Travel Reference
In-Depth Information
UNDERSTAND NAMIBIA
Namibia Today
Namibia is presently one of the better-performing democracies in Africa, and it scores
comparatively well in world development indicators assessed by the World Bank. Although
it was affected by the global recession in 2008-09, its mineral deposits have ensured its
economy rebounded as uranium and diamond prices recovered in 2010. In 2011 the gov-
ernment announced it had discovered an estimated 11 billion barrels of offshore oil re-
serves.
Following a visit by the Chinese president Hu Jintao in 2007, China has provided loans,
grants and credits to Namibia as their relationship has continued to strengthen. Trade has
increased enormously between the two countries in recent years. China has also shown a
firm interest in Namibia's mineral deposits, with Chinese state interests applying for many
exclusive prospecting licences; Chinese mineral exploration and development companies
are also jointly developing mineral deposits, especially around Grootfontein. The China
Guangdong Nuclear Power Corp (CGNPC) plans to open one of the world's biggest urani-
um mines in Namibia by the end of 2015.
With inflation topping 7% in late 2012, living costs are on the rise for most Namibians.
Worryingly, food prices are part of the core reason for the increase. The rise in inflation
was attributed to a weaker exchange rate, in part due to the recent labour unrest in South
Africa, which resulted in the country's credit rating being downgraded.
Although Namibia is in relatively good shape compared to the rest of the region, and for
that matter the continent, poverty and disease are still enormous challenges for the govern-
ment. Namibia has one of the most unequal income distributions in the world. According to
the United Nations Development Programme, the recent Namibia Household Income and
Expenditure Survey found more than one in four households lived in poverty, and the
poorest 10% of households commanded just 1% of the country's total income while the
wealthiest 10% controlled more than half. These are shocking statistics in a country with so
much apparent wealth and resource potential, and clearly put into context the challenge for
the Namibian government.
In an example that more politicians across the region could follow, a local Windhoek
councillor is using his entertainment allowance to buy gardening tools, seeds and manure to
help needy residents in his constituency. Most of the people he supports are tuberculosis
