Namibia's economic growth is forecast to pick up slightly this year and the budget deficit will narrow, its finance minister said in a budget speech on Thursday.

The resource-rich South African country's public finances have taken a hit from a plunge in global diamond prices, although strong gold and uranium prices have been a mitigating factor.

It is aiming for its first crude oil output by 2030, which could transform its small economy.

Finance Minister Ericah Shafudah said gross domestic product was forecast to grow 3.1% this year, higher than last year's 2.9% growth.

The overall budget deficit is expected to decrease to 5.5% of GDP in the fiscal year that starts on April 1 from 6.6% in the current fiscal year.

The finance ministry aims to narrow the deficit further, to 3.8% in the 2027/28 fiscal year and 3.3% in 2028/29.

Total government debt is seen reaching 65.2% of GDP this fiscal year before stabilising around 67.5% over the government's medium-term framework.

Further out, Shafudah said the aim was to gradually lower the debt-to-GDP ratio to 60%.