Namibia’s mining sector saw a growth rate of 21.6% in 2022, largely due to a significant boost in diamond production, according to the Chamber of Mines Annual Review. The report also highlighted growing interest in Namibia’s critical mineral resources, which are expected to experience major shortfalls in the global market. President of the Chamber of Mines, Hilifa Mbako, stressed the importance of establishing favourable terms and conditions in the mining and processing of these minerals to derive maximum value and contribute to the long-term growth of the country.
The Chamber of Mines engaged with the government on policy and legislative matters affecting growth and investment in the sector, achieving a major win with the amendment to the Value Added Tax (VAT) Act. The amendment enables exploration companies to register for VAT and claim input VAT refunds without hindrance.
Mbako also noted the importance of the mining sector’s environmental, social, and governance profile, with the Chamber assessing ways to enhance social transformation in Namibia, reduce the industry’s environmental footprint, and uphold robust governance systems within the mining sector and regulatory mechanisms.
The expansion of the mining sector and investment inflows into exploration and mine development provide a base for Namibia’s economic diversification and advance towards becoming a self-sustaining, resilient, and independent economy.
As the demand for critical minerals increases globally, Namibia’s abundance and variety of these minerals make it an attractive destination for investors. However, favourable terms and conditions, along with environmental and social responsibility, will be key to ensuring sustainable growth and long-term success in the mining sector.
