Chamwe Kaira
Namibia is positioning itself to benefit from growing foreign investment linked to oil and gas, mining, green hydrogen, infrastructure and industrial development as government and industry push for more value addition, job creation and economic diversification.
According to legal and advisory firm Cliffe Dekker Hofmeyr Namibia, foreign direct investment inflows into Namibia reached N$151 billion between 2021 and 2024, compared to N$50 billion recorded between 2009 and 2020.
Speaking during a recent webinar hosted by the firm, managing partner and director of dispute resolution Patrick Kauta said much of the recent investment has gone into exploration activities, which are capital intensive.
“The challenge now is to convert foreign direct investment into tangible improvements like job creation,” Kauta said.
Director of corporate and commercial Ilda Lomba said Namibia’s Sixth National Development Plan positions oil and gas as strategic drivers of economic transformation rather than industries focused only on revenue generation.
“The focus is on value addition and beneficiation, rather than exporting raw resources,” she said.
Lomba said the strategy aims to move Namibia from being a raw resource exporter to a resource-based industrial economy linked to long-term growth goals.
The mining sector, which contributes about 13% to Namibia’s gross domestic product, is also expected to play a major role in the country’s growth plans.
The director of banking, finance and projects Magano Erkana said the government must maximise returns from natural resources while investing in other sectors to support long-term development and improve living standards.
Namibia has set targets to increase processed mineral exports from 46.6% to 57% by 2030 and attract N$30 billion in new mining investment.
Erkana said planned mining projects are expected to generate more than N$2.8 billion in capital expenditure and create more than 500 000 jobs by 2030.
Infrastructure development has also been identified as a major driver of investment growth as government works to strengthen Namibia’s position as a regional logistics and trade hub for the Southern African Development Community.
Erkana said projects under discussion include warehousing facilities, logistics parks and expanded transport capacity along the Trans-Kalahari, Trans-Caprivi, Trans-Kunene and Trans-Oranje corridors.
Lomba said energy infrastructure will be important for commercialising Namibia’s oil and gas discoveries. She pointed to the need for refineries, gas-to-power facilities and expanded port and storage capacity.
The webinar also examined financing models for large-scale projects.
Erkana said mining developments are usually financed through a mix of debt and equity funding, while alternative funding models such as royalty and streaming agreements are also being explored.
Director of tax and exchange control Mercy Kuzeeko said investors entering Namibia need to carefully assess how investments are structured, especially regarding tax and regulatory requirements.
She said Namibia’s source-based tax system provides certainty by taxing residents and non-residents only on income generated inside the country.
Kuzeeko warned that proposed legislative reforms, including changes affecting hybrid financial instruments, could affect future investment structures.
The discussion also focused on local content policies and how investment benefits can be shared more broadly across the economy.
Lomba said NDP6 focuses not only on current employment opportunities but also on creating long-term jobs for Namibians.
She warned that local content requirements must be implemented carefully to avoid discouraging investment.
Policy certainty and regulatory reform were identified as important for maintaining investor confidence.
Erkana said the government is working to modernise legislation through initiatives such as the new Minerals Bill and the proposed Investment Promotion and Facilitation Bill aimed at reducing administrative barriers and encouraging value addition.
