Windhoek:The Namibian government has adjusted its mining revenue forecasts for the 2026/27 fiscal year, reducing expectations for mining company tax and royalties from N$6.1 billion to N$5.2 billion. This revision was announced by Finance Minister Ericah Shafudah during the Mid-Year Budget Review presented in the National Assembly.
According to NAMPA, diamond taxes and royalties are expected to decrease significantly from N$5.8 billion in 2023/24 to a projected N$414 million in 2026/27. This decline represents an estimated shortfall of N$5.3 billion over the Medium-Term Expenditure Framework from 2024/25 to 2026/27.
Minister Shafudah attributed the revenue weakness primarily to the mining sector. Total revenue for the year has been revised downward by N$1.5 billion, dropping from N$89.6 billion to N$88.1 billion, largely due to reduced mining receipts, a lower fuel levy, and diminished administrative fees. Non-tax revenue has also been adjusted downwards from N$6.1 billion to N$5 billion, mainly because of decreased mineral royalties and public enterprise dividends.
To support the sector, the government has implemented royalty relief measures aimed at protecting employment and export earnings. Shafudah emphasized the need for economic diversification, highlighting the importance of expanding agricultural production, enhancing downstream value addition, growing service industries, and developing renewable energy sectors.
Looking ahead, economic growth is projected to improve, with expectations of 2.6 percent in 2027, 3 percent in 2028, and 3.3 percent in 2029. This growth is anticipated to be driven by pipeline projects in the mining sector, supported by strong uranium and gold prices. However, Shafudah noted that muted global demand and commodity prices, especially for diamonds, pose key risks.
The government plans to continue engaging with the private sector on agreements within the extractive industries to ensure Namibia secures a fair share of the value created. Additionally, export levy levels are under review, with ongoing consultations with stakeholders.