• Mining
Sunday, July 13, 2025
Mining and Energy Namibia | Namibia’s Leading Mining & Energy News
NEWSLETTER
No Result
View All Result
  • Diamonds
  • Oil & Gas
  • Uranium
  • Green Hydrogen
  • Gold
  • Lithium
  • Energy
  • Copper
  • Zinc
  • Diamonds
  • Oil & Gas
  • Uranium
  • Green Hydrogen
  • Gold
  • Lithium
  • Energy
  • Copper
  • Zinc
No Result
View All Result
Mining and Energy Namibia | Namibia’s Leading Mining & Energy News
No Result
View All Result
Home Energy

Oil and gas drives Namibia to record N$19bn FDI in 6 months

editor by editor
December 4, 2023
in Energy
21 26
A A
0

Investment in Namibia’s oil and gas sector  has emerged as one of the main contributors to a surge in the country’s foreign direct investment (FDI) during the first two quarters of 2023, reaching a record N$19 billion.

The figure according to Catalyst Investment Managers, represents 16.83% of the country’s gross domestic product (GDP), surpassing any annual inflow recorded.

Cheryl Emvula, Head of Research at Catalyst Investment Managers, said that Namibia had achieved a historic milestone in the second quarter of 2023 with a record N$13 billion FDI inflow.

“The scale of investments in the sector is substantial, with major players like Shell and Total directing significant portions of their exploration budgets into Namibia. These investments, coupled with potential production well establishments, could herald a long-term economic upswing,” he said.

“The discovery of vast oil and gas reserves offshore played a pivotal role, sparking intense exploration activities. While the green hydrogen industry’s contribution to FDI at this stage, I believe, has remained modest.”

Emvula emphasized that the immediate benefits of the investments are visible in the strengthening of Namibia’s national reserves, which were previously facing challenges due to post-Covid difficulties and the outflows of FDI in 2019 and 2020.

“This strengthening upholds the country’s dedication to its currency peg, enabling the Bank of Namibia (BoN) to sustain a comparatively accommodative stance in contrast to its South African counterpart. Consequently, Namibia enjoys a lower repo rate (interest rates) than South Africa, fostering a favorable atmosphere for economic stability and expansion,” Emvula said.

Speaking on the long-term effects of the surge, Emvula said an increase in FDI is a sign that the economy is poised to grow steadily.

“The recent increase in investments, especially in the oil and gas industry, suggests that Namibia might be entering an important and positive period,” he said.

Emvula highlighted that the increase in FDI in Namibia is mainly focused on the oil and gas sector, despite no major changes in government policies.

“As Namibia navigates this transformative period, addressing uncertainties in policy direction becomes crucial. The FDI slump between 2018 and 2020, attributed to policy uncertainties, underscores the need for clarity and optimization in policies to unlock even greater and more diverse FDI inflows,” he said.

“It is important for Namibia to clarify and enhance its policies to attract a broader range of foreign investments, stating that although focusing on the oil industry is beneficial now, a comprehensive policy approach could lead to stronger and more lasting economic growth.”

In terms of job creation, Emvula mentioned that deep-sea mining, which attracts a lot of foreign investment, usually doesn’t create many jobs because it requires substantial investment.

“However, the positive effects of a successful oil and gas industry could lead to many job opportunities.”

author avatar
editor
See Full Bio
Share142Tweet89

Related Posts

Dangote plans 1.6 million-barrel fuel storage tanks in Namibia
Energy

Dangote plans 1.6 million-barrel fuel storage tanks in Namibia

Nigeria's Dangote petroleum refinery plans to construct storage tanks in Namibia to hold at least 1.6 million barrels of gasoline...

July 10, 2025
Namibia risks higher tariffs without base load power plant – NamPower MD
Energy

Namibia risks higher tariffs without base load power plant – NamPower MD

  Namibia's continued dependence on electricity imports will persist and likely result in higher tariffs unless the country urgently develops...

July 8, 2025

Recommended

Chevron says no commercial oil, gas found at Namibia exploration well

Chevron says no commercial oil, gas found at Namibia exploration well

6 months ago
Germany faces US$45bn hit from replacing Russian gas

Germany faces US$45bn hit from replacing Russian gas

3 years ago
Load More

Newsletter

Black transparent logo for dark mode

About Us

The Namibia Mining and Energy website is a comprehensive online platform dedicated to showcasing Namibia's mining and energy sectors

Categories

  • Copper
  • Diamonds
  • Energy
  • Gold
  • Green Hydrogen
  • Lithium
  • Mining
  • Namibia
  • News
  • Oil & Gas
  • Opinions
  • Tin
  • Uranium
  • Zinc

Get in touch

Email:newsdesk@miningandenergy.com.na

© 2024 Mining and Energy | All Rights Reserved. The Namibia Mining and Energy website is a comprehensive online platform dedicated to showcasing Namibia's mining and energy sectors.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Diamonds
  • Oil & Gas
  • Uranium
  • Green Hydrogen
  • Gold
  • Lithium
  • Energy
  • Copper
  • Zinc

© 2024 Mining and Energy | All Rights Reserved. The Namibia Mining and Energy website is a comprehensive online platform dedicated to showcasing Namibia's mining and energy sectors.