Namibia’s net foreign direct investment (FDI) rose sharply to N$13.9 billion in the first quarter of 2025, supported by ongoing oil exploration and appraisal work.
According to the Bank of Namibia, this marks a 28.8% increase compared to the previous quarter and a 14.5% rise from the same period in 2024.
The central bank attributed the growth mainly to stronger equity injections into the oil sector and increased intercompany borrowing, particularly in the transport and mining industries.
“Both yearly and quarterly growth in net foreign direct investment were mainly attributed to increased equity injections in the ongoing oil exploration and appraisal activities,” the Bank of Namibia said in its Q1 2025 report.
In contrast, other investment recorded a net outflow of N$2.6 billion, compared to a net inflow of N$5.6 billion in the final quarter of 2024 and a marginal outflow of N$4 million in the first quarter of 2024.
“The net outflow was mainly driven by net repayment of foreign trade credits by resident companies, particularly in the mining as well as the wholesale and retail trade sector,” the report stated.
The repayments also included a principal settlement by the central government on its IMF Rapid Financing Instrument loan.
The quarterly figures follow a rise in Namibia’s inward FDI stock to US$10.995 billion in 2024, up from US$9.2 billion in 2023, according to the United Nations Conference on Trade and Development (UNCTAD).
“The upward trend in investment reflects renewed interest in Namibia’s mining, energy, and infrastructure sectors,” UNCTAD noted, adding that this comes despite ongoing global economic uncertainty.
Figures published in UNCTAD’s World Investment Report 2025 show a sharp increase from US$3.595 billion recorded in 2010, indicating growing international investor confidence in the country.
Namibia’s outward FDI stock also recorded steady growth, rising from US$768 million in 2023 to US$854 million in 2024. This compares to US$722 million in 2010 and just US$45 million in 2000, the report said.
UNCTAD also highlighted a notable rise in greenfield investment activity. The value of greenfield FDI projects announced in Namibia reached roughly US$2.2 billion in 2024, up from US$1.2 billion in 2023 and US$576 million in 2022.
The country’s best year for greenfield FDI remains 2021, when projects worth US$4.6 billion were announced. Previous peaks included US$1.8 billion in 2008 and US$1.5 billion in 2009.
In terms of project numbers, UNCTAD reported that Namibia recorded 19 greenfield FDI project announcements in 2024, the highest figure since 2017, when 23 were announced. This compares to 10 projects in both 2022 and 2023.
