STAFF WRITER
NAMIBIA has seen a substantial increase in Foreign Direct Investment(FDI) in the past two decades, thanks to growing interest in the oil and gas industries and an early policy promoting Export Processing Zones(EPZ), Bank of Namibia has said. Announcing the country’s first ever FDI report compiled in partnership with the Namibia Investment Promotion and Development Board (NIPDB), the apex bank governor Johannes !Gawaxab said Namibia’s journey in attracting investment stands out. The latest FDI inflows show that the Southern African country recorded N$114.9 billion in net inflows since 2021, creating 62,000 jobs in the process.
The FDI figures also show that mining , wholesale and retail and financial sectors led investment-driven growth. Key indicators from the report also shows that FDI profits rose from a net loss of N$1.6 billion in 2020 to a profit of N$4.3 billion in 2024. He said that since the country’s independence in 1990, Namibia made remarkable strides in creating a conducive environment for foreign investment through the enactment of the Foreign Investment Act of 1990. “ In the early years since independence, FDI inflows were modest. However, the introduction and subsequent implementation of the Export Processing Zone (EPZ) regime in 1996, which offered export- oriented manufacturers a range of internationally competitive incentives, led to a surge in FDI between 1998 and 2008,”
!Gawaxab said. He said in the period under review (1998 to 2008) Namibia attracted about N$25.7 billion in net FDI inflows. According to !Gawaxab the FDI inflows during that times was driven by equity financing for projects in the manufacturing sector, including the Skorpion Zinc Refinery and diamond processing entities, amongst others. “ Although Namibia experienced temporary net FDI outflows between 2019 and 2020, the country has since witnessed a rebound in net FDI flows since 202,” he said. The central bank governor said cumulative net FDI inflows from 2021 onward reached N$114.9 billion, largely driven by hydrocarbon discoveries in the Orange Basin. “ Namibia’s long-term growth is not only dependent on the amount of investment it attracts, but also on the quality and nature of the type of investments.
To foster this progress, we must understand the source of capital, the targeted sectors and how investment decisions align with broader economic objectives,” he said. NIPDB Chief Executive Officer, Nangula Uaandja said the FDI inflows reflects strong growth across a broader range of industries, with N$56.9 billion in FDI recorded in sectors outside of oil and gas. “ Between 2016 and 2020, Namibia faced a period of economic difficulty, characterised by declining investment inflows and net outflows due to structural challenges and external shocks,” she said.
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