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Namibia: Staff Report for the 2011 Article IV Consultation—Informational Annex

Author(s):
International Monetary Fund
Published Date:
February 2012
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FUND RELATIONS

As of November 30, 2011,

Membership Status

Joined September, 1990; Article VIII

General resources account

SDR (million)Percent of Quota
Quota136.50100.00
Fund holdings of currenty136.4399.95
Reserve position in Fund0.080.06

SDR Department

SDR (million)Percent of Quota
Net cumulative allocation130.39100.00
Holdings5.274.04

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

DepartmentDatesPurpose
FADFebruary 2006Modernizing Tax Administration
February 2006Fiscal Regime for Mining and Processing
June 2006ROSC
April 2007Revenue Modeling and Forecasting
September 2008Public Financial Management
April 2009Incorporating Budget Programs in the Government Accounting System
June 2009PPPs: Building a Framework for managing fiscal Risks
November 2009Follow up to Program Budgeting
January 2011Initiating Tax Administration Reform
January 2011Developing the Agenda for Tax Reform
February-March 2011Managing the Budget on a Program Basis (MBPB)
MCM (MFD)June 2005Payment Oversights
April 2006Payment Systems
May 2006Nonbank Financial Institutions Supervision
October 2006Lending policy, Monetary Operations, and Bank Supervision
March 2007Risk-based Supervision
August 2007Payments Systems
April 2008Risk-based Supervision
November 2008Risk-based Supervision
July 2009Risk-based Supervision
March 2010Payments Systems
January 2011Supervision of NBFIs
December 2011Stress testing training
STAMay 2006National Accounts (GDDS Project)
June 2006Government Finance Statistics (GDDS Project)
November 2006SDDS Project
October 2007Monetary and Financial Statistics
April 2008Government Financial Statistics
May 2008National Accounts
July 2008Monetary and Financial Statistics
July 2008National Accounts (SDDS project)
July 2008Balance of Payments Statistics
November 2008National Accounts
April 2009Government Finance Statistics (GFSM 2001)
Jan.-Feb. 2010National Accounts
April 2010Balance of Payments Statistics
April 2010National Accounts (SDDS Project)
Nov-Dec 2010Quarterly National Accounts
May 2011Monetary and Financial Statistics (EDDI Project)

JOINT WORLD BANK AND IMF WORK PROGRAM

As of December 1, 2011

TitleProductsProvisional Timing of MissionsExpected 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 employmentongoingDissemination workshop: Feb 2012
2.Integrated Resource Plan TA (20-year energy investment strategy)2011-12July 2012
3.Statistical capacity building TASeveral throughout 2012Launch in Feb 2012, to be completed in 2013
4.Industrial competitiveness and technological capability studyFeb/Mar 2012Completed by Dec 2012
5.Money laundering risk assessment of financial inclusion products (tentative)Feb, mid-2012Completed by Dec 2012
6.Debt management TA (DeMPA and assistance with MTDS) (tentative)Feb/Mar and Jul/Aug 2012Completed by Dec 2012
IMF indicative work program in the next 12 months
1.2011 Article IV consultationNov 2011Board meeting Feb 2012
2.Technical assistance (TA): stress testingDec 2011
3.TA: strengthening NAMFISA2011-12
4.TA: tax administration2011-12
5.TA: tax policy2012
6.TA: national accounts and CPI (tentative)2012
7.2012 Article IV consultationNov 2012
B. Requests for work program inputs
Fund request to BankPeriodic 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 FundPeriodic 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 analysisDecember 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.
Table 1.Namibia: Common Indicators Required for Surveillance (As of December 21, 2011)
Date of Latest ObservationDate ReceivedFrequency of Data1Frequency of Reporting1Frequency of Publication1Memo Items
Data Quality—Methodological Soundness2Data Quality—Accuracy and Reliability2
Exchange rates12/09/201112/09/2011DDD
International reserve assets and reserve liabilities of the monetary authorities3Nov. 2011Nov. 2011MMM
International investment positionJun. 2011Oct 2011QQQ
Reserve/base moneyJun. 2011Oct. 2011MMMO, O, LO, LOO, LO, O, O, O
Broad moneyJun. 2011Oct. 2011MMM
Central bank balance sheetJun. 2011Oct. 2011MMM
Consolidated balance sheet of the banking systemJun. 2011Oct. 2011MM
Interest rates412/09/201112/09/2011DDD
Consumer price indexOct. 2011Nov. 2011MMM
Revenue, expenditure, balance, and composition of financing5—general government6NANA
Revenue, expenditure, balance, and composition of financing4—central governmentMar. 2011Nov. 2011A/Q/MQQ
Stocks of central government and central government-guaranteed debt7Jun. 2011Oct. 2011AAA
External current account balance2011 Q3Oct. 2011A/QAA
Exports and imports of goods2011 Q3Oct. 2011MMM
GDP/GNP2010Oct. 2011AAAO, O, O, LOLNO, LO, LO, LO, O
Gross external debtJun. 2011Oct. 2011A/QA/QA/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.

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.

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