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How Namibia can leverage its China partnership for economic growth

by editor
February 21, 2025
in Opinions
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By Dr. Penny Uukunde

The recent Namibia-China visa-free agreement signals a new phase in bilateral relations, providing an opportunity for Namibia to move beyond traditional diplomatic ties and strategically position itself for economic growth.

However, to fully capitalize on this, Namibia must take a proactive, rather than reactive, approach in engaging with China.

Moving Beyond Symbolic Relations

    While visa-free agreements facilitate people-to-people exchanges, their real impact depends on economic alignment. The agreement should not be seen as just a diplomatic gesture but a gateway to attracting Chinese investors, boosting tourism, and strengthening Namibia’s role in the regional trade ecosystem.

    Currently, Namibia remains underutilized in the China-Africa economic landscape compared to its regional counterparts. South Africa and Kenya have positioned themselves as key economic hubs for Chinese trade and investment, while Namibia’s strategic advantages including its logistics potential through Walvis Bay, mineral resources, and renewable energy sector remain largely untapped.

    • Tourism: Turning Interest into a Sustainable Industry

    One of the immediate benefits of this agreement should be a targeted increase in Chinese tourism.

    • China is the world’s largest outbound tourism market, but Namibia ranks low in its share of Chinese tourists.
    • Infrastructure and service gaps such as Mandarin-speaking tour guides, direct flight routes, and customized experiences for Chinese visitors need urgent attention.
      • Namibia should collaborate with private stakeholders and tourism boards to create investment-friendly policies that make Namibia a competitive destination for Chinese tourists.
    • Trade and Investment: Beyond Resource Extraction

    China is Namibia’s largest trading partner, but the trade relationship has been largely commodity driven, with Namibia exporting raw materials such as uranium, copper, and seafood. This structure limits value addition and long-term economic benefits.

    Namibia should negotiate technology transfers, joint ventures, and localized production agreements under China’s Belt and Road Initiative (BRI). Instead of only exporting raw materials, Namibia can establish joint industrial projects in mining beneficiation, green hydrogen, and logistics.

    • Strengthening Namibia’s Position in FOCAC 2025

    With FOCAC 2025 (the next Forum on China-Africa Cooperation) approaching, Namibia has an opportunity to:

    • Table high-impact projects that align with China’s green energy and infrastructure investment priorities.
      • Leverage its strategic location as a trade gateway into the SADC region.
      • Establish a China-Namibia Economic Cooperation Desk that ensures projects are aligned with Namibia’s Vision 2030 goals rather than being solely China- driven.
    • A Call for Proactive Engagement

    To fully benefit from Namibia-China cooperation, the country must lead the engagement rather than passively receive investment. This means:

    • Prioritizing sectors with long term benefits, not just short-term trade gains.
      • Developing clear policy frameworks that balance national interests with foreign investment incentives.
      • Strengthening Namibia’s negotiation position by investing in research, policy expertise, and trade diplomacy.

    The visa-free agreement is a step forward, but its impact will depend on how effectively Namibia uses this opportunity to attract investment, build local industries, and position itself strategically within China-Africa relations.

    Now is the time for Namibia to shape its economic future-not wait for it to be shaped by others.

    *Dr Penny TM Uukunde is a Regional Development Economist.

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