Bank of Namibia - Story of Money in Namibia

Northern Region

Cattle, sheep, and goats were valuable commodities and played a central role in pre-colonial societies. They were not only used for sustenance but also served as a form of wealth and status. Livestock was largely depended on for work such as ploughing, transport or even food. This was a common trading commodity across all regions of Namibia.

Central Region

Livestock, especially cattle, played a central role in this region in the economies of various indigenous groups. Cattle were not only a source of food but also a symbol of wealth and status. They were used in various forms of exchange and often served as a form of currency in trade. This region was a hub of trade, as it facilitated interactions with external regions, particularly those across the Indian Ocean. Items like marine resources, shells, and salt were traded with inland communities, contributing to the diversity of goods available in the region.European sailors and traders reached the Namibian coast, particularly the area of Walvis Bay, which was an attractive location due to its natural harbour. Read more

A Portuguese explorer Bartolomeu Dias is believed to have sailed along the Namibian coast during his explorations in the late 15th century. He opened doors for many others, who later established small settlements and trading posts along the coast, engaging in trade with indigenous groups. They traded European goods for ivory, animal hides, and other resources. In the Late 19th century, European interest in Africa intensified, leading to increased exploration and interactions with indigenous communities in Namibia.

Around 1884-1885: The Berlin Conference formalizes European colonial claims in Africa, including German colonization of Namibia.

In the Early 1910s: German colonial administration focused on exploiting natural resources, including mining, particularly diamonds and copper which were available in this region. After the 1st World War: South Africa gains a League of Nations mandate to administer South West Africa (Namibia). 1920s-1930s: South African administration implemented policies that Favor the interests of white settlers, impacting trade dynamics and indigenous economies.

Southern Region

Livestock: Cattle and sheep were essential trade items due to their practical and symbolic value. They were exchanged for other goods and services, serving as a form of currency in indigenous trade networks.

Ostrich Feathers: Ostrich feathers were used for adornment and ritual purposes. They were highly valued and traded across different regions. Copper and Metal Objects: Indigenous people engaged in small-scale mining of copper and other metals, which were fashioned into various objects like jewellery, tools, and ornaments. These items held both practical and cultural significance and were traded within and beyond the region.

Other trade items: Shells and beads, often used for decorative purposes and as symbols of wealth and status. Other trade items included fish, diamonds, and whales. The economic significance of diamond mining necessitated a well-structured monetary system. Namibia, as a German colony at the time, introduced its own currency, the German South West African Mark, to facilitate trade and economic activities. Mining activities in southern Namibia began during the early 20th century, with the discovery of valuable mineral resources such as diamonds and other minerals. One of the most significant mines that started during this period was the diamond mine in the town of Oranjemund. Wildlife, diamond mining, land, copper Products received from missionaries: Alcohol, cattle, guns, etc. Read more

In 1907 A Labour Code was introduced to confirm the dispossession of Africans' land and cattle. The law was also made applicable to the Nama communities who fought in the war. Karakul sheep were imported from Uzbekistan to increase commercial farming productivity in southern Namibia. Construction of a railway line by Deutsche Kolonial Eisenbahn Bau und Betriebs Gesellschaft commences from Seeheim to Karasburg. The railway line in compliance with the Cape gauge standard is opened between Lüderitz and Keetmanshoop via Seeheim.

The Southern Route from Cape: European traders and explorers from the Cape Colony (present-day South Africa) were among the first to venture into Namibia. The Dutch East India Company established a refreshment station at the Cape of Good Hope in 1652, which later became a crucial stopover for ships travelling between Europe and the East Indies. The expansion northward into Namibia occurred during the late 18th and early 19th centuries. Read more

Friedrich von Lindequist, a German merchant, and explorer was one of those who explored the region around Windhoek in 1806-07. The central/western region of Namibia witnessed a gradual shift in trade dynamics with the advent of external influences. The inhospitable appearance of the southwest African coast deterred initial exploration and trade efforts, but over time, a transformation occurred. During the 19th century, specifically around the 1800s, navigators began to recognise the strategic potential of the coast. Ports of call were established at Angra Pequena (modern-day Lüderitz), Walvis Bay, and Sandwich Harbour. These developments marked a significant turning point in the region's trade history.The coastal areas, once overlooked, became vital hubs for interactions between local nomadic groups and traders from afar. As trade connections grew, commodities such as weapons, ammunition, and brandy were introduced by European traders, adding new dimensions to the existing barter system.

The establishment of these ports marked the fusion of indigenous trade practices with external influences.Among others the presence of Europeans in Namibia by the 17th century and their involvement on trade at the cape of good hope at the Namib Desert Coast became a station for shipping to and from the Dutch possessions in the east. There was intense trade between the Europeans and Namibians with the locals’ exchanging cattle.The central and western regions of Namibia, particularly the coastal areas, attracted external traders due to their strategic location. For example, in 1723, the Dutch West India Company (DWIC) sent a vessel named Waerwijk to Walvis Bay to catch whales and engage in trade near the coast. This presence of external traders introduced new goods, technologies, and cultural influences on the region, expanding the range of items available for barter. Trade in this region included. Fish, diamonds, lead, zinc, gold, whales.

Northern Region

During the colonial era, northern Namibia, which was then known as German South West Africa, experienced significant changes in trade patterns and economic activities. The colonial period in Namibia was primarily marked by German colonisation from the late 19th century until the end of World War I, after which the territory came under South African control. Here's an overview of trade in northern Namibia during colonialism:In the Late 19th century, with increased European presence after German colonisation in 1884. European traders and settlers introduced textiles, firearms, tools, and other manufactured goods into Namibia, replacing or supplementing traditional local products. This influx of European products had a profound impact on local economies and traditional trade networks. Read more

In the Late 19th century to early 20th century. The colonial powers, particularly the Germans, sought to exploit the natural resources of the territory, including labour, which mostly was sourced from the northern communities of Owamboland and Kavango. The indigenous population was often coerced into providing labour for mining, farming, and other economic activities, which significantly impacted local societies and economies with very low wages, while they worked in harsh conditions. As the colonial administration promoted European goods, there was a growing dependence on imports from Europe.

Indigenous communities began to rely on these imports for various needs, which made them vulnerable to fluctuations in trade and changes in colonial policies.The colonial trade relationship often resulted in trade imbalances, with European powers benefiting more from the resources and labour of the colony than the local population did from European imports. This contributed to the economic exploitation of the territory. The process of colonisation often involved dispossession of land from indigenous communities. This land was then used for European settlement, agriculture, and resource extraction. The loss of land had profound cultural, economic, and social consequences for the indigenous populations.The Indigenous communities engaged in craftsmanship and artisanal activities, producing goods like pottery and jewellery for both local use and trade with settlers.

In 1900 German Lieutenant August Franke visited Oukwanyama and Ondonga Kings, Ueyulu ya Hedimbi and Kambonde kaMpingana in northern Namibia. This is one of the first attempts by the Germans to gain influence in the northern region of the country.When they successfully obtained land with valuable minerals in the Late 1800s, particularly copper and other ores, in the Tsumeb area, it attracted the attention of European powers, primarily the Germans who colonised Namibia. During this period, mining operations began to take a more organised and industrial form which led to the establishment of copper mines at Tsumeb and Guchab in the northern region of the country in 1899.

In the Early 1900s, As European powers solidified their control over Namibia, mining activities intensified. The constructed railway lines for transportation of goods to the harbours for exports, they needed more labour to maximise profits, which led to Labor Exploitation by coercing and forcing local Namibian people, often from Northern and North Eastern ethnic groups, into cheap forced labour. In 1910, 9000 Ovambo migrants left to work in the Police Zone, central and southern regions of the country, annually until 1914.

Central & Southern Regions

Livestock, especially cattle, played a central role in this region in the economies of various indigenous groups. Cattle were not only a source of food but also a symbol of wealth and status. They were used in various forms of exchange and often served as a form of currency in trade. This region was a hub of trade, as it facilitated interactions with external regions, particularly those across the Indian Ocean. Items like marine resources, shells, and salt were traded with inland communities, contributing to the diversity of goods available in the region.European sailors and traders reached the Namibian coast, particularly the area of Walvis Bay, which was an attractive location due to its natural harbour. Read more

A Portuguese explorer Bartolomeu Dias is believed to have sailed along the Namibian coast during his explorations in the late 15th century. He opened doors for many others, who later established small settlements and trading posts along the coast, engaging in trade with indigenous groups. They traded European goods for ivory, animal hides, and other resources. In the Late 19th century, European interest in Africa intensified, leading to increased exploration and interactions with indigenous communities in Namibia.

Around 1884-1885: The Berlin Conference formalises European colonial claims in Africa, including German colonisation of Namibia.: In the Early 1910s: German colonial administration focused on exploiting natural resources, including mining, particularly diamonds and copper which were available in this region. After the 1st World War: South Africa gains a League of Nations mandate to administer South West Africa (Namibia). 1920s-1930s: South African administration implemented policies that favour the interests of white settlers, impacting trade dynamics and indigenous economies.

Post Independence

After Namibia gained its independence, there was a notable surge in the growth of its economic sectors. The primary sector, encompassing agriculture, mining, and fishing, experienced a significant expansion driven by improved land redistribution policies and increased foreign investment. This led to enhanced agricultural productivity, particularly in crop cultivation and livestock farming. Additionally, the mining sector witnessed a surge in mineral extraction, including diamonds, uranium, and other valuable resources, contributing substantially to the country's economic growth.

Namibia, after gaining independence in 1990, adopted free-market principles to foster development. However, its economy remained heavily reliant on exports of minerals, diamonds, livestock, and fish. Joining international organisations like the IMF and World Bank, Namibia also became part of regional groups such as SADC and SACU.Namibia continues to focus on diversifying its trade relationships, seeking to reduce its reliance on South African goods. Despite these efforts, challenges related to income inequality and living standards persist. The Namibian government remains committed to addressing these issues while also working on pragmatic solutiovns for agrarian land reform.Namibia's post-independence period witnessed exponential growth across all economic sectors. This comprehensive development laid the foundation for a more diversified and resilient economy, fostering progress and prosperity for its citizens.

Story of Money in Namibia

Northern Region

Central Region

Southern Region

Northern Region

Central & Southern Regions

Post Independence

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