UNPACKING NAMIBIA'S ECONOMIC DIVIDE: GROWTH vs. DEVELOPMENT

Namibia, with its stunning scenery and vast untapped opportunities, is frequently recognized for its rich natural resources. From the mining industry, which plays a crucial role in the country’s GDP, to the burgeoning sectors of tourism and agriculture, Namibia’s economic growth seems undeniable. However, a closer look at the lived experiences of many Namibians reveals a stark contrast: while GDP figures rise, a significant portion of the population struggles to meet basic needs. So, what’s happening behind the numbers? 

Namibia’s economic growth, reflected in rising GDP, often masks the inequality that persists across the country. High profits from industries like mining and tourism have fueled an economy that thrives on exports, primarily benefitting large corporations and foreign investors. However, many Namibians living in rural areas or informal settlements are excluded from these benefits. Despite the country’s resource wealth, poverty and unemployment remain deeply entrenched. According to the World Bank, Namibia's GDP grew by 3.3% in 2023, but unemployment remains high, hovering around 34.5% as of the latest report from the Namibian Statistics Agency.

This divide raises pressing questions: Is wealth flowing disproportionately to foreign investors, leaving local communities behind? Are the people who should benefit from Namibia’s natural wealth being sidelined as industries boom? How can we explain the rising GDP, paired with an expanding informal settlement problem? 

Namibia’s informal settlements have also seen rapid growth. In Windhoek alone, over 40% of the population now resides in these areas, where access to basic services like clean water and sanitation remains limited. The government’s own estimates suggest that informal settlements have expanded by nearly 5% annually in recent years, leaving many Namibians living in substandard conditions.

The difference between economic growth and economic development lies in their scope and impact. Economic growth, often measured by GDP, reflects the increase in the value of goods and services produced in a country. While this is an important indicator of a nation’s wealth, it doesn’t tell the whole story. Economic development, on the other hand, goes beyond numbers; it focuses on improving the quality of life for citizens, addressing issues such as poverty, inequality, education, and health.

The fact that Namibia's GDP is growing doesn’t necessarily equate to a broader improvement in citizens' well-being. In fact, for many, life in the sprawling informal settlements, lacking access to basic services like water, sanitation, and healthcare, remains harsh. Without policies that ensure the benefits of economic activity reach the grassroots level, Namibia risks becoming a country of “haves” and “have-nots.”

Can Namibia shift the focus from mere growth to genuine development? The answer lies in adopting policies that prioritize social inclusion, equitable wealth distribution, and the empowerment of local communities. Efforts must be made to ensure that industries are not just booming for foreign investors but also creating jobs and uplifting communities across the nation. The Namibian government has already pledged to create 12,000 new jobs annually, but it remains to be seen if this will be enough to address the high unemployment rate.

In a country rich with resources, true economic development would focus on the well-being of every Namibian, from the urban elites to those living in informal settlements. The question is not only about growing the economy but also about ensuring that the benefits of this growth reach every corner of the nation. 

As Namibia continues to navigate its economic future, it’s essential to look beyond the numbers and embrace a holistic approach to development, one that guarantees that all citizens benefit from the nation’s wealth.