Namibia recorded N$11.4 billion in net foreign direct investment (FDI) inflows in the second quarter of 2026, more than double the N$5.5 billion recorded in the preceding quarter, as investment activity strengthened across the economy.
According to the Bank of Namibia’s September 2026 Quarterly Bulletin, FDI inflows were also up 67.6% from the N$6.8 billion recorded in the corresponding quarter of 2025.
The increase reflected stronger intercompany borrowing from foreign shareholders and equity injections, signalling increased capital commitments by foreign investors during the quarter.
The central bank said investment in new and expanding operations, particularly within the mining sector, contributed to the increase, while continued capital spending on oil and gas exploration and appraisal activities provided additional support.
The rise in foreign investment coincided with stronger domestic capital formation, with real fixed capital formation expanding at a double-digit pace during the second quarter.
The improved investment environment came as Namibia’s economy expanded by 4.8% year-on-year, accelerating from 3.1% in the first quarter and 1.7% in the corresponding quarter of 2025.
Growth was driven mainly by tertiary industries, including health, wholesale and retail trade, information and communication, and financial services.
Agriculture also maintained strong growth following favourable rainfall and a recovery in the national herd, while fishing activity expanded.
The increase in direct investment contrasted with portfolio investment, which swung to a net outflow of N$1.3 billion during the second quarter from an inflow of N$865 million in the preceding quarter.
The portfolio outflow was, however, substantially below the N$3.6 billion recorded in the corresponding quarter of 2025.
BoN attributed the quarterly reversal mainly to increased investment in short- and long-term foreign debt securities, with investments in listed and unlisted equities also contributing.
Other investment flows also strengthened during the quarter, with net inflows doubling to N$4 billion from N$2 billion in the first quarter and increasing from N$2.6 billion a year earlier.
The central bank attributed the increase mainly to higher uptake of trade credits and advances related to fuel imports, alongside increased withdrawals of foreign deposits by deposit-taking corporations as fuel re-export activity strengthened.
The second-quarter figures point to stronger long-term capital inflows and domestic investment activity despite portfolio capital moving into net outflow during the period.
The combination of N$11.4 billion in FDI inflows, N$4 billion in other investment inflows and double-digit growth in fixed capital formation came alongside an acceleration in economic growth, strengthening the investment component of Namibia’s second-quarter economic performance.
