Namibia has slipped seven places on a highly regarded global survey measuring investment attractiveness of mining jurisdictions in the world.
According to the latest Fraser Institute’s annual survey of mining countries, which measures the investment attractiveness of various mining jurisdictions, Namibia ranked 59 out of 84 countries, tumbling down from its best ranking of 52 in 2020 in the Investment Attractiveness Index.
The index considers both policy and mineral potential and other metrics based on responses from companies operating and exploring in the jurisdiction.
The report raised concerns about Namibia’s lengthy permitting process that prevents projects from being developed and Non-deductibility of royalty payments prevents the sector from minimizing costs and hurts the industry’s competitiveness.
Namibia’s worst ranking in the annual survey was recorded in 2019 when it was ranked 60th globally.
Western Australia was ranked the top jurisdiction in the world for investment based on the Investment Attractiveness Index, moving up from 4th place in 2020, while Zimbabwe was ranked the least attractive jurisdiction in the world for investment, when considering both policy and mineral potential in the Investment Attractiveness Index.
On policy perception, Namibia ranked 29 out of 84 countries, a significant improvement from the previous year’s ranking of 44.
The country’s best ranking on policy perception in the Fraser Institute survey was in 2019 when it was ranked 14.
The Policy Perception Index, provides a comprehensive assessment of the attractiveness of mining policies in a jurisdiction.
“The Policy Perception Index is a composite index that captures the opinions of managers and executives on the effects of policies in jurisdictions with which they are familiar. All survey policy questions (i.e., uncertainty concerning the administration, interpretation, and enforcement of existing regulations; environmental regulations; regulatory duplication and inconsistencies; taxation; uncertainty concerning disputed land claims and protected areas; infrastructure; socioeconomic agreements; political stability; labor issues; geological database; and security) are included in its calculation.”
In the Best Practices Mineral Potential Index, Namibia slipped to 72 from 61 in 2020.
“The Best Practices Mineral Potential Index shows the mineral potential of jurisdictions, assuming their policies are based on “best practices” (i.e., world class regulatory environment, highly competitive taxation, no political risk or uncertainty, and a fully stable mining regime). In other words, this figure represents, in a sense, a jurisdiction’s “pure” mineral potential, since it assumes a “best practices” policy regime.”
Government has created the Namibia Investment Promotion and Development Board (NIPDB), which is mandated to promote and facilitate local and foreign investments, as well as new ventures to contribute to economic development and job creation, including engaging around policies that impact investment into the country.
