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Economic leakage in Namibia: When wealth enters but doesn’t circulate

by reporter
June 26, 2025
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By Dr Penny Tuna Magdalena Uukunde

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Namibia is not short of vision. We are not short of policies, frameworks, or even goodwill. From industrialisation plans to procurement reform, youth development charters to tourism strategies, Namibia shines on paper.

But what do we have to show for all this brilliance if the wealth we generate enters the country but fails to circulate?

We are experiencing economic leakage not only in the literal sense—through capital outflows or expatriate profit repatriation—but in a deeper, more systemic way.

Talent leaks. Opportunities leak. Confidence leaks. And most importantly, circulation leaks—the natural flow that sustains a healthy economic organism.

This is not about blame. It is about diagnosis.

Namibia currently operates as a performance economy, where success is often measured by appearances, formalities or compliance with procedures rather than by actual impact or multiplying value.

Conferences are held, photographs are taken, procurement is processed—but where is the real activation of value?

Who repeatedly accesses these opportunities, and who is consistently left out?

What we are witnessing is the aftershock of historical scarcity. Generational deprivation creates protective behaviours. These become gatekeeping. Gatekeeping limits circulation. Reduced circulation mimics scarcity—and so the cycle continues.

“You can’t compete regionally if you’re still competing internally for recognition.”

This isn’t just philosophical. It’s practical. In 2023 alone, Namibia welcomed more than 360,000 tourists, yet much of that spending never reached local communities.

In procurement, government figures show that fewer than 15% of registered youth-owned businesses access public tenders, even as youth unemployment hovers around 46%. Delegates sleep in high-end hotels while surrounding SMEs remain invisible to the very processes meant to uplift them.

We do not lack money. We lack coherence. We have laws, vision documents, and international support—but without internal alignment, all of it leaks.

What causes this?

Gatekeeping, yes—but not always out of malice. It is often the result of inherited systems of exclusion, learned behaviours shaped by previous scarcity.

Those who managed to enter the system had to fight to get in, and by replicating that fight, they unwittingly reinforce barriers that keep fresh talent out. The real tragedy? We do not know the potential we are losing. That is the kind of leakage no statistic can capture.

But examples from elsewhere show us what is possible.

Rwanda, often cited for its discipline, is not a governance blueprint, but a model of intentionality. Policy is felt at grassroots level. Metrics are localised. Everyone knows the national vision—and feels part of it.

Singapore, a city-state with no natural resources, replaced performance with outcomes over a period of 25 years. That patience built resilient institutions.

And Estonia—a country many forget exists—transformed its economy through digital access, bypassing traditional gatekeepers entirely.

Namibia does not need to become these countries. We simply need to become more of ourselves.

Because beneath the frustration, there is beauty. This country is stunning in every sense—its people, its land, its wisdom. But when we structure opportunity around who is known, rather than who is capable, we do not only harm others—we harm ourselves.

Even those who benefit from current systems of exclusion are losing something: circulation is a multiplier. When wealth and opportunity move through many hands, everyone benefits. A rising tide, yes—but only if the harbour is open.

So, what now?

We start where we are:

•             Reframe procurement to encourage activation, not just delivery.

•             Publicly reward those who multiply impact, not just those who comply.

•             Audit policy implementation through the lens of circulation, not just completion.

•             Celebrate gate-openers, not only gatekeepers.

And we do all this without shame, without insult, and without ego.

Namibia is brilliant. The question is: will we choose to circulate that brilliance? Will we move from policy to activation? Will we see one another not as competitors, but as collaborators?

Because if we do—if we begin to unlock our systems from within—Namibia will not only attract the world’s attention. We will finally begin to sustain it.

*Dr Penny Tuna Magdalena Uukunde is a Regional Development Economist.

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