Namibia activists could prompt moderate policy shifts

Significance

President Hage Geingob's administration last week agreed with the opposition movement Affirmative Repositioning (AR) to allocate the site, which was previously off-limits. AR had threatened Zimbabwe-style land invasions if the government failed swiftly to resolve outstanding land reform applications.

Impacts

• State sponsorship of low-interest housing loans could exacerbate the emerging price bubble, posing risks to the financial sector.
• Soft diamond prices, which have fallen 12% over the past five years, will hasten the government's diversification plans.
• Falling revenues from the regional customs union, caused partly by South Africa's lacklustre economy, will likely cause fiscal strains.