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Namibia’s mining sector is a backbone of the economy, contributing to employment, export earnings, inward investment, and tax revenues. The Ministry of Finance’s budget tables show that mining corporate taxes and royalties contribute on average 4.1% of Government’s annual revenue.Mining companies face higher corporate profit tax rates than non-mining companies, while also paying a royalty on the commodities they produce. This royalty is generally fixed at a percentage of their revenue, irrespective of whether they are profitable. In addition to this, mining companies also pay an export levy on the various mineral products exported from Namibia (again, irrespective of profitability). Though relatively capital-intensive, the sector offers high-wage jobs with broader economic spillovers.The overall tax contributions by the mining sector across company tax, royalties, export levies and personal income taxes (from the workers employed) contribute on average 9.1% of total government revenue – making it a vital source. However, this can vary widely by year, from a low of 6.9% in 2014 to a peak of 10.6% in 2021. These contributions to the fiscus are affected by commodity prices, the exchange rate, and mine production. The mining sector’s contributions are often scrutinised, and they should be, but the use of these funds paid to Government – as custodian of our natural resources – also deserves scrutiny.*Robert McGregor is the head of research at Cirrus Capital.**

Chart of the Week

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Republikein 2026-03-26

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Chart of the Week

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