Namibia geared to become FDI destination
Simonis Storm says Namibia is perfectly geared to become a leading destination for foreign direct investment and could become an attractive destination in Africa.Simonis Storm made this observation in its FDI report on Namibia and says Namibia hit N$14 billion in FDI alone in the fourth quarter of 2023 alone.
“Since the first quarter of 2019, Namibia's FDI has been a story of ups and downs," the analysis states. "FDI hit a record high of N$14.98 billion in the fourth quarter of 2023 before easing to N$8.58 billion in the second quarter of 2024,” Simonis Storm added.
“A key driver of this optimism is the ongoing oil and gas exploration off the Namibian coast. The discovery of oil reserves has set the stage for a wave of FDI that could reshape the nation’s economic landscape. Future finds could position Namibia as a heavyweight in Africa’s energy sector,” Simonis Storm said.
“To fully harness this opportunity, Namibia must address challenges like environmental sustainability and ensure it develops the local capacity needed to manage this growing industry effectively,” the report noted.
Beyond oil, gas
There is also a need for Namibia to draw FDI into other sectors, notably mining, manufacturing and infrastructure.
“Beyond oil and gas, Namibia continues to draw FDI into its mining, manufacturing, and infrastructure sectors. The mining industry, particularly in diamonds and uranium, has long been a magnet for foreign investment. However, external factors like global commodity price swings and intercompany loan repayments have sometimes led to short-term declines in FDI, as we’ve seen in recent quarters."
To position Namibia as a leading FDI destination, it must enhance policy certainty," the report highlighted.
“Investors need stability and clarity. Namibia’s government should continue refining investment-friendly policies, particularly in high-growth sectors like oil, gas, and renewables, to create an environment that inspires confidence and attracts long-term commitments,” Simonis Storm said.
Solid infrastructure
Namibia should also strengthen its infrastructure projects.
“Future growth depends on solid infrastructure. Key projects like the ongoing upgrades at Walvis Bay and Lüderitz harbours, coupled with the potential expansion of TransNamib’s rail network, are essential steps toward unlocking even greater economic opportunities,” Simonis Storm said.
“While oil and gas bring immense potential, over-reliance on one sector can be risky. Namibia should continue to leverage its mining strengths while exploring new growth areas like green energy, tourism, and manufacturing. A diversified economy will help shield the country from global shocks and build long-term resilience,” it added.
Simonis Storm's report added: “For Namibia to fully benefit from future FDI, developing local talent is critical. Investing in education and skills training, particularly in emerging sectors like energy and infrastructure, will ensure that Namibians are ready to seize new job opportunities, driving inclusive and sustained growth."