COUNTRY IN FOCUS •

By Sharyn Macnamara

Photo by Alan J . Hendry on Unsplash

Although Namibia is the driest country in sub-Saharan Africa , which poses significant challenges , it is rich in mineral resources with unexploited diamond and uranium deposits , and battery metals mining potential drawing investor interest .

Namibia remains one of the more enticing mining investment jurisdictions in Africa due to solid infrastructure , openness to trade and a strong legal framework , 1 notwithstanding having to traverse the very necessary challenge of delicately balancing indigenisation with investment attraction .

In addition , the country has a 1 500km-long coastline on the South Atlantic and borders South Africa , Angola and land-locked Botswana and Zambia . Its location is , on the one hand , a strength with well-developed ports making the country a strategic partner for neighbours . However , on the other hand , its location means that global and regional developments are important drivers of Namibia ’ s economic performance , as well as fiscal and external positions , as Namibia is highly susceptible to and reliant on commodity exports and Southern African Customs Union ( SACU ) transfers . The World bank highlights that recently , “ The twin shocks of the pandemic and spillovers from the war in Ukraine have negatively affected socio-economic progress .” 3

Economic trajectory According to the World Bank , “ Leading up to 2015 , Namibia ’ s economy experienced strong growth , averaging nearly 5 % annually , fuelled by investment and enabled by prudent economic management . However , growth stagnated from 2016 onwards , and three of the last five years have been marked by recession , with a sharp contraction in 2020 amid the COVID-19 crisis .” 4 Before the pandemic , the growth slowdown was caused by severe drought , lower commodity prices , reduced public investment , weaker growth in neighbouring countries and structural rigidities .

However , since the pandemic , Namibia has seen significant improvements and in the second quarter of 2022 the economy

The economy was projected to grow by 2.6 % in 2021 and 3.3 % in 2022 , on the back of a steady recovery in the mining sector , financial services , tourism , retail and wholesale trade – combined with an improvement in the regional and global economic environment . 5

Mining core to Namibian economy In an interview with African Mining at the Investing in African Mining Indaba earlier this year , Honourable Tom Alweendo , minister of Mines and Energy of Namibia , pointed out that mining and quarrying are core to the Namibian economy and account for between 9 and 15 % of Namibia ’ s GDP annually . The minister said that this number fluctuates , and notes that diamonds , uranium and zinc are the lead commodities , the total mining and quarrying contribution was pegged at 11 % in February 2022 , at the time of the interview . 6 ( See historical stats below supplied by the Ministry of Mines and Energy ( MME ) to give an indication of the weighting of commodities as a percentage of the total 9.1 % contribution in 2021 ).

www . africanmining . co . za African Mining Publication African Mining African Mining • October 2023 • 13