The cost of producing goods and services in Namibia saw a slight decline in the first quarter of 2025, according to the latest figures released by the Namibia Statistics Agency (NSA) last week.
The overall producer price index (PPI) for production experienced a 1.2% quarter-on-quarter (QoQ) drop, indicating that price pressures remained relatively subdued for local industries, even with a modest annual increase.
The NSA’s PPI report, which monitors the changes in prices for goods and services manufactured and sold by Namibian businesses, pointed to a major factor behind this quarterly contraction: a significant downturn in the mining and quarrying sector. This crucial industry experienced a sharp 10% QoQ decrease in producer prices.
The NSA attributed this decline in our mining sector, which includes key resources like uranium, non-ferrous metals, and other minerals – primarily to falling prices for major commodities. Specifically, the prices for salt, uranium, diamonds, and zinc all saw decreases, impacting the revenue for producers within this vital economic segment.
The mining sector is a crucial part of its economy, significantly contributing to the nation’s gross domestic product and employment.
Despite the quarterly fall, the overall PPI still recorded a 2.8% year-on-year (YoY) growth, the NSA report said.
This annual increase was largely propelled by the manufacturing sector, which saw an 11.1% YoY growth.
The NSA said that the growth in manufacturing was influenced by rising prices in areas such as the processing and preservation of meat, the manufacture of non-metallic mineral products (like cement), diamond cutting and polishing, and the production of both non-alcoholic and alcoholic beverages.
