Uranium exports to boost Namibian economy
(Miningnamibia)-The Namibian GDP is anticipated to rise to 4.7% in 2008 on the back of expected favourable commodity prices and increased uranium production, according to the 2008/2009 national budget. Paladin Energy's Langer Heinrich mine is expected to increase production this year. The economy grew by 4.1% in 2006 and preliminary analyses project growth to have slightly declined to around 4.0% in 2007. Over the three year period, growth is projected to average 5.2 %.
The Minister of Finance Saara Kuungongelwa Amadhila said the economic outlook is, however, exposed to risks from uncertain power supply, possible reductions in demand for Namibian exports and continuing inflationary pressures. Inflation increased from 5.1% in 2006 to 6.8% in 2007, and is expected to increase further to 7.0% in 2008, driven by rising transport and food prices.
The Namibian government will allocate the power utility NamPower, 610 million Namibian dollars this year. The money will support infrastructural development for power generation and for back-up energy supply.
“The additional funds are aimed at tackling the energy crisis both in the short and long term,” said Kuungongelwa Amadhila
GDP growth is expected to decline to 4 percent in 2009, due to a decline in diamond mining. The GDP growth is expected to accelerate to 6.2 percent in 2010, when diamond mining is expected to recover.