Namibia must urgently reform its business environment, immigration frameworks and skills development systems to improve competitiveness and attract investment, Namibia Investment Promotion and Development Board (NIPDB) Executive for Competitiveness and Branding Margareth Gustavo has said.
This follows the release of the latest IMD World Competitiveness Ranking, which placed Namibia 68th out of 69 economies, highlighting structural weaknesses in business efficiency, infrastructure and digital readiness.
Gustavo said the study, conducted by the IMD University of Management and Development in Switzerland, benchmarked Namibia against 68 other countries, including Ghana, Nigeria, South Africa, Kenya and Botswana.
“From the 69 economies, Namibia is number 68. It looks discouraging, but there are areas where we have strengths,” Gustavo said.
She attributed Namibia’s best performance to government efficiency, supported by sound tax policies, low tariff barriers and stable public finances.
However, she noted that weak policy execution, low productivity and limited innovation continue to slow progress.
Namibia ranked 65th in economic performance, largely due to high energy and logistics costs, while business efficiency was placed 63rd, reflecting productivity and labour market weaknesses.
Gustavo said the findings show that Namibia’s main challenge lies in implementation rather than policy, adding that regulatory delays and restrictive immigration rules continue to discourage investment.
“Botswana, for instance, just tweaked small things like ease of doing business, how quickly one can register a company or the cost of doing that. Those small tweaks already put the country on a different map,” she said.
She also identified infrastructure as a critical weakness, with Namibia ranking 65th overall and 69th globally in internet bandwidth. Gustavo stressed the urgent need for digital investment to bridge technological gaps, particularly in broadband access, digital skills and the use of modern tools in business operations.
Although Namibia ranks first globally in public expenditure on education, Gustavo said this investment has not yet produced the skills needed for industrialisation or digital transformation. She added that life expectancy and healthcare outcomes remain barriers to workforce productivity.
Gustavo said the competitiveness review aligns with Namibia’s broader goal of creating 500,000 jobs by 2030 through investment attraction, economic diversification and infrastructure improvement.
She recommended immediate reforms to strengthen incentive structures, develop technical talent and remove bottlenecks that limit growth in emerging industries such as oil, gas and green energy.
“Benchmarking against advanced economies such as Switzerland, Singapore, Hong Kong, Denmark and the UAE will help Namibia set clear policy priorities and adopt effective reforms to improve its competitiveness ranking,” Gustavo said.
