Namibia’s mining sector registered positive price growth during the second quarter of 2025, according to the latest producer price index (PPI).
Overall, the PPI, released by the Namibia Statistics Agency (NSA) on Wednesday, shows mixed performances across key sectors of the economy, with manufacturing experiencing significant declines.
Overall, the PPI dropped by 3.1% quarter-on-quarter and 2.5% year-on-year in the second quarter of this year, largely due to falling prices in manufactured products, which declined sharply by 9.3% from the previous quarter.
“The significant decline in the manufacturing sector, particularly in diamond cutting and cement production, played a major role in the overall decrease,” NSA statistician general Alex Shimuafeni says.
The report shows that the mining and quarrying sector recorded a positive price shift, growing by 4.5% from the first to the second quarter of 2025. This was driven by price increases in key commodities such as salt (29%), gold (16%), and uranium (8.8%).
However, on an annual basis, the sector experienced a 5.1% decline compared to the second quarter of 2024, reflecting mixed long-term performance.
In contrast, the manufacturing sector faced a notable downturn, with its PPI falling by 9.3% from the previous quarter, mainly due to a 40.5% decline in diamond cutting and a 29.9% decrease in cement prices.
Year-on-year, the manufacturing index saw a slight dip of 0.2%. In the electricity generation, transmission, and distribution sector, prices remained unchanged, signalling stability. Similarly, the water collection, treatment, and supply sector recorded a marginal quarterly decline of 0.1% but achieved a modest year-on-year increase of 1%.
This analysis, crucial for policymakers and business stakeholders, highlights key trends expected to inform strategic decisions on pricing, investment, and economic planning.
“The PPI is a critical tool for understanding price movements, especially in sectors like manufacturing and mining,” Shimuafeni says.
