National Development Program Six (NDP 6), as it ought to be in line with the country classification update. It is critical to bear in mind that economic growth has been stalling, investment is limited, and employment is disproportionate to the population’s growth, thus persisting poverty and inequality.
Consequently, it will be difficult for well-intentioned policymakers if they lack the evidence, don’t grasp the macroeconomic factors, and don’t have a model-based modus operandi to uphold. Having a future-proof plan merely implies having both a tactical and strategic response to matters as they change, including geopolitics and unexpected events.
With real GDP growth rates of 2.7% in 2021, and 4.6% in 2022, Namibia has maintained a stable performance. Notwithstanding the growth rate for 2023 being previously revised downward to 4.2% and 3.7% in 2023 and 2024, respectively.
In the first quarter of 2025, the economy grew 2.7%, which was slower than the 4.8% growth observed over the same period in 2024.
An estimated N$62.4 billion represented the nominal value of the economy, up nearly N$4 billion from N$58.5 billion in the same quarter of 2024.
By the end of March 2025, the government owed N$166.7 billion, an increase of 8.3% from the previous year. T
hus, the country’s debt today stands at 66.3% to the GDP, exceeding the SADC regional standard of 60%. In 2023, the Namibian unemployment rate increased to 36.9%, according to updated figures from the Namibia Statistics Agency (NSA). The 2023 research figures further state that youth unemployment stood at an alarming 44.4%.
Namibia’s recent downgrade can be attributed to frequent growth slowdowns and the failure to implement national development initiatives.
The slow growth can also be ascribed to weak agricultural and diamond mining performances, which counterbalanced improvements in other areas.
In particular, operational difficulties, low agricultural productivity, low manufacturing investment, and the 4.0% decline in diamond mining – owing to pressure from global demand – are to blame for said slow growth. If these issues are not addressed, Namibia may become stuck in what is known as the middle-income category.
Furthermore, unemployment leads to an array of social problems, including dishonesty, immorality, alcoholism, gambling, robbery, and gender-based violence.
It produces social disruption, forcing the government to spend a lot of money on law enforcement and social assistance services. It is vital to remember that unemployment also leads to mental health issues such as low self-esteem, feelings of worthlessness, sadness, and hopelessness.
On a more positive note, Namibia’s agricultural sector instills optimism about the future. The Okashana Agri-nest, situated in the Omuthiya Constituency, recently yielded a substantial commercial potato harvest, marking a historic stride in the nation’s goal of self-sustenance.
Over 100 locals of the constituency have been employed through this initiative, sowing other crops such as maize, tomatoes and carrots. With continued efforts at strengthened food security and domestic production such as the Okashana Agri-Nest, one can only hope that the nation progresses in that direction and refrains from implementing stringent regulations on future intra-regional trade.
Going forward, diverse policies and methods have been implemented at the government, business industry, and civil society levels to help address the issue of unemployment.
This is great in that jobs for young people can be created in large part by the commercial sector and civil society. There is, however, a need for a more streamlined strategy when developing government policies to avoid duplication of work and interference with existing policy implementation activities.
Furthermore, it would be in the government’s interest to encourage entrepreneurship and provide start-up funding to the unemployed.
Implementing mandatory training and mentorship programs as a means of refocusing the education system to better meet the demands of the labour market, young entrepreneurs would further be empowered to take strides in the direction of a more successful future.
However, such success requires equitable economic institutions and a business-friendly environment. On this premise, I propose the implementation of a non-contributory social safety net program, along with reforms creating a framework to help offset the risks these entrepreneurs may face.
