Chamwe Kaira
The imposition of a 15% tariff on Namibian exports by the United States reduced Namibia’s trade surplus with the US during the first half of 2025.
This was revealed in the Namibia country strategy paper for 2025–2030 released by the African Development Bank in Windhoek last week.
The report states that Namibia’s trade surplus with the United States declined to about N$331 million in the first half of 2025, down from about N$416 million during the same period in 2024.
The tariff affected key export sectors such as diamonds, marble and salt.
Diamonds were previously exported duty-free under the African Growth and Opportunity Act. The tariffs reduced competitiveness in the US market at a time when global diamond demand and prices remain under pressure.
Uranium exports were exempted from the tariffs.
The African Development Bank noted that Namibia’s exports to the US account for less than 1% of the country’s total exports.
The bank said the tariffs highlight the need for Namibia to diversify its export markets.
“However, loss of income by the stakeholder’s affected sectors is likely to worsen unemployment and income inequality. Consequently, Namibia should prioritise export and economic diversification, with emphasis on regional markets. Namibia could expand to other EU countries, the Middle East and Asia,” the bank said.
The report also noted that trade with South Africa remained resilient.
Namibia’s exports to South Africa increased by 10.8% during the first half of 2025, reaching about N$196 million. Imports from South Africa rose by 4.1% to about N$203 million.
The bank said the diversion of South African exports into Namibia as South Africa searches for new markets could lead to lower prices for Namibian consumers.
The report also highlighted developments in Namibia’s diamond sector.
Namibia’s diamond production declined by 7% to 2.1 million carats in 2025.
The decline came as Anglo American continued restructuring its diamond unit, De Beers, amid weaker global demand for rough diamonds.
According to Anglo American’s 2025 integrated annual report, De Beers produced 21.7 million carats during the year, down from 24.7 million carats in 2024.
Production was reduced across operations in Botswana, Namibia, South Africa and Canada to match market demand.
In Namibia, production declined mainly because of lower output from Debmarine Namibia.
The decommissioning of the Coral Sea and Grand Banks mining vessels also reduced production volumes.
Higher-grade ore and improved recoveries at Namdeb partly offset the decline.
Namdeb is a joint venture between De Beers and the Namibian government.
De Beers produces about one-third of the world’s rough diamonds by value across Botswana, Canada, Namibia and South Africa.
Anglo American holds an 85% stake in the business.
The company is moving ahead with plans to separate De Beers through a divestment or demerger.
According to Anglo American, the move will allow De Beers to implement its “Origins” strategy, announced in May 2024, which aims to streamline operations and strengthen demand for natural diamonds.
