By Enos Kamutukwata
It is often easier to retain an existing investor than to attract a new one. This is not simply a theoretical proposition.
Evidence from GIZ shows that it can take at least three years for a foreign investor to reach a final investment decision. By that stage, considerable time, capital and strategic effort have already been committed.
This concept underpins investor aftercare and policy advocacy functions across leading investment promotion and facilitation agencies globally.
Investment attraction builds the pipeline. Retention sustains confidence and unlocks expansion. In many economies, a large share of new capital inflows originates from reinvestment by existing investors rather than first time entrants.
Experience across global markets shows that unresolved operational constraints or regulatory uncertainty often trigger divestment decisions. In more severe cases, disputes escalate into legal processes. Capital is sensitive to policy clarity and the predictability of the business environment.
Namibia has observed this dynamic before. Between 2016 and 2019, the country experienced a prolonged slowdown in investment, reflected in declining non-mining fixed investment and volatile foreign direct investment flows, including episodes of divestment.
This period was characterised by subdued investor sentiment, with commonly cited concerns around policy uncertainty, regulatory bottlenecks and a challenging business environment. The implication was clear. Investment promotion without sustained policy certainty and responsiveness is insufficient to secure long term capital retention.
In recent years, the Namibian government, together with its agencies and the private sector, has made progress in repositioning the country as a credible and competitive investment destination, reflected in its top ranking in Africa on the Greenfield FDI Performance Index and FDI inflows of around N$37 billion in 2024. Marketing efforts have strengthened Namibia’s value proposition and improved visibility in key markets.
However, competition for foreign direct investment has intensified among peer economies. Countries are now competing not only to attract new investors, but also to retain and expand those already operating within their borders.
Investor retention therefore becomes a strategic economic function. Typically led by a country’s Investment Promotion Agency, it focuses on ensuring investors are satisfied with their experience in the host country while addressing operational or regulatory challenges through structured engagement and proactive problem solving. The objective is to prevent divestment risks while encouraging reinvestment and expansion to create much needed jobs for Namibians.
Recent data highlights the importance of this dynamic. According to Namibia’s latest Foreign Direct Investment Report, retained earnings improved from a net loss of N$1.6 billion in 2020 to a net profit of N$4.3 billion in 2024, reflecting stronger reinvestment by existing investors.
From the perspective of the Namibia Investment Promotion and Development Board (NIPDB), investor retention is supported through dedicated facilitation and aftercare services aimed at resolving investor challenges, supporting expansion and strengthening long term investment partnerships.
Next Steps
The strength of an investment destination is measured not only by the projects it attracts and its pipeline, but also by the investors it retains and enables to grow. The next step is clear. Government must move beyond broad policy commitments towards practical investor support mechanisms, including establishing structured grievance resolution systems, strengthening the one-stop facilitation services and assigning dedicated relationship managers to key investors. At the same time, investors must actively communicate operational constraints to the NIPDB, while the board coordinates swift responses and drives resolution. This creates a responsive and predictable environment where retention anchors Namibia’s investment strategy.
*Enos Kamutukwata is an Economist, and these views are expressed in his personal capacity. Editorial refinements to structure and language were supported by AI to enhance clarity.
