Namibia has not been spared by the global diamond value chain slump bordering on a depression, with weak prices, soft retail demand, elevated inventories and fast-growing competition from lab-grown stones.
Against that backdrop, the Bank of Namibia (BoN) has urged the government to extend the royalty relief granted to Namdeb, saying the measure is needed to stabilise operations and protect jobs while the market resets.
Namdeb has about 1,500 permanent jobs and 600 contractor roles.
According to company disclosures, Namdeb remitted over N$416 million to the Government of Namibia in 2022 and just under N$500 million in 2023.
A Namdeb-only figure for 2024 has not been published separately.
However, group-level payments from De Beers’ Namibian operations (Namdeb and Debmarine combined) declined in 2024 in line with the broader market downturn.
BoN governor Johannes !Gawaxab said domestic producers are wrestling with lower revenue, debt-service burdens and ongoing efficiency investments, and that the medium-term outlook remains challenging without further support.
Namdeb — liable for a 10% royalty on turnover and a 55% corporate income tax on profits — reported a loss of N$79 million for the year to December 2024, according to Chamber of Mines figures.
The government first approved a remission in 2023, allowing Namdeb to reinvest royalty amounts into “accretion” activities to sustain offshore production on the south coast as mining advances further out to sea. The current relief expires at the end of 2025. Extending it, the central bank argues, would help Namdeb ride out the downturn and safeguard employment in a key export industry.
Namdeb says the royalty remission has enabled about N$1.3 billion in capital spending on ramp-up activities. Under its long-term plan to 2042, the company projects around N$159 billion in revenue and broader economic benefit to Namibia.
The decision now facing policymakers is a trade-off: a temporary fiscal sacrifice versus the prospect of longer-lived operations, preserved livelihoods and greater activity along the southern coastal mining belt.
