Diamond production in Namibia is stagnating and could even decrease – despite an increased demand in the global diamond industry – the Bank of Namibia has warned.

In 2010, Namibia's diamond production did resurge, reaching 1.47 million carats (a 56.6% increase over 2009.) Diamonds brought Namibia N$2.7 billion in revenue in 2010 and projections for 2011 indicate a similar amount of N$2.755 billion. However, the central bank noted, 2011 production might not be any higher or could even drop off as the country's onshore diamond deposits are depleted.

The Bank of Namibia reported that diamond production was "at capacity" and that "at present the life of the land operation is expected to end by 2014, if no expansion or extension is made."

Moreover, the BoN said, if offshore diamond production did not increase by March of 2011, the country would see a decline in diamond production beginning in 2012. The central bank said that Namdeb – a joint diamond mining operation between the Namibian government and De Beers – needed a massive capital investment to expand the country's offshore mining operations.