Namibia’s economy grew by 2.7% year-on-year in the first quarter of 2025, extending its growth streak to 16 consecutive quarters, according to new figures from Simonis Storm.
Although this marks a slowdown from the 4.8% expansion recorded in Q1 2024, the mining industry remains a bright spot in an otherwise mixed performance across sectors.
The mining and quarrying sector grew by 2.0% in Q1 2025, down from 7.6% a year earlier. This moderation reflects contrasting trends within the industry. Uranium production surged by 36.5%, a robust turnaround from a 10% decline last year, as global demand for nuclear energy strengthens amid the green energy transition. Similarly, metal ores such as zinc and gold posted a 7.1% gain, buoyed by higher output and favourable commodity prices.
However, the diamond segment struggled, declining by 4.0% due to weaker international demand and increased competition from synthetic diamonds. Non-metallic minerals, including marble, also contracted by 2.6%, highlighting structural challenges in niche mining operations.
Mining continues to play an outsized role in Namibia’s economic performance, contributing 13.7% of GDP in Q1 2025. The sector remains a key source of export earnings, jobs, and foreign investment. Yet the latest report underscores long-standing infrastructure constraints — including limited transport networks, port capacity, and energy supply — which risk stalling growth potential if not addressed.
The outlook for 2025 remains cautiously optimistic. Simonis Storm has revised Namibia’s full-year GDP growth forecast down to 3.3% from 3.8% due to global market risks and internal imbalances. Uranium and metal ores are expected to grow by 4.6% and 6.0% respectively this year.
To sustain momentum, experts urge the government to accelerate infrastructure development, particularly in roads, ports, and power generation. Diversification into local processing and value addition for critical minerals will also be vital for long-term economic resilience.
Source: Further Africa
