Growth not comparable to previous year

Windhoek (ot) - Namibia’s mining sector recorded modest revenue and profit growth in 2024, yet its fiscal contributions to government coffers declined significantly, largely due to a slump in diamond sales. According to Zebra Kasete, President of the Chamber of Mines of Namibia, the sector’s total revenue rose by 1.4% from N$51.5 billion in 2023 to N$52.2 billion in 2024, while profitability increased by 3.3%, from N$2.7 billion to N$2.8 billion.



Despite these gains, the sector’s fiscal contributions fell sharply. Despite being profitable, the sector’s contribution to the government’s coffers conversely did not show similar growth. According to Kasete, the sharp reduction was primarily driven by lower diamond sales, which form a substantial portion of the sector's fiscal contributions.



Namibia Revenue Agency (NamRa) commissioner Sam Shivute recently demonstrated the government’s reliance on mining to fill its coffers. “We have collected N$83 billion for the 2024/2025 financial year. From a diamond sector perspective, this year we are not getting about N$6 billion compared to last year. Government imposes a 55% tax on diamond mining operations and a 10% royalty on rough diamonds.