Abstract
Namibia’s government has launched a major three-year fiscal initiative in 2011 aimed at increasing growth and employment. Public debt is rising rapidly, from a low base. The authorities intend to unwind the fiscal expansion in 2014. Fiscal consolidation would help keep public debt to a manageable level, support the economy’s external position, and provide room to maneuver if further shocks arise, including a potential fall in revenues from the Southern African Customs Union. The authorities reaffirmed their intention to support the exchange rate peg against the South African rand.
FUND RELATIONS
As of November 30, 2011,
Membership Status
Joined September, 1990; Article VIII
General resources account
| SDR (million) | Percent of Quota | |
| Quota | 136.50 | 100.00 |
| Fund holdings of currenty | 136.43 | 99.95 |
| Reserve position in Fund | 0.08 | 0.06 |
| SDR (million) | Percent of Quota | |
| Quota | 136.50 | 100.00 |
| Fund holdings of currenty | 136.43 | 99.95 |
| Reserve position in Fund | 0.08 | 0.06 |
SDR Department
| SDR (million) | Percent of Quota | |
| Net cumulative allocation | 130.39 | 100.00 |
| Holdings | 5.27 | 4.04 |
| SDR (million) | Percent of Quota | |
| Net cumulative allocation | 130.39 | 100.00 |
| Holdings | 5.27 | 4.04 |
Outstanding Purchases and Loans
None
Financial Arrangements
None
Project Obligations to Fund
None
Implementation of HIPC Initiative
None
Exchange Rate Arrangements
The exchange rate of the Namibian dollar is a fixed peg to the South African Rand. Namibia accepted the obligations of Article VIII, Sections 2, 3, and 4 of the Fund’s Articles of Agreement, as of September 20, 1996. While Namibia is currently judged by the Fund to maintain an exchange system free of restrictions on the making of payments and transfers for current international transactions, staff is in the process of gathering information to make an assessment of whether measures introduced by authorities concerning a limit (50 percent of the ex-factory cost) on the provision of foreign exchange for advance payment for the import of capital goods may give rise to exchange restrictions subject to Fund jurisdiction.
Article IV consultation
Namibia is on a standard 12-month consultation cycle. The last Article IV consultation was concluded by the Executive Board on July 23, 2010.
Technical Assistance, 2006–11
| Department | Dates | Purpose |
| FAD | February 2006 | Modernizing Tax Administration |
| February 2006 | Fiscal Regime for Mining and Processing | |
| June 2006 | ROSC | |
| April 2007 | Revenue Modeling and Forecasting | |
| September 2008 | Public Financial Management | |
| April 2009 | Incorporating Budget Programs in the Government Accounting System | |
| June 2009 | PPPs: Building a Framework for managing fiscal Risks | |
| November 2009 | Follow up to Program Budgeting | |
| January 2011 | Initiating Tax Administration Reform | |
| January 2011 | Developing the Agenda for Tax Reform | |
| February-March 2011 | Managing the Budget on a Program Basis (MBPB) | |
| MCM (MFD) | June 2005 | Payment Oversights |
| April 2006 | Payment Systems | |
| May 2006 | Nonbank Financial Institutions Supervision | |
| October 2006 | Lending policy, Monetary Operations, and Bank Supervision | |
| March 2007 | Risk-based Supervision | |
| August 2007 | Payments Systems | |
| April 2008 | Risk-based Supervision | |
| November 2008 | Risk-based Supervision | |
| July 2009 | Risk-based Supervision | |
| March 2010 | Payments Systems | |
| January 2011 | Supervision of NBFIs | |
| December 2011 | Stress testing training | |
| STA | May 2006 | National Accounts (GDDS Project) |
| June 2006 | Government Finance Statistics (GDDS Project) | |
| November 2006 | SDDS Project | |
| October 2007 | Monetary and Financial Statistics | |
| April 2008 | Government Financial Statistics | |
| May 2008 | National Accounts | |
| July 2008 | Monetary and Financial Statistics | |
| July 2008 | National Accounts (SDDS project) | |
| July 2008 | Balance of Payments Statistics | |
| November 2008 | National Accounts | |
| April 2009 | Government Finance Statistics (GFSM 2001) | |
| Jan.-Feb. 2010 | National Accounts | |
| April 2010 | Balance of Payments Statistics | |
| April 2010 | National Accounts (SDDS Project) | |
| Nov-Dec 2010 | Quarterly National Accounts | |
| May 2011 | Monetary and Financial Statistics (EDDI Project) |
| Department | Dates | Purpose |
| FAD | February 2006 | Modernizing Tax Administration |
| February 2006 | Fiscal Regime for Mining and Processing | |
| June 2006 | ROSC | |
| April 2007 | Revenue Modeling and Forecasting | |
| September 2008 | Public Financial Management | |
| April 2009 | Incorporating Budget Programs in the Government Accounting System | |
| June 2009 | PPPs: Building a Framework for managing fiscal Risks | |
| November 2009 | Follow up to Program Budgeting | |
| January 2011 | Initiating Tax Administration Reform | |
| January 2011 | Developing the Agenda for Tax Reform | |
| February-March 2011 | Managing the Budget on a Program Basis (MBPB) | |
| MCM (MFD) | June 2005 | Payment Oversights |
| April 2006 | Payment Systems | |
| May 2006 | Nonbank Financial Institutions Supervision | |
| October 2006 | Lending policy, Monetary Operations, and Bank Supervision | |
| March 2007 | Risk-based Supervision | |
| August 2007 | Payments Systems | |
| April 2008 | Risk-based Supervision | |
| November 2008 | Risk-based Supervision | |
| July 2009 | Risk-based Supervision | |
| March 2010 | Payments Systems | |
| January 2011 | Supervision of NBFIs | |
| December 2011 | Stress testing training | |
| STA | May 2006 | National Accounts (GDDS Project) |
| June 2006 | Government Finance Statistics (GDDS Project) | |
| November 2006 | SDDS Project | |
| October 2007 | Monetary and Financial Statistics | |
| April 2008 | Government Financial Statistics | |
| May 2008 | National Accounts | |
| July 2008 | Monetary and Financial Statistics | |
| July 2008 | National Accounts (SDDS project) | |
| July 2008 | Balance of Payments Statistics | |
| November 2008 | National Accounts | |
| April 2009 | Government Finance Statistics (GFSM 2001) | |
| Jan.-Feb. 2010 | National Accounts | |
| April 2010 | Balance of Payments Statistics | |
| April 2010 | National Accounts (SDDS Project) | |
| Nov-Dec 2010 | Quarterly National Accounts | |
| May 2011 | Monetary and Financial Statistics (EDDI Project) |
JOINT WORLD BANK AND IMF WORK PROGRAM
As of December 1, 2011
| Title | Products | Provisional Timing of Missions | Expected Delivery Date | |
|---|---|---|---|---|
| A. Mutual Information on Relevant Work Programs | ||||
| World Bank indicative work program in the next 12 months | ||||
| 1. | Policy notes on growth and employment | ongoing | Dissemination workshop: Feb 2012 | |
| 2. | Integrated Resource Plan TA (20-year energy investment strategy) | 2011-12 | July 2012 | |
| 3. | Statistical capacity building TA | Several throughout 2012 | Launch in Feb 2012, to be completed in 2013 | |
| 4. | Industrial competitiveness and technological capability study | Feb/Mar 2012 | Completed by Dec 2012 | |
| 5. | Money laundering risk assessment of financial inclusion products (tentative) | Feb, mid-2012 | Completed by Dec 2012 | |
| 6. | Debt management TA (DeMPA and assistance with MTDS) (tentative) | Feb/Mar and Jul/Aug 2012 | Completed by Dec 2012 | |
| IMF indicative work program in the next 12 months | ||||
| 1. | 2011 Article IV consultation | Nov 2011 | Board meeting Feb 2012 | |
| 2. | Technical assistance (TA): stress testing | Dec 2011 | ||
| 3. | TA: strengthening NAMFISA | 2011-12 | ||
| 4. | TA: tax administration | 2011-12 | ||
| 5. | TA: tax policy | 2012 | ||
| 6. | TA: national accounts and CPI (tentative) | 2012 | ||
| 7. | 2012 Article IV consultation | Nov 2012 | ||
| B. Requests for work program inputs | ||||
| Fund request to Bank | Periodic updates on progress with domestic structural reform agenda, including in context of NDP4, the Industrial Policy Strategy, and the Financial Sector Strategy. | |||
| Bank request to Fund | Periodic updates on macroeconomic developments, prospects, and policies, including assessment of impact of global economic situation on Namibia. Consultation on economic implications of Namibia’s ranking as upper middle income country. | |||
| C. Agreement on joint products | ||||
| Joint products in next 12 months | • Debt sustainability analysis | December 2011 | ||
| Title | Products | Provisional Timing of Missions | Expected Delivery Date | |
|---|---|---|---|---|
| A. Mutual Information on Relevant Work Programs | ||||
| World Bank indicative work program in the next 12 months | ||||
| 1. | Policy notes on growth and employment | ongoing | Dissemination workshop: Feb 2012 | |
| 2. | Integrated Resource Plan TA (20-year energy investment strategy) | 2011-12 | July 2012 | |
| 3. | Statistical capacity building TA | Several throughout 2012 | Launch in Feb 2012, to be completed in 2013 | |
| 4. | Industrial competitiveness and technological capability study | Feb/Mar 2012 | Completed by Dec 2012 | |
| 5. | Money laundering risk assessment of financial inclusion products (tentative) | Feb, mid-2012 | Completed by Dec 2012 | |
| 6. | Debt management TA (DeMPA and assistance with MTDS) (tentative) | Feb/Mar and Jul/Aug 2012 | Completed by Dec 2012 | |
| IMF indicative work program in the next 12 months | ||||
| 1. | 2011 Article IV consultation | Nov 2011 | Board meeting Feb 2012 | |
| 2. | Technical assistance (TA): stress testing | Dec 2011 | ||
| 3. | TA: strengthening NAMFISA | 2011-12 | ||
| 4. | TA: tax administration | 2011-12 | ||
| 5. | TA: tax policy | 2012 | ||
| 6. | TA: national accounts and CPI (tentative) | 2012 | ||
| 7. | 2012 Article IV consultation | Nov 2012 | ||
| B. Requests for work program inputs | ||||
| Fund request to Bank | Periodic updates on progress with domestic structural reform agenda, including in context of NDP4, the Industrial Policy Strategy, and the Financial Sector Strategy. | |||
| Bank request to Fund | Periodic updates on macroeconomic developments, prospects, and policies, including assessment of impact of global economic situation on Namibia. Consultation on economic implications of Namibia’s ranking as upper middle income country. | |||
| C. Agreement on joint products | ||||
| Joint products in next 12 months | • Debt sustainability analysis | December 2011 | ||
STATISTICAL ISSUES
| I. Assessment of Data Adequacy for Surveillance |
| General: Data provision has some shortcomings, but is broadly adequate for surveillance. The authorities provide core monthly data to the Fund with a lag of one to two months, except for the national accounts and international trade data, which are reported quarterly and annually with longer lags. The authorities have recently completed a Household Income and Expediture Survey that will allow them to update the CPI basket and re-estimate Gini coefficients in the near term. |
| National Accounts: National accounts estimation has not kept pace with changes to the structure of the economy and needs to be rebased (the current base year is 2004). An update of the national accounts base year is tentatively scheduled for FY2012/13. Seasonally adjusted quarterly national accounts (QNA) estimates, at 2004 prices are disseminated on Namibia’s National Planning Commission’s website, though there is a need to improve existing source data. |
| Price Statistics: In February 2005, the government introduced a nation-wide consumer price index to replace the previous index that only covered the capital city of Windhoek; the new index is available from January 2002. However, the weights for the index are estimated from the 1993–94 National Household Income and Expenditure Survey and seasonal items and new products are excluded. Data on the labor market, including labor force, employment, and wages are not regularly collected, which impedes the analysis of labor market developments. |
| Government Finance Statistics: Annual budgetary central government data by fiscal year, which are reported on a cash basis in the GFSM 2001 format, are reasonably complete, despite some gaps in terms of details. No fiscal statistics are compiled for extra budgetary institutions, consolidated central government, or consolidated general government. |
| Monetary and Financial Statistics: Monthly monetary statistics for the Bank of Namibia (BoN) and the other depository corporations (ODCs) are reported on a regular basis, although there is room to improve the timeliness of reporting, particularly with regard to BoN data. Beginning in April 2002, data are based on standardized report forms, which accord with the concepts and definitions of the Monetary and Financial Statistics Manual. |
| Balance of Payments and International Investment Position Statistics: External Debt: Since 2001, the BoN has been reporting the balance of payments data on a quarterly basis with a lag of one quarter. Those data are subject to substantial revisions. The methodology underlying the balance of payments is consistent with the fifth edition of the IMF’s Balance of Payments Manual. The international investment position (IIP) data are compiled quarterly with a lag of one quarter. The Bank of Namibia has focused its work to improve the compilation of capital and financial transactions and IIP statistics. They have expanded their data collection capabilities through survey data collection. However, further work is needed to expand the coverage of the IIP and restate the IIP in a format that will allow for comparison with the balance of payments statistics. |
| II. Data Standards and Quality |
| Namibia has participated in the GDDS since late 2002. A ROSC (Data Module) was published in 2002 and updated in 2005. |
| III. Reporting to STA |
| The MOF reports, on a regular basis, annual data for publication in the Government Finance Statistics Yearbook. Work on establishing monthly reporting of high frequency data is still in progress. The BoN reports monetary and financial statistics to STA regularly. Balance of payments and international investment position data are published in International Financial Statistics (IFS) and in the Balance of Payments Yearbook. |
| I. Assessment of Data Adequacy for Surveillance |
| General: Data provision has some shortcomings, but is broadly adequate for surveillance. The authorities provide core monthly data to the Fund with a lag of one to two months, except for the national accounts and international trade data, which are reported quarterly and annually with longer lags. The authorities have recently completed a Household Income and Expediture Survey that will allow them to update the CPI basket and re-estimate Gini coefficients in the near term. |
| National Accounts: National accounts estimation has not kept pace with changes to the structure of the economy and needs to be rebased (the current base year is 2004). An update of the national accounts base year is tentatively scheduled for FY2012/13. Seasonally adjusted quarterly national accounts (QNA) estimates, at 2004 prices are disseminated on Namibia’s National Planning Commission’s website, though there is a need to improve existing source data. |
| Price Statistics: In February 2005, the government introduced a nation-wide consumer price index to replace the previous index that only covered the capital city of Windhoek; the new index is available from January 2002. However, the weights for the index are estimated from the 1993–94 National Household Income and Expenditure Survey and seasonal items and new products are excluded. Data on the labor market, including labor force, employment, and wages are not regularly collected, which impedes the analysis of labor market developments. |
| Government Finance Statistics: Annual budgetary central government data by fiscal year, which are reported on a cash basis in the GFSM 2001 format, are reasonably complete, despite some gaps in terms of details. No fiscal statistics are compiled for extra budgetary institutions, consolidated central government, or consolidated general government. |
| Monetary and Financial Statistics: Monthly monetary statistics for the Bank of Namibia (BoN) and the other depository corporations (ODCs) are reported on a regular basis, although there is room to improve the timeliness of reporting, particularly with regard to BoN data. Beginning in April 2002, data are based on standardized report forms, which accord with the concepts and definitions of the Monetary and Financial Statistics Manual. |
| Balance of Payments and International Investment Position Statistics: External Debt: Since 2001, the BoN has been reporting the balance of payments data on a quarterly basis with a lag of one quarter. Those data are subject to substantial revisions. The methodology underlying the balance of payments is consistent with the fifth edition of the IMF’s Balance of Payments Manual. The international investment position (IIP) data are compiled quarterly with a lag of one quarter. The Bank of Namibia has focused its work to improve the compilation of capital and financial transactions and IIP statistics. They have expanded their data collection capabilities through survey data collection. However, further work is needed to expand the coverage of the IIP and restate the IIP in a format that will allow for comparison with the balance of payments statistics. |
| II. Data Standards and Quality |
| Namibia has participated in the GDDS since late 2002. A ROSC (Data Module) was published in 2002 and updated in 2005. |
| III. Reporting to STA |
| The MOF reports, on a regular basis, annual data for publication in the Government Finance Statistics Yearbook. Work on establishing monthly reporting of high frequency data is still in progress. The BoN reports monetary and financial statistics to STA regularly. Balance of payments and international investment position data are published in International Financial Statistics (IFS) and in the Balance of Payments Yearbook. |
Namibia: Common Indicators Required for Surveillance (As of December 21, 2011)
Daily (D), weekly (W), monthly (M), quarterly (Q), annually (A), irregular (I), and not available (NA).
Reflects the assessment provided in the data ROSC published in September, 2005, and based on the findings of the mission that took place from April 13 to 26, 2005, for the data set corresponding to the variable in each row. The assessment indicates whether international standards concerning (respectively) concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O), largely observed (LO), largely not observed (LNO), not observed (NO), or not available (NA).
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially determined, including discount, money market, treasury bill, note, and bond rates.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Namibia: Common Indicators Required for Surveillance (As of December 21, 2011)
| Date of Latest Observation | Date Received | Frequency of Data1 | Frequency of Reporting1 | Frequency of Publication1 | Memo Items | ||
|---|---|---|---|---|---|---|---|
| Data Quality—Methodological Soundness2 | Data Quality—Accuracy and Reliability2 | ||||||
| Exchange rates | 12/09/2011 | 12/09/2011 | D | D | D | ||
| International reserve assets and reserve liabilities of the monetary authorities3 | Nov. 2011 | Nov. 2011 | M | M | M | ||
| International investment position | Jun. 2011 | Oct 2011 | Q | Q | Q | ||
| Reserve/base money | Jun. 2011 | Oct. 2011 | M | M | M | O, O, LO, LO | O, LO, O, O, O |
| Broad money | Jun. 2011 | Oct. 2011 | M | M | M | ||
| Central bank balance sheet | Jun. 2011 | Oct. 2011 | M | M | M | ||
| Consolidated balance sheet of the banking system | Jun. 2011 | Oct. 2011 | M | M | |||
| Interest rates4 | 12/09/2011 | 12/09/2011 | D | D | D | ||
| Consumer price index | Oct. 2011 | Nov. 2011 | M | M | M | ||
| Revenue, expenditure, balance, and composition of financing5—general government6 | NA | NA | |||||
| Revenue, expenditure, balance, and composition of financing4—central government | Mar. 2011 | Nov. 2011 | A/Q/M | Q | Q | ||
| Stocks of central government and central government-guaranteed debt7 | Jun. 2011 | Oct. 2011 | A | A | A | ||
| External current account balance | 2011 Q3 | Oct. 2011 | A/Q | A | A | ||
| Exports and imports of goods | 2011 Q3 | Oct. 2011 | M | M | M | ||
| GDP/GNP | 2010 | Oct. 2011 | A | A | A | O, O, O, LO | LNO, LO, LO, LO, O |
| Gross external debt | Jun. 2011 | Oct. 2011 | A/Q | A/Q | A/Q | ||
Daily (D), weekly (W), monthly (M), quarterly (Q), annually (A), irregular (I), and not available (NA).
Reflects the assessment provided in the data ROSC published in September, 2005, and based on the findings of the mission that took place from April 13 to 26, 2005, for the data set corresponding to the variable in each row. The assessment indicates whether international standards concerning (respectively) concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O), largely observed (LO), largely not observed (LNO), not observed (NO), or not available (NA).
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially determined, including discount, money market, treasury bill, note, and bond rates.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Namibia: Common Indicators Required for Surveillance (As of December 21, 2011)
| Date of Latest Observation | Date Received | Frequency of Data1 | Frequency of Reporting1 | Frequency of Publication1 | Memo Items | ||
|---|---|---|---|---|---|---|---|
| Data Quality—Methodological Soundness2 | Data Quality—Accuracy and Reliability2 | ||||||
| Exchange rates | 12/09/2011 | 12/09/2011 | D | D | D | ||
| International reserve assets and reserve liabilities of the monetary authorities3 | Nov. 2011 | Nov. 2011 | M | M | M | ||
| International investment position | Jun. 2011 | Oct 2011 | Q | Q | Q | ||
| Reserve/base money | Jun. 2011 | Oct. 2011 | M | M | M | O, O, LO, LO | O, LO, O, O, O |
| Broad money | Jun. 2011 | Oct. 2011 | M | M | M | ||
| Central bank balance sheet | Jun. 2011 | Oct. 2011 | M | M | M | ||
| Consolidated balance sheet of the banking system | Jun. 2011 | Oct. 2011 | M | M | |||
| Interest rates4 | 12/09/2011 | 12/09/2011 | D | D | D | ||
| Consumer price index | Oct. 2011 | Nov. 2011 | M | M | M | ||
| Revenue, expenditure, balance, and composition of financing5—general government6 | NA | NA | |||||
| Revenue, expenditure, balance, and composition of financing4—central government | Mar. 2011 | Nov. 2011 | A/Q/M | Q | Q | ||
| Stocks of central government and central government-guaranteed debt7 | Jun. 2011 | Oct. 2011 | A | A | A | ||
| External current account balance | 2011 Q3 | Oct. 2011 | A/Q | A | A | ||
| Exports and imports of goods | 2011 Q3 | Oct. 2011 | M | M | M | ||
| GDP/GNP | 2010 | Oct. 2011 | A | A | A | O, O, O, LO | LNO, LO, LO, LO, O |
| Gross external debt | Jun. 2011 | Oct. 2011 | A/Q | A/Q | A/Q | ||
Daily (D), weekly (W), monthly (M), quarterly (Q), annually (A), irregular (I), and not available (NA).
Reflects the assessment provided in the data ROSC published in September, 2005, and based on the findings of the mission that took place from April 13 to 26, 2005, for the data set corresponding to the variable in each row. The assessment indicates whether international standards concerning (respectively) concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O), largely observed (LO), largely not observed (LNO), not observed (NO), or not available (NA).
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially determined, including discount, money market, treasury bill, note, and bond rates.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.