Chinese investment fuels Namibia’s uranium boom, drives economic growth: Namibian president

Namibian President Nangolo Mbumba has lauded the transformative impact of Chinese investment on Namibia's economy, particularly in the uranium mining sector.

The mining industry plays a crucial role in Namibia's economy, contributing approximately 14.4 percent to the nation's gross domestic product (GDP) in 2023.

The uranium mining project stands as China's largest single industrial investment in Africa and exemplifies successful cooperation between China and Namibia. The project has positioned Namibia as a leading global uranium producer, as President Mbumba noted in an interview with China Media Group (CMG) aired on Friday.

"A project like that in the first place in a country which needs employment, in a country which needs technology, in a country which you needs development, it's very, very important to have champions in every respect. You have to have champions, champions in terms of industry, champions in terms of mining. And to be recognized that we are the second or third largest producer of uranium in the world, and to have a company which is strong and the company that is also connected to a major nation is very beneficial to us. And they did not stop there, they also extend to the old Rossing Uranium Mine. So it is become now an industry known and identified by Namibians and for Namibia as a country," said Mbumba.

The Rossing Uranium Mine has been operational for 48 years and is the largest and longest-operational open-pit uranium mine in the world. In 2019, Anglo-Australian mining giant Rio Tinto officially handed over Rossing to its new majority shareholder, the China National Nuclear Corporation (CNNC).

According to Mbumba, the China-Namibia uranium mining project has contributed about 6 percent to 7 percent of Namibia's GDP, created around 8,000 high-paying jobs, and brought in nearly 1 billion Namibian dollars (about 57 million U.S. dollars) in tax revenue.

"And remember, for 3 million people, that's quite a [lot of] money in the bank. Not in the pocket, but in the bank," Mbumba said.

Chinese investment fuels Namibia’s uranium boom, drives economic growth: Namibian president

China's industrial transformation and upgrading has boosted consumption and the growth of logistics demands, driving the development of the upstream and downstream sectors.

In August, the total logistics volume of the electronics and communication equipment manufacturing industry increased by 11.4 percent compared to the same period last year. It has maintained double-digit growth for 10 consecutive months.

Upstream monocrystalline silicon, polysilicon and other manufacturing materials logistics increased by 7.2 percent and 20.3 percent respectively. The logistics of midstream imported materials such as semiconductor devices and integrated circuits increased by about 14 percent.

Terminal logistics also performed well, with the retail logistics volume of communications equipment growing from 12.7 percent in July to 14.8 percent.

"The highlights in some fields should be noted. For example, the smart manufacturing sector was effectively supported by logistics. Besides, the import of integrated circuits and the retail logistics at the end of the supply chain for consumer electronics also saw double-digit growth," said Zhou Jianqin, director of the Logistics Department of the School of Economics and Management at Beijing Jiaotong University.

Along with improved logistics supply structure, China's logistics sector continued steady expansion in August. The index tracking the country's logistics market stood at 51.5 percent in August, up 0.5 percentage points from the previous month, according to the China Federation of Logistics and Purchasing.

China's industrial transformation drives growth of consumption, logistics demands