Staff Reporter
NAMIBIA is actively identifying ways to transition from a predominantly extractive economy to one anchored in sustainable industrialisation.
“Namibia, like many African economies, has historically been characterised as an extractive economy. And while the extractive sector remains vital, we must avoid being perpetually confined to a model based predominantly on the export of raw materials, in line with our aspirations of Vision 2030 and the prosperous ‘Africa We Want’,” the Minister of International Relations and Trade, Selma Ashipala-Musavyi, said.
The minister made these remarks at the recent launch of the report on the “Rapid Assessment of Value Addition and Diversification within and beyond the Critical Energy Transition Mineral Value Chain”. Ashipala-Musavyi noted that the findings underscore the existence of realistic and attainable routes for Namibia to move beyond an extractive economic model. She added that the report’s recommendations provide a sound basis for evidence-based policymaking and coordinated collaboration between government, the private sector and development partners.
“In particular, the growing global demand for energy and transition minerals 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 Namibian products. The measure of our success must be reflected not only in export volumes but in the depth of domestic participation across value chains to support our quest for ‘Growth at Home’,” the minister said.
However, she cautioned that diversification must extend beyond large-scale industries, as small and medium-sized enterprises remain essential drivers of innovation, employment and inclusive growth. She emphasised that strengthening this sector will be critical to reducing vulnerabilities and ensuring that economic expansion is broad-based and, most importantly, sustained.
“Regional integration and global partnerships continue to provide important platforms for scaling production and accessing markets. Strengthening intra-African trade can expand regional manufacturing by providing businesses with access to larger markets at lower costs. Namibia’s engagement within SADC, SACU and the African Continental Free Trade Area reinforces our commitment to value addition and productive capacity development as foundations for meaningful regional integration and economic empowerment. These platforms enable production at scale and competitive industries within our continental market. Integration helps to attract investment into key sectors and support trade expansion, which in turn fosters industrial growth. I am particularly pleased that the report speaks to the need to embed inclusion, sustainability, gender equality and regional integration across the board,” Ashipala-Musavyi said.
She further observed that Namibia’s development trajectory highlights the importance of striking a careful balance between benefiting from commodity exports and mitigating the risks associated with over-dependence on them.
“It is thus no coincidence that through our 6th National Development Plan, launched in July 2025, as part of the stewardship of natural resources, government is compelled to optimise the benefits derived from natural resources, specifying that they must be invested in sustainable development and the upliftment of livelihoods. This has given rise to the imperative to actively translate our resource endowment into diversified industrial activity and sustainable growth. In this regard, coherent policy coordination, institutional strengthening and targeted investment in productive capacities are essential,” Ashipala-Musavyi said.
The full report, made possible with the support of the United Nations Conference on Trade and Development (UNCTAD) and the Government of Japan, is available at https://unctad.org/system/files/official-document/tcsditcinf2026d2_en.pdf.
Photo: Ministry of International Relations and Trade.
