Namibia’s FDI soars to record highs
Going strong
Net foreign direct investments (FDI) in Namibia have reached a whopping N$114.91 billion since the advent of the Covid-19 pandemic, signalling its attractiveness as an investment destination. The finding is contained in a joint report by the Namibia Investment and Promotion Development Board (NIPDB) and Bank of Namibia on FDI flows from 2020 to 2024.
The flows indicate a record observed and has surpassed all past records that were taken from previous periods, NIPDB chief executive Nangula Uaandja said in the report.
“Over the past four years, Namibia has witnessed an unprecedented surge in FDI inflows, totalling N$114.91 billion and surpassing all records from previous periods. This remarkable performance, while bolstered by increased activity in the oil and gas sector, also reflects strong growth across a broader range of industries, with N$56.9 billion in FDI recorded in sectors outside of oil and gas. Such resilience and diversity underscore the growing appeal of Namibia as an investment destination of choice,” Uaandja said.
Favourable climate
The significant inflow was attributed to a favourable economic climate and decisive action on the part of the government, Uaandja noted.
“Namibia is enjoying four consecutive years of positive economic growth and an increasingly favourable investment climate. This resurgence is the result of deliberate, collaborative efforts by government and institutional stakeholders to enhance our competitiveness, streamline investor services, and implement meaningful reforms,” she said.
The NIPDB was equally rising to the occasion of cementing its role in helping to drive FDI flows into Namibia, Uaandja noted.
“The NIPDB is privileged to play a catalytic and coordinating role per its mandate to serve as the country’s apex agency for investment promotion and private sector development,” she said.
Uaandja further noted the need for Namibia to move toward building a diversified economy to further drive FDI flows.
“Namibia’s vision for the future is clear: we must build a more resilient, inclusive and diversified economy. Our economic diversification strategy, anchored in ten priority sectors, provides a roadmap to reduce dependency on extractive industries and position the country
as a leader in sectors such as energy (renewable, green hydrogen and oil and gas), chemicals and basic materials, services (digital and global business), transport and logistics, metals, mining and adjacent material and electronics, communication and technology, tourism (including leisure, business, sport and medical and the creative and culture industry.”
Through this strategic lens, investment becomes not only a catalyst for growth but a tool for job creation, enterprise development, and long-term prosperity. As we move forward, the NIPDB remains steadfast in its commitment to championing investment-led development. We will continue to collaborate across public and private sectors to ensure that Namibia remains a beacon of opportunity for investors from within Namibia and all around the world.
The effect of the Orange Basin
BoN Governor Johannes !Gawaxab attributed the inflows to the interest shown in Namibia’s Orange Basin, which has recently become an attractive destination for oil exploration. According to him, cumulative net FDI inflows from 2021 onward reached N$114.9 billion, largely driven by hydrocarbon discoveries in the Orange Basin.
“More broadly, Namibia’s long-term growth is not only dependent on the amount of investment it attracts, but also on the quality and nature of the type of investments. To foster this progress, we must understand the source of capital, the targeted sectors and how investment decisions align with broader economic objectives. To this end, this report illuminates these dynamics by providing a detailed analysis of FDI stocks and flows, including their geographic origin and sectoral composition,” he said.
The release of the FDI statistics would aid policy making and ensure economic planning was based on sound capital data, !Gawaxab said.
“We believe that by making this information publicly accessible, it will facilitate supporting evidence-based policymaking and ensure that economic planning aligns with the realities of global capital flows. From the perspective of the central bank, FDI goes beyond an entry in the country’s balance of payments statistics. It plays a crucial role in exchange rate stability, reserves management and the external sector’s contribution to macroeconomic resilience,” !Gawaxab said.
It was equally important for policy makers to have a firm understanding of capital flows into Namibia, !Gawaxab said.
“Therefore, understanding the composition of FDI is essential to our efforts aimed at maintaining monetary and financial stability. Equally, it is critical for identifying economic vulnerabilities and opportunities for strategic structural reforms. As such, this report will not only enhance our internal policy formulation but also strengthen our advisory role to the Government on broader economic matters.”