Namibia’s economy to grow by between 1.7% to 2.6% over the next two years

STAFF WRITER

Bank of Namibia says the domestic economy is estimated to have grown by 1.7 percent in 2025 and is projected to expand further by 2.6 percent and 2.9 percent in 2026 and 2027, respectively.

This is slightly below the average growth in Sub-Saharan African economies which  is expected to increase slightly in 2026 and 2027 to  4.6 percent in both 2026 and 2027, compared to 4.4 percent estimated in 2025. 

According to the latest economic outlook released by the apex bank on Monday growth in South Africa is projected to edge up to 1.4 percent in 2026 and 1.5 percent in 2027 from the estimated 1.3 percent for 2025.

The Central Bank Director of Strategic Communications and International  Relations Kazembire Zemburuka said despite the downward revisions, growth in 2026 and 2027 remains moderate, primarily supported by anticipated expansion in the secondary and tertiary industries, particularly construction, electricity and water, wholesale and retail trade, financial service activities, and public administration and defence.

He said  uranium mining is expected to remain a key source of growth within the primary industries, supported by increased production from existing operations. The latest projections for 2026 and 2027 reflect a downward revision of 1.2 percentage points and 1.4 percentage points, respectively, compared to projections published in the December 2025 Economic Outlook update. 

“The downward revisions mainly reflect weaker-than-previously anticipated performance in the primary industries, particularly the significant contraction in metal ores production and continued weakness in diamond mining.,” Zembutuka said

Zemburuka said the domestic economic outlook remains subject to several downside risks from both external and domestic developments.

“ Regionally, the outbreak of Foot-and-Mouth Disease in neighboring countries, particularly in Botswana and South Africa, poses a risk to livestock production and export earnings,” he said. 

He said the ongoing geopolitical tensions, as well as evolvingUnited States policies, may contribute to volatility in commodity prices, exchange rates, and the cost of key imported inputs such as fuel.