This document is the consolidated version of the situation analysis undertaken as a basis for developing the National Rural Development Strategy (NRDS). It is the second version elaborated on the basis of comments from stakeholders in the MRLGHRD and the European Union Delegation (EUD). Namibia has made great efforts in developing her rural areas since Independence. Sixteen ministries execute programmes in rural areas and approximately 26 percent of overall public spending goes to services in rural areas. This has led to important improvements in the situation for the rural population; however, many problems remain to be addressed. The improvements in the lives of the rural population have happened against the background of hard-handed colonization. A large part of the population in the centre and south of the country lost their lives in the colonial war or were pushed to the north or the east of the country. This was followed by an era of apartheid with repression and marginalization of the black and coloured majority.