National think tank organisation, Namibian Economic Policy Research Unit (NEPRU) said Tuesday that the country had performed well concerning target set for smooth regional integration.
 
SADC (Southern African Development Community) countries have embarked on an ambitious programme to deepen integration between its member states. Member states have committed to a trade free area by 2008, a single customs union by 2010 and a common monetary area by 2015 and single currency by 2018.
 
Despite missing a growth target of 7 percent, Namibia's inflation rate has been below the SADC target of 9 percent. Klaus Schade, NEPRU director however said that Namibia's business sector had thrown its weight behind moves by the regional bloc to integrate economies for greater market access. "Still a majority of them are in favour of free movement of labour in the region," Schade said.
 
Despite averaging a steady 4 percent economic growth, Namibia's economic still remains shackled by regional economic powerhouse, South Africa also its later day coloniser.
 
Namibia's membership to Common Monetary Area (CMA), together with South Africa, Lesotho and Swaziland, it does not have control to formulate its own monetary policy, which is done by south African reserve bank (SARB).
 
Namibia also remains an exception to other developing countries in that it is a next exporter of capital, Schade said. Membership to Southern Africa Customs Union (SACU), from which South Africa has greater control, has limited Namibia's 'sovereignty' when it comes to setting its own trade policy agenda. "The capacity to exploit trade opportunities is often limited," Schade explained.
 
He warned that the country's failure to achieve meaningful economic growth, tackle rising unemployment and the HIV/AIDS scourge had limited the Namibia's economic growth prospects. "Economic growth has not been strong enough to create employment in order to reduce high rate of unemployment."
 
Namibia, with a population of about 2 million people has an unemployment rate of around 37 percent, a fact attributed to a harsh apartheid system which segregated blacks against quality education.
 
The country is also grappling with a crippling skills shortage and HIV/AIDS scourge, which analysts say continue to pile pressure on the national treasury. "In addition the country is still confronted with a lack of skills and competencies that retard economic growth.
 
"HIV/AIDS poses threats on two grounds: it reduces return on investment in education and finally the labour force and it increases pressure on budget allocations," Schade said. 15 May 2007 - PANA
 
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