Namibia has a joint venture with Swakop Uranium and NamWater to construct the Erongo Sunam Desalination Plant near Swakopmund, which underscores the strategic convergence of natural resources, infrastructure, and foreign investment shaping Namibia’s economic future. For one of Africa’s driest nations, this facility will ensure reliable water for mining operations, securing operational sustainability while enabling growth in uranium production.
Swakop Uranium, a subsidiary of China General Nuclear Power Group (CGN), holds a 70% stake in the desalination project, with NamWater owning the remaining 30%. The 20 million cubic-meter facility, in planning since 1998, represents a critical infrastructure investment supporting Husab mine, which already dominates the Erongo region’s water consumption. While the estimated cost of approximately N$3 billion ($176 million) has not been officially confirmed, its impact extends far beyond utility provision.
READ ALSO: Tanzania Energy Sector Boosts from $1.2B Uranium Project
The Husab mine is one of the largest open-pit uranium mines globally, producing 5,318 tonnes of uranium oxide (U₃O₈) in 2023 and targeting 6,000 tonnes by 2028. Swakop Uranium employs around 1,700 permanent staff and 2,600 contractors, with 96–98% of the workforce being Namibian. The company contributed N$16.4 billion to the local economy in 2023, with N$7.9 billion injected in 2024 through procurement, social investments, taxes, and royalties. At full capacity, Husab is expected to add 5–7% to Namibia’s GDP and generate approximately N$7 billion in annual exports.
Namibia’s economy showed moderate growth in 2025, projected between 3.1%–3.8%, reflecting a temporary slowdown in key sectors like diamonds and SACU revenues. Mining, agriculture, and construction are expected to support a rebound in 2026, with GDP forecasts of 3.8%–4.0% according to the IMF and Bank of Namibia. Inflation is anticipated at around 3.7%, with a fiscal deficit of -5.1%. Swakop Uranium’s ongoing production ramp-up and uranium’s high market value are central to this rebound, providing fiscal stability and foreign exchange inflows.
Africa’s uranium landscape is dominated by Namibia, Niger, and South Africa, with Namibia accounting for roughly 8% of the world’s identified reserves. The continent’s uranium market has seen rising prices, crossing $100 per pound in early 2025, driven by increasing nuclear energy demand, construction of new reactors, and strategic stockpiling by several countries. Namibia’s Husab and Rössing mines anchor the country’s role as a top global supplier, and Swakop Uranium’s expansion, coupled with infrastructure improvements like the desalination plant, positions Namibia to capture a larger share of growing global demand.
Uranium projections for 2025–2026 indicate bullish trends. Analysts from NucNet, Farmonaut, and Discovery Alert anticipate spot prices climbing into the $100–$135/lb range by 2026. Price growth is supported by the rise of Small Modular Reactors (SMRs), tighter supply chains, and renewed interest in low-carbon nuclear energy. Supply constraints in other regions, as noted in projects like Lotus Resources experiencing technical delays, further amplify Namibia’s strategic importance.
Investment in infrastructure projects, including the desalination plant, underscores the government’s dual approach: secure critical resources for industry while supporting regional communities. Additional opportunities in green energy, water security, and local procurement reinforce the potential multiplier effects of resource-led development.
The relationship between Namibia and China dates back to the 1960s when the latter supported the South West Africa People’s Organisation (SWAPO) during Namibia’s independence struggle. Diplomatic recognition followed immediately after independence in 1990, establishing a framework for sustained high-level economic and political engagement. Over the decades, China has invested heavily in infrastructure, trade, and resource development, particularly uranium. Swakop Uranium’s Husab mine represents the largest Chinese investment in Africa to date, reflecting the broader evolution from political solidarity to strategic economic partnership.
China’s footprint extends beyond Husab. In 2019, the China National Uranium Corporation acquired a controlling share of the Rössing Uranium mine, previously held by Rio Tinto. These investments have revived Namibia’s uranium sector but also raised discussions about dependency on foreign state actors. Debates persist on whether this reflects neo-colonial risk or South-South cooperation leveraging shared developmental interests.
Despite the promise, Namibia faces several structural and market challenges. Uranium prices are volatile, sensitive to global nuclear policy, reactor construction timelines, and competition from other energy sources. Environmental concerns, particularly water usage in arid regions, remain a critical constraint, necessitating investments like the Erongo desalination plant. Infrastructure bottlenecks, climate-related drought risks, and dependence on commodity exports further expose Namibia to external shocks.
Moreover, geopolitical considerations, including Namibia’s reliance on Chinese investment, introduce potential strategic vulnerabilities. Balancing foreign capital with national sovereignty and long-term economic planning is central to ensuring the sector’s sustainability.
The uranium sector in Namibia, more broadly, is entering a phase of strategic opportunity driven by global energy transition and rising demand from decarbonisation initiatives, including Small Modular Reactors (SMRs). Technological advancements, such as heap leach processing and enhanced exploration, promise greater efficiency and could extend mine lifespans beyond 2044. Infrastructure developments, particularly desalination and water management, are improving operational sustainability for both mining and local communities. Economically, uranium production generates significant multiplier effects by supporting local procurement, employment, and public investment, while strengthening Namibia’s integration into regional and global nuclear supply chains, positioning the country as a key African supplier for Europe, Asia, and North America.
The uranium output affects global nuclear energy markets. With rising prices and projected demand, Husab and other mines are vital to maintaining stable supply chains. African uranium production also diversifies sources away from traditional producers like Canada and Australia, enhancing energy security for importing nations. Namibia’s strategic position, therefore, has both continental and global significance.
Namibia’s uranium sector, anchored by Swakop Uranium and supported by infrastructural projects like the Erongo Sunam Desalination Plant, exemplifies a resource-driven, strategically coordinated approach to economic development. Through careful management of natural assets, foreign partnerships, and technological innovation, Namibia is not only securing its economic future but also asserting a pivotal role in Africa’s uranium supply chain and the global nuclear energy landscape. Challenges remain from market volatility to environmental and geopolitical risks, but the trajectory is clear: Namibia is leveraging uranium, infrastructure, and strategic partnerships to consolidate economic resilience and global relevance in the 2020s and beyond.
