Namibia launches inaugural foreign direct investment report to boost economic insight

Deputy Bank of Namibia governor Ebson Uanguta at the Foreign Direct Investment Report launch, Windhoek, 14 May 2025

I am delighted to stand before you this afternoon as we mark a significant milestone in Namibia’s economic journey with the launch of our country’s inaugural ‘Foreign Direct Investment (FDI) Report’.

Collaboration is the engine that drives progress, and this report is proof of that. This report is a direct result of the ongoing collaboration between the Bank of Namibia and the Namibia Investment Promotion and Development Board, formalised through a memorandum of understanding that came into force in April 2024. It reflects joint analysis and a shared commitment to evidence-based policymaking, enhanced transparency of macroeconomic data, and a deeper, more accurate understanding of Namibia’s evolving investment landscape.

Data is more than just numbers; it is the very foundation upon which sound decisions and relevant policies are made. As the central bank, the Bank of Namibia holds the statutory responsibility of collecting, analysing and disseminating high-quality macroeconomic statistics, particularly in the areas of monetary and financial as well as external sector statistics. This responsibility not only supports the fulfilment of our core mandate of ensuring monetary and financial stability, but also extends beyond it, by serving as a valuable public good. High-quality data, when made accessible and timely, enables policymakers across the government and industry to act with greater clarity, confidence and coordination to support the relevance of their interventions. 

This inaugural FDI report marks a deliberate step towards enhancing transparency, providing accessible insights and ultimately making a meaningful contribution to informed decision-making.

Before we delve into the subject of FDI, I would like to take a moment to reflect on external sector statistics, reminiscing on my background as an economic researcher. As someone who began their journey as an economic researcher, I have long appreciated the power and importance of these statistics. 

External sector statistics, which include the balance of payments, international investment position, external debt statistics, foreign reserve assets and foreign exchange rates, are necessary for monitoring and assessing Namibia’s external relations. 

These statistics are the cornerstone of central banking operations, supporting analysis on exchange rate stability, reserves management and the external sector’s contribution to macroeconomic resilience. Moreover, these statistics serve as an indicator for identifying external imbalances, assessing foreign debt sustainability and provide a view of Namibia’s external vulnerabilities and exposures in an ever-changing global landscape. Foreign direct investment is a subset of external sector statistics and, given its long-term nature, is critical to the financing of the current account balance.

To fully appreciate the significance of this report, it is essential to understand why foreign direct investment matters. FDI occurs when an investor from one economy makes an investment that provides control or significant influence over the management of an enterprise in another economy. 

It contributes to economic development by boosting export earnings, enhancing fiscal revenues, and most importantly, creating jobs, both directly through new and existing projects and indirectly through linkages with local suppliers and services providers. FDI also introduces new technologies, global expertise, and critical skills. Moreover, it connects host countries to international markets and often spurs infrastructure development, further strengthening national competitiveness. In short, FDI is a powerful engine of economic growth.

Globally, foreign direct investment flows are under increasing pressure. According to the United Nations Conference on Trade and Development, global FDI flows – excluding financial flows through European conduit economies – declined by 8.4% in 2024, reaching an estimated US$1.4 trillion (approximately N$27.2 trillion). 

This decline reflects a challenging global environment marked by subdued growth prospects, heightened geopolitical tensions, and growing geo-economic fragmentation. In response, multinational corporations and major investors have adopted a more cautious stance, resulting in reduced investment activity. 

Looking ahead, the outlook remains uncertain. In April 2025, the International Monetary Fund revised global economic growth downward to 2.8%. This, combined with the rise of protectionist trade policies such as tariffs, is expected to influence FDI trends. As a result, multinational firms are likely to seek greater diversification, prioritising countries with stable macroeconomic conditions, sound governance, and predictable regulatory frameworks.

In an increasingly competitive global landscape for attracting investment, Namibia’s FDI journey stands out. Since gaining independence in 1990, the country has taken bold strides to create a conducive environment for foreign investors. 

A key early milestone was the enactment of the Foreign Investment Act of 1990, which laid the foundation for an investor-friendly climate supported by a robust financial system. Although initial FDI inflows were modest, a major turning point came in 1996 with the introduction of the Export Processing Zone regime. 

This policy offered attractive incentives to export-oriented manufacturers and contributed to a significant increase in FDI. Between 1998 and 2008, Namibia recorded approximately N$25.7 billion in net FDI inflows, largely in the form of equity financing for projects in the manufacturing sector. This period marked a turning point, proving that clear policy direction and investor confidence can unlock real economic opportunity.

Namibia’s investment story did not end there – in fact, it gained momentum. Between 2009 and 2018, the country attracted approximately N$56.5 billion in net FDI, fuelled largely by greenfield investments in the mining sector, particularly in uranium and gold. 

These investments led to the development of major mining projects, reinforcing Namibia’s position as a key destination for resource-based investment. Moreover, strong economic growth between 2010 and 2015 further boosted investor confidence, leading to increased investment in the financial and the wholesale and retail trade sectors.

While there was a temporary decline in FDI during 2019 and 2020, Namibia has experienced a strong rebound since 2021. From that year onward, cumulative net FDI inflows reached N$114.9 billion – driven largely by significant hydrocarbon discoveries in the Orange Basin and an increasingly favourable investment climate. 

This resurgence reflects the impact of the government’s strategic efforts to attract, promote, and facilitate high-quality investment, including through the establishment of the Namibia Investment Promotion and Development Board.

Looking ahead, Namibia is well-positioned to build on this momentum. As global investors seek stable, resource-rich, and forward-looking destinations, the country must continue to foster a competitive and enabling environment. This applies not only to traditional sectors such as mining and financial services, but also to emerging industries including energy, agriculture, tourism, transport and logistics, digital technologies, and global business services.

This brings me to my concluding remarks on Namibia’s investment outlook. Our goal should not simply be to attract more investment – but to attract the right kind of investment. Investment that is aligned with our national development objectives, supports job creation, facilitates skills development, drives technological innovation, and strengthens the resilience of our economy. 

To secure long-term, sustainable growth, Namibia must continue to diversify its investment profile. Greater focus should be placed on attracting efficiency-seeking and market-seeking investment, particularly in competitive, labour-intensive sectors. This shift will be critical for ensuring inclusive growth and expanding opportunities for all Namibians.

In closing, let me reaffirm the Bank of Namibia’s unwavering commitment to producing and disseminating high-quality statistics to support evidence-based policymaking. In today’s dynamic economic landscape, timely and reliable data is not just beneficial – it is essential. The Bank will continue to collaborate with key stakeholders to strengthen our statistical systems in line with international standards and best practices, while enhancing data transparency.

To the dedicated teams at the Bank of Namibia and the Namibia Investment Promotion and Development Board who made this report possible, I extend my deepest appreciation. You have provided Namibia with a valuable resource that will support smarter decision-making and a more competitive investment future.

Thank you.

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