Namibia: 2023 Article IV Consultation-Press Release; and Staff Report

This 2023 Article IV Consultation highlights that 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. At the same time, Namibia is poised to benefit from the global pivot to green energy through its signature Green Hydrogen Project. Namibia should continue to tackle its current challenges of elevated public debt and weak nonresource sector growth. Fiscal consolidation will help reduce public debt and create space for private sector growth. Reforms to strengthen the public financial management framework and the performance of state-owned enterprises can raise productivity and lay the basis for efficient management of potentially large revenues from natural resources. Enhancing statistical capacity for consistent recording of transactions reflecting offshore oil-related activities would help inform policy.