Namibia has a firm grasp over trade and export among all the African countries. The country has showcased outstanding strategy and foreign policies to seek foreign investors for the optimum growth of the nation.
The geographic resources, new government convention, and infrastructure of the country has rendered a recognizable position for the foreign investment opportunity in the African continent.
Namibia offers all the infrastructure and lenient investment policy to cater to Foreign Direct Investment. The government has made strategies to make use of all the resources and skilled workforce of the country to earn revenue and build up a strong economy of the country.
Namibia is a multi-party democratic country. The political stability and the concern of the government towards economic development have to lead to a rapid increase in the investment opportunities in Namibia.
Significant sectors to invest in Namibia.
There are several sectors in which one can unleash the potential through investment in Namibia. The industries which have attracted several global investors to the country are listed below.
- Mining and Energy
- Namibia is a famous country in Southern Africa known for its minerals and energy sources. The extensive mineral deposits of minerals like diamonds, zinc, copper, uranium, gold and lead render an excellent opportunity for investment in mining and energy.
The manufacturing and processing of minerals can also benefit investors to earn a considerable amount of revenue. With the advancement of resources for processing can help in new job creation and improve the quality of processed goods. Hence, investment in mining and energy is advantageous and promising in Namibia.
- Namibia is a beautiful country in Southern Africa with mesmerizing wildlife and natural resources. The awe-inspiring scenery and African flora and fauna invite tourists from all around the world to the country, giving rise to the economy through tourism.
The warm and semi-arid climate, along with the resources make Namibia ideal for tourism. This sector is in its developing phase and requires development and expansion. Hence, tourism is a brilliant sector for foreign investment in the country.
Investment in the expansion of hotels, development of markets, international conference centres, creating reserves to preserve the wildlife, and brought up significant growth in travelling and lodging industry can help the country to boost up the tourism sector and strengthen the economy through it. The cultural biodiversity, political stability and geographic beauty are an aid to the tourism sector in Namibia.
- Infrastructure and Logistics
- The backbone of the robust economy of Namibia is its infrastructure. Due to regional integration, the country has gained an assured market to access for earning revenue. The geographical location of the nation makes the country vulnerable to other African countries and hence provides a good demand for the processed goods and items in Namibia.
It is an active member of regional trade organizations, i.e., SACU and SADC, which renders a direct exposure to a market of over 300 million people. So, it is a significant opportunity to trade in Namibia through the investment process.
Namibia has well-developed ports, roads, and airway transport facilities. Owing to this, the country gets a prominent place for marketing and trading among other countries of SADC. The excellent infrastructure and other resources provide massive opportunities for trading and commerce through foreign direct investment.
There are several areas like cargo handling, railway development and linkage, warehousing, flood and rainwater harvesting, and many other projects to work through investment.
- Namibia is focused towards modernization and industrialization. Even being an agriculture-based country, it has achieved several remarkable milestones through sustainable growth of manufacturing and maintaining peace throughout the country.
The human resource of the country has worked together with harmony to create a radical and versatile platform for foreign investment in manufacturing. The strategic planning and government policies to increase production in the country have to lead to a reduction in poverty and unemployment.
The manufacturing sector of Namibia comprises meat processing, fish processing and other food and beverages. Apart from this, Namibia is a globally recognized country for its minerals. So, the process of mineral benefaction has brought up numerous jobs in the country.
The country has given priority to manufacturing under the National Development Plan and the strategy for the economic development of the country. The country is focused towards building a robust economy through domestic production and processing.
There are some significant manufacturing sub-sectors which renders a beautiful opportunity to foreign investors. These are listed below.
- Steel manufacturing and metal fabrication
- Automotive parts
- Fodder and pet food production
- Jewellery industry
- Production of chemicals
- Manufacturing of leather, wool and textiles
- Around 70% of the total population of Namibia relies on agriculture and related activities. This is the reason Namibia is known as an agriculture-based country.
The agricultural sector of Namibia is based on both livestock and crop production. However, the county faces several challenges like poor infrastructure, climatic factors and inefficient technique of farming. Even after a massive workforce is engaged in agriculture, this sector contributes only 5.1% of the total GDP of the nation.
The agricultural sector of Namibia requires development for productive and potential growth. The government runs various support programmes to ensure productive farming, food security and poverty eradication. So, investment in this sector can be beneficent with great support from the government of Namibia.
The government has agencies to run programs for food securing and improve employment in the agriculture sector. AMTA agency was established in this regard to process the agricultural products and increase their quality. All these development factors have also been highlighted under the National Development Plan (NDP5) and Harambee Prosperity Plan of Namibia.
Crop farming, livestock farming and meat and meat products processing are the major sub-sectors of the agricultural sector of Namibia, which are highly encouraged by the government. Investment in these sub-sectors can help in the creation and expansion of value and revenue gained through agriculture.
- Renewable and clean energy
- The economic development of any country is based on energy production or the source of energy used. Namibia has emerged as a powerful country for energy production and power supply in the African continent.
At present, the country is failing to fulfil the total requirement of energy and imports 61% of the total electricity. Moreover, it has been estimated that the energy demand of the country will increase by 5% per annum. So, the government is aiming towards sustainable and reliable production of electricity to overcome the deficiency of 200MW.
The government of Namibia has worked to provide the energy supply to all the educational institution and health care facility, along with the households. It has taken a miraculous step to provide electricity to families in rural areas, which has increased the electrification rate from 34% to 50%. Hence, power supply and development of a renewable source of energy is an incredible sector for investment in Namibia to raise domestic production and tackle the challenges of peal power and transmission.
The major sub-sectors of this field for foreign investment are:
- Oil and Gas
- Renewable Energy
- Renewable Feed-in Tariff (REFIT) Scheme
- Net metering
- Competitive bidding system
Investment in this sector is highly beneficent with strategic planning and in the field of power generation and the modification of transmission lines. Wind energy and solar energy are substantial renewable energy sources in Namibia.