Diamond tax revenue has dropped sharply by 79% by mid-2025 compared to the previous year, reflecting a major setback in one of Namibia’s most significant income sources.
Commissioner of the Namibia Revenue Agency (NamRA), Sam Shivute, said the decline follows a 49% drop in the previous financial year, deepening concerns about the sustainability of mining-driven fiscal revenue.
Shivute explained that gold mining has maintained consistent revenue contributions, helping to cushion total collections against the full impact of the diamond slump.
“Sectors such as gold mining continue to show resilience and are playing a stabilising role in our revenue mix. However, the broader slowdown in the extractive industry remains a concern for sustainable revenue growth,” said Shivute.
NamRA’s overall collection performance has also been constrained by weaker Southern African Customs Union (SACU) receipts, which have fallen by roughly N$3.5 billion.
He noted that total revenue reached only 43% of the annual target halfway through the financial year, compared to 50% during the same period last year, reflecting slower economic activity.
“The economy last year performed better than the current financial year. When economic activity slows down, it directly affects the size of the tax base — the cake from which we collect revenue becomes smaller,” said Shivute.
Despite the challenging environment, the Namibia Revenue Agency is implementing reforms aimed at improving efficiency and compliance.
The commissioner noted that these include risk-based audit strategies to curb revenue leakages and ensure full payment of outstanding obligations.
“We continue to invest in technology, data analytics, and staff development to strengthen compliance and improve service delivery. Our focus is to build a modern tax administration capable of responding to emerging business models and maintaining fiscal stability,” said Shivute.
This comes as 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).
Meanwhile, Debmarine Namibia reported a 38% decline in revenue to N$8.5 billion for 2024, attributing the drop to reduced diamond prices and lower production levels.
The company produced 2.234 million carats of rough diamonds, marking a 4% decrease from the 2.327 million carats mined in 2023.
