I’m travelling, so this week’s note will be brief.
What a country Namibia is. I don’t think I’ve ever been anywhere with so much potential.
But also what a mess. Official unemployment is 37%. Real unemployment is likely over 50%. Can you imagine?
Per capita GDP is about $4,200. That puts it at 119th the global rankings.
The countries that top the list include the likes of Luxembourg, Switzerland, Singapore, Norway, Qatar. Small populations. Either financial centres with low tax, strong rule of law and minimal corruption, or oil-rich.
Strip out the statistical quirks like Ireland, where corporate domiciles distort the numbers, and the pattern becomes even clearer.
With the exception of the US, they are all small, with populations under 5 million.
Namibia has just 3 million people.
Oil has just been discovered offshore. It is the world’s third largest uranium producer, and has an abundance of other natural resources. It’s safe. There is rule of law. It ports are good. Its roads are even better. And its location towards the south of Africa means it can easily sell into Asia, the Americas or Europe.
It fits the template, in other words.
I spoke at a conference here this week. There were senior figures in the room, including the governor of the central bank. I made the case that Namibia could make the top ten within a generation, just as Hong Kong did after World War Two when its per capita GDP was on par with most of Africa. Follow the Hong Kong model - low taxes (they never exceed 14% of GDP), simple taxes and positive non-intervention. (You can read about that story in Daylight Robbery)
It is not such a nuts idea.
Namibia’s people are entrepreneurial. Everywhere I went, someone was trying to sell me something.
Everything is there.
So what’s missing?
“You need minimal corruption,” I said.
That got a laugh.
And there it is.
I’ll have more on how to invest in this extraordinary country soon.
Until next time,
Dominic
If you live in a third world country such as the UK, I urge you to own gold or silver. The pound will be further devalued, as will the euro and dollar. The bullion dealer I recommend is The Pure Gold Company. They deliver to the UK, the US, Canada and Europe. More here.
