The 2023 Fraser Institute Survey of Mining Companies Survey has stated that the proposed Investment Promotion Bill is heightening uncertainty and risk in the Namibian mining industry.
The other concern raised in the survey was that exploration companies are mandated to incorporate local ownership.
Namibia’s foreign investment space is currently governed by the Foreign Investment Act (27 of 1990).
According to the Namibia Investment Promotion and Development Board (NIPDB), the Foreign Investment Act will soon be replaced by the Namibia Investment Promotion Act (NIPA) which is currently being amended to particularly provide the private sector with greater room for growth, and inspire reinvestment in Namibia.
The NIPDB has stated that it is important to note that various sectors are governed by their specific enabling laws and regulations, and it is recommended that potential investors acquaint themselves with these sector-specific policies. This is especially crucial in instances where obtaining permits and licences are mandatory requirements for conducting business, according to the NIPDB.
The survey reported that Namibia’s position on the overall Investment Attractiveness Index (IAI) deteriorated by three points from 59 in 2022 to 56 in 2023. On this index, Namibia was ranked 42 out of 86 jurisdictions surveyed, compared to 38 out of 62 jurisdictions in 2022. In the African context, Namibia ranked 4th out of 22 African jurisdictions surveyed on overall investment attractiveness, compared to 6th out of 16 jurisdictions surveyed.
Africa’s median score on the Investment Attractiveness Index decreased by a little over 9 points this year. With a median score of 44,88, Africa is the third least attractive region for mining investment when accounting for both mineral potential and policy, according to miners. However, Africa’s median PPI score increased by over 6 points in 2023. This year, Kenya, Liberia, Mauritania, Niger, Senegal, and Uganda received enough responses to be included in the report.
Four African countries—Niger (84th), Mozambique (80th), Zimbabwe (78th), and Democratic Republic of Congo (77th)—ranked in the bottom 10 of the survey rankings this year based on policy. Furthermore, four African jurisdictions were ranked in the global bottom 10 based on their overall investment attractiveness scores: Niger (86th), Mozambique (82nd), Zimbabwe (81th), and Senegal (80th). Zimbabwe has been in the bottom 10 in the previous 10 editions of the mining survey.
Botswana is the highest ranked jurisdiction in Africa based on policy, ranking 4th (of 86) on the PPI in 2023. Botswana’s lower PPI score this year (-5,6 points) reflects increasing concerns about skilled labor (+15 points), infrastructure (+9 points), its geological database (+9 points) and uncertainty concerning protected areas (+9 points). This year, Botswana dropped several places in the Investment Attractiveness Index and ranks 15th (out of 86) after ranking among the top 10 jurisdictions last year.
