Namibia has experienced impressive growth since 21 years of independence.
Current gdp growth rates, estimated at 4–5, are fuelled mainly
by the increasing competitiveness of the mining sector. Mining sector
accounts for half of the national foreign exchange earnings. Low scores
on capital investment and education, however, is a considerable barrier
to greater economic diversification and may contribute to the poor innovation
score. As a result, Namibia remains somewhat dependent on
foreign aid, despite relatively high average incomes. This paper will discuss
the impact of foreign aid on the Namibian economy by systematically
analyzing its influence on developing countries using Namibian
economy as focus reference. Fifty years since the first official development
assistance (oda) programs were instituted, the question of the
effectiveness of foreign aid remains an unresolved issue. The purpose
of the study is to investigate whether foreign aid is effective in helping
Namibia to achieve development goals.