Hertta-Maria Amutenja
Deputy Minister of Industrialisation and Trade, Gaudentia Kröhne, has warned that the imposition of a 21% United States tariff on Namibian mineral exports could stall trade momentum and threaten future economic opportunities under the African Growth and Opportunity Act (AGOA).
Speaking during a ministerial roundtable on the promotion of natural diamonds in Luanda on Tuesday, Kröhne described the April 2025 executive order from the US as a major threat to Namibia’s diamond industry and broader trade prospects.
“Namibia now faces a reciprocal 21% tariff on mineral exports, including diamonds, to the US, a significant market for Namibian goods. Such tariffs are likely to reduce Namibian exports, create market imbalances and introduce new volatility in global trade, particularly in the natural diamond sector,” she said.
Diamond exports to the US remain a crucial part of Namibia’s foreign revenue.
Kröhne said contributions to the state from Debmarine Namibia fell from nearly N$6 billion in early 2023 to just over N$2 billion by mid-year, driven by falling global diamond prices and growing competition from lab-grown alternatives.
“This lower contribution level is expected to persist through 2025,” she said, adding that a recovery to 2023 levels is only expected by 2027.
Kröhne expressed concern that the tariff decision could also affect ongoing efforts to renew AGOA, a trade pact that allows duty-free access to US markets for many African countries.
“These developments threaten to undermine proposals to renew AGOA,” she said.
She reaffirmed Namibia’s commitment to ethical diamond production.
“Namibia has embraced technological innovation through the Namibia Diamond Trading Company to verify the origin of our diamonds and reinforce their story of ethical sourcing,” Kröhne said.
She added that blockchain technology is already in place to trace the origin of Namibian stones.
In April, local research firm Simonis Storm warned that the tariffs form part of a broader protectionist shift that could drive inflation in Namibia.
The firm noted that tariffs on key exports such as diamonds, uranium, and fish could hurt Namibia’s competitiveness in the US market, lowering export volumes and reducing foreign exchange earnings.
A weaker Namibian dollar could make imports more expensive, with inflation rising in sectors such as manufacturing, agriculture, and transport.
The firm said cost-push inflation is likely, as businesses respond to higher input costs by raising prices, creating broader economic strain.
Policymakers may face difficult decisions balancing support for economic growth and inflation control.
The roundtable, hosted in Angola, is expected to conclude with the signing of the Luanda Accord, a joint declaration by diamond-producing countries to promote sustainable practices and enhance the global visibility of natural diamonds.
