SECTION B
60 Marks
Read the extract from the Labour Act No.11 of 2007 below and answer the questions that
follow.
Minimum Wage
World Bank Group's (WBG) Extract
Namibia is a geographically large country with a small population of about 3 million (2024)
and a 1,500 km-long coastline on the South Atlantic. The country is rich in mineral resources,
including diamonds and uranium, sharing borders with Angola, Botswana, South Africa, and
Zambia. Resource wealth, strong governance and institutions, and sound macroeconomic
management have helped poverty reduction and allowed Namibia to become an upper-
middle-income country. However, socioeconomic inequalities-the legacy of apartheid
systems of government in the past-remain extremely high and were worsened by the
COVID-19 pandemic. Structural constraints to growth are also hampering productivity gains
and job creation. The debt-to-GDP ratio remains elevated, at about 70% of GDP, reflecting a
period of low growth, expenditure pressures, and rising debt servicing costs.
Namibia is one of the driest countries in Sub-Saharan Africa, with highly unpredictable
precipitation patterns. The country's poverty and reliance on rain-fed agricultural and
livestock increases the country's vulnerability to climate change and limits the capacity of
poor households and communities to manage climate risk, increasing their vulnerability to
climate-related shocks.
Economic Outlook
Namibia's recent economic performance was stronger than expected. The economy grew by
4.2% in 2023, driven by the mining sector, including investments in oil exploration. The
economy has recovered to its pre-pandemic level, but many key sectors, including job-rich
construction and financial services, continue to lag.Investments in the extractive industries
have shaped Namibia's recent growth trajectory and the balance of payments. Global and
regional developments are important drivers of Namibia's economic performance, as well as
of fiscal and external positions, as the country is highly reliant on commodity exports and
Southern African Customs Union (SACU)transfers.
Since its independence in 1990, Namibia had made progress in reducing poverty, halving the
proportion of Namibians living below the national poverty line to 28.7% in 2009-10 and to
17.4% by 2015-16.Namibia ranks as one of the world's most unequal countries. Its Gini
coefficient of 59.1 in 2015 was second only to South Africa. Geographical disparities in both
economic opportunities and access to services are large and widening. High levels of
inequality result in starkly different poverty rates across different groups, including by age
and gender.
Relatively high poverty, lagging human capital, and poor access to basic services are
interrelated problems. Namibia's poverty rapidly declined from 1993/94 to 2015/16, but it
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