Namibia’s mining industry spends billions on local goods and services, but converting that expenditure into domestic manufacturing remains a critical test of the country’s industrial ambitions.
Elvis Mboya
Namibia’s mining industry spent approximately N$23.97 billion on locally sourced goods and services in 2025, accounting for 65% of total procurement expenditure, latest reports from Bank of Namibia indicates.
The figure highlights the sector’s importance to local businesses but raises a deeper question: how much of that spending supports products manufactured in Namibia?
The distinction matters as the country seeks to create jobs, strengthen industries and retain more economic value from its mineral wealth.
George Botshiwe, president of the Chamber of Mines of Namibia and managing director of QKR Namibia’s Navachab Gold Mine, has emphasised the importance of local sourcing.
“What we can source locally, we intentionally do,” Botshiwe told Observer Money.
His remarks highlight opportunities for Namibian businesses to supply more mining requirements.
However, measuring the full industrial benefit requires distinguishing between locally manufactured goods, services delivered by Namibian firms and imported products distributed through local businesses.
A substantial market for local suppliers
Navachab Gold Mine, near Karibib, spent approximately N$2.962 billion on procurement in 2025. Of that amount, N$2.376 billion was recorded as expenditure in Namibia, while approximately N$41 million was spent locally in Karibib.
These figures illustrate the economic activity surrounding a single mining operation and the opportunities available to businesses providing engineering, transport, construction and equipment servicing.
Reflecting on opportunities around mine operations, Botshiwe said: “This is where the money is,” referring to maintenance and services.
For entrepreneurs, opportunities extend beyond supplying finished products. Equipment repairs, metal fabrication and specialised engineering services could provide entry points into mining supply chains.
The challenge is identifying which activities Namibian companies can undertake competitively and what investment would be required to expand their capabilities.
Machinery imports highlight the challenge
The Bank of Namibia’s 2025 Annual Report recorded machinery and mechanical appliance imports worth approximately N$23.49 billion. The report also identified mining as a primary source of demand for machinery and chemical products.
Not all these imports can realistically be replaced by domestic production. Mining operations require specialised equipment and components that may be uneconomical to manufacture locally at current demand levels.
Nevertheless, could more Namibian firms manufacture selected components, produce fabricated metal products, undertake specialised repairs or supply recurring industrial consumables?
Answering this requires evidence on what mines purchase, what local suppliers can deliver and where competitive gaps remain.
Local production must meet industry requirements for quality, safety, price and reliability. Suppliers must demonstrate the technical capacity to deliver consistently without disrupting mining operations.
From local spending to local production
The next step is establishing how much mining procurement translates into domestic productive capacity.
A Namibian company distributing imported machinery can create jobs and generate local economic activity.
A manufacturer producing components locally can also develop industrial skills, support technical training and create opportunities for other domestic suppliers.
Both contribute to the economy, but their effects on manufacturing capacity differ.
The Chamber of Mines and its members could clarify this distinction by breaking procurement data down into locally manufactured goods, imported products supplied through local businesses and services delivered in Namibia.
Such information would help policymakers, financiers and entrepreneurs identify opportunities based on actual demand rather than assumptions about import substitution.
It could also reveal whether manufacturers are
constrained by access to finance, equipment, skilled workers, certification or information about mining companies’ procurement requirements.
For smaller businesses, working capital can be a significant obstacle. Financing linked to credible supply contracts could help capable firms expand production, while collaboration between mining companies and technical institutions could strengthen industry skills.
Measuring what stays in Namibia
Namibia’s mining procurement figures demonstrate that the industry provides a substantial market for domestic businesses.
However, expenditure totals alone cannot establish how much value comes from local manufacturing, how many jobs are created or how much imported content remains in supply chains.
Those questions require more detailed evidence from mining companies, suppliers and government institutions.
The objective should not be to replace every imported product or shield local suppliers from competition. It should be to identify commercially viable opportunities where Namibian businesses can compete, invest and grow.
With better information, financing and technical capacity, mining procurement could support a stronger domestic industrial base.
For Namibia, the opportunity is not simply to spend more money locally. It is to build businesses that produce more, employ skilled workers and supply markets beyond the mining sector.
The real measure of success will be how much of the country’s mining expenditure builds lasting productive capacity within Namibia.
