Investments in desalination and electricity generation in Namibia could be in jeopardy following a dramatic slowdown in mining output in 2008, according to a new report published on 5 May 2009 by the International Monetary Fund.
IMF Country Report No. 09/136 says that Namibia’s real GDP growth is projected to slow to 1% in 2009, despite a large fiscal expansion, as external demand weakens further. Mining output is expected to fall significantly in 2009
“The marked tightening in international financial markets could also jeopardize several investment projects expected to be the main drivers of medium-term growth, including investments in electricity generation and water desalination,” the report concludes.