The central bank said it now expects economic growth of 2.6% in 2026 and 2.9% in 2027, marking reductions of 1.2 and 1.4 percentage points respectively from earlier projections. Officials attributed the revision to a contraction in metal ore production and continued weakness in diamond mining, both key contributors to Namibia’s export-driven economy.

"The downward revisions mainly reflect weaker-than-previously anticipated performance in the primary industries,” the bank said in a statement, highlighting a sustained downturn in global diamond demand. A senior economist at the bank, Helena Shikongo, told Lamaane News Network that "external commodity cycles continue to shape Namibia’s growth outlook, particularly in sectors heavily reliant on global pricing.”

On the ground in Windhoek’s commercial district, financial analysts noted cautious sentiment among investors, with moderate trading activity observed in local banking and construction stocks. "There is still resilience in services and infrastructure, but mining uncertainty weighs heavily,” said Paulus Nghipandulwa, an independent market analyst.

The bank identified secondary and tertiary sectors—including construction, financial services, and defence—as primary growth drivers. Uranium mining remains a relative bright spot within the primary sector, supported by stable international demand.

In a parallel development, the Bank of Namibia announced the appointment of Nicholas Mukasa as its second Deputy Governor, effective May 1. The appointment was made by President of Namibia, Netumbo Nandi-Ndaitwah under constitutional provisions.

Mukasa, who previously served as Director of Financial Markets, brings nearly two decades of experience in investment management and monetary policy. His responsibilities will include supporting strategic policy direction and strengthening institutional capacity amid financial sector digitisation and emerging energy investments.

Governor Ebson Uanguta said the appointment comes at a critical juncture. "His expertise will be crucial in guiding the Bank through this pivotal phase,” Uanguta said, adding that institutional transformation remains a priority.

The central bank also flagged external risks, including a foot-and-mouth disease outbreak in neighboring Botswana and South Africa, as well as continued volatility in commodity markets.

Namibia’s economy has faced sustained pressure from declining diamond revenues, although higher gold and uranium prices have partially offset losses. The revised forecast is below the government’s earlier estimate of 3.1%, underscoring a divergence between fiscal expectations and monetary outlook.

Economists say the combined policy adjustments and leadership changes signal a strategic shift toward economic resilience. The coming months are expected to test the bank’s ability to balance growth support with macroeconomic stability in a volatile global environment.