Namibia’s diamond export earnings have weakened considerably, with rough diamond proceeds falling by 19.4% to N$6.0 billion, while polished diamond exports dropped by 23.2% to N$2.7 billion, according to the Bank of Namibia (BoN).
Central Bank Governor Johannes !Gawaxab said diamond mining output is projected to contract by 4.5% in 2025 and by a further 5.7% in 2026, following a 3.7% decline recorded in 2024.
“The diamond industry is facing headwinds that may persist in the medium term, driven by structural and cyclical factors,” !Gawaxab said.
He noted that the natural diamond industry has been on a downward trajectory since 2022, affected by the growing market share of lab-grown diamonds, subdued consumer demand in major markets such as the United States and China, increased supply from producers selling at lower prices, and high inventory levels across the midstream.
“Diamond’s contribution to the fiscus in terms of corporate income tax, royalties and dividend payments has reduced substantially,” !Gawaxab stated.
He added that domestic diamond companies remain under financial strain due to debt-servicing obligations, declining revenue and ongoing investment in operational efficiency.
According to the BoN’s Quarterly Bulletin for the third quarter of 2025, diamond production stood at 521,586 carats in the quarter ending June 2025 — a decrease of 7.1% year-on-year and 17.4% quarter-on-quarter.
The Bank said the reduction stemmed from planned production cuts at Debmarine Namibia. Following a cost-optimisation review, one vessel was retired while a charter vessel was withdrawn from service pending a decision on decommissioning or sale.
Export receipts from rough diamonds fell by 29.5% year-on-year to N$2.9 billion in the second quarter of 2025, reflecting weaker export volumes and realised prices due to subdued demand, rising competition from lab-grown diamonds, and elevated inventories.
However, on a quarterly basis, receipts from rough diamonds rebounded by 76.1%, supported by higher export volumes and improved realised prices, the Bank of Namibia reported.
