SACU, taxes drive Namibia’s economic growth

Namibia’s economy experienced notable growth in 2024, with both gross national income (GNI) and gross national disposable income (GNDI) increasing, according to the Namibia Statistics Agency (NSA) annual national accounts report.

GNI, which measures the income generated by Namibian factors of production both inside and outside the country, rose to N$236.9 billion in 2024, from N$217.9 billion in 2023.

“This represents a growth of N$19 billion, reflecting a healthy expansion in the national economy,” the NSA reports.

While GNI measures national income, GNDI, which includes net transfers from abroad, was higher than.

GNDI increased to N$268 billion, up from N$243.9 billion in 2023.

This increase is largely attributed to receipts from the Southern African Customs Union (SACU).

The government also experienced revenue growth, reaching N$91.9 billion in 2024 compared to N$81.2 billion in the previous year.

“The increase in government income is largely driven by higher receipts from SACU and increased taxes on income and wealth,” the report states.

Taxes on income and wealth rose to N$32.8 billion in 2024, up from N$28.5 billion in 2023, while SACU receipts grew from N$21.8 billion to N$27.1 billion over the same period.

Despite the positive growth in income, property income, which had been an important revenue source, declined by N$700 million in 2024, falling from N$6.6 billion in 2023.

Additionally, the value of Namibia’s economy increased by N$16.2 billion to N$245.1 billion in 2024, up from N$228.9 billion in 2023.

“The domestic economy has maintained a growth trend since 2021, recording a 3.7% increase in real value added in 2024, compared to the 4.4% growth seen in 2023,” the NSA reports.

The slower economic performance in 2024 is primarily attributed to a decline in the growth rate of primary industries, which contracted by 1.8%, in stark contrast to the 10% growth recorded in 2023.

The main contributor to this decline was the agriculture, forestry and fishing sector, which shrank by 2.7%.

This contraction was driven by weaker crop farming outputs and a drop in the production of preserved and prepared fish.

The annual national accounts report provides estimates on variables such as national income, savings, gross domestic product and external transactions.