Namibia in Numbers: Sectoral growth since 2020

The 2024 Annual National Accounts data confirmed that several sectors have finally recovered from the Covid-19 pandemic, with real gross domestic product (GDP), excluding the mining sector, returning to 2019 levels.

The year 2020 significantly reduced the base value addition of several sectors, with only a few exceptions such as the information and communication technology sector, which grew by 17% that year as remote work and isolation drove increased demand for data and airtime.
Since then, the mining sector has borne the brunt of GDP growth.

Although it experienced a minor contraction in 2024 due to weak diamond prices, Namibia’s overall growth was supported by all secondary and tertiary industries, indicating a healthy broadening of the economy.

This was primarily driven by demand-side improvements, as enhanced consumer affordability through personal income tax amendments, cooling inflation, and declining interest rates saw real household consumption grow by 13% during the year.

Although the construction industry contracted by 26% since 2020, it recorded its first growth in eight years and is expected to benefit significantly over the next five years from infrastructure investment by both the public and private sectors.

The logistics industry, which expanded by 29% over the same period, is also poised for strong growth. However, growth pains are expected, as both industries may lack the capacity to meet the high demand anticipated in the coming years.

The wholesale and retail trade industry is expected not only to experience strong growth but also to be better positioned to meet rising demand.

Unlike construction and logistics, which require greater levels of external investment (e.g. road network infrastructure), the trade industry is able expand operations more readily.

– Compiled by Cirrus Capital head of data and analytics Tannan Groenewald