Mining industry contracts 11.1%
The mining sector's share of the GDP has dropped from 12% to an average of 9%.
21 September 2020 | Business
The mining industry has recorded a negative growth of 11.1% last year, a deep contraction from the positive growth of 16.1% in 2018.
This is according to the Chamber of Mines president, Zebra Kasete, who provided a detailed account of Chamber activities, policy and regulatory developments, mining sector performance and highlights in his just released President's Report for last year. The Chamber held its AGM on 16 September this year.
According to Kasete, updated numbers show that the mining sector's share of GDP has dropped from 12% to an average of 9%, suggesting a diminished role in the Namibian economy.
“The reduction is as a result of corrections made to the previous methodology in calculating the value added for diamond mining. The old methodology made no clear distinction of rough and processed diamonds and was not able the re-import of some diamonds back into Namibia from Botswana, which effectively resulted in in double counting.”
Still the biggest
Kasete said despite this revision, mining remains the largest primary sector in comparison to agriculture and fishing.
He said over 96% of the mining workforce employed last year were Namibians, which meant that that the majority of the salary bill, amounting to N$6.027 billion, circulated within the local economy.
“Moreover, the industry maintained its high local expenditure component, of which N$13.4 billion was spent on local businesses and suppliers, translating into further sources of incomes for households and individuals.”
In total the industry directly employed 16 342 individuals compared to 16 224 in 2018. Direct employment consisted of 9 027 permanent employees, 800 temporary employees, and 6 515 contractors.
According to Kasete the industry created 114 394 jobs.
He said the sector's total contribution to the state coffers decreased by 7% year-on-year as a result of reduced diamond mining output and sales values realised from lower commodity prices.