Tiri Masawi
Namibia has recorded its weakest economic performance in five years, with Gross Domestic Product (GDP) growth slowing to 1.7%, according to the latest national accounts released by the Namibia Statistics Agency (NSA).
Statistician General Alex Shimuafeni said the figure marks the lowest growth rate since the height of the Covid-19 pandemic.
In nominal terms, GDP rose to N$269.8 billion during the period under review, up from N$250.0 billion in 2024 — an increase of N$19.7 billion. However, in real terms, which account for inflation, growth slowed to 1.7%, down from 3.8% recorded in 2024.
Shimuafeni attributed the slowdown largely to weak performance in primary industries, which contracted by 7.2% in real value added, compared to a 3.2% decline the previous year.
The NSA said the downturn was driven mainly by the ‘Mining and quarrying’ and ‘Agriculture, forestry and fishing’ sectors, which recorded declines of 9.4% and 3.3%, respectively.
The contraction in agriculture was largely due to a sharp drop of 21.7% in the livestock farming subsector, while the decline in mining was linked to a 19.4% contraction in diamond mining.
Secondary industries recorded slower growth of 2.1%, down from 3.6% in 2024, weighed down by a 2.9% decline in the manufacturing sector.
Meanwhile, tertiary industries remained the strongest performers, growing by 4.2%, although this was also lower than the 5.2% recorded in 2024. Growth in this category was supported by sectors such as information and communication (10.7%), wholesale and retail trade (7.8%), health (6.6%), education (4.7%), and public administration and defence (3.8%).
CALL FOR DIVERSIFICATION
Independent economist Indileni Nangonga said the figures highlight the urgent need for Namibia to diversify its economy and reduce reliance on a narrow set of industries.
“A look at the figures shows there is a need to diversify the economy to grow faster and create employment. If we focus on sectors that create jobs, like agriculture, we can expand the economic base,” she said.
Nangonga warned that continued dependence on the same industries is unsustainable and limits long-term growth.
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