South Africa occupied the German colony of South-West Africa during World War I and administered it as a mandate until after World War II, when it annexed the territory. In 1966 the Marxist South-West Africa People's Organization (SWAPO) guerrilla group launched a war of independence for the area that was soon named Namibia, but it was not until 1988 that South Africa agreed to end its administration in accordance with a UN peace plan for the entire region. Namibia won its independence in 1990 and has been governed by SWAPO since. Hifikepunye POHAMBA was elected president in November 2004 in a landslide victory replacing Sam NUJOMA who led the country during its first 14 years of self rule.

GOVERNMENT AND POLITICAL CONDITIONS

Namibia is a multiparty, multiracial democracy, with a president who is elected for 5-year term. The constitution establishes a bicameral Parliament and provides for general elections every 5 years and regional elections every 6 years. Members of the 72-seat National Assembly are elected on a party list system on a proportional basis. Members of the 26-seat National Council are elected from within popularly elected Regional Councils. The three branches of government are subject to checks and balances, and provision is made for judicial review. The judicial structure in Namibia largely parallels that of South Africa and comprises a Supreme Court, the High Court, and lower courts. Roman-Dutch law has been the common law of the territory since 1919. Namibia's unitary government is currently in the process of decentralization.

The constitution provides for the private ownership of property and for human rights protections, and states that Namibia should have a mixed economy and encourage foreign investment.

Sam Nujoma, leader of the South West Africa People's Organization (SWAPO), wasPresident from Namibia's independence in 1990 until 2005.In November 2004, citizens elected Minister of Lands, Resettlement and Rehabilitation Hifikepunye Pohamba to be the next President.Pohamba was inaugurated in March 2005 in conjunction with celebrations marking the country's fifteenth anniversary.International and domestic observers agreed the 2004 elections were generally free and well administered despite some irregularities. Pohamba was elected President with 76.4% of the vote.SWAPO won 55 of the 72 elected seats in the National Assembly.Six opposition parties won a total of 17 seats, including the Congress of Democrats party, which won the largest number of opposition votes; the Democratic Turnhalle Alliance; the National Unity Democratic Organization; the United Democratic Front; the Republican Party; and the Monitor Action Group.

Principal Government Officials
President--Hifikepunye Pohamba
Prime Minister--Nahas Angula
Deputy Prime Minister--Libertina Amathila
National Assembly Speaker--Theo-Ben Gurirab
National Council Chairperson--Asser Kapere
Minister of Foreign Affairs--Marco Hausiku
Minister of Defense--Major General Charles Namoloh
National Planning Commission Director--Helmut Angula
Namibia Central Intelligence Service Director--Lukas Hangula
Minister of Education--Nangolo Mbumba
Minister of Finance--Saara Kuugongelwa
Minister of Safety and Security--Peter Tsheehama
Minister of Trade and Industry--Immanuel Ngatjizeko
Minister of Home Affairs and Immigration--Rosalia Nghindinwa
Minister of Information and Broadcasting--Netumbo Nandi-Ndaitwah
Minister of Justice--Pendukeni Iivula-Ithana
Minster of Mines and Energy--Erkki Nghimtina
Minister of Labor and Social Welfare--Alpheus Naruseb
Minister of Health and Social Service--Richard Kamwi
Minister of Agriculture, Water, and Forestry--Nickey Iyambo
Minister of Fisheries and Marine Resources--Abraham Iyambo
Minister of Environment and Tourism--Willem Konjore
Minister of Lands and Resettlement--Jerry Ekandjo
Minister of Regional and Local Government and Housing-- John Pandeni
Minister of Works, Transport and Communication-Joel Kaapanda
Minister of Gender Equality and Child Welfare--Marlene Mungunda
Minister of Youth and National Service--John Mutorwa
 

ECONOMY

The Namibian economy has a modern market sector, which produces most of the country's wealth, and a traditional subsistence sector. Namibia's gross domestic product (GDP) per capita is relatively high among developing countries but obscures one of the most unequal income distributions on the African continent. Although the majority of the population depends on subsistence agriculture and herding, Namibia has more than 200,000 skilled workers, as well as a small, well-trained professional and managerial class.

The country's sophisticated formal economy is based on capital-intensive industry and farming. However, Namibia's economy is heavily dependent on the earnings generated from primary commodity exports in a few vital sectors, including minerals, livestock, and fish. Furthermore, the Namibian economy remains integrated with the economy of South Africa, as the bulk of Namibia's imports originate there.

Since independence, the Namibian Government has pursued free-market economic principles designed to promote commercial development and job creation to bring disadvantaged Namibians into the economic mainstream. To facilitate this goal, the government has actively courted donor assistance and foreign investment. The liberal Foreign Investment Act of 1990 provides for freedom from nationalization, freedom to remit capital and profits, currency convertibility, and a process for settling disputes equitably.

Namibia is part of the Common Monetary Area (CMA) comprising Lesotho, Swaziland, and South Africa. Both the South African rand and the Namibian dollar are legal tender in Namibia, but the Namibian dollar is not accepted in South Africa. As a result of the CMA agreement, the scope for independent monetary policy in Namibia is limited. The Bank of Namibia regularly follows actions taken by the South African central bank.

Given its small domestic market but favorable location and a superb transport and communications base, Namibia is a leading advocate of regional economic integration. In addition to its membership in the Southern African Development Community (SADC), Namibia presently belongs to the Southern African Customs Union (SACU) with South Africa, Botswana, Lesotho, and Swaziland. Within SACU, no tariffs exist on goods produced in and moving among the member states. SACU is currently negotiating a Free Trade Agreement with the United States--the first of its kind in Sub-Saharan Africa. The SACU Secretariat is located in Windhoek.

Over 80% of Namibia's imports originate in South Africa, and many Namibian exports are destined for the South African market or transit that country. Outside of South Africa, the EU (primarily the U.K.) is the chief market for Namibian exports. Namibia's exports consist mainly of diamonds and other minerals, fish products, beef and meat products, grapes and light manufactures. Under the U.S. African Growth and Opportunity Act (AGOA), apparel exports are rapidly growing.

Namibia is seeking to diversify its trading relationships away from its heavy dependence on South African goods and services. Europe has become a leading market for Namibian fish and meat, while mining concerns in Namibia have purchased heavy equipment and machinery from Germany, the United Kingdom, the United States, and Canada. The Government of Namibia is actively taking advantage ofAGOA, which will provide preferential access to U.S. markets for a long list of products. Since early 2002 several apparel manufacturers have invested in assembly facilities, generating thousands of jobs. At full production, these apparel plants are expected to export on an annual basis over $100 million worth of apparel products to the United States.

In 1993, Namibia became a General Agreement on Tariffs and Trade (GATT) signatory, and the Minister of Trade and Industry represented Namibia at the Marrakech signing of the Uruguay Round Agreement in April 1994. Namibia has been a member of the World Trade Organization since its creation in 1995 and is a strong proponent of the Doha Development Agenda announced at the Fourth Ministerial Conference in Doha, Qatar, in November 2001. Namibia also is a member of the International Monetary Fund and the World Bank, and participates in the European Union's Cotonou Agreement.

Mining and Energy
Mining contributed approximately 7% of GDP in 2003. Diamond mining activities alone represented more than 5%. Diamond production totaled 1.5 million carats in 2002, generating over $500 million in export earnings. Other important mineral resources are uranium, copper, lead, and zinc. Anglo American's $454 million Skorpion zinc mine, which opened in 2003, is projected to produce 12,500 tons of pure zinc per month. The country also is a source of gold, silver, tin, vanadium, semiprecious gemstones, tantalite, phosphate, sulfur, and salt.

During the pre-independence period, large areas of Namibia, including offshore, were leased for oil prospecting. Natural gas was discovered in 1974 in the Kudu Field off the mouth of the Orange River.The field is thought to contain reserves of over 1.3 trillion cubic feet.A decision to develop the field or not was expected in 2005.Offshore exploration licenses havebeen issued. Plans have been put forward to build the country's first combined cycle power station near Oranjemund. Government officials have warned that in the absence of new domestic sources of energy, Namibia will face power shortages as early as 2007.

Agriculture
Although Namibian agriculture--excluding fishing--contributed less than 5% of Namibia's GDP in 2003, about 70% of the Namibian population depends on agricultural activities for livelihood, mostly in the subsistence sector. In 2003, food and live animal exports constituted roughly 15% of total Namibian exports.

In the largely white-dominated commercial sector, agriculture consists primarily of livestock ranching. Cattle raising is predominant in the central and northern regions, while karakul sheep, goat, and ostrich farming are concentrated in the more arid southern regions. Subsistence farming is confined to the 'communal lands' of the country's populous north, where roaming cattle herds are prevalent and the main crops are millet, sorghum, corn, and peanuts. Table grapes, grown mostly along the Orange River in the country's arid south, are becoming an increasingly important commercial crop and a significant employer of seasonal labor.

The government's land reform policy is shaped by two key pieces of legislation: the Agricultural (Commercial) Land Reform Act 6 of 1995 and the Communal Land Reform Act 5 of 2002.The government remains committed to a 'willing seller, willing buyer' approach to land reform and to providing just compensation as directed by the Namibian constitution. As the government addresses the vital land and range management questions, water use issues and availability are considered.

Fishing
The clean, cold South Atlantic waters off the coast of Namibia are home to some of the richest fishing grounds in the world, with the potential for sustainable yields of up to 1.5 million metric tons per year. Commercial fishing and fish processing is one of the fastest-growing sectors of the Namibian economy in terms of employment, export earnings, and contribution to GDP.

The main species found in abundance off Namibia are pilchards (sardines), anchovy, hake, and horse mackerel. There also are smaller but significant quantities of sole, squid, deep-sea crab, rock lobster, and tuna. However, at the time of independence, fish stocks had fallen to dangerously low levels due to the lack of protection and conservation of the fisheries and the overexploitation of these resources. This trend appears to have been halted and reversed since independence, as the Namibian Government is now pursuing a conservative resource management policy along with an aggressive fisheries enforcement campaign.

Manufacturing and Infrastructure
In 2004, Namibia's manufacturing sector contributed about 11% of GDP. Namibian manufacturing has historically been inhibited by a small domestic market, dependence on imported goods, limited supply of local capital, widely dispersed population, small skilled labor force and high relative wage rates, and subsidized competition from South Africa. As of early 2004, AGOA had brought close to $300 million in investment and over 9,000 jobs in the textile industry.

Walvis Bay has a well-developed, deepwater port, considered by many the best in Western Africa, and Namibia's fishing infrastructure is most heavily concentrated there. The Namibian Government expects Walvis Bay to become an important commercial gateway to the Southern African region.

Namibia also boasts modern civil aviation facilities and an extensive, well-maintained land transportation network. Construction continues to expand two major arteries--the Trans-Caprivi and Trans-Kalahari Highways--which will further open up the region's access to Walvis Bay.

Tourism
Tourism is a rapidly growing sector of the Namibian economy and a significant generator of employment. It is the third-largest source of foreign exchange after mining and fisheries. Although the majority of Namibia's international visitors originate in the region, other international travelers are increasingly attracted by the country's unique mix of political stability, cultural diversity, and geographic beauty. Tourism in Namibia has had a positive impact on resource conservation and rural development. Some 29 communal conservancies have been established across the country, resulting in enhanced land management while providing tens of thousands of rural Namibians with much needed income.

Labor
While most Namibians are economically active in one form or another, the bulk of this activity is in the informal sector, primarily subsistence agriculture. In the formal economy, official estimates of unemployment range from 30% to 40% of the work force. A large number of Namibians seeking jobs in the formal sector are held back due to a lack of necessary skills or training. The government is aggressively pursuing education reform to address this problem.

Namibia's largest labor federation, the National Union of Namibian Workers (NUNW) represents workers organized into seven affiliated trade unions. NUNW maintains a close affiliation with the ruling SWAPO party.

In late 2004, Namibia passed a new 'Labour Act' to replace legislation dating back to 1992. The law was to be stricter with respect to discrimination in the workplace and was to establish new protections for pregnant workers as well as employees infected with HIV/AIDS.