Anglo American Namibia’s Economic Contribution Falls 21% Amid Diamond Sector Weakness

According to Anglo American’s Tax and Economic Contribution Report 2025, the group’s total tax and economic contribution in Namibia fell by 21% to US$432 million (N$7.11 billion) in 2025, down from US$545 million (N$8.97 billion) in 2024.

The decline comes as Anglo American advances plans to separate De Beers and reassesses its long-term exposure to the diamond sector.

Taxes, procurement and investment all declined

Anglo American operates in Namibia through De Beers, which runs a 50:50 joint venture with the Namibian government. The partnership comprises Namdeb, which mines diamonds on land, and Debmarine Namibia, which specialises in offshore diamond recovery.

The report shows a broad-based decline in economic activity and government revenues linked to the company’s operations.

Taxes and royalties borne, together with taxes collected on behalf of the state, fell by 25% to US$102 million from US$136 million in 2024.

Corporate income tax dropped sharply by 66.7% to US$4 million, compared with US$12 million a year earlier. Royalties and mining taxes declined by 14.3% to US$30 million, while other payments borne fell by 12.5% to US$14 million.

Taxes collected on behalf of the state also decreased significantly, falling by 24.7% to US$55 million from US$73 million.

Operational spending followed a similar pattern.

Total procurement in Namibia declined by 24.9% to US$238 million, down from US$317 million in 2024. Local procurement, an important source of business for domestic suppliers, fell by 12.9% to US$135 million from US$155 million.

The sharpest adjustment came in capital expenditure. Investment spending fell by 58.1% to US$18 million, compared with US$43 million in 2024, highlighting a significant pause in growth investment.

By contrast, employment-related spending remained relatively resilient. Wages and related payments slipped by just 1.1% to US$88 million, while community and social investment remained unchanged at US$3 million.

For Namibia, where mining remains a cornerstone of export earnings and fiscal revenues, these trends point to short-term pressure on public finances and businesses linked to the diamond supply chain. However, the relative stability of payroll and community spending suggests the group is prioritising employment and social commitments while reducing discretionary expenditure.

De Beers separation and long-term demand outlook

The weaker contribution comes amid a broader strategic transition at Anglo American.

The company is progressing the separation of De Beers through either a divestment or demerger as part of efforts to unlock value from the miner’s Origins Strategy, announced in May 2024.

De Beers remains one of the world’s most important diamond producers, accounting for around one-third of global rough diamond production by value across operations in Botswana, Canada, Namibia and South Africa.

The Origins Strategy is built around four strategic pillars and is supported by a business streamlining programme aimed at improving competitiveness and strengthening capital discipline.

Despite current market weakness, De Beers describes its core mining operations as large, long-life assets with significant life-extension potential. The company also highlighted a recent kimberlite discovery in Angola, which could influence regional supply dynamics over the longer term.

De Beers continues to see long-term support for natural diamond demand from the expansion of middle-class households in key consumer markets. That demographic trend, together with the quality of its asset base, underpins management’s positive long-term outlook despite the industry’s current cyclical challenges.

For Namibia, the implication is that weaker tax revenues, procurement spending and capital expenditure reflect a cyclical downturn and strategic recalibration rather than a structural withdrawal from the country.

For investors and policymakers, the next phase will depend on three factors: how Anglo American structures the De Beers separation, future investment plans at Namdeb and Debmarine Namibia, and the trajectory of global diamond demand.

Upcoming disclosures on the implementation of the Origins Strategy and any revised capital commitments in Namibia will be closely watched as indicators of both sovereign revenue resilience and the longer-term value of the Anglo American Namibia partnership.

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