Well known British company Fitch Ratings in London has assigned Namibia ratings of long-term foreign currency ‘BBB-’ (BBB minus), long-term local currency ‘BBB’ and short-term foreign currency ‘F3’. The rating of ‘A-’ (A minus) was assigned to reflect its membership of the common monetary area. The ratings are important for international investors and global companies who want to invest in Namibia.

"Namibia’s ratings are underpinned by a stable policy environment and sound macroeconomic fundamentals. It benefits from a low public and external debt burden, high domestic savings and current account surpluses, macroeconomic stability and relatively robust growth," says Veronica Kalema, director in the Fitch’s Sovereigns Group. "The country has the advantage of an abundance of mineral resources, which have been well managed, and is politically stable, all of which further support the ratings", the company said on Wednesday

According to Fitch, Namibia’s high gross savings - 36% of GDP at end 2004 - are a result of highly developed pensions and insurance institutions, which have encouraged domestic savings and brought assets under management close to 100% of GDP, and this is a rating strength. However, this has resulted in persistent and growing capital outflows to South Africa, reflecting limited domestic investment opportunities for the institutional investors.