Post #376

Delaying the Solution 🌐Namibia has managed to do what Botswana should also have done: break its dependence on diamond exports. But it may not be what it seems. 🥇 For the 1st time in the country’s history, revenues from gold and uranium exports have matched and exceeded revenues from diamonds. While this may look like a successful case of diversification, in reality Namibia is so far just swappingone dependency for another. ⚙️ In fact, the exit from diamond dependence happened almost automatically. Diamond prices have been weak for several years, while gold prices have risen by 56% since the start of the year alone. A 22% increase in uranium production also played a role. 💵 For a long time, diamonds accounted for up to 30% of Namibia's total export earnings. Seeking to reduce its exposure to diamond prices, the government tried to attract foreign companies into gold, other metals, and oil. ⏩ While the bet on gold has paid off and allowed Namibia’s economy to endure the diamond downturn, it would be naive to assume that gold prices will rise forever. Real diversification means developing manufacturing and services, not exporting just another raw material. ➡️ Follow to stay informed - @devilsbelow