info.afrindex.com
China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
FDI in Figures
Namibia benefits from substantial resources (uranium, diamonds, zinc, copper, oil), which attract the majority of FDI. The main countries investing in the mining sector remain, in 2015, South Africa (its neighbouring country), the United Kingdom, the United States and Germany. The country should remain politically stable due to the hegemony of the South West Africa People's Organisation (SWAPO), the only political party that has been in power since its independence. Monetary stability is also ensured by the steady flow of FDI and a properly regulated banking sector. The Government, which encourages a liberal economy, has had the tendency for several years to favour partnerships between local and foreign companies, such as the state-owned company Epangelo Mining, which holds exclusive rights in the future contracts of mining exploitation. However, the new President, Hage Geingob, elected in late 2014, has introduced new measures aimed at strengthening the national economy. Some measures restrict investment opportunities for foreign groups and strengthen state control in certain areas, especially in the exploitation of natural resources. This could discourage FDI in the coming years. Additionally, a lack of a skilled workforce and the low level of the educational system are noticeable.
Namibia has launched very large infrastructure projects in the country (including railroads that will open transportation with its neighbouring countries, the enlargement of the Walvis Bay Port and several mines), all of which are expected to bring in significant FDI inflows. After being ranked 88th in the Doing Business 2015 ranking of the World Bank, a significant improvement from 2014, Namibia fell to 101st in the rankings in 2016, with significant setbacks in business creation and licencing. FDI increased in 2015, reaching USD 13.8 billion after a significant decline in 2014 (USD 4.7 billion).
The abundant natural resources should continue to attract FDI inflows in 2016. Foreign companies are looking for new offshore oil resources. China is involved in financing the expansion of Walvis Bay, which should be completed in 2017.
