Namibia is becoming an increasingly attractive destination for Finnish investors, thanks to its favourable business conditions and strategic partnership with the European Union (EU).
The Finnfund Global Gateway Project head of mission Julian Blom said his organisation, which promotes business partnerships and development financing, has included Namibia in its top five countries for support in recent years.
This he said is due to the country’s strong mining sector, which is a major driver of the economy.
“The Finnfund Global Gateway Project provided grants to approximately 70 to 80 projects in developing markets worldwide. Namibia’s inclusion in the top five countries benefiting from this initiative signifies the nation’s growing appeal to Finnish businesses,” Blom said.
This comes as Namibia’s mining sector, a cornerstone of its economy responsible for nearly two-thirds of the nation’s export earnings, is poised for a transformative journey with the strategic partnership between Namibia and Finland.
At a recent event, Deputy Head of Mission at the Embassy of Finland in Namibia Matti Karvanen lauded the importance of this collaboration in harnessing Namibia’s potential as a global supplier of critical raw materials.
Karvanen emphasised Namibia’s extensive mineral wealth, spanning diamonds, copper, uranium, gold, tin, battery minerals, and rare earths.
He underlined the nation’s capacity to become an even more significant global supplier of critical minerals as the world intensifies its battle against climate change and embraces green technologies.
Presently, a substantial portion of Namibia’s mineral processing occurs beyond its borders. There is a growing interest among local mining entities to foster domestic value chains and enhance value addition within Namibia.
“The European Union (EU) has recognised Namibia’s ambition, cementing the nation’s status as the first African country to sign a memorandum of understanding with the EU. This memorandum outlines a Strategic Partnership focused on critical raw materials value chains and green hydrogen production,” he said.
Through this strategic partnership, the EU, European Member States, and various European organisations, including geological surveys, commit to bolstering Namibia’s mining and energy industries.
This support includes the development of local production capacities, including mineral processing.
“To create the most economic value addition and much-needed employment, the country needs to not only extract and export minerals but also build local value chains,” said Karvanen.
