The COVID–19 pandemic hit Namibia’s economy hard —it is expected to shrink by 7.9% in 2020 because of declines in tourism, retail, trade and investments, health, and education. That followed poor performances in previous years; the economy contracted in 2019 and 2017 and registered anemic growth in 2018 because of poor performance in construction and mining, persistent drought, and weakening demand for Namibian exports. The Bank of Namibia has maintained an accommodative policy stance to support a revival of the domestic economy. It reduced the policy rate by a cumulative 275 basis points to 3.75% in 2020.Inflation was on a downward trend during the 2016–20 period, reflecting steady decline in housing prices and transport costs. The fiscal deficit was estimated to widen to 12.5% of GDP in 2020 from 4.9% in 2019, due to a surge in pandemic-related spending and lower revenues. The increased expenditure in 2020 and subsequent fiscal deficit will require large public debt financing, with the public debt-to-GDP expected to rise substantially in financial years 2020/21 and 2021/22. The current account deficit narrowed from 3.4% of GDP in 2018 to 1.7% of GDP in 2019, before widening slightly to 1.9% of GDP by the end of 2020. The country’s reserves could cover 4.5 months of imports as at mid-2020, compared with 3.9 months in 2019, and are expected to remain at that level in the short to medium term. (Download detailed Analysis Source : Report African Economic Outlook 2021; AfDB)
At the end of 2016, the Namibian banking sector represented a total asset of $5.7 billion.
Credit distributed to businesses represents $2.6 billion and, more broadly, credit to private sector totaling $6.2 billion.
Namibian Stock Exchange has 42 listed companies, representing, at the end of 2017, a market capitalization of $2.5 billion.
Fundraising by private equity accounted for $53 million.