Namibia attracted N$73 billion in foreign direct investments (FDI) between 2021 and 2023, with 45% of the inflows coming from the oil and gas sector, the latest official figures show.
The Bank of Namibia (BoN) revealed that the oil and gas sector yielded N$33.4 billion in FDI inflows between 2021 and 2023.
BoN Governor Johannes !Gawaxab emphasised that these investments, which have the potential to double the country’s gross domestic product (GDP), were driven by a massive oil discovery in 2022.
This discovery positions Namibia among the top 15 oil-rich countries globally, highlighting the nation’s growing influence in the energy sector.
According to the Namibia Investment Promotion and Development Board (NIPDB), this remarkable influx has significant implications on Namibia’s economy.
“The FDI values over the three years were N$73 billion. This was mainly attributed to the oil and gas sector, which accounted for about 45% of the total. Further analysis is still needed to determine where the remaining 55% was allocated, both in terms of sectors and value,” said NIPDB Manager of Investment Attraction Selma Namutuwa.
FDI Intelligence reported that Namibia ranked fifth in terms of the largest share of capital investment in FDI within the Middle East and Africa in 2021, holding a 7% share. Namutuwa said this is notable, with Namibia following significantly larger economies like Saudi Arabia, the United Arab Emirates, South Africa and Egypt. Oman, Israel, Mozambique, Gabon and Kenya rounded up the top ten.
“This is excellent progress for us. In terms of FDI, we are gaining recognition as a regional leader in Africa. In 2022, FDI Intelligence ranked Namibia first in Africa in the Greenfield FDI Index which ranks the FDI attracted relative to a nation’s GDP. Namibia was followed by Rwanda in second place and Kenya in third. Notably, 2023 marked our largest recorded value of FDI since independence”, she said.
This influx of FDI is not only transforming the oil and gas sectors but also stimulating significant interest in Namibia’s mining industry. The country is renowned for its rich deposits of uranium, diamonds, gold, and base metals, which have long attracted foreign investors. As the FDI landscape evolves, these mining sectors are poised to benefit from increased capital investment and technological advancements, further solidifying Namibia’s position as a major player in the global mining market.
Additionally, the acquisition of Namibia Breweries Limited by Heineken NV was another significant contributor to FDI in 2023.
