Namibia ranks first in Africa for green investment

Namibia has been ranked first in Africa and second globally in the 2025 reading of the Greenfield Foreign Direct Investment (FDI) Performance Index.

The report, published this week, shows that Namibia was ranked 11th last year.

The United Arab Emirates maintained its position as the world’s top performer in FDI relative to the size of its economy, followed by Namibia and Costa Rica.

According to the report, Namibia has successfully diversified foreign investment inflows into sustainable energy and manufacturing, contributing to its rise in the rankings.

“Beyond the extraction of natural resources in mining and oil and gas, the country has been able to diversify foreign investment inflows into sustainable energy, as well as manufacturing,” reads the report.

Green financing refers to the provision of financial support such as loans or investments for projects and activities that have a positive environmental impact.

This includes funding for renewable energy, energy efficient buildings and other initiatives that help reduce pollution and conserve resources.

In terms of overall investment, the country has received N$114.9 billion in FDI over the past four years, largely due to hydrocarbon discoveries in the Orange Basin.

The first-ever FDI report, launched earlier this year by the Namibia Investment Promotion and Development Board (NIPDB), showed 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,” says the report.

This figure is expected to increase, with private sector projects valued at N$224.7 billion, facilitated by the NIPDB, currently in the pipeline. In 2024 alone, net FDI stood at N$37 billion.

The sectors attracting the most FDI in Namibia include mining, tourism, agriculture and infrastructure development.

According to the report, China has made significant investments, particularly in Namibia’s uranium mining sector. Similarly, South Africa has invested in the diamond mining and banking sectors, while Canada has invested in the mining of gold, zinc and lithium.

Spain and Russia have directed investments into Namibia’s fishing industry. Meanwhile, other foreign investors from the United Kingdom, The Netherlands, the United States and additional countries have invested in oil exploration.

The country has also received investments in its renewable energy sector, with projects including biomass, solar, wind, battery storage and green hydrogen.

Currently, foreign-owned enterprises employed an estimated 62 817 people in 2023, up from 55 982 in 2019. Additionally, foreign-owned enterprises accounted for approximately 11.5% of total employment, according to the 2023 Labour Force Survey.

Job creation has mainly been driven by wholesale and retail trade, mining and quarrying and financial services.

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