Diamond slump deepens as Namibia’s growth outlook improves
Namibia’s diamond industry is facing another sharp contraction, with the Bank of Namibia warning that weak global demand, growing competition from lab-grown diamonds and trade tariffs are deepening what it describes as a structural decline in the sector.
CHAMWE KAIRA
Namibia’s diamond industry is facing another sharp contraction, with the Bank of Namibia warning that weak global demand, growing competition from lab-grown diamonds and trade tariffs are deepening what it describes as a structural decline in the sector.
The central bank expects diamond mining output to fall by 11.7% in 2026, following a 19.4% contraction last year. The 2026 forecast was revised down by six percentage points from the March economic outlook.
The outlook remains weak in 2027, with diamond production projected to contract by a further 12.3%.
“The continued weakness reflects persistently subdued global demand for natural diamonds, intensifying competition from lab-grown alternatives, and the lingering effects of international trade tariffs on the luxury goods segment,” the bank said in its economic outlook for August released on Monday.
