(Ecofin Agency) - Namibia’s economic growth will be significantly boosted in 2017 by uranium production which should double after processing activities commence at the Husab mine, BMI Research revealed in its latest report released yesterday, December 13, 2016.

“While we have downgraded our 2016 growth forecast from 3.8% to 1.5% owing to sharp contractions in the construction, mining and agricultural sectors over the first half of 2016, we still expect the economy to register strong growth of 4.5% in 2017,” BIM said

The Husab project, a JV between China General Nuclear Power Holding Corp and Swakop Uranium, will produce up to 15 million tons of uranium. This output will gradually be increased till the mine’s installed capacity, knowingly 50 million tons per year, is reached. Namibia hopes the mine’s output in 2017, will help it double its overall uranium production, making it the world’s third largest uranium producer (It currently is the fourth).

“We expect uranium to become a key driver of Namibian exports over the next several years. We forecast real export growth of 7% in 2017 compared with 2.1% over 2016”, BMI added

The research group also said in its report that the expected economic growth spurred by uranium production should be imp by the high debt of Namibian households.

Louis-Nino Kansoun