“There’s quite a feeling that the economy is still robust and that growth is going to come through between 4.5 to five per cent range for growth over the next two years mainly driven by mining sector. USAB Mine is coming on the stream in 2015 and there’s construction as well including mining sector related construction that’s still propelling growth,” Dlamini said.
Dlamini said Namibia’s future outlook looks promising because it will be dealing directly with the People’s Republic of China, which is less affected by the global commodity price volatility. He said Chinese investors are already pouring into the country exploring other sectors to benefit the economy.
“To a large extent the demand that is seen by Namibia is from China that’s why you see the Chinese mines coming on the stream. The Chinese are still buying and kind of ignoring a bit of the fundamentals that are supposed to be driving the prices. Namibia can bank on that, the fact that it’s a little bit different for them – for their mining sector activities,” Dlamini added.
Dlamini said Namibia is also positioning itself for growth through infrastructure development for export evolution.
“On top of that there’s lot of other benefits for instance you say 11 per cent of GDP but the multiplier effect they are expanding the ports because of other industries that will benefit from a mining boom,” he said.
Namibia recently discovered huge iron ore deposits worth billions of dollars and is expected to start mining by 2016.
Namibia’s growth prospects for the medium term remain favourable, forecasted at 4.2 per cent for 2013/14.
As the country approaches parliament elections next year, it still struggles with unemployment and government contingent debt owed by state enterprises.