Policy uncertainty threatens 18 000 mining jobs

Namibia’s continued tip-toeing on policy clarity and mining reforms is putting nearly N$50 billion (US$2.87 billion) in investment and over 18 000 jobs at risk, the Chamber of Mines cautioned yesterday.

Presenting the sector’s 2025 annual report in Windhoek yesterday, chamber CEO Veston Malango said the country is at a critical turning point as global capital shifts toward faster, more predictable mining jurisdictions.

“Namibia’s mining sector is at an inflection point. Global exploration capital is flowing toward jurisdictions that offer speed, certainty and competitiveness,” Malango said.

“If we fail to resolve pending policy and legislative issues and streamline licensing processes, we risk losing the exploration inflows needed to sustain the next generation of mines.”

He warned that the cost of inaction would be severe — lost projects, fewer jobs and slower economic growth.

Billions stay local

Despite the concerns, the sector continues to anchor the domestic economy.

Of the more than N$64 billion generated in mining revenue last year, about N$43.5 billion remained in Namibia — up from over N$41 billion in 2024. This translates to 67.8% of total revenue retained locally.

Discretionary local procurement reached N$23.97 billion, while wages and salaries totalled nearly N$6.5 billion. Government also benefited significantly, with N$7.1 billion paid in profits tax and royalties, alongside N$1.5 billion in PAYE and N$685 million in export levies.

Malango noted that a substantial share of revenue flowing outside Namibia is linked to dividends paid to foreign shareholders and the importation of specialised mining equipment.

Investment at risk

Looking ahead, Malango said mining projects in the pipeline could attract US$2.865 billion over the next five years and create over 18 000 jobs — but only if key constraints are urgently addressed.

“These are not theoretical risks. These are real investments already being constrained by the current operating environment,” he said.

Among the major concerns are policy uncertainty, slow approvals, infrastructure gaps, skills shortages and unresolved mining legislation.

He also flagged the impact of uncertainty around the proposed 51% local ownership requirement for new mining licences announced in 2025, saying it unsettled investors and weakened Namibia’s competitiveness.

Competitiveness slipping

The warning comes as Namibia’s global standing as a mining destination declines.

According to the Fraser Institute Investment Attractiveness Index, Namibia’s score dropped from 66 in 2024 to 56 in 2025, with its global ranking falling sharply from 30th out of 82 jurisdictions to 51st out of 68.

Policy uncertainty was cited as a key driver of the decline.

Malango welcomed government’s subsequent clarification that no fixed local ownership threshold had been adopted, describing it as a positive step toward restoring investor confidence.

He stressed that Namibia remains well-positioned to benefit from strong global demand for uranium, gold and copper — but only if the investment climate improves.

“Our objective must be clear: to secure Namibia’s position as a globally competitive, responsible and investment-ready mining jurisdiction,” he said.

‘Act with urgency’

Chamber president George Botshiwe echoed the call for decisive action, warning that the country stands at a critical moment.

“This moment demands urgency, discipline and partnership,” Botshiwe said.

“If we act with resolve, we can unlock transformative investment and ensure that mining continues to serve as a powerful engine of employment and inclusive prosperity.”

He emphasised that collaboration between government, industry, regulators, workers and communities will be key to sustaining growth and attracting new capital.

Mining remains one of Namibia’s most important economic pillars, underpinning export earnings, state revenue and long-term development.