This country profile was published in November 2008 in our annual 'Africa in 2009' issue. The next edition, 'Africa in 2010' will be on sale 23 November 2009.

Click on the drop-down menu above to see Namibia's Top Companies and Top Banks.

In uncanny reflection of the succession crisis at the top of South Africa's liberation movement-cum-ruling party, Namibia is facing uncertainty about who will lead it through its late-2009 elections. President Hifikepunye Pohamba's low-key, collegiate style and promotion of anti-corruption measures may be popular with Namibians, but his hold on the ruling South West African People's Organisation (SWAPO) is questionable, as he has been criticised for not consulting sufficiently with younger members of the central committee and supporters of former President Sam Nujoma.

Nujoma may not hold a formal position within the party leadership but he exercises a strong influence over its affairs. He may back SWAPO vice-president Hage Geingob as the party's presidential candidate for the next elections. In that event, Geingob, a Damara, would become the first non-northerner and non-Oshivambo (Namibia's largest community) head of state. Another contender is SWAPO secretary general and justice minister Pendukeni Iivula-Ithana, who heads the powerful so-called 'Omusati group' of northerners.

SWAPO will go all out to vilify former members who deserted for the Rally for Democracy and Progress (RDP) in 2007. Headed by the former cabinet minister Hidipo Hamutenya, the RDP targets voters in SWAPO's northern heartland, leading to accusations of tribalism from the ruling party (Hamutenya is a Kwanyama, the biggest Oshivambo sub-group).But the RDP was decisively beaten by SWAPO in the first electoral test in end-September 2008 local polls in the north, and will struggle to make real inroads. While other parties will contest the elections, there is little prospect of an effective opposition alliance.

The government's black economic empowerment policy framework will be out soon, with private sector firms encouraged to sell minority stakes to Namibian empowerment groups with a similar score-card system as used in South Africa. Some empowerment deals have already been concluded, mainly in the financial and mining sectors.

High fuel and food prices caused inflation to rise to 12% year-on-year in August 2008, but this is expected to moderate in the first half of 2009 and the Bank of Namibia will gradually decrease interest rates from the current 10.5%. High world commodity prices have benefited Namibia's export-orientated economy and despite recent declines are expected to remain well above the long-term average in 2009. GDP growth is projected at 3.9% in 2008 and 4.5% in 2009.

Continued growth in the value of diamonds, uranium and base metals will help Namibia maintain a strong current account surplus and substantial foreign exchange reserves. Output of rough diamonds by Namdeb, the government/De Beers joint venture, will decline from the current annual level of 2.3m carats of high-quality gemstones. The government is pressing for diamond beneficiation and expanded uranium production. Under a January 2007 agreement with De Beers, a proportion of Namdeb's output is now being sold to 11 local cutting and polishing firms along with diamond parcels from De Beers' Diamond Trading Company in London. Output at Namibia's two existing uranium mines, Rossing and Langer Heinrich, is being expanded and three to four new mines may open in the Namib Desert by 2012.

There could soon be a start on the long-delayed development of the Kudu offshore gas field to supply gas to an 800 MW power station at Oranjemund, with potential for exports to South Africa and overseas markets.