Namibia: 2023 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, December 12, 2023
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- Namibia: 2023 Article IV Consultation-Press Release; and Staff Report
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Bibliographic details
- Published: December 12, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400262012.002
Economic resilience and outlook
- Namibia has shown resilience to the negative shocks from the coronavirus disease 2019 pandemic and Russia’s war in Ukraine.
- Output has recovered to the pre pandemic level.
- Inflation has fallen below 6 percent, and expectations remain anchored.
- Official reserves, at 4.7 month of imports in September, exhibit adequacy consistent with the peg to the rand.
- Prospects are brightened with discovery of oil and gas reserves.
- Namibia is poised to benefit from the global pivot to green energy through its signature Green Hydrogen Project.
Fiscal position, public debt, and recommended consolidation
- Current challenges include elevated public debt and weak nonresource sector growth.
- Fiscal consolidation is recommended to:
- reduce public debt,
- create space for private sector growth.
- Reforms to strengthen the public financial management framework and the performance of state-owned enterprises are advised to:
- raise productivity,
- lay the basis for efficient management of potentially large revenues from natural resources.
Monetary framework and external sector
- The reserve position—4.7 month of imports in September—is viewed as adequate in the context of the peg to the rand.
- Low and anchored inflation (below 6 percent) supports monetary stability.
Natural resources, projects, and statistical needs
- Discovery of oil and gas reserves improves medium-term prospects.
- The Green Hydrogen Project positions Namibia to benefit from the global pivot to green energy.
- Enhancing statistical capacity is recommended for:
- consistent recording of transactions reflecting offshore oil-related activities,
- informing policy related to natural resource revenues and associated economic impacts.
Key findings and policy recommendations (bulleted)
- Findings:
- Resilience to recent global shocks (coronavirus disease 2019 pandemic and Russia’s war in Ukraine).
- Output recovered to the pre pandemic level.
- Inflation fell below 6 percent; expectations anchored.
- Official reserves at 4.7 month of imports in September.
- Discovery of oil and gas reserves; Green Hydrogen Project prospects.
- Policy recommendations:
- Pursue fiscal consolidation to reduce public debt and support private sector-led growth.
- Strengthen public financial management framework.
- Improve performance of state-owned enterprises.
- Enhance statistical capacity for consistent recording of offshore oil-related transactions.
International Monetary Fund. Namibia: 2023 Article IV Consultation—Press Release; and Staff Report (Country Report No. 2023/401), December 12, 2023.
Content in this bundle
- 1. Selected Economic Indicators, 2019–2028