Envaalde Matheus
The government says the ongoing conflict in the United Arab Emirates and Israel could disrupt the country’s diamond trade if the situation is prolonged.
According to the open data portal, TrendEconomy’s 2023 trade report, about 12.7 % of Namibia’s rough diamond exports by value, roughly N$4 billion of N$31.4 billion, were sent to the United Arab Emirates.
Energy ministry diamond commissioner, Miina Gahutu, warned that if the current disruptions to airspace and security continue, the diamond industry could face delays and higher costs, affecting trading.
“The United Arab Emirates and Israel are very important diamond trade hubs globally where Namibia’s diamonds are traded,” she said.
Gahutu added that: “Therefore, looking into the short, medium and long term, the ongoing conflicts and associated disruptions, particularly the airspace and security related disruptions, if they remain, could have material impacts on the diamond trade.”
Gahutu said the disruptions could lead to delays, higher transportation costs and complications in sales cycles if the conflict continues.
“Diamonds and the diamond trade in general require efficient movement of people and products, as well as secure supply chains,” she said.
Gahutu said the government is monitoring the situation and engaging key stakeholders to mitigate potential economic impacts if the conflict and associated disruptions persist.
“The government is monitoring the situation closely and will continue to engage with key stakeholders to find solutions aimed at mitigating potential impacts that a prolonged conflict of this nature, and its associated disruptions, may have on the Namibian economy,” she said.
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