Namibia’s economy is tied closely to South Africa’s due to their shared history. The largest economic sectors are mining (10.4% of the gross domestic product in 2009), agriculture (5.0%), manufacturing (13.5%), and tourism.
Namibia has a highly developed banking sector with modern infrastructure, such as online banking and cellphone banking. The Bank of Namibia (BoN) is the central bank of Namibia responsible for performing all other functions ordinarily performed by a central bank. There are 5 BoN authorised commercial banks in Namibia: Bank Windhoek, First National Bank, Nedbank, Standard Bank and Small and Medium Enterprises Bank.
According to the Namibia Labour Force Survey Report 2012, conducted by the Namibia Statistics Agency, the country’s unemployment rate is 27.4%. “Strict unemployment” (people actively seeking a full-time job) stood at 20.2% in 2000, 21.9% in 2004 and spiraled to 29.4% in 2008.
In 2004 a labour act was passed to protect people from job discrimination stemming from pregnancy and HIV/AIDS status. In early 2010 the Government tender board announced that “henceforth 100 per cent of all unskilled and semi-skilled labour must be sourced, without exception, from within Namibia”.
In 2013, global business and financial news provider, Bloomberg, named Namibia the top emerging market economy in Africa and the 13th best in the world. Only four African countries made the Top 20 Emerging Markets list in the March 2013 issue of Bloomberg Markets magazine, and Namibia was rated ahead of Morocco (19th), South Africa (15th) and Zambia (14th). Worldwide, Namibia also fared better than Hungary, Brazil and Mexico. Bloomberg Markets magazine ranked the top 20 based on more than a dozen criteria. The data came from Bloomberg’s own financial-market statistics, IMF forecasts and the World Bank.
The countries were also rated on areas of particular interest to foreign investors: the ease of doing business, the perceived level of corruption and economic freedom. In order to attract foreign investment, the government has made improvement in reducing red tape resulted from excessive government regulations making the country one of the least bureaucratic places to do business in the region. However, facilitation payments are occasionally demanded by customs due to cumbersome and costly customs procedures. Namibia is also classified as an Upper Middle Income country by the World Bank, and ranks 87th out of 185 economies in terms of ease of doing business.
The cost of living in Namibia is relatively high because most of the goods including cereals need to be imported. Business monopoly in some sectors causes higher profit bookings and further raising of prices. Its capital city, Windhoek is currently ranked as the 150th most expensive place in the world for expatriates to live.
Taxation in Namibia includes personal income tax, which is applicable to total taxable income of an individual and all individuals are taxed at progressive marginal rates over a series of income brackets. The value added tax (VAT) is applicable to most of the commodities and services.
Despite the remote nature of much of the country, Namibia has seaports, airports, highways, and railways (narrow-gauge). The country seeks to become a regional transportation hub; it has an important seaport and several landlocked neighbours. The Central Plateau already serves as a transportation corridor from the more densely populated north to South Africa, the source of four-fifths of Namibia’s imports.