The mining industry spent N$24.154 billion on goods and services from Namibian businesses in 2024. This represents 46.2% of the sector’s total revenue of N$52.295 billion. The figures were revealed by the President of the Chamber of Mines of Namibia, Zebra Kasete, in his Mining Industry Review for 2024.
“Despite a challenging year, the mining industry continues to be a strong pillar of our economy, fostering inclusive growth through high local procurement and employment creation,” Kasete said.He highlighted that procurement efforts are key to long-term socio-economic development, empowering local businesses and communities across the country.
Employment in the mining sector grew by 13.6% in 2024, with 20,654 people directly employed compared to 18,189 the previous year. Kasete noted that this expansion highlights the sector’s resilience even as some retrenchments were recorded.
According to him, the industry’s wage bill reached N$7.996 billion. Mining employees contributed N$1.695 billion in Pay-As-You-Earn (PAYE) tax, strengthening household incomes and public revenue.
Despite favourable global prices for uranium, gold, copper, and zinc, Namibia’s mining and quarrying sector contracted by 1.2% in real value added, reversing the 12.4% growth recorded in 2023. Kasete explained that the decline was mainly due to a 3.7% drop in diamond mining output, caused by weaker global prices, reduced demand, and strategic production cuts to maintain market stability.
Meanwhile, uranium mining grew by 1.8%, slowing sharply from the 29.6% surge in 2023. He said water supply issues and planned maintenance at key mines affected operations.
Kasete stated that increased production from the Langer Heinrich mine helped cushion the slowdown. Gold production grew by 2.7% due to record output at the Navachab gold mine.
The Chamber mentioned that revenue in the mining sector rose by 1.4% to N$52.295 billion. Profitability improved by 3.3% to N$2.819 billion. Kasete said operational efficiencies and strong performances in gold and uranium helped offset challenges faced by the diamond sector.
Gross Fixed Capital Formation declined by 11.7% to N$5.220 billion, reflecting the completion of major infrastructure projects and delayed new investments. Exploration spending rose by 66.6% to N$1.485 billion, showing growing interest in uranium, critical minerals, copper, and gold.
The sector’s contribution to government revenue declined in 2024, he added. Corporate taxes fell by 23.8%, royalties by 11.3%, and export levies by 0.28%, largely due to weaker diamond sales. Kasete cautioned that the sector’s heavy reliance on diamonds for fiscal revenue exposed vulnerabilities.“While other minerals performed strongly, the dominance of diamonds in the revenue structure meant that challenges in that segment had a pronounced impact on the overall fiscal contribution,” he said.
Mining contributed 13.3% to Namibia’s GDP in 2024. Kasete reaffirmed that mining remains the cornerstone of the country’s economy.
