The Chamber of Mines of Namibia has called for urgent policy reforms in the country’s mining sector following Namibia’s drop in the 2023 Fraser Institute Annual Survey of Mining Companies.
The country’s ranking on the Investment Attractiveness Index (IAI) fell by three points, prompting the Chamber of Mines to stress the critical need for improved mining policies and regulatory frameworks to enhance investor confidence and competitiveness globally.
“While Namibia remains one of Africa’s more favourable destinations, ranking 4th, it’s troubling to see our score deteriorate by three points on the absolute scale and in our global rankings. This underscores the necessity for Namibia to improve its mining policies and regulatory landscape,” President of the Chamber of Mines Zebra Kasete said.
Namibia’s position on the overall Investment Attractiveness Index (IAI) dropped by 3 points from 59 in 2022 to 56 in 2023, according to the 2023 Fraser Institute Survey of Mining Companies.
Namibia ranked 42 out of 86 jurisdictions surveyed, down from 38 out of 62 jurisdictions in 2022.
Despite this decline, Namibia maintains the third-highest ranking among African countries for its policy environment affecting exploration and investment.
This indicates that Namibia’s overall mining policies are perceived as consistent and haven’t undergone significant changes that would discourage investment.
Contributing factors to this decline, as cited by survey respondents, include “exploration companies mandated to incorporate local ownership” and “the proposed Investment Promotion Bill heightening uncertainty and risk.”
Therefore, the CEO of the Chamber of Mines, Veston Malango, stressed the Chamber’s commitment to engage with the Government to mitigate the risks associated with the proposed free-carry.
“We will continue to advocate for the expedited finalisation of the Minerals Bill and other pending policy matters such as the Namibia Investment Promotion & Facilitation Bill,” he said.
The report also commended Namibia for its “good foreign investment policies into mining,” indicating a favourable environment for international companies.
According to the survey, Namibia’s Investment Attractiveness Index score decreased from 59.88 last year to 56.43 this year, ranking forty-second.
The top-ranked African countries were Botswana with a score of 76.87, Morocco with a score of 69.61, and Zambia with a score of 64.23.
In the latest survey, Africa’s median score on investment attractiveness decreased by nine points, with investors expressing growing concerns about uncertainty over environmental regulations, protected areas, and labour regulations.
The Fraser Institute’s 2023 Annual Survey of Mining Companies gathered input from 293 respondents globally between August of the previous year and January of the current year to assess how mineral endowments and public policy factors affect exploration investment.
The survey results are classified based on the Best Practices Mineral Potential Index and the Policy Perception Index, which measure geological attractiveness and the effects of government policy on exploration investment, respectively.
