Call to Extend Royalty Discount for Namdeb
October 21, 25
(IDEX Online) - Namibia's central bank is calling for an extension to Namdeb's royalty discount.
The cut, from 10 per cent to 5 per cent, was introduced in 2021, and lapses at the end of this year.
But Johannes !Gawaxab, governor of the central bank now says it should be extended to 2042, to cover the entire lifetime of Namdeb's mines.
"It is important to support Namdeb during these difficult times," he said during a press conference.
"As a country, it is important we support not only the companies, but its employees as well."
Namdeb, a joint venture between the government and De Beers, has been hit hard by the global downturn in demand for natural diamonds.
Debmarine, the offshore diamond company, accounts for three quarters of Nambia's total diamond production (2.2m carats in 2024), but does not benefit from the royalty discount.
Diamonds account for around for around 10 per cent of the country's GDP and just over a fifth of its total exports.
Last year tax and royalty contributions by De Beers to the Namibian government fell by 11 per cent, as a direct result of weaker diamond prices and lower output.
Pic courtesy Namdeb.