Windhoek: The agriculture sector has emerged as a beacon of growth in Namibia, recording robust expansion during the first four months of 2026, even as other sectors experienced sluggish economic activity. Bank of Namibia (BoN) Governor Ebson Uanguta highlighted this trend on Wednesday while announcing the outcomes of the Monetary Policy Committee's (MPC) third bi-monthly meeting of the year.

According to Namibia Press Agency, economic activity across most sectors, including mining, manufacturing, tourism, electricity generation, construction, and communications, remained weak. Uanguta underscored that the subdued performance was particularly pronounced in these industries. However, the agriculture sector defied this trend, with a significant increase in activity driven by strong crop production.

Despite the slow start to the year, the central bank is optimistic about economic growth, projecting an improvement from 1.7 percent in 2025 to 2.6 percent in 2026. The recovery is anticipated to be fueled by growth in uranium mining, wholesale and retail trade, financial services, and public administration and defense sectors.

Meanwhile, Namibia's merchandise trade deficit expanded to N.dollars 11.7 billion in the first four months of 2026, compared to N.dollars 11.3 billion during the same period in 2025. Uanguta attributed the widening deficit to increased import payments, especially for machinery, mineral fuels, vehicles, and electricity. Despite faster growth in export receipts, import growth outpaced them, leading to a deteriorated trade balance.

Uanguta warned that Namibia's external position is likely to remain under pressure in the near term due to rising import prices. He also pointed out several risks to the economy, including weaker global demand, geopolitical tensions, and the potential emergence of an El Ni±o weather pattern. Water supply challenges, particularly affecting uranium mining activities, require ongoing monitoring, he added.