Namibia Enters 3rd Year Free, Hurting Financially

Namibia has entered its third year of independence from South Africa, peaceful and free but struggling with economic woes.

“Our country is no longer a pariah state . . . But we must meet the challenges with courage and hard work,” President Sam Nujoma said in a speech marking the anniversary.

The worst drought in decades and a slump in demand for uranium and diamonds, Namibia’s main exports, have pushed unemployment to at least 40% in the mainly desert country, which is twice the size of Germany and has a population of 1.5 million.

The capital, Windhoek, where government leaders converged for a day of celebrations and fireworks, is swollen with migrants and plagued by crime.

Inflation, around 11% at independence, is now 18%. Much of the country’s wealth remains in the hands of a tiny white minority.

But while SWAPO--the South West Africa People’s Organization--has found the economy tough going, diplomats praise it for making an effective transition from 23 years of guerrilla war to elected, pragmatic government.

“The fact that Namibia is no longer in the news shows how peaceful and stable the country has become,” said one foreign envoy.

Gross domestic product grew 5.1% last year, compared to 2.7% in 1990, he said.

Prime Minister Hage Geingob told reporters that “major successes were achieved in the short span of two years. We succeeded in ensuring peace and stability.”

He pointed to a unified defense force created out of two former enemy armies, moves to improve health conditions and the award of Namibia’s first oil and gas exploration license.

Nujoma called for improved irrigation and development of drought-resistant crops. He said he would promote industrialization, trade and financial services to lessen dependence on a faltering mining sector.

Law and order is of great concern, he said. “We need to create a socioeconomic environment to remove these evils. We have a responsibility to ensure crime does not go unpunished.”

Formerly known as South-West Africa, Nambia was ruled by South Africa for 75 years. It became independent on March 21, 1990, under a U.N.-sponsored peace plan linked to the withdrawal of Cuban troops from neighboring Angola.

Hoped-for foreign investment has not poured in. Government is hampered by a legacy of inefficient bureaucracy. Western nations diverted much potential aid to emerging democracies in Eastern Europe.

The economy is still closely tied to South Africa. Efforts to develop tourism or other industrial alternatives to the mines have met little success.