The United Nations Conference on Trade and Development (UNCTAD) yesterday launched a new report outlining how Namibia can expand its economy by adding value to its mineral resources and diversifying into new industries.
The report, titled ‘Rapid Assessment of the Value Addition and Diversification Within and Beyond the Critical Energy Transition Minerals Value Chain: Namibia’, identifies 353 products across 23 sectors that Namibia could produce using its existing capabilities.
Of these, 200 products show the strongest potential for diversification and represent a global market that has grown by an average of US$811 million since 2018.
According to the study, 165 of the proposed products were validated by Namibia’s private sector and could create more than 26 400 jobs, which is about 3% of the country’s labour force in 2023.
Most of the new jobs could come from the iron and steel sector, with more than 15 000 positions. Machinery could generate over 3 200 jobs, copper products more than 2 200 and electrical equipment nearly 1 900.
Food processing, chemicals and pharmaceuticals together could add more than 5 000 jobs, opening opportunities for youth and semi-skilled workers.
Launching the report in Windhoek yesterday, Minister of International Relations and Trade Selma Ashipala-Musavyi said the findings show that Namibia can move beyond exporting raw materials.
“The evidence in this report emphasises that there are practical and achievable pathways for our country to move beyond the status of exporting raw materials,” she said. Namibia’s exports remain concentrated in primary commodities, especially mining.
While mining contributes significantly to the gross domestic product and export earnings, much of the output is exported in raw or semi-processed form. This limits local job creation, technology transfer and industrial growth.
The minister said the global shift to clean energy presents a strategic opportunity.
“By promoting beneficiation and strengthening local linkages, we can enhance industrial development, create employment, build specialised skills and secure greater market access for Namibia’s products and services,” she said.
She added that success should be measured not only by export volumes but also by the level of domestic participation across value chains. She stressed that small and medium enterprises must also benefit from diversification efforts.
UNCTAD secretary general Rebeca Grynspan said the report focuses on “structural transformation,” changing what a country produces to alter its development path.
“What separates a wealthy economy from a poor one is not the amount of money flowing through it. It is what that economy makes,” she said.
She explained that when copper is exported as concentrate, it earns far less than when it is processed into cables or other finished products.
“The mineral is the same. What changes is the work that surrounds it, the engineer, the technician and the small firm that supplies the parts. Each of those steps is a job, a skill, a business,” she said.
Grynspan noted that the global energy and digital transitions are driving demand for critical minerals. Electric vehicles, wind turbines, solar panels and battery storage all rely on these materials.
Namibia has already taken steps in this direction. In 2023, the government announced a ban on the export of unprocessed lithium and other critical minerals, signalling its intention to promote local processing.
UNCTAD used economic complexity analysis to identify products that align with Namibia’s existing capabilities.
The approach maps products that require similar skills, infrastructure and knowledge to what the country already has.
“This report does not just say ‘diversify’. It answers the questions: diversify into what, and starting from where,” Grynspan said. The study highlights 60 products directly linked to energy transition mineral value chains.
It estimates that investment of about US$2.1 billion could unlock these opportunities and support job creation within three years.
Examples include copper-based electrical components, such as wiring, conductors and switchgear.
Namibia already produces copper cathodes, and further processing could add significant value. The report also identifies pharmaceutical products, including sterile injectables and vitamins, as commercially viable and socially important.
However, she warned that diversification requires affordable finance, market access and skills development.
“Africa pays between four and eight times the interest rates that developed countries pay. The cost of capital is a real constraint,” she said. She added that tariff escalation, where higher tariffs are imposed on processed goods than on raw materials, also limits developing countries’ ability to move up the value chain.
The report aligns with Namibia’s national development plans, beneficiation strategy and special economic zones.
It also links to regional opportunities under the African Continental Free Trade Area.
“The ambition is there. Now we need to turn this into factories, jobs and exports,” Grynspan said.