Namibia records 52.7% unemployment, a record among small states
By the AFREEQUE newsroom, based on The Namibian
Namibia has a broad unemployment rate of 52.7%, the highest among small states with comparable data. The situation persists despite its mining resources and infrastructure, while the country is considering developing its oil and gas sectors, according to the latest Ilostat estimates.
Namibia’s unemployment rate is slightly higher than Djibouti’s, at 52.5%, while landlocked Botswana, which partly relies on Namibian routes, records 22%. The analysis highlights that mining revenues do not automatically translate into broader job creation: mining is highly capital-intensive and can crowd out other export sectors.
Ida Williams believes that natural resource revenues should be reinvested in the local economy, particularly in skills, infrastructure that reduces costs for other sectors and domestic suppliers. Spending too quickly can increase budgetary pressures and the “Dutch disease”, a phenomenon in which resource revenues weaken other economic activities.
Botswana has invested its diamond revenues in infrastructure and education, but its economy remains concentrated on diamonds. The prospect of an oil and gas industry offers Namibia a new opportunity to diversify its economy, according to the economist.
