For decades, diamonds have been more than just glittering stones in Namibia. They have been a symbol of national pride, a key driver of economic growth, and a cornerstone of our export-led economy.
Today, however, the foundations of this once-stable sector are visibly shaking. Global demand remains subdued, diamond prices have declined, and established players like De Beers, long regarded as a pillar of the industry, are under mounting pressure to reassess their market valuation. The choices made in the coming months will have profound consequences for our nation, our businesses, and the livelihoods of thousands of Namibians.
The signals are clear. Anglo American, De Beers’ majority shareholder, is reviewing whether the company’s book value still reflects current market realities. Analysts suggest that De Beers may face another writedown, the third in recent years, as falling demand, high inventories, and reduced pricing power weigh heavily on profitability. Discussions about restructuring, strategic sales, or operational realignment are reportedly underway.
These are not abstract corporate manoeuvres; they have direct implications for Namibia’s economy and must command the attention of policymakers and business leaders alike.
Namibia’s diamond sector is a cornerstone of our national economy. In 2024, De Beers’ payments to the Namibian government fell by over 10%, reflecting both lower global prices and reduced sales volumes. For a nation that relies heavily on export revenues from diamonds to fund public services, infrastructure, and social programs, this decline is significant. Every percentage point lost in diamond revenue translates into fewer resources for schools, hospitals, and public projects, with real consequences for citizens across the country.
Moreover, diamonds continue to shape Namibia’s economic identity. The sector accounts for roughly 10% of GDP and represents a substantial portion of export earnings. It provides direct employment through Namdeb and Debmarine, the joint ventures between the Namibian government and De Beers, while also sustaining countless indirect jobs in local communities, transport, logistics, and support services. A downturn in this sector threatens to ripple across the economy, impacting both public finances and private enterprises that depend on the mining sector.
The causes of this downturn are both cyclical and structural. Global demand for natural diamond jewellery has struggled to regain momentum, particularly in key markets such as the United States and China. Weak consumer confidence, high inventories, and shifting purchasing habits continue to dampen sales. At the same time, lab-grown diamonds are gaining traction. These stones are physically identical to mined diamonds but can be produced at a fraction of the cost, appealing especially to younger, ethically conscious consumers. Lab-grown diamonds are no longer a niche product; their growing market share has disrupted pricing and challenged the dominance of natural diamonds.
For Namibian stakeholders, this dual challenge—softening demand and competition from lab-grown stones—cannot be ignored. The structural shift in global consumption patterns means that our reliance on traditional diamond mining is increasingly risky. The question is no longer whether Namdeb and De Beers can weather temporary market fluctuations but how Namibia can adapt to a fundamentally changing diamond landscape.
Policymakers and the business community must take decisive action. Diversification is no longer optional; it is urgent. Namibia has untapped potential in sectors such as renewable energy, mining beyond diamonds, agriculture and agro-processing, and value-added manufacturing. Solar and wind resources, for example, provide opportunities for large-scale energy production that could attract investment, generate jobs, and stabilize the economy. Agriculture and agro-processing could reduce import dependence while creating sustainable livelihoods in rural areas. Value-added diamond processing, such as cutting and polishing, could retain more of the value chain locally, boosting employment and export revenues.
At the same time, immediate support for Namdeb is critical. Operational efficiency must be improved, new markets explored, and strategic partnerships leveraged to maintain competitiveness. Policymakers and business leaders must collaborate to safeguard the sector’s contributions to the economy while positioning it for the realities of the future diamond market. Transparent, forward-looking policies will be essential to maintain investor confidence, stabilise the labour market, and ensure that Namibia continues to benefit from its natural resources.
This is a moment that demands vigilance and leadership from both public and private sectors. Every business owner, investor, and policymaker should be attentive to shifts in the diamond market and their broader implications for the Namibian economy. Waiting passively while global forces reshape the industry would be reckless. The diamond sector is evolving, and so too must our approach to economic planning, investment, and policy formulation.
For Namibians, from executives and entrepreneurs to policymakers and civil servants, the stakes are real. This is not simply a story of corporate restructuring or commodity price fluctuations; it is a national economic challenge that requires informed debate, strategic planning, and decisive action.
The sparkle of diamonds may be dimming in the short term, but Namibia’s potential to innovate, adapt, and thrive remains undiminished. Policymakers, business leaders, and stakeholders must recognise the urgency of the moment. Let this be a wake-up call: the diamond industry can no longer be taken for granted, and the nation’s economic future depends on the choices we make today.
