STAFF WRITER
China remains a major player in Namibia’s economy, with a strong presence in electricity generation, water infrastructure and growing influence in the tourism sector, according to the Institute for Public Policy Research (IPPR).
In its latest quarterly economic review, the IPPR said Namibia owes China about N$1.6 billion, equal to 8.1% of the country’s N$19.6 billion foreign-denominated debt.
“A well rehearsed criticism of China’s foreign policy is that China lends developing countries money which they then struggle to pay back which leads China to take the assets which have backed the loans. Namibia’s Minister of Finance presented a detailed table of loans by creditor at the end of January 2026 in her last Fiscal Strategy,” the IPPR said.
The report also shows growing interest from Chinese tourists in Namibia.
“Historically, Namibia’s traditional tourism markets have been Africa (especially Angola, South Africa and other southern African countries) and Europe (especially Germany). Although they have been growing, Chinese tourists have accounted for less than 1% of total tourist arrivals between 2021 and 2025,” the IPPR said.
The think tank said China has also increased its investments in Namibia’s manufacturing sector.
One of the biggest investments was Sinomine Resource Group’s N$930 million acquisition in March 2024. However, the operation was placed under care and maintenance after production stopped in June 2025.
China is also financing major infrastructure projects, including a planned N$3 billion desalination plant by Swakop Uranium, which is owned by China General Nuclear. The plant is expected to produce 20 to 25 million cubic metres of water a year.
The IPPR said Chinese companies are also involved in several of Namibia’s key electricity projects.
“State-owned NamPower has been working on five generation projects that have the potential to increase domestic electricity supply, two of which are in operation. The N$1.4 billion 50MW Lüderitz wind park IPP has a 25-year PPA with China’s CERIM BOO has not yet been inaugurated,” the report said.
China is also involved in the €20 million (about N$410 million) 58MW Omburu Battery Energy Storage System, which was awarded to Shandong Electrical Engineering & Equipment Group (SDEE) and Zhejiang Narada Power Source Company.
“The main contractor for the N$1.6 billion 40MW Otjikoto biomass is China’s Dongfang Electric International Corporation. Solar PV, onshore wind and battery storage form the backbone of Namibia’s push for renewable energy and much of the hardware required for all three kinds of projects are likely to have been manufactured in China as China is by far the world’s largest supplier of renewable energy hardware manufacturing over 80% of all solar panels,” the IPPR said.
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