Diamond Slump Hits Namibia Government Revenue
July 01, 25
(IDEX Online) - Tax and royalty contributions by De Beers to the Namibian government fell by 11 per cent in 2024, as a direct result of weaker diamond prices and lower output.
The figure was down from $611m to $545m, according to the Tax and Economic Contribution Report 2024, published by parent company Anglo American.
In March, the Namibia Revenue Agency warned that tax and royalty for 2025 could dip as low as $225m (a year-on-year reduction of $330m).
Diamonds account for around for around 10 per cent of the country's GDP and just over a fifth of the its total exports, according to the latest Namibia International Merchandise Trade Statistics Bulletin.
Diamond production during the year was 2.2m carats in Namibia, down 4 per cent from 2023.
Debmarine Namibia reduced its output by 13 per cent, in response to lower global demand and increased competition from lower-priced rough diamonds from Angola.
De Beers operates in Namibia through a 50:50 joint venture with the Namibian government, primarily via Namdeb Diamond Corporation for land-based diamond mining and Debmarine Namibia for offshore diamond recovery.
The diamond industry in Namibia provides thousands of jobs, directly and indirectly, but faces challenges from global price fluctuations and competition from lab growns.
Pic shows a Debmarine Namibia diamond ship.