Namibia was the top African country in attracting foreign direct investment (FDI) inflows last year according to the latest FDI Greenfield Index.
The country closely followed by Rwanda and Kenya, is among the 10 countries featured, while Egypt and Tanzania ranked at the bottom as the lowest-scoring countries.
Namibia has emerged as a standout performer in the FDI Greenfield Index, securing a remarkable 13th position among countries such as Costa Rica, North Macedonia, and the UAE.
The FDI Intelligence’s Greenfield FDI Performance Index is an annual ranking that measures the attractiveness of countries and regions for FDI based on their performance in attracting greenfield FDI projects.
Greenfield FDI refers to new investments made by foreign companies in physical facilities, such as manufacturing plants, offices, or research and development centres.
“The Index took into account various factors, including the number of greenfield FDI projects, capital investment, job creation, and other economic indicators related to FDI. The index aims to provide insights into which countries and regions were successful in attracting new investments and creating favourable environments for foreign businesses,” said the report.
According to the Namibia Investment Promotion and Development Board (NIPDB), the country’s impressive performance in the index signifies a growing trend of investor confidence.
“With its thriving business environment and strategic positioning, it has emerged as a standout performer in the FDI Greenfield Index. The recognition reinforces Namibia’s status as a premier investment destination in Africa,” the NIPDB said.
In the eighth edition of FDI Intelligence’s Greenfield FDI Performance Index, four new African countries joined the 2022 index, bringing the total number of African nations represented to 13 (only countries with 10 or more FDI projects throughout the year are considered).
“This marks the largest African representation we’ve seen in the FDI Greenfield Index, demonstrating the growing strength of the continent. Among the 13 included, 10 experienced an increase in their scores, with Namibia (4.6), Kenya (3.3), and Senegal (2.9) achieving the most significant improvements,” stated the report.
Moreover, the Index highlighted that Macau and Egypt made the joint highest rank change, climbing 29 places each to reach the 52nd and 73rd positions, respectively. Overall, six countries improved by more than 20 places, with the Philippines, India, Georgia, and the Dominican Republic being notable examples.
The report also revealed that African countries secured nine spots among the top 20 highest risers, with four of them making it to the top 10.
“Egypt doubled its index score from 0.96 in 2021 to 1.92 in 2022, indicating a doubling of its project share relative to its GDP, with the renewables sector accounting for a sixth of its projects in 2022,” noted the FDI Intelligence’s Greenfield FDI Performance Index.
Namibia’s impressive FDI growth came as a result of equity injections in exploration activities related to offshore oil discoveries, resulting in N$13.2 billion FDI, equivalent to 7.2% of the Gross Domestic Product (GDP) during the first nine months of 2022.
International experts from Wood Mackenzie projected that Namibia is poised to receive N$500 billion in FDI related to offshore oil exploration.
PSG Wealth Management Namibia also predicted that the country would generate over N$12 billion in Foreign Direct Investment in 2022, attributing it to increased investor confidence and opportunities in the oil and green hydrogen industries.
Additionally, research conducted by investment advisory firm Cirrus Capital revealed that Namibia has the potential to generate over N$500 billion in revenue in the coming decade through taxes and royalties from the oil sector, with the Ministry of Mines and Energy anticipating the government to collect 55% of all revenues generated from oil.
