The Southern African country of Namibia, under its relatively new administration, led by the country’s first female president Netumbo Nandi-Ndaitwah, has initiated plans to regain its status as an upper-middle-income country.
- Namibia, under President Netumbo Nandi-Ndaitwah, is working to regain upper-middle-income status after being downgraded to lower-middle-income by the World Bank.
- The government targets 7% economic growth with initiatives focused on green hydrogen, renewable energy, and value-added manufacturing.
- Future goals include raising per capita income to $6,000 by 2030, generating 30,000 green jobs, and enhancing renewable energy capacity to 700 megawatts by 2028.
Very recently, the World Bank revised Namibia status to a lower-middle-income country, following some fiscal struggles the country had endured.
In response, Namibia’s current administration has set an economic growth target of 7%, which is expected to raise the country’s wealth status back to upper-middle-income.
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This plan is hoisted on its green hydrogen, renewable energy, and value-added manufacturing initiatives, which the country hopes would increase its Gross Domestic Product (GDP).
Prior to the World Bank’s downgrade, Namibia’s gross national income per capita slipped slightly below the $4,496 requirement, owing to decreased economic activity and increasing population growth.
As reported by Bloomberg, the country’s economy grew by 3.7% last year, down from 4.4% in 2023, due to a drop in mining activity.
“We take this to be a temporary setback,” President Netumbo Nandi-Ndaitwah said in the foreword to her government’s latest national development plan.
“It is possible to increase the per capita income above $6,000 by 2030.”
Namibia intends to generate 30,000 green employment by 2030 and nearly increase its renewable energy capacity to 700 megawatts by 2028.
It is projected that green hydrogen, in particular, would strengthen clean energy exports and serve as an anchor for future industrial growth.
The country is one of the world’s leading uranium producers, which solidifies it as a hub for green hydrogen and critical minerals.
Namibia also has plans to kickstart production of its offshore oil and gas discoveries by 2029.
The goal is to raise manufacturing’s GDP share from 15.6% to 18%.
The government will channel resource revenues, especially from mining, oil, gas, and green hydrogen, into strategic investments while also utilizing domestic and foreign public and private finance to fund its objectives.
Namibia’s regional energy goal with Botswana
In May, it was reported that Botswana and Namibia were taking crucial measures toward deeper regional energy integration, with talks starting about establishing a jointly operated oil refinery.
According to the Namibian, this effort, which aims to improve energy security and reduce dependency on imports, was a main agenda item during Namibian President Netumbo Nandi-Ndaitwah’s recent working visit to Gaborone, where she met with her Botswana counterpart, President Duma Boko.
Botswana and Namibia’s joint venture to build an oil refinery and potentially coordinate oil production activities has the potential to significantly alter the region’s energy landscape in several ways.
Namibia imported $1.52 billion of refined petroleum in 2023, making it the country’s largest import and ranking 92nd among global importers.
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Key suppliers were India ($395 million), the UAE ($284 million), Saudi Arabia ($206 million), Oman ($163 million), and Malaysia ($108 million), demonstrating Namibia’s reliance on foreign energy, mainly from Asia and the Middle East.
Botswana imported $1.08 billion in refined petroleum in 2023, making it the country’s largest import and ranking 105th out of 226 importers globally.
