By Josef Kefas Sheehama
The mining sector in Namibia continues to stand as a cornerstone of sustainable economic progress. Undoubtedly, this sector not only drives exports but also forms critical linkages with various other segments of the economy.
In Namibia, the mining sector is pivotal in conducting mineral exploration, extraction, processing, and marketing. Given the capital-intensive nature of these activities, Namibia relies on external investments and technological resources to facilitate large-scale operations. Impressively, the sector made a remarkable contribution of approximately 12% to the GDP in 2023. A robust growth rate of 21.6% was observed in 2022, a significant jump from the 11% recorded in 2021, largely attributed to the diamond sector’s exceptional performance.
According to the Chamber of Mines (CoM) Annual Review for 2022, chamber members reported a noteworthy 29.6% increase in total turnover paid to the government in 2022. This rise stemmed from amplified turnover and substantial profits, particularly in diamond mining, which led to increased corporate taxes, royalties, and export levies paid.
Notably, direct employment in the sector expanded by 6.9% in 2022, employing a cumulative 16,147 individuals. This growth was fueled by the introduction of new positions through projects like Debmarine Namibia’s mining vessel and increased exploration ventures. An impressive 97% of employees in the mining industry are Namibians, translating into substantial salary contributions to the economy amounting to approximately N$6.225 billion. The sector also infuses N$16.823 billion into Namibian suppliers for goods and services, constituting a significant 74% of total procurement.
In the realm of mineral production, Namibia exhibited promising numbers across various resources. Gold bullion production in June 2023 amounted to 721 kg, a surge compared to previous months and the corresponding year. Notably, diamonds, uranium, and zinc concentrate production witnessed positive growth trends during the review period.
While the mining industry has showcased resilience against global challenges, it grapples with attracting skilled talent. A lack of awareness about the sector’s opportunities and limited promotion of its advantages contributes to this predicament. To sustain its momentum, the industry must embrace technological advancements and strive for a greener and more sustainable trajectory.
Moreover, the mining sector’s impact cascades across the economy, generating tax revenue and fostering employment opportunities. It significantly contributes to GDP growth, exports, and social welfare through job creation and income generation. The infusion of Foreign Direct Investment (FDI) augments Namibia’s developmental efforts by enabling investments in human and physical capital and harnessing untapped opportunities.
It is evident that mining’s contribution extends beyond economic gains. Responsible and sustainable practices are imperative to ensure the well-being of communities dependent on mining operations after mine closures. A renewed focus on responsible mining practices is needed to prevent the negative legacy of unrehabilitated sites.
In summary, Namibia’s mining industry has and will continue to play a pivotal role in its economic landscape. With its capacity to create jobs, contribute to GDP, and stimulate downstream opportunities, the industry has the potential to chart a prosperous future for the country. By emphasizing beneficiation, responsible practices, and partnerships between the public and private sectors, the mining sector can be a catalyst for Namibia’s sustainable development journey.
