SOURCES OF GROWTH IN AFRICA: A CASE STUDY OF NAMIBIA

By

John E. Odada

University of Namibia

Faculty of Economics and Management Science

And

Tekaligne Godana

Namibia Economic Policy Research Unit
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AAPS¨C Association of African Planning Schools

This study attempts to explain Namibia¡¯s growth performance and its structural transformation over the last three to four decades. The approach taken is one of a regional and international perspective. The study locates the Namibian growth experience in relation to what could be expected from a country with Namibia¡¯s features. It is argued in this study, that Namibia¡¯s growth experience and its economic structure significantly differ from the growth model predictions based on the experiences of a cross-section of countries.

Namibia¡¯s historical experience has significantly shaped its growth path as well as its structural features. Its long colonial history, its proximity to and complete integration with a bigger and more developed economy ¨C South Africa - has had a more determining effect on its growth path than the conventional factors considered in the growth models. The main argument is that while the economy of Namibia has had a strong natural resource endowment, the country¡¯s membership of the Southern African Customs Union (SACU) has inhibited the pace of diversification of the economy. Therefore, it is imperative that we briefly review the colonial history of Namibia and its regional economic integrative process. Such a historical context will facilitate a better understanding of the country¡¯s growth experience.

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