Policy uncertainty deters investments in mining

NAMIBIA’s mining sector has seen a significant decline in investment attractiveness, according to a new report released by the Canadian thinktank, Fraser Institute.

The institute conducts yearly surveys of mining companies, asking executives and industry players to assess both mineral endowments and public policy factors such as governance.

The 2025 survey shows that Namibia dropped 10 points in the investment attractiveness index, from 66 in 2024 to 56 in 2025. This means that Namibia – which was ranked 30 out of 82 in terms of best jurisdictions for mining in 2024 – has now fallen to 51 out of 68.

The Chamber of Mines of Namibia last Thursday expressed concern over the report, saying that it shows the need for policy certainty to safeguard the sector.

“Namibia’s decline is particularly concerning at a time when strong mineral commodity prices are driving significant global investment into high-risk exploration. If Namibia is not seen as competitive and predictable, we risk missing out on exploration capital that is critical for discovering the mines of the future,” chamber president George Botshiwe said.

The report includes two anonymous comments from mining industry players in Namibia raising their concerns.

One mentioned that the sixth National Development Plan requires 51% local ownership of mines, while the other mentions general uncertainty about policy regulations.

“The new water act, new environmental act, minerals bill, and statements made by the minister of mines and parliament members are deterrents to investment,” a senior manager at a consulting company says.

Both issues have been raised by the mining sector in the past. However, last December the National Planning Commission clarified that the government has not set a fixed threshold for local ownership. The intention is to promote local empowerment, rather than set strict guidelines, the commission said.

“The statement is a reassurance to the mining community that local ownership thresholds have not been predetermined and that any future policy measures will be developed through structured engagement with industry,” the chamber said.

But policy uncertainty remains a significant issue for investors. Corporate governance analyst Steve Galloway told The Namibian on Friday that long delays in policy implementation – including the Namibia Investment Promotion Act of 2016, which has still not been passed – threaten Namibia’s competitiveness.

“Uncertainty has deterred investment and confidence for the greater part of the past two decades, as is evident from foreign direct investment numbers outside of the mining, oil and gas sectors,” Galloway said.

He also does not believe that Namibia will be able to implement policy in a timely manner to address these issues.

“Given the poor progress of advancing conducive and productive policy and legislative frameworks over the past decade and more, it seems unlikely that all these vital instruments will suddenly be unlocked in the future,” he said.

Mineworkers Union of Namibia general secretary George Ampweya says policy certainty and transparency are fundamental for the workers and investors.

“Foreign investment remains very important for Namibia’s mining sector. It brings in the capital, technology, and jobs that our economy still needs,” he says.

From the perspective of labour, Ampweya says it is important that policy stability does not prevent the government from improving policies where there are gaps.

He says workers want consultative and transparent processes in order to understand the direction of policy.

“At the end of the day, a mining sector that respects workers, creates decent jobs, and operates within a clear and fair policy environment is not only good for workers, it’s also what makes the country more attractive for serious, long-term investors,” Ampweya says.

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