Diamond Slump Slows Namibia's Economy
August 18, 25
(IDEX Online) - Namibia's economic growth is slowing, as a slump in diamond sales is compounded by the impact of drought conditions on livestock farming.
The Bank of Namibia (BoN) has revised down its forecast for GDP growth this year from 3.8 per cent to 3.5 per cent. Last year it was 3.7 per cent.
Diamonds account for around 10 per cent of the country's GDP and just over a fifth of its total exports, according to the latest Namibia International Merchandise Trade Statistics Bulletin.
Diamond mining is projected to decline by 4.5 per cent in 2025 and 5.7 per cent in 2026, according to BoN's August 2025 Economic Outlook.
"The diamond mining sector is expected to continue its decline, reflecting weak global demand, the imposition of trade tariffs, and rising competition from lab-grown alternatives," the report said.
Livestock farming is forecast to drop by 16.8 per cent after drought-induced herd reductions in 2024.
Three quarters of Namibia's diamonds are marine gems, recovered by a fleet of Debmarine Namibia vessels. Last year it reduced its output by 13 per cent, in response to lower global demand and increased competition from lower-priced rough diamonds from Angola.
The diamond industry provides thousands of jobs in Namibia, directly and indirectly, but faces challenges from global price fluctuations and competition from lab growns.
Pic shows a Debmarine Namibia diamond ship.