Namibia's mining sector plays a significant role in the country's economy, with the industry spending approximately N$23.97 billion on locally sourced goods and services in 2025. This figure accounts for 65% of the sector's total procurement expenditure, according to a report by the Bank of Namibia. The substantial spending highlights the importance of the mining industry to local businesses, but it also raises questions about the extent to which this expenditure supports domestic manufacturing.
The distinction between local spending and domestic manufacturing is crucial as Namibia seeks to create jobs, strengthen industries, and retain more economic value from its mineral wealth. George Botshiwe, president of the Chamber of Mines of Namibia and managing director of QKR Namibia's Navachab Gold Mine, emphasized the importance of local sourcing, stating that the company intentionally sources locally whenever possible. This approach presents opportunities for Namibian businesses to supply more mining requirements.
Navachab Gold Mine, located near Karibib, spent approximately N$2.962 billion on procurement in 2025, with N$2.376 billion recorded as expenditure in Namibia and around N$41 million spent locally in Karibib. These figures illustrate the economic activity surrounding a single mining operation and the opportunities available to businesses providing engineering, transport, construction, and equipment servicing. Botshiwe noted that opportunities for entrepreneurs extend beyond supplying finished products to services such as equipment repairs, metal fabrication, and specialized engineering services.
However, measuring the full industrial benefit of mining procurement requires distinguishing between locally manufactured goods, services delivered by Namibian firms, and imported products distributed through local businesses. The Bank of Namibia's 2025 Annual Report recorded machinery and mechanical appliance imports worth approximately N$23.49 billion, with mining being a primary source of demand for machinery and chemical products. Not all these imports can be replaced by domestic production, as mining operations require specialized equipment and components that may be uneconomical to manufacture locally.
To increase domestic manufacturing, it is essential to identify which activities Namibian companies can undertake competitively and what investment would be required to expand their capabilities. Local production must meet industry requirements for quality, safety, price, and reliability. Suppliers must demonstrate the technical capacity to deliver consistently without disrupting mining operations. The Chamber of Mines and its members could provide clarity by breaking down procurement data into locally manufactured goods, imported products supplied through local businesses, and services delivered in Namibia.
The next step is to establish how much mining procurement translates into domestic productive capacity. A Namibian company distributing imported machinery can create jobs and generate local economic activity, but a manufacturer producing components locally can also develop industrial skills, support technical training, and create opportunities for other domestic suppliers. Policymakers, financiers, and entrepreneurs need accurate information to identify opportunities based on actual demand rather than assumptions about import substitution.
To build a stronger domestic industrial base, Namibia needs to identify commercially viable opportunities where local businesses can compete, invest, and grow. With better information, financing, and technical capacity, mining procurement could support a more substantial domestic industrial base. The real measure of success will be how much of the country's mining expenditure builds lasting productive capacity within Namibia, creating jobs, and supplying markets beyond the mining sector.
Key points
- Namibia's mining industry spent N$23.97 billion on local goods and services in 2025.
- The country aims to increase domestic manufacturing and retain more economic value from its mineral wealth.
- Detailed evidence from mining companies, suppliers, and government institutions is needed to establish the extent of domestic manufacturing.
