ICEIDA Annual Report 2006

Introduction
In 2006, the Namibian economy is estimated to have done moderately better than in 2005,
improving by approximately 0.4%. The growth is attributed to the strong performance in
primary industries, particularly in the mining sector, while the performance in agriculture and
fishing was disappointing. The inflation rate increased considerably during 2006, with an
average inflation rate of 5.1%. This is much higher than the 2.2% recorded in 2005, and this
increase can largely be attributed to rising and volatile international oil prices.
The Namibian government has made a commendable effort to reduce its budget deficits and
the public debt. For the fiscal year 2006/2007, a budget surplus of 2.2% is projected. This
would be the first budget surplus since independence. The education sector is one of the main
concerns of the Namibian government. One cause for concern is that more than half of the
31,493 Grade 10 pupils, who took the Junior Secondary Certificate examinations towards
the end of 2006, failed to progress to Grade 11. The students that fail have very few options
and most end up unemployed. A labour force survey published during the year estimates the
unemployment rate at 36.7%, so the options for these students are extremely limited.
The government launched a 15 year Education and Training Sector Improvement Programme
(ETSIP) which aims to improve education and training outcomes by responding to key
weaknesses in the current education and training systems.
NAMIBIA
In the beginning of the year, an Anti-Corruption Commission was inaugurated. Its main purpose
is to fight and uncover corruption in Namibia.
Namibia - Key Figures
Land area 825,418 km 2
Population
2,04 million
Population growth rate 1%
GDP per capita
3,206 US$
GDP per capita PPP
7,513 US$
GDP growth rate 2,9%
Life expectancy at birth
47,2 years
Adult literacy rate (age 15 and above) 85%
HIV/AIDS prevalence 19,6%
Iceida AID 2006
2.016.906 US$
Statistical Sources: Economist Intelligence Unit; Country Profile Namibia 2007 and Human
Development Report 2006, Published by the United Nations Development Programme
Health issues continue to be of great importance to the Namibian government. HIV/AIDS,
tuberculosis and malaria affect Namibia adversely, with HIV/AIDS being the single largest
obstacle to sustainable human development. In May, the first case of polio for ten years was
reported in Namibia. Close to 300 cases were reported throughout the year and over 30
deaths. The Namibian government swiftly responded by initiating three rounds of mass polio
vaccination campaigns with an estimated coverage close to 90%. In the beginning of the year,
farmers reportedly were praying for rain. Their wish came true, as good rains were experienced
in the first half of the year. However, there can be too much of a good thing. In some regions,
harvest failed due to late rains and flooding resulted in food shortage in some rural areas. A
number of dams filled beyond capacity and floodgates had to be opened. This flooded half of
the town of Mariental in southern Namibia.
ICEIDA’s Development Co-operation
All ICEIDA projects and activities in Namibia are carried out under the General Agreement on
Bilateral Cooperation between the government of Iceland and the government of Namibia.
In 2004, this agreement was extended until the end of 2007. In early 2006, the government
of Namibia requested an extension of the agreement. The government of Iceland responded
favourably and Mr. Einar K. Guðfinnsson, Minister of Fisheries in Iceland signed an extension
of the agreement during his visit to Namibia in August. The agreement between the two
governments now runs until the end of 2010.
24