Namibia’s economy is tied closely to South Africa’s due to their shared history. The largest economic sectors are mining (10.4% of the gross domestic product in 2009), agriculture (5.0%), manufacturing (13.5%), and tourism.
Namibia has a highly developed banking sector with modern infrastructure, such as online banking and cellphone banking. The Bank of Namibia (BoN) is the central bank of Namibia responsible for performing all other functions ordinarily performed by a central bank. There are 5 BoN authorised commercial banks in Namibia: Bank Windhoek, First National Bank, Nedbank, Standard Bank and Small and Medium Enterprises Bank.
According to the Namibia Labour Force Survey Report 2012, conducted by the Namibia Statistics Agency, the country’s unemployment rate is 27.4%. “Strict unemployment” (people actively seeking a full-time job) stood at 20.2% in 2000, 21.9% in 2004 and spiraled to 29.4% in 2008. Under a broader definition (including people that have given up searching for employment) unemployment rose to 36.7% in 2004. This estimate considers people in the informal economy as employed. Labour and Social Welfare Minister Immanuel Ngatjizeko praised the 2008 study as “by far superior in scope and quality to any that has been available previously”, but its methodology has also received criticism.
The cost of living in Namibia is relatively high because most of the goods including cereals need to be imported. Business monopoly in some sectors causes higher profit bookings and further raising of prices. Its capital city, Windhoek is currently ranked as the 150th most expensive place in the world for expatriates to live.
Taxation in Namibia includes personal income tax, which is applicable to total taxable income of an individual and all individuals are taxed at progressive marginal rates over a series of income brackets. The value added tax (VAT) is applicable to most of the commodities and services.
Despite the remote nature of much of the country, Namibia has seaports, airports, highways, and railways (narrow-gauge). The country seeks to become a regional transportation hub; it has an important seaport and several landlocked neighbours. The Central Plateau already serves as a transportation corridor from the more densely populated north to South Africa, the source of four-fifths of Namibia’s imports.