Meanwhile, in-country investment declines
Over the past 15 years Namibians, especially institutional investors like pension funds, have increased their holdings in foreign stocks and bonds.
The total value of these foreign investments rose from N$48.5 billion in 2009 to N$212.3 billion by mid-2025.
According to a discussion note by the Bank of Namibia, by 2024 the total value of Namibia’s foreign portfolio investments was equal to 75.3% of the country’s gross domestic product, up from an average of 64% between 2009 and 2023.
“Namibia’s stock of portfolio investment abroad has reflected an upward trend over the years, mainly contained in equity and investment fund shares. This is boosted largely by rising share and bond prices creating positive revaluation effects,” reads the report.
In 2024, 53.6% of these foreign portfolio investments were going to South Africa.
The United States came second with a 18.9% share, followed by China at 2.5% and the United Kingdom at 1.6%.
Meanwhile, inflows of international capital into Namibia have remained the same.
Between 2009 and 2024 (including the first half of 2025), portfolio investment flows consistently recorded net outflows.
This means Namibians have invested more overseas than foreigners have invested in Namibia.
“Namibia recorded net portfolio investment outflows from 2009 to 2014, with inflows recorded in 2011.
From 2020 to 2022, Namibia registered net inflows in portfolio investment, largely due to the net selling of foreign equity and debt securities by resident institutional investors in line with higher domestic asset requirement,” says the central bank.
On average, that net outflow has been N$1.2 billion per year.
On the liabilities side, much of recent foreign investment has come through sovereign bond issues launched on international markets.
Namibia issued Eurobonds of US$500 million in 2011 and US$750 million (approximately N$14 billion) in 2015, this resulted in the country’s portfolio investment liabilities rising from just N$127 million in 2009 to around N$22.1 billion in 2020.
According to the report, this increase went down in 2021, when the government redeemed the 2011 Eurobond, valued at N$7.7 billion.
Liabilities dropped to N$15.8 billion and have remained broadly flat since.
“The country had minimal exposure to foreign capital prior to the issuance of two Eurobonds and some Johannesburg Stock Exchange-listed bonds in 2011 and 2015.
These issuances resulted in significant inflows of foreign capital, as the government sought to access international capital markets while reducing reliance on domestic borrowing,” says the central bank.
According to the central bank, Namibia’s inward portfolio investment liabilities are expected to decline significantly towards the end of 2025 due to the second Eurobond redemption in October.
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