STAFF WRITER
Bank of Namibia Governor Johannes !Gawaxab has warned that Namibian diamonds could soon bear the brunt of the 15% trade tariffs implemented by the United States of America.
American President Donald Trump slapped protectionist tariffs against many countries including Namibia.
Speaking at the Monetary Policy Dialogue under the theme “35 Years of Monetary Stewardship: Enhancing Policy Resilience in a Changing Economic Landscape’, !Gawaxab said the country’s unpolished diamonds will be affected by the Trump tariffs in the near future.
The Governor highlighted the impact of new US tariffs on Namibia’s trade balance, particularly the 15 percent tariff on polished diamonds, which may dampen export volumes and government revenue.
A statement released by the Apex bank’s Deputy Director of Communications and Sustainability Naufiku Hamuniome said, “While uranium remains exempt due to its strategic importance to the US, other commodities, such as marble and salt, face increased costs and reduced competitiveness in the US market on account of tariffs.”
!Gawaxab said Namibia’s GDP is expected to slow to 3.5 percent in 2025 from 3.7 percent in 2024, before improving to 3.9 percent in 2026.
“The slowdown was mainly due to weaknesses in manufacturing and slower growth in the tertiary sector,” he said.
The Governor also cautioned that risks to domestic growth include diminished diamond export earnings, potential trade disruptions stemming from protectionist policies, and potential inflationary pressures arising from ongoing global conflicts.
The Governor also highlighted the commencement of gold accumulation as part of the Bank’s foreign exchange reserve diversification strategy, targeting 3 percent of net reserves to enhance resilience during economic shocks.
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