The rising global tensions are starting to hit Namibia's economy, pushing up fuel and food prices and placing new pressure on households, businesses, and government finances.
This was said at a high-level policy dialogue hosted by the United Nations in Namibia, where officials warned that events far from Namibia are now affecting daily life at home.
UN resident coordinator Hopolang Phororo said the ongoing conflict in the Middle East is already feeding into higher fuel prices through global energy markets. This is increasing transport and production costs across the country.
When fuel costs rise, businesses pay more to move goods. These costs are then passed on to consumers through higher prices in shops. As a result, food prices are also going up, increasing the risk of food insecurity, especially for low-income households.
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"Global shocks do not stay where they start. They spread across economies and affect people's daily lives," she said.
She added that Namibia, as an import-dependent country, is especially exposed to disruptions in global supply chains and trade routes.
The effects are already being seen in the local economy.
Executive director of the National Planning Commission, I-Ben Nashandi, said economic growth slowed to 1.7% in 2024, down from 3.8% the previous year.
The slowdown was mainly due to weaker performance in mining, agriculture, and manufacturing.
Despite this, there are signs of recovery. Growth is expected to improve to 3.5-3.9% in 2026, supported by stronger performance in sectors such as energy, logistics, and services.
Inflation stood at 2.1% in March 2026. The increase was driven largely by higher costs for housing, water, electricity, fuel, and food.
Nashandi warned that continued global instability could derail this recovery.
"If these external shocks continue or become worse, they will slow growth, reduce government spending power, and affect jobs," he said.
He added that Namibia is not alone, as many countries are facing similar pressures. However, smaller economies like Namibia often feel the impact more strongly.
The government has started taking steps to manage the risks. In March, a technical team was established to assess Namibia's oil supply options and reduce its exposure to global disruptions.
He added that more needs to be done to strengthen the country's resilience.
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Ndiitah Nghipondoka-Robiati, Executive Director at the Ministry of International Relations and Trade, said the current situation shows how closely connected the world has become.
"Instability in one part of the world can quickly create economic problems in another," she said.
Namibia relies heavily on imports for fuel and food, making it vulnerable to global price changes and supply chain disruptions. Rising shipping and insurance costs are also adding to the pressure.
She stressed the need for stronger regional and international cooperation. Namibia is working with partners such as the African Union and promoting trade under the African Continental Free Trade Area to reduce dependence on distant markets.
She said Namibia must invest more in renewable energy, improve local food production, and strengthen social protection systems to support vulnerable households.
They also said the country should use this moment to build a more resilient economy that can better withstand future shocks.
Lessons from the Covid-19 pandemic were highlighted, showing that crises can lead to reforms, stronger cooperation, and new ways of working. The dialogue brought together leaders from government, finance, agriculture, energy and other sectors.
The aim was to find practical solutions to manage current challenges while planning for long-term development.
