Namibia's Persistent Inequality Hinders Economic Progress

Namibia remains one of the most unequal societies in the world more than three decades after gaining independence in 1990. Despite political stability, abundant natural resources such as diamonds, uranium, gold and emerging green‑hydrogen projects, wealth is highly concentrated, with a Gini coefficient among the highest globally. Economist and former Bank of Namibia Governor Tom Alweendo has warned that political liberation did not dismantle the structural disparities inherited from German colonial rule and South African apartheid.

Economic growth has slowed, with real GDP per‑capita rising only 1.7 % in 2025 after stronger gains in previous years. Unemployment, especially among youth, stays high and many households depend on social grants. While the services sector now accounts for about 55 % of GDP, the primary sector has contracted, notably the mining industry, where diamond production fell sharply due to weak global demand and competition from lab‑grown alternatives. Climate vulnerability further pressures agriculture. The combination of entrenched inequality, a faltering primary sector and external market challenges hampers Namibia’s broader economic transformation.