Namibia - Future trends

Namibia's economic fortunes will continue to be dominated by neighboring South Africa for the foreseeable future. It is part of the Common Monetary Area (CMA) with Lesotho, South Africa, and Swaziland, and a member (with Botswana, Lesotho, South Africa, and Swaziland) of the Southern Africa Customs Union (SACU). CMA membership provides stability of exchange rates between the member countries and encourages trade between them, and SACU, by abolishing tariffs and other trade restrictions between members, also encourages trade. Its abundant mineral reserves and rich fisheries are expected to form the basis for Namibia's future economic prosperity.

The economy is expected to expand in the coming years owing to factors such as expanded output of offshore diamond mining, resumption of copper mining, and increased fish catches. Economic advancement has hitherto been accomplished primarily by the extractive (the withdrawal of natural resources by extraction with no provision for replenishment) industries and these benefits have yet to filter to the wider economy in terms of increased employment and more equitable income distribution.

Namibia has moved from colonial rule to independence with relatively little economic or social upheaval and has introduced public economic policies and physical infrastructure that should lead to long-term development and growth. The democratic process is well established, the government is secure, and the stability of the political process and the business environment is well established.