Namibia, located at the borders of the South Atlantic Ocean, is a Southern African country that is resilient in every aspect -- from challenging terrains to an ever-evolving market. It's a country filled with opportunities for investors who are willing to leverage and create stable relationships for a successful future.
The government of Namibia has decided to focus on key sectors of its economy to build a competitive economy and develop key infrastructures around water, transport, power generation, and ties with SADC states.
Government and non-government organizations are taking prominent measures to bridge the talent gap in the country.
Overview of Namibia
Population: Namibia has a population of over 2 million with diverse ethnic groups like Ovambo, Kavango, Damara, mixed European, Nama, Caprivian, San, Baster, and Tswana.
GDP:12.566 Billion USD
Namibians are rural dwellers, over the years they have migrated towards agriculture, mining, and manufacturing as the country started to develop economically.
The labor force of Namibia is divided between industry, agriculture, and services. A few of the key industries are dairy products, mining, beverages, and fish processing. Namibia has also relied on tourism as it has an array of national parks that generate a considerably large amount of revenue.
Mining is a key industry in Namibia as it accounts for about 12.5% of GDP and provides more than 50% of the foreign exchange earnings. Namibia has decided to reduce the price of mining by developing infrastructure for local manufacturing and improve logistics and transportation services.
With various developments taking place in key industries, the market size of Namibia is well equipped to welcome new investors and businesses. Despite the challenges faced due to the Covid 19 pandemic, significant growth has been predicted with a focus on exports and the development of infrastructure for key industries.
The majority of the industries are now incorporating a work-from-home model to combat the spread of Covid 19, the speed of broadband and mobile internet are estimated at around 19.59 Mbps for download and 12.03 Mbps for upload. Internet connectivity has been prioritized across the industries to promote ease of work.
A Brief Glimpse Of Industries
With plans to increase export volumes of beef to the United States and other international markets, Namibia presents several opportunities in this industry.
The agricultural sector has always remained important to most of Namibia’s population, with key contributions from mining and retail. According to several studies, there is an underutilization of local exports. With the right business model and perspective, this is a golden opportunity for upcoming investments to exploit. With projects like Feedlot, Namibia aims to improve the quality of its products, and implement innovative technology towards irrigation, cattle mixing, and batching.
Top Skills Required In Agri-Business
- Business Skills
- Sales Skills
- Communication Skills
- Customer Relation Skills
Namibia has always faced challenges in the education sector, there is still a lack of facilities to provide quality education to children for various regions, especially in the rural areas. Over the years Namibia has made several changes in the education sector, they have made it compulsory for children of age 6-16 to attend school. The government has extended support to both men and women to attend school. The budget for education has also increased, this has led to free education and school supplies for children across Namibia. The Kids Paradise Namibia is one of the many initiatives that has been developed to help solve the problem of early childhood recreation, career guidance, and overall educational needs.
Top Skills Require In The Education Sector
- Good Academic Record
Namibia has imminent plans to replace fossil fuel-fired power stations, as the power demand is expected to rise by 5% annually. Namibia also has a high potential for solar, wind, and biomass generation as it plans to develop infrastructure that will further boost the energy sector.
Namibia is on the top of the 10 listed countries for the possession of uranium making it the sole supplier of 8.2% of the global uranium production.
Namibia is focused on giving opportunities to privately owned large-scale power plants, by taking advantage of the many thermal resources to produce power. It has also planned to develop Kudu gas and deliver it through pipelines that connect to the Namibian and South African electricity grids.As Namibia moves away from its dependency on imports, it has also developed plans to create energy through the development of power plants, taking advantage of its coastal regions in producing power through wind energy.
Top Jobs In The Energy Sector
- Mechanical Engineer
- Electrical Engineer
- Wellsite Geologist
- Environmental Consultant
Namibia is well known for its road network making it the best in Africa, with plans to tar approximately 1,450 km of roads in the next five years, it continues to build on its road network. There are also plans to develop durable paper bags without depending on imports, giving better opportunities for local manufacturers.
Namibia also has initiatives to construct affordable housing and infrastructure, engaging local manufacturers to produce building supplies to meet the infrastructure needs.
With abundant sources of wood, Namibia has developed projects to convert wood to charcoal for export to South Africa, Europe, and the Middle East.
Top Skills Required In The Manufacturing Sector
- Critical Thinking
- IT Skills
- Soft Skills
Cost Of Living
With average consumption, the cost of living for two individuals is roughly 12,127 NAD/Month (814.43 USD)
The average cost of living for popular cities in Namibia are:
- 17,503 NAD/Month (1,175.51 USD) for Windhoek
- 14,245.68 NAD/Month (956.70 USD) (Excluding Rent) for Okahandja
- 14,174.05 NAD/Month (951.89 USD for Rehoboth
Cost Of Renting
Namibia is aware of the many challenges the current economy presents, especially after the outbreak of Covid-19. However, these challenges have not stopped them from developing alternate solutions to overcome the market slump. Namibia continues to push forwards with its developments in key industries like Agri-business, Education, Energy, and Manufacturing.
Situated within the capital of Namibia, Khomas is a hub for various opportunities in the healthcare sector, transport, and private-public partnerships. It is the region with the highest population, offering a talented workforce in a competitive economy.
Hardap region prioritizes the development of infrastructure for roads and the health sector. The first large-scale photovoltaic power plant in Namibia is also situated in the Hardap region, opening various opportunities for investments in the energy sector.
With a stable increase in investments in key sectors like agriculture, tourism, and mining, the Kunene region has been allocated over NAD 400 million during the 2019/20 financial budget. Sanitation and education have been prioritized as Kunene welcomes potential investors.
This region is well known for its fishing industry and is one of the biggest producers of uranium in the world being the uranium belt of Namibia. It offers opportunities for investors to invest in developing desalination plants for a better water supply throughout Namibia.
Kavango East Region
This region has great potential for the cultivation of various crops as it receives good rainfall over the year. It is currently well known for the various developments in the manufacturing industry, but it also has great potential in agriculture.
Hiring Cost in Namibia
The average salary of an individual in Namibia is roughly around 17,400 NAD/Month (1168.54 USD), with salaries ranging from 4,410 NAD (296.16 USD) to 77,900 NAD (5231.55 USD).
As an individual surpasses the 10-year mark, his/her salary increases by 21%, and 15% if he/she crosses the 15-year mark.
The main sources of Namibian Labour Law are the Common Law, Case Law, and Legislation, the responsibility to comply with these laws is solely placed upon the employee.
The Labour Act came into operation in 2008, it applies to all employers and employees in Namibia, excluding independent contractors.
The employment agreement does not need to be in writing, it includes key points like compensation payable to the employee, favorable conditions for working, and services rendered by the employee.
The employer is obligated to compensate for the work done by his/her employees, provide a safe working environment and meet the minimum employment conditions for the employees.
Employment decisions should not discriminate against any employee on the grounds of gender, family responsibility, and during the interview process.
Basic wages of an employee are calculated with key parameters like overtime worked, night work allowance, work done on Sundays, and work done on public holidays.
The employee must remain obedient, maintain good faith and provide the necessary services required by the employer.
Unfair labor practices include refusal to bargain collectively, bargain in bad faith, unilaterally altering the term of employment, and engage in conduct that intimidates or subverts orderly collective bargaining.
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