Namibia has revised its mining tax and royalty revenue forecast down by N$900 million to N$5.2 billion for the 2026/27 financial year, as a sharp decline in diamond revenues continues to weigh on government finances.
Finance Minister Ericah Shafudah said diamond taxes and royalties were projected to fall to N$414 million in 2026/27, compared with N$5.8 billion collected in 2023/24, highlighting the impact of the downturn in the diamond industry on the southern African country’s fiscal position.
The revised mining revenue forecast represents a 14.8% reduction from the previous estimate of N$6.1 billion.
According to Shafudah, the decline in diamond revenue has resulted in an estimated N$5.3 billion shortfall over the Medium-Term Expenditure Framework (MTEF) period covering 2024/25 to 2026/27.
“Mining company tax and royalties are revised down to N$5.2 billion from N$6.1 billion. Diamond taxes and royalties have fallen from N$5.8 billion in 2023/24 to a projected N$414 million in 2026/27, an estimated shortfall of N$5.3 billion over the MTEF (2024/25 – 2026/27),” Shafudah said.
The government has introduced royalty relief measures to support mining companies affected by difficult operating conditions, with the aim of protecting employment and maintaining mineral export earnings.
Shafudah said the measures were intended to provide relief to the industry as declining diamond revenues placed additional pressure on the sector and public finances.
The deterioration in mining revenue has also contributed to a downward revision in Namibia’s broader non-tax revenue projections.
Non-tax revenue has been reduced to N$5 billion from N$6.1 billion, primarily due to lower mineral royalties and reduced dividends from public enterprises.
The revisions underline Namibia’s exposure to fluctuations in global commodity markets, particularly in the diamond industry, which has historically been an important contributor to government revenue and mineral exports.
