Namibia Statistics Agency (NSA) CEO Alex Shimuafeni says domestic economic activity increased by 4.7% during the first quarter of 2024.
Year-on-year (y-o-y), the real gross domestic product (GDP) rose to N$38.9 billion, up from N$37.2 billion, representing a N$1.7 billion increase.
However, the first quarter’s performance is mainly attributable to the primary industries, which witnessed a growth of 5.1% in real value added.
“The increase in economic activities is stimulated by the mining and quarrying sector, which registered a growth of 6.6% on the backdrop of diamond production,” said Shimuafeni. This latest data was released yesterday in the capital.
During an earlier discussion with this publication, Presidential economic advisor James Mnyupe revealed that page 63 of the Vision 2030 document states Namibia must look to be a secondary sector-driven economy that focuses on manufacturing and knowledge.
His best manifestation of this objective is the green industrialisation blueprint.
Launched in 2004 by Founding President Sam Nujoma, the national vision was designed to promote the creation of a diversified, open market and industrialised economy.
When it was launched, Vision 2030 promised a resource-based industrial sector and commercial agriculture, with particular emphasis on skills development.
However, during the first quarter of 2024, activities in secondary industries slowed down, posting a growth of 1.5% in real value added during the period under review, compared to a growth of 6.7% registered in the corresponding quarter of 2023.
NSA figures further show that the electricity and water sector recorded the highest growth rate of 9.8% during the quarter under review, while the manufacturing sector was the only one that witnessed a decline in real value added of 1.4% during the quarter.
Furthermore, the mining and quarrying sector was the main positive contributor to the GDP growth of 4.7%, contributing 0.9 percentage points; followed by wholesale and retail trade, which contributed 0.8 percentage points.
The decline in performance in this sector was mainly reflected in the diamond-cutting and polishing sub-sector that registered a decline of 44.1% during the period under review, compared to a decline of 0.4% recorded in the first quarter of 2023.
Similarly, basic non-ferrous metals, fabricated metals and meat-processing sub-sectors registered declines in real value added of 20.7%, 16.1% and 14.8%, respectively.