Inequality in Southern Africa : An Assessment of the Southern African Customs Union - Country Brief : Namibia (English)

Namibia is the second most unequal country in the world, with inequality in per capita consumption about 45 percent higher than the average for upper-middle-income countries. The country has made little progress in reducing inequality in recent years. The main sources of inequality are inequality of opportunity and disparities in factor markets, with the legacy of apartheid playing a significant role and access to jobs and land being severely constrained and uneven. High spending on transfers and social services partially mitigates unequal outcomes, although social transfers can be better targeted. Moving forward, Namibia needs to: (a) improve access to quality services to promote equality of opportunities across races and disadvantaged groups; (b) enhance conditions for private job creation, including by reducing barriers to entrepreneurship and self-employment, and by enhancing access to productive assets (skills and land); and (c) continue investing in the capacity of social protection systems to respond to shocks, especially in view of the growing climate-related risks, while improving targeting of safety net programs.