The European Union (EU) was Namibia’s top source of foreign direct investment (FDI) in 2023, contributing N$12.7 billion to the country’s economy.
Economist Robin Sherbourne said the EU continues to be one of Namibia’s top trade partners, maintaining the position since 2004.
“The EU has been a stable and significant trading partner for Namibia, contributing not only through exports but also through substantial FDI across various sectors,” Sherbourne said.
Within this period the region came in third place behind China and South Africa with an injection of N$70 billion and N$36 billion respectively.
This comes as the EU has accounted for a major portion of Namibia’s merchandise exports, with the bloc, along with South Africa, Botswana, China, and other top ten markets, making up over 80% of exports since 2004.
“In the past five years, this share has risen to over 90%. Diamonds, uranium, and gold remain the dominant exports to the EU, with countries such as Belgium, Spain, the Netherlands, France, Italy, Germany, and Portugal making up 95% of Namibia’s exports to the region in 2023,” he said.
In 2023, Germany, the Netherlands, Italy, Spain, France, Poland, Greece, and Ireland accounted for 75% of imports from the EU.
Sherbourne also noted, “that EU-based companies have been active investors in Namibia across various sectors, including agriculture, fishing, mining, oil and gas, manufacturing, green hydrogen, renewable energy, and hospitality”.
He added that Namibia’s export mix to the EU is notably more diversified compared to other trading partners, signalling a growing range of goods being traded, which includes renewable energy projects like charcoal.
On the import side, Namibia’s reliance on South Africa has decreased since 2004, attributed largely to the growth in diamond imports and increased diversification in petroleum products.
However, the EU remained a key source of imports in 2023, with 19 product categories accounting for more than 1% of the total import value.
This comes as the EU Delegation to Namibia today hosted a stakeholder workshop focused on EU-Namibia trade and investment relations.
The event served as a platform to discuss the draft key findings from an independent study on the EU – Namibian trade data and foreign direct investment, with particular emphasis on the European Union.
The study was conducted by Sherbourne, a highly regarded independent economist and long-time observer of Namibia’s economic landscape.
EU Ambassador to Namibia, Ana Beatriz Martins, said the purpose of commissioning the study and sharing its findings was to gain a more precise understanding of trade and investment flows between Namibia and the EU27 European Union over the past decade.
“This will help us better understand the evolution of Namibia’s exports to Europe, trends by destination, sectors and investments,” she said.
Ambassador Martins further highlighted that such data strengthens policy analysis, identifies growth opportunities, and supports economic planning.
“It can also underpin more efficient resource allocation, for instance, identifying where investment in infrastructure, such as ports and logistics, is most needed. This is particularly important within the context of the Economic Partnership Agreement (EPA) and the strategic Partnership on Raw Materials Value Chains and Renewable Hydrogen between the EU and Namibia,” she added.
Ambassador Martins emphasised that EU-Namibia relations have evolved significantly over the years, transitioning from traditional development cooperation to a partnership of equals based on trade, investment and sustainable development.
The draft findings of this study underscore the importance of the EU-Namibia partnership in fostering sustainable economic growth and exploring new opportunities for trade and investment.
Following the stakeholder workshop, the researcher will submit his final results to the EU Delegation to Namibia. A final report will be transmitted to the Minister of Trade and Industrialisation.
