Patience Makwele
The Mineworkers Union of Namibia (MUN) has called for a parliamentary probe into the country’s diamond cutting and polishing industry.
MUN submitted a petition to the National Assembly this week.
The union said the industry faces reduced production, scaled-down operations and growing uncertainty among workers.
“The current trajectory of the sector is unsustainable and requires immediate intervention to prevent further job losses,” the union said.
The union said hundreds of jobs are at risk if no action is taken.
It urged parliament to investigate the challenges affecting the sector, which has been central to Namibia’s plan to add value to its diamonds locally.
The call follows reports of retrenchments and worsening conditions in the industry.
The sector once employed thousands and was expected to support industrial growth, but has weakened over time.
The union said limited access to rough diamonds is one of the main challenges.
It argued that local companies are not receiving enough supply to sustain operations in a competitive global market.
Rising costs and global pressures are also affecting the sector, including weaker demand and competition from countries with lower processing costs.
The diamond sector accounts for roughly 10% of GDP and represents a substantial portion of export earnings.
This week, the Chamber of Mines of Namibia raised concern over the country’s sharp drop in a key global mining survey, warning that Namibia risked losing investment if policy uncertainty was not addressed.
The warning followed the release of the 2025 Fraser Institute Annual Survey of Mining Companies, which showed that Namibia had fallen significantly in global rankings for mining investment.
According to the report, Namibia’s Investment Attractiveness Index dropped from 66 points in 2024 to 56 in 2025. This saw the country fall from 30th place out of 82 jurisdictions to 51st out of 68.
The drop marked a decline in Namibia’s competitiveness as a destination for mining investment.
Namibia recorded declines in both areas. The Policy Perception Index fell from 78 to 68, reflecting weaker confidence in laws and regulations. The Mineral Potential Index also dropped from 58 to 47, pointing to reduced confidence in the country’s mining prospects under current conditions.
Industry players who took part in the survey identified policy uncertainty as a key concern.
Economist Godfrey Muthaung said the decline reflects deeper problems.
“What we are seeing is not just a temporary downturn but a systemic decline driven by both global market shifts and local policy inefficiencies,” he told the Windhoek Observer on Wednesday.
He said Namibia is struggling to compete with countries such as India.
“Namibia is struggling to compete with established cutting centres like India, where costs are significantly lower and supply chains are more efficient. Without consistent access to rough diamonds and targeted policy support, local processors simply cannot survive.”
Muthaung warned that the impact could extend beyond job losses.
“If this segment disappears, Namibia will effectively revert to being a raw exporter of diamonds, undermining years of beneficiation policy and limiting long-term economic value. This is not just an industry issue, it is a national economic risk.”
The union has asked Parliament to summon government and industry stakeholders to explain the situation and present solutions to stabilise the sector.
It also called for more transparency in how diamond resources are allocated, saying the current system may not support local processing.
Questions sent to the National Assembly and relevant ministries had not been answered at the time of publication.
