Namibia has weathered a period of slow global and African growth. Growth should reach 2% in 2016, a notch above the African average of 1.4% (see chart 1), but is set to pick up to 4.0% in 2017 and 5.0% in 2018. Namibia has been hit by economic stagnation in South Africa its main trading partner, and by the global commodity price slump. Yet investment in infrastructure has increased the productivity of offshore diamond extraction (for which Namibia is a world leader), and the uranium, gold, and copper sectors. The result is a more resilient economy.
As the investments reap returns, it will allow the country to absorb some of the terms of trade deterioration caused by low for long commodity prices, and return on a path of higher growth. A thriving mining sector is also crucial for government finances, as it accounts for 50% of export revenues.