Namibia

Location : Southern Africa, bordering the South Atlantic Ocean, between Angola and South Africa

Capital : Windhoek

Languages : English 7% (official), Afrikaans common language of most of the population and about 60% of the white population, German 32%, indigenous languages: Oshivambo, Herero, Nama

Area : 825,418 sq km

Land Use : arable land: 0.99%, permanent crops: 0%, other: 99.01% (2001)

Natural Resources : diamonds, copper, uranium, gold, lead, tin, lithium, cadmium, zinc, salt, hydropower, fish, suspected deposits of oil, coal, and iron ore 

Population : 2,030,692 (July 2005 est.).

Labour force : 840,000 (2002)

Labour force participation rate : 41.37% of population (2002)

Population below poverty line : 50% (2002 est.)

International Organisation participation : ACP, AFDB, AU, C, FAO, G-77, IAEA, IBRD, ICAO, ICC, ICFTU, ICRM, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM (observer), ISO (correspondent), ITU, MIGA, NAM, ONUB, OPCW, SACU, SADC, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNMEE, UNMIL, UNOCI, UPU, WCL, WCO, WHO, WIPO, WMO, WToO, WTO

GDP per capita : U$ 7,300 (2004 est.)

GDP Real Growth Rate : 3.5% (2004 est.)

GDP sectoral composition : agriculture: 11.3%, industry: 30.8%, services: 57.9% (2003 est)

Investment (gross fixed): 19.6% of GDP (2004 est.)

Industries: meatpacking, fish processing, dairy products; mining (diamond, lead, zinc, tin, silver, tungsten, uranium, copper)

Agriculture - products : livestock, sorghum, maize, millet, beans, sunflowers, groundnuts

Exports : U$1.356 million f.o.b. (2004 est.)

Exports - commodities : diamonds, copper, gold, zinc, lead, uranium; cattle, processed fish, karakul skins

Exports - partners : EU 79%, US 4% (2001)

Imports : U $ $1.473 million f.o.b. (2004 est.)

Imports - commodities : foodstuffs; petroleum products and fuel, machinery and equipment, chemicals

Imports - partners : US 50%, EU 31% (2001)

QUALITATIVE TRADE PROFILE

Currently, Namibia's economy is primarily agrarian, built on the mining sector, especially diamonds, which accounts for 20% of GDP and fish. It is the fourth-largest exporter of non-fuel minerals in Africa, the world's fifth-largest uranium producer and a producer of large quantities of other metals. Mining activities nevertheless accounts for 3% of employment and therefore job creation, specifically through the broadening of Namibia's industrial base is a key policy objective. Currently three-quarters of the population depend on farming for their livelihood, and, along with diamonds, processed food, especially fish and meat, are major sources of foreign exchange and government revenue.

Namibia has mainstreamed trade into its development policy through the National Development Plan which recognizes the important role that trade has to play in development. The foundations of Namibian trade policy are liberalization and export expansion. As a member of the Southern Africa Customs Union (SACU) Botswana's trade policy is regionally determined. Its tariff bindings cover 96.5% of its tariff lines. Average applied tariff rates stood at 5.8% in 2002, with the average for agricultural goods being 9.1% and non-agricultural goods being 5.3%. A key issue for SACU is the structure of the external tariff which is determined by South Africa and often reflects South Africa's policy priorities and industrial structure. Approximately 45% of tariff lines are duty free on an MFN basis and non-ad valorem rates apply to approximately 4% of tariff lines. In accordance with the revised provisions of the 2002 SACU Agreement, the joint SACU Tariff Board will, in future, determine duty rates, including anti-dumping and countervailing duties.

INSTITUTIONAL FRAMEWORK 

• The Ministry of Trade and Industry retains primary responsibility for formulating and implementing trade and industry policies, especially in areas not covered by the SACU Agreement. Within the Ministry, trade policy, including multilateral, regional, and bilateral trade relations, is handled by the Directorate of International Trade. The Directorate organizes export promotion activities and provides information to traders through the Trade Information Centre. The Import and Export Management Subdivision issues import and export permits and initiates strategies for streamlining import procedures. Other institutions that have important inputs into trade-related policies include the Ministries of Finance (budget, expenditure/revenue measures, including tariff policy); Mines and Energy; Fisheries and Marine Resources; Agriculture, Water and Rural Development; Environment and Tourism; Works, Transport and Communication; and Foreign Affairs, Information and Broadcasting.
• As a participant in the COMESA Regional Integration Facilitation Forum, Namibia established a Technical Working Group of public and private representatives to provide policy advice through the Policy Implementation Committee, chaired by the Minister of Trade and Industry. The Government intends to institutionalize this Group. Furthermore, the 2002 SACU Agreement, provides for a National Body to be established in each member country; the body will be in charge of SACU issues (including tariff changes) at the national level and will make recommendations to the Customs Union Commission.
• Trade-related policies are formulated by the sponsoring ministry, which undertakes detailed policy work, including research, national consultations, and considers submissions from interested stakeholders. The policy proposal is submitted to Cabinet as a memorandum and becomes government policy on approval. The Presidential Economic Advisory Council is coordinated by the Office of the President, and comprises senior officials and representatives from the private sector, academia, non-government organizations, employers' associations and trade unions. The WTO National Committee, comprising senior officials from various ministries and agencies and chaired by the Ministry of Trade and Industry, meets regularly. Sector-specific technical sub-committees such as on agriculture, intellectual property and, services, report to the Committee.
• The Government established the independent Namibian Economic Policy Research Unit (NEPRU) to conduct economic research and advise on economic policies, including trade policies. It also trains Namibian economists in policy research and provides valuable public commentary on topical economic policy issues. The independent Institute for Public Policy Research (IPPR) provides analytical research into social, political and economic, including trade, issues. An Industrial Development Committee comprising officials from the Ministries of Trade and Industry, and Finance, as well as the Bank of Namibia, was established to fast‑track the development of key industrial projects and to stimulate manufacturing.

TRADE AGREEMENTS

Bilateral

• Namibia 's only bilateral preferential trade agreement was signed with Zimbabwe. Namibia maintains non-preferential or MFN agreements with China, Cuba, the People's Democratic Republic of Korea, Democratic Republic of the Congo, India, Ghana, Malaysia, Romania, and the Russian Federation Namibia is also a beneficiary of the United States African Growth and Opportunity Act (AGOA) and also receives GSP treatment from Australia, Bulgaria, Canada, Czech Republic, the EU, Hungary, Japan, New Zealand, Norway, Poland, Russia, Slovak Republic and Switzerland.
• Regional
• Namibia is a member of the Southern Africa Customs Union (SACU), Southern African Development Community (SADC), and the African Union/African Economic Community. Within SACU, Namibia is a part of the Common Monetary Area (CMA) under which its currency is maintained at par with the South African rand, which circulates freely in Namibia. Namibia is one of only two SACU members that participate in the Common Market for Eastern and Southern Africa (COMESA). Through SACU it is currently in the process of negotiating bilaterals with the United States.MERCUSOR and EFTA. Namibia is currently negotiating an Economic Partnership Agreement with the EU through the SADC configuration.
• Multilateral

Namibia is a member of the WTO and grants at least MFN treatment to all its trading partners.. Namibia has GATS commitments in 3 sectors.

 NEED PRIORITIES  

• Namibia is having some difficulties implementing the WTO Agreements. Namibia is in the process of institutional and legislative reforms. The Government has been enacting new legislation, such as the Companies Law, Competition Law, and an Intellectual Property Law, in an effort to repeal old laws but still have no legislation on anti-dumping, safeguards or countervailing measures. The Ministry of Trade and Industry, responsible for the formulation and implementation of trade policy, has no legal experts to assist in the drafting of trade-related legislation.
• Furthermore, Namibia has no institutional experience on the past negotiations because South Africa negotiated on its behalf during the Uruguay Round. Training on negotiating skills would enhance Namibia's participation in the current negotiations under the Doha Development Agenda.

Source: Commonwealth Yearbook 2005, World Fact Book, WTO Secretariat.