The mining sector, particularly the diamond mining subsector, is expected to continue supporting growth in 2023, albeit lower when compared to a strong performance in 2022.
The composite mining production index for September expanded by 6.1%, compared to an increase of 0.2% posted in August, according to the Namibia Statistics Agency (NSA).
The production of gold bullion in September 2023, stood at 788 kg as opposed to 632 kg and 626 kg that was recorded in August and in the corresponding month of 2022, respectively.
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In addition, Namibia produced 6 644 tonnes of zinc concentrate and contained during September, compared to 5 765 tonnes and 7 854 tonnes recorded in August 2023 and in the corresponding month of 2022, respectively.
Furthermore, 183 680 carats of diamonds were produced in September, compared to 178 187 carats and 164 503 carats that were recorded in August 2023 and in the corresponding month of 2022, respectively.
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Moreover, a total of 764 tonnes of uranium was produced in September, compared to 770 tonnes and 620 tonnes registered in August 2023 and September 2022, respectively.
Outlook
Real gross domestic product (GDP) growth stood at 4.6% in 2022. The Bank of Namibia (BoN) projects the domestic economy to slow down in 2023, mainly due to weaker demand in both global and domestic economies. Real GDP growth is projected to moderate downwards to 3.3% in 2023.
The mining sector, particularly the diamond mining subsector, is expected to continue supporting growth in 2023, albeit lower when compared to a strong performance in 2022. Furthermore, the ongoing oil exploration and appraisal activities are anticipated to contribute to mining growth from 2023 onwards, the central bank said.
The Ministry of Finance estimates the Namibian economy to grow by 3.5% in 2023. During the first and second quarter of 2023, the Namibian economy grew by 5.3% and 3.7%, respectively.
During the second quarter of 2023, the mining and quarrying sector registered a growth of 32% in real value added during the second quarter of 2023, compared to an increase of 64.5% recorded in the corresponding quarter of 2022.
The performance in the sector is attributed to the subsector of diamond mining which recorded a slower growth of 9.4% compared to a growth of 52.3% recorded in the corresponding quarter of 2022.
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