Uranium exports are expected to increase to N$41.4 billion in 2025.
This will be a 21.9% increase when compared to last year’s sales.
According to the Bank of Namibia’s economic outlook for 2025, the increase will lead to a reduction in the country’s current account deficit.
“The current account deficit as a percentage of gross domestic product (GDP) is anticipated to decrease to 14.2% in 2025, down from a larger deficit of 15.3% in 2024. The improvement is attributed to an increase particularly in uranium exports,” the report reads.
The current account deficit is expected to range between 13.8% and 10.8% of GDP in the next two years.
The overall mining sector is expected to recover, driven by increased exploration activities in oil.
“The anticipated growth is attributed to the resumption of oil and gas exploration activities. Additionally, compounded by increased prospecting activities in the wider mining sector,” the report notes.
A growth rate of 12% is projected for 2025 before moderating to 9.6% in 2026.
This represents an increase from the 0.4% growth recorded in 2024.
The latest data from the Chamber of Mines of Namibia shows that the sector’s contribution to government through corporate taxes, royalties, and export levies fell by 23.8%, 11.3%, and 0.28%, respectively.
Total revenue increased slightly from N$51.5 billion in 2023 to N$52.295 billion in 2024, reflecting a 1.4% growth.
Gross fixed capital formation (fixed investment) for 2024 stood at N$5.220 billion, marking a 11.7% decrease compared to the N$5.908 billion invested in 2023.
Exploration expenditure rose sharply, reaching N$1.4 billion in 2024, compared to N$891 million in 2023.
Meanwhile, diamond mining output is projected to continue declining further in 2025 and 2026.
This is because the demand for natural diamonds has decreased globally as more people opt to buy lab-grown diamonds.
“This ongoing contraction is mainly attributed to the current weakness in global demand for rough diamonds, further compounded by the potential imposition of reciprocal tariffs.
These factors are expected to suppress demand further and are likely to persist over the medium term,” the report reads.
The diamond mining sector is projected to decline further by 6.2% in 2025 and 7.7% in 2026, following a decline of 3.7% in 2024.
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