About half of the population depends on agriculture (largely subsistence agriculture) for its livelihood, but Namibia must still import some of its food. Although per capita GDP is five times the per capita GDP of Africa’s poorest countries, the Majority of Namibia’s people live in rural areas and exist on a subsistence way of life. Namibia has one of the highest rates of income inequality in the world, due in part to the fact that there is an urban economy and a more rural cash-less economy. The inequality figures thus take into account people who do not actually rely on the formal economy for their survival. Although arable land accounts for only 1% of Namibia, nearly half of the population is employed in agriculture.
About 4,000, mostly white, commercial farmers own almost half of Namibia’s arable land. The governments of Germany and Britain will finance Namibia’s land reform process, as Namibia plans to start expropriating land from white farmers to resettle landless black Namibians.
Agreement has been reached on the privatisation of several more enterprises in coming years, with hopes that this will stimulate much needed foreign investment. However, reinvestment of environmentally derived capital has hobbled Namibian per capita income. One of the fastest growing areas of economic development in Namibia is the growth of wildlife conservancies. These conservancies are particularly important to the rural, generally unemployed, population.
An aquifer called “Ohangwena II” has been discovered, capable of supplying the 800,000 people in the North for 400 years. Experts estimate that Namibia has 7,720 km3 of underground water.