Johannes !Gawaxab Calls for Extended Royalty Relief for Namdeb as Global Diamond Prices Decline
Namibia’s central bank governor, Johannes !Gawaxab, has called for an extension of the royalty discount granted to Namdeb to help the diamond miner navigate a prolonged global market downturn characterized by weak demand and a supply surplus.
The diamond industry is facing mounting pressure from the growing popularity of lab-grown diamonds and a declining appetite for natural stones among younger consumers—factors that have driven rough diamond prices sharply lower in recent years.
In 2021, the Namibian government reduced Namdeb’s royalty rate from 10% to 5% through 2025 to support the company—a joint venture between De Beers and the Namibian government—in extending its land-based operations to 2042.
Speaking at a press conference on Wednesday, shortly after the Bank of Namibia cut its benchmark interest rate by 25 basis points to stimulate the slowing economy, !Gawaxab emphasized the need to sustain support for the country’s diamond industry.
“It is important to support Namdeb during these difficult times,” he said. “As a country, we must stand behind not only the companies, but also their employees.”
He argued that extending the royalty relief would give Namdeb the financial breathing space needed to withstand the headwinds currently buffeting the global diamond market.
When the discount was first approved, De Beers warned that the aging mines were becoming increasingly difficult to operate profitably.
“Domestic diamond mining companies remain cash-strapped due to debt servicing obligations, declining revenues, and ongoing investments to boost efficiency,” !Gawaxab added. “As a result, the industry faces significant medium-term challenges.”
The call for continued royalty relief comes as Namibia—one of Africa’s top diamond producers—seeks to balance fiscal stability with economic resilience, ensuring its mining sector remains competitive amid global market volatility.
