Diamond revenue forecast slashed as mining faces further contraction.

In an analysis, IJG Securities is ringing alarm bells regarding diamond revenue. Treasury has slashed its revenue forecast for the 2026/27 financial year by N$1.5 billion, bringing total projected income down to N$88.1 billion. More than a quarter of that shortfall is driven by a sharp drop in diamond taxes and royalties, which are now expected to bring in just N$414 million; nearly half of the N$819 million budgeted in February. The figures highlight a dramatic slide for the sector. Just three years ago diamonds generated N$3.9 billion, accounting for nearly 5% of all state revenue. Today, that contribution sits at less than 0.5%. Looking ahead, the Ministry of Finance expects diamond mining to contract by 22.5 percent this year, and by a further 26.8 percent in 2027, as weak global demand and competition from lab-grown stones continue to weigh on prices and output. 

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