CHAMWE KAIRA
The electricity and water sector is expected to maintain strong growth in 2023, before registering low growth in 2024, according to Bank of Namibia statistics.
The electricity and water sector is estimated to grow by 9.5 percent and 4.2 percent in 2023 and 2024, respectively, a slowdown from 10.3 percent in 2022.
The strong growth in 2023 is mainly attributed to the electricity sub-sector where local generation of electricity improved on the back of an increased water level at the Ruacana hydro-power plant during the latest rain season.
The latest growth estimate for 2023 was revised upwards by 4.9 percentage points from the corresponding estimate published in the August 2023 Economic Outlook, based mainly on better year to-date production. In this connection, the quarterly National Accounts indicated that the sector grew by an average of 15.6 percent during the first half of 2023.
In 2024, the electricity and water sector is projected to record a reduced growth rate of 4.2 percent, mainly due to a higher base in 2023.
The central bank said growth for the manufacturing sector is estimated to decline in 2023 before improving in 2024. The manufacturing sector is projected to grow by one percent and 3.5 percent in 2023 and 2024, respectively.
The lower growth estimate for 2023 was dragged down by anticipated weak performances for sub-sectors like beverages, grain milling, chemical and related products, as well as leather and related products. All these sub-sectors are expected to contract in 2023.
“When compared to the August 2023 Economic Outlook, the 2023 growth estimate for manufacturing was revised downward by 2.5 percentage points. In 2024, manufacturing growth is projected to improve to 3.5 percent, assisted by anticipated recoveries in grain milling, beverages, and chemical and related products.”
