Shavuka Mbidhi
The growth in Namibia’s domestic economy is anchored by upbeat activities in the natural resources sector, namely mining. A look back at the economic stories of 2025 began with a radical policy shift geared towards addressing long-standing social constraints, including high levels of poverty and unemployment.
Undeniably, Namibia has one of the highest levels of income inequality in the world, and youth unemployment stood at 37.3% in 2024.
Part of its Vision 2030, and under the current sixth National Development Plan (NDP6), the government focus is on promoting industrialisation, economic diversification, health and education, job creation, and social equality.
As Namibia expects investment inflow into the country in respect of numerous growing industries – including renewable energy and green hydrogen, agriculture, mining and, more recently, petroleum – the underground voice of mine workers should never be ignored.
As set out in the laws that regulate mining, the sector is governed primarily by the Minerals (Prospecting and Mining) Act of 1992 [later the Act was amended by the Minerals (Prospecting and Mining) Amendment Act, 2008 (Act No. 8 of 2008)]; the Environmental Management Act, 2007 (Act No. 7 of 2007); the Labour Act, 2007 (Act No. 11 of 2007); and the Works and Minerals Ordinance 20 of 1968 (the “Ordinance”).
Together, these laws are vitally necessary for creating a cohesive framework for regulating the mining industry, attracting investors, empowering workers and balancing resource utilisation with environmental concerns while ensuring economic policy considerations in Namibia.
Besides the regulatory framework, the Namibian policy’s stance is clear: to ensure mineral beneficiation through partnering with Namibian companies and persons, as well as to procure goods and services locally and hire Namibian employees; local ownership policies requiring a minimum of 15% Namibian ownership in new mining projects; and enhanced local value addition across the mining sector.
These approaches are intended to improve the sustainability of the extractive industry and ensure that the country derives maximum economic benefit from its natural resources. While not obligatory, mining companies operating in Namibia need to be encouraged to align their operations with those of national objectives.
This alignment not only will support the country’s economic goals but also will enhance the sustainability and social responsibility of mining operations.
Even though the national framework is efficient at encouraging economic stability and attracting investors, the world is now shifting towards technological advancement and robotics. It remains a euphemism if social safety and best labour practices that protect workers and not jobs are to be preserved.
Because, at the heart of the global trends of leading mining companies, governance, and business is the quality of people. Despite our policy tangled in local content, globalisation has created a fierce competition for talent, forcing companies and governments to recognise that people are the most valuable assets.
Nurturing, upgrading and retaining domestic skills is a necessary condition for growth, but it is not sufficient.
In order to achieve advanced economy status and get out of the middle-income trap, Namibia must have the skills needed to fill the gaps and enhance the comparative advantage of the country’s demographic dividends.
Relatively, the report by the Forbes Global 2000 list indicates that countries with companies that lead in mining, such as [BHP – Australia, Rio Tinto – UK, Vale – Brazil, Zijin Mining – China, and Newmont – US], have indicated that in order to compete and sustain themselves, their labour forces must be flexible, adaptive and competitive on the global, regional and national levels.
Creative destruction occurs not just in mine companies and industries that have outdated machinery and equipment but also in human skills. Therefore, the private sector, society and governments in
Namibia has a pivotal role to play in facilitating orderly transition, health insurance, and minimum wage protection; otherwise, workers will end up facing disruption and exploitation. Jobs and workers must be matched efficiently through adaptation and transition to increase productivity and thus raise wages for all.
Within the mining context, we can no longer rely on our wealth from natural resources alone to mask our economy’s weaknesses.
The pursuit of advancing sustainable economic growth in 2026 requires commitment beyond silver and gold. Empowerment of a quality workforce and reducing dependency on foreign labour, creating a competitive economy, and ensuring transparent and market-friendly affirmative action, policy measures and oversights are needed.
Support from stakeholders that inspires and does not conspire with the workforce and labour practices can power this profound transformation.
Certainty on the fiscal regime, SEZ incentives and best work practices that encourage mine workers to live and contribute to Namibia’s GDP will also attract highly reputable investors to build new businesses and opportunities, eventually enriching the environment within which a sustainable economy grows.
Lastly, the Mineworker Union of Namibia welcomes the recent appointment of the minister of mines, energy and industry, honourable Modestus Tshitumbe Amutse, and wishes him well and success in his new role.
MUN has no doubt that he will perform his duties to the best of his abilities, and MUN stands ready to work closely with him to ensure that, first and foremost, natural resources benefit Namibian people equitably.
*Shavuka Mbidhi, the vice president of the Mineworker’s Union of Namibia (MUN).
