NAMIBIA'S MINING SECTOR SHOWS STRONGER INVESTMENT APPEAL

Namibia secured second place among Africa’s mining destinations in The Africa Report’s 2026 ranking published by the Jeune Afrique Media Group, underscoring both its established mining legacy and its rising importance in critical minerals. The country’s mining sector has long been anchored by diamonds, uranium and copper, while lithium, rare earths, graphite and manganese are now drawing fresh exploration interest. The result points to a mining industry that remains rooted in long-established production, but is increasingly shaped by minerals linked to the global energy transition.

The ranking is based on five factors: reserves across 13 key minerals, progress in critical mineral projects, the business climate, risk and market access. Geological potential accounts for half of the score, while the other pillars measure whether countries have the conditions needed to turn mineral wealth into active projects and long-term investment. Namibia’s position therefore reflects more than what lies underground; it also reflects the country’s ability to support mining activity in practice.

Namibia’s strong showing is supported by a combination of long-standing mining experience, a clear legal framework and improving logistics. The country’s mining law and related policies continue to provide a structured environment for prospecting and mining, while Walvis Bay and regional corridors give exporters access to Atlantic markets and neighbouring mining economies. That helps explain why Namibia continues to appear in the same conversation as other leading African mining destinations, especially in Southern Africa. The Namibia Chamber of Mines’ 2025 annual review adds important context. Although mining output fell by 9.4% in real terms in 2025, the sector still generated N$64.18 billion in sales revenue, which is an increase of 25% from 2024 and contributed strongly about 14% to GDP. The growth was driven by stronger uranium production and higher commodity prices helped soften weaker diamond and base metal performance.

The sector also paid N$7.805 billion to the government in taxes, royalties and export levies, spent N$23.974 billion on local procurement and supported 20,798 direct jobs. Beyond those direct jobs, the Chamber said the industry sustained more than 145,000 indirect jobs, with Namibians filling 97% of permanent positions. Exploration spending rose to N$1.496 billion in 2025, while fixed investment climbed to N$7.461 billion, showing continued confidence in Namibia’s project pipeline.

The growing focus on critical minerals forms a major part of Namibia’s appeal. Beyond uranium and copper, the country attracts new interest for lithium, rare earths, graphite and manganese, which are increasingly important for batteries, wind turbines, electronics and other industrial uses. This gives Namibia a stronger position in a market where governments and investors are looking for reliable sources of minerals needed for the energy transition.

The ranking also supports Namibia’s wider plan to diversify its economy. UNCTAD’s 2026 Rapid Assessment Report identifies 353 products across 23 sectors where Namibia has potential to grow new industries, including 60 linked directly to energy-transition minerals. The report estimates that these opportunities could generate around 26,000 jobs across the economy, while also supporting industrial upgrading and value addition. Under NDP6, Namibia aims to increase processed mineral exports from 46.6% to 57% by 2030, while creating more room for local value addition and industrial growth. That creates opportunities for MSMEs, contractors and skilled workers in transport, maintenance, engineering, services and processing.

For current and potential investors, Namibia’s ranking is another signal that the country remains one of Africa’s stronger mining destinations. The combination of established mines, ongoing exploration, critical minerals potential and a policy direction that supports value addition gives the country a case for both new investment and expansion. UNCTAD’s diversification roadmap adds further weight to that case by showing that mining can support not just extraction, but also manufacturing and broader industrial development.

Namibia’s investment appeal is also supported by its recent performance in the fDi Intelligence Greenfield FDI Performance Index 2026, where it ranks second globally and first in Africa for attracting greenfield investment relative to the size of its economy. That result suggests that the country is not only attracting attention for its mineral potential, but is also converting that attention into new investment projects. Together with the mining ranking, it strengthens the broader message that Namibia remains competitive for capital, projects and long-term growth.

As Namibia’s appeal as a mining destination continues to grow, NIPDB remains committed to supporting the sector through its mandate to promote and facilitate investment, improve the business environment, support MSMEs and help position Namibia as a competitive destination for domestic and foreign capital.