President Nangolo Mbumba says Namibia’s economic prospects hinge on green industrialization, oil and gas discoveries, and mineral resources.
Speaking at the final Cabinet meeting of his presidency, Mbumba stated that the administration’s investment efforts have created “green shoots on the horizon.”
“The economic outlook remains positive with the discoveries of oil and gas, the exploration of mineral resources, and the vigorous promotion of green industrialization and the blue economy,” Mbumba said.
He highlighted that Namibia’s economic performance is rebounding from the effects of COVID-19, positioning the country for future prosperity.
“As our economic performance continues to recover from the effects of COVID-19, we can look forward to the potential of green hydrogen and oil and gas discoveries, which will transform our economy and usher in a new era of prosperity for the Namibian people,” he said.
Reflecting on the past 13 months, Mbumba acknowledged the challenges his administration faced, particularly the passing of President Hage Geingob and Founding President Sam Nujoma.
“While we have been focused on mitigating the devastating effects of one of the most severe drought periods in our recorded history, we have also suffered a double blow. Last year, we lost a sitting President, my brother, President Hage Geingob, and this year, just 12 months later, we lost our Founding President and Leader of the Namibian Revolution, His Excellency Dr. Sam Shafiishuna Nujoma. May their brave souls rest in eternal peace,” he said.
Despite these challenges, Mbumba commended the resilience of his Cabinet, emphasizing that as the nucleus of Namibia’s political leadership, they have remained steadfast.
The outgoing President expressed confidence in President-elect Netumbo Nandi-Ndaitwah’s ability to steer Namibia forward, stating that the SWAPO Party’s manifesto would serve as the foundation for the incoming administration.
“I am encouraged by the forward-looking SWAPO Party Manifesto, which will form the basis of the agenda for the incoming administration of our President-elect, Comrade Netumbo Nandi-Ndaitwah. As a tried and tested leader, I have no doubt that she will continue to consolidate the peace and unity we have enjoyed for 35 years and will usher in a new era defined by economic growth and opportunities for all Namibians,” he said.
Mbumba reaffirmed his belief that Namibia’s focus has shifted from independence to economic emancipation, with new leaders set to build on a strong foundation to uphold peace, democracy, unity, and development.
Debmarine revenue drops 38% amid diamond market slump
Debmarine Namibia has reported a 38% decline in revenue to N$8.5 billion for 2024, attributing the drop to reduced diamond prices and lower production levels. The company produced 2.234 million carats of rough diamonds, marking a 4% decrease from the 2.327 million carats mined in 2023.
Debmarine Namibia Chief Executive Officer Willy Mertens acknowledged the subdued financial performance over the past two years but assured stakeholders of the company’s financial resilience.
“Earnings before interest, tax, depreciation, and amortisation (EBITDA) reduced by 86% to just under a billion Namibia Dollars, in fact at N$951 million. Let’s look at the movement in EBITDA from N$6.76 billion in 2022, price or market taking out N$2.3 billion in 2023 and another N$4.8 billion in 2024—that is a massive N$7.1 billion over the past two years,” Mertens said.
He attributed the decline to lower diamond prices and production adjustments made in response to market conditions, leading to a 91% drop in free cash flow. Despite a 13% reduction in total assets, Debmarine Namibia maintains a strong asset base valued at N$13 billion, with equity standing at approximately N$4 billion.
In an effort to enhance efficiency and recovery rates, the company has invested in two new crawlers for the Benguela Gem vessel. The upgrades are expected to improve recovery speeds by 20% and enable access to different geological deposits.
The downturn comes amid a 3.5% decline in global demand for natural diamond jewelry in 2024, exacerbated by increasing polished stock levels in the midstream sector. Polished stock levels surged to US$2 billion in July 2024 before reducing to US$1.2 billion due to a constrained supply of rough diamonds.
Executive Director of Mines and Energy, Penda Ithindi, highlighted the potential impact of G7 sanctions on Russia and Iran, particularly regarding revenue flows and the technological infrastructure required for verification processes.
“In light of these challenges, it is crucial to take proactive and strategic measures to stabilize the diamond industry. This response must go beyond cost-cutting and should focus on securing the industry’s future and protecting the livelihoods that depend on it,” Ithindi stated.
He acknowledged the difficult decisions being made amid the industry downturn, including potential job losses. However, he emphasized the need for a human-centered approach in all strategies aimed at mitigating the impact.
“The government remains committed to supporting the industry through collaborative measures to navigate the downturn. The conversation has started, and we will continue working closely with stakeholders, including mining companies, employees, and impacted communities, to develop sustainable solutions,” he added.
