The government now projects a 4.5% economic growth rate for 2025, a downward revision from the 5.4% forecast made just five months ago.

With diamond revenues dwindling, the minister stressed the urgency of reducing dependence on the industry and expanding other sectors such as renewable energy, tourism, agriculture, and manufacturing. Namibia’s vast solar energy potential presents a significant opportunity for long-term economic resilience.

The decline in diamond sales has hit tax revenues hard, with the Namibia Revenue Agency (NamRA) anticipating a NAD 6 billion (USD 330 million) shortfall in 2025. Diamonds contribute approximately 10% of Namibia’s GDP, but total revenue from the sector fell by 50% in 2024.

Debmarine Namibia, a joint venture between De Beers and the Namibian government, reported a 38% drop in revenue last year, attributing the slump to weak demand in key markets like China and the U.S., increased competition from Angolan rough diamonds, and the rising popularity of lab-grown alternatives.