De Beers' Payments to Namibia Fall Amid Diamond Market Slump

According to Anglo American’s Tax and Economic Contribution Report 2024, De Beers contributed $545 million last year, down from $611 million in 2023.

The outlook for 2025 appears even more concerning. The Namibia Revenue Agency has projected that tax and royalty collections from diamond operations could fall to just $225 million—a staggering $330 million drop year-on-year.

Diamonds remain a cornerstone of Namibia’s economy, contributing around 10% to the nation’s GDP and accounting for more than 20% of its total exports, based on the latest figures from the Namibia International Merchandise Trade Statistics Bulletin.

Production challenges also compounded the decline. Namibia’s total diamond output for 2024 stood at 2.2 million carats, representing a 4% dip from the previous year. Offshore mining operations by Debmarine Namibia saw a sharper drop of 13%, driven by weaker global demand and intensifying competition from more affordable rough diamonds originating from Angola.

De Beers operates in Namibia through a 50:50 joint venture with the Namibian government. The partnership comprises two key entities: Namdeb Diamond Corporation, which manages land-based mining, and Debmarine Namibia, which handles offshore recovery operations.

Despite the challenges, the diamond industry remains a vital source of employment for thousands of Namibians. However, it faces mounting pressure from volatile global pricing trends and the growing presence of lab-grown alternatives in the international market.

As the sector navigates a complex global environment, the impact on Namibia’s economy underscores the country's dependence on natural diamond revenues and the need for strategic diversification.