Namibia’s foreign direct investment (FDI) surged to N$7.6 billion ($400 million) in the second quarter of 2023 from N$6.2 billion ($330 million) in the first quarter, setting a remarkable milestone in capital inflows.
Namibia Investment Promotion and Development Board Chairperson and Chief Executive Officer Nangula Uaandja emphasised the significance of the remarkable achievement, stating that the growth speaks volumes about the country’s rising stature as a favoured destination for international investors.
“Money is flowing into Namibia, indicating increasing investor confidence and private sector interest,” she said.
Namibia’s performance in attracting FDI is not only an economic achievement but also a demonstration of the nation’s growing appeal to global investors.
The surge in FDI has positioned Namibia as a prominent player on the global stage, further validating its reputation as an attractive hub for foreign investments.
According to the most recent FDI Greenfield Index, Namibia secured its place as the leading African nation for FDI inflows last year, marking a pivotal moment in the nation’s economic growth.
Uaandja highlighted the positive impact of this FDI influx on the country, emphasising that it could potentially address Namibia’s unemployment challenges.
“I would have loved to see that [unemployment rate below 20%]. We are moving to 10% and moving down. I don’t believe it has changed substantially, but I believe that the foundation necessary for us to change that statistic has started moving,” she stated.
Namibia’s strong performance in FDI net flows was also recognized globally.
Namibia was the top African country in attracting FDI inflows last year according to the latest FDI Greenfield Index.
The country, closely followed by Rwanda and Kenya, is among the 10 countries featured, while Egypt and Tanzania ranked at the bottom as the lowest-scoring countries.
Namibia emerged as a standout performer in the FDI Greenfield Index, securing a remarkable 13th position among countries such as Costa Rica, North Macedonia, and the UAE.
International experts from Wood Mackenzie projected that Namibia is poised to receive N$500 billion in FDI related to offshore oil exploration.
PSG Wealth Management Namibia also predicted that the country would generate over N$12 billion in FDI in 2022, attributing it to increased investor confidence and opportunities in the oil and green hydrogen industries.
Additionally, research conducted by investment advisory firm Cirrus Capital revealed that Namibia has the potential to generate over N$500 billion in revenue in the coming decade through taxes and royalties from the oil sector, with the Ministry of Mines and Energy anticipating the government to collect 55% of all revenues generated from oil.
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