31% of global diamond production, and because of sanctions and monitoring systems imposed due to the conflict, Namibia must be careful to rely on the diamond sector and must be aware of the risks that are expected in that sector,” Zaamwani-Kamwi told the Bank of Namibia (BoN) leadership during a courtesy call, adding that the “special military operations” have “a real indirect effect” on the economy of the African nation.
The central bank’s economic outlook for February showed that in 2021, the diamond mining sector of Namibia grew by 2.3 per cent and is expected to expand further in 2022 and 2023, by 26.2 per cent and 16.5 per cent respectively. Zaamwani-Kamwi’s views were echoed by the BoN deputy governor Ebson Uanguta who said the conflict between Moscow and Kyiv threatens the ongoing recovery in the global economy from the effects of the pandemic. He noted that the crisis would result in even higher inflation and fuel prices, as Russia makes up 12 per cent of global oil production, 16.6 per cent of gas and 11 per cent of wheat production.
“Some of these key products, like oil in our case, has a direct effect on the lives of our people. So, it is a situation that we need to monitor,” the central bank deputy governor said. “Given that Russia holds 12% of global oil production, if oil sanctions are imposed, Namibia will definitely feel the pinch through an increase in inflation.”
