Namibia’s uranium exports are expected to reach approximately N$41.4 billion this year according to the Bank of Namibia, driven by elevated global demand due to the renewed focus on nuclear energy.
These exports according to the apex bank , could help reduce the country’s current account deficit as a percentage of GDP, from 15.3% in 2024 to 14.2% in 2025.
“The improvement is attributed to an increase in exports of other mineral products, particularly uranium, which is expected to rise by 21.9% in 2025, amounting to N$41.4 billion,” the Bank of Namibia (BoN) reported.
A negative current account balance is recorded when a country is a net borrower from the rest of the world.
Uranium mining is projected to grow by 7.5% in 2025, up from the slower 1.8% growth recorded last year, fueled by the surge in global uranium demand, the rapid expansion of nuclear reactor projects, and the renewed emphasis on nuclear energy.
This positive outlook prompted the Bank of Namibia to revise its growth forecasts upwards by 5.4 percentage points for 2024 and 8.1 percentage points for 2025, compared to projections made in December last year.
Meanwhile, Namibia’s diamond mining sector is expected to contract further in 2025 and 2026, following a continued decline in the demand for natural diamonds due to the growing popularity of lab-grown alternatives.
“The diamond mining sector is projected to decline by 6.2% in 2025 and 7.7% in 2026, following a contraction of 3.7% in 2024. This ongoing decline is mainly attributed to the current weakness in global demand for rough diamonds, further compounded by the potential imposition of reciprocal tariffs,” the central bank said.
These challenges, compounded by potential trade disruptions from protectionist policies and inflationary pressures stemming from ongoing global conflicts, are expected to render the domestic economy vulnerable
“Adding to these challenges, fiscal strain from declining SACU and diamond revenues could lead to debt unsustainability, potentially necessitating severe expenditure cuts,” BoN warned.
