This paper estimates national economic parameters to be used for project appraisal in
Namibia. The shadow prices of capital, labour and foreign exchange are derived. The results
suggest that the economic opportunity cost of capital is 7.2%. The economic costs of
Namibian labour as a share of financial costs are 32% for urban semi- and unskilled labour,
and are 54% for rural semi- and unskilled labour. The economic costs of foreign labour as a
share of financial costs are 59%. The shadow exchange rate factor is estimated to be 4% for
the Namibian economy