Mining: How much stays home?

Namibia is sitting on billions of dollars underground. The question is how much of that wealth is creating lasting value above ground for its population of 3 million.

From diamonds and uranium to gold, copper, zinc, lithium and rare earths, Namibia has the minerals. Mining generates taxes, exports, jobs and foreign exchange.

Mining contributes roughly 10% to 12% of Namibia's gross domestic product (GDP) and accounts for about 50% of its total merchandise exports, according to the latest data from Bank of Windhoek.

But the bigger question is: how much value from Namibia's minerals stays in Namibia?

QKR Namibia Navachab Gold Mine in Karibib provides a powerful case study.

Navachab's numbers

Navachab produced a record 4,067 kilograms of gold, or 143,459 ounces, in 2025, up 4% from 2024. It was the mine's highest annual gold output in history.

The mine generated N$7.988 billion in turnover and paid N$1.547 billion in taxes. It spent N$126.5 million on exploration and N$339.7 million on fixed investments. Dividends reached N$1.451 billion, while wages and salaries stood at N$648.41 million.

These figures show why mining matters. But they also raise a harder question: what more can Namibia capture beyond taxes, wages and dividends?

Building the value chain

QKR Namibia Navachab Gold Mine managing director George Botshiwe says: “What we can source locally, we intentionally do.”

In 2025, Navachab spent N$2.962 billion on procurement, with N$2.376 billion recorded as spending in Namibia.

The opportunity goes far beyond mining jobs. Mines need engineering, construction, transport, logistics, drilling, equipment, technology and maintenance.

“This is where the money is,” Botshiwe said, pointing to maintenance and services around the mining operation.

That is where Namibian entrepreneurs should be looking.

A mining company does not only buy mining-related services. It creates demand for workshops, mechanics, electricians, fabricators, transporters, construction firms, IT specialists and professional services. With the right support, some of these businesses can grow beyond serving one mine and compete across Namibia and the region.

Who captures the value?

QKR Namibia Navachab Gold Mine is 93.73% owned by QKR Mineral Holdings, headquartered in the United Kingdom, while 6.27% is held by Epangelo, Namibia's government-owned mining company.

Foreign investment brings capital, technology and expertise. Namibia needs all three.

But the question is how Namibians can capture more value around that investment.

Can local companies win major maintenance contracts? Can they manufacture components? Can they provide transport, engineering and technology? Can skills transfer create businesses rather than only employees?

This is where procurement policy, access to finance and deliberate skills development become critical. The objective should be to build Namibian suppliers that can eventually serve several mines and export their services to other African markets.

From gold to refining

The Bank of Namibia has entered into a gold purchase arrangement with Navachab, linking locally produced gold to Namibia's official reserves.

But the gold still requires further refining to reach 99.99% purity, with refining currently undertaken outside Namibia, including in South Africa.

This raises an important question: why should a gold-producing country depend on another country for the final stage of refining its own gold?

A refinery requires sufficient volumes, power, water, skills, security and capital. But as production grows, Namibia should examine whether gold from multiple producers can eventually support commercially viable local refining.

That would create jobs and opportunities in metallurgy, engineering, laboratories, logistics, maintenance and finance.

Africa's bigger challenge

This is not only Namibia's problem.

Across Africa, many major mineral operations are foreign-owned, financed or operated. Foreign investors bring capital and expertise, while governments receive taxes and royalties.

But too much of the value chain remains outside Africa.

Minerals are extracted here, processed elsewhere and often return as expensive finished products.

Africa must move further up the value chain.

The goal should not be to shut out foreign capital. It should be to use investment to build African capability, African businesses and African industrial capacity.

The real opportunity

QKR Namibia Navachab Gold Mine is studying an expansion that could raise annual production to 220,000–230,000 ounces, with mining rates potentially reaching 60–65 million tonnes a year. Estimated expansion capital is about US$400 million, excluding the mining fleet.

This is more than a mining opportunity. It is an industrial opportunity.

The question is who will build the roads, maintain the machinery, supply the equipment, provide the technology, transport the materials and, eventually, process and refine the minerals.

Taxes matter. Jobs matter. Dividends matter. But value chains matter even more.

Namibia has the minerals.

The next challenge is to build the economic machinery around them.

Elvis Mboya is the president of the Namibia-Kenya Chamber of Commerce and a journalist.