Renewed investment in Namibia’s oil and gas sector helped drive N$6.7 billion in foreign direct investment (FDI) inflows during the first quarter of 2026, reversing a N$2.8 billion net outflow recorded in the previous quarter and reinforcing the country’s position as one of Africa’s fastest-growing energy investment destinations.
According to the Bank of Namibia’s June Quarterly Bulletin, the recovery was driven primarily by equity injections and intercompany financing linked to oil and gas exploration, with additional capital flowing into the mining, tourism and logistics sectors.
“Net foreign direct investment (FDI) inflows amounted to N$6.7 billion, marking a notable turnaround from a net outflow of N$2.8 billion recorded in the previous quarter,” the central bank said.
The Bank said the rebound reflects continued investor confidence in Namibia’s extractive industries, particularly oil and gas, where international companies continue appraisal and exploration activities in the Orange Basin.
Despite the strong quarterly recovery, FDI inflows remained below the N$13.1 billion recorded in the first quarter of 2025.
According to the central bank, the year-on-year decline reflects slower oil and gas exploration activity and reduced reliance on intercompany lending compared with the previous year.
Mining also continued to attract foreign capital during the quarter, although production from the sector softened.
The Bank said Namibia’s economy expanded by 2.0% in real terms during the first quarter, marking the 18th consecutive quarter of economic growth since 2021.
While mining activity moderated, economic growth was supported by wholesale and retail trade, financial services, health, education and public administration, together with improved agricultural and fishing output following favourable rainfall.
The stronger investment inflows coincided with an improvement in Namibia’s external position, with the current account deficit narrowing to N$9.9 billion as lower services payments and reduced net investment income outflows offset continued trade pressures.
International reserves rose to N$51.8 billion at the end of March before increasing further to N$55.4 billion by the end of May, supported by Southern African Customs Union (SACU) receipts, gold monetisation and favourable valuation gains.
According to the Bank, the increase lifted import cover to 3.5 months by May 2026, strengthening Namibia’s external buffers despite import growth continuing to outpace exports.
The central bank also reported that the real effective exchange rate appreciated by 3.8% year-on-year, reducing the price competitiveness of Namibian exports even as stronger capital inflows and higher reserves reinforced macroeconomic stability.
The latest FDI figures come as Namibia’s long-term economic prospects continue to strengthen on the back of its emerging oil and gas industry. S&P Global Market Intelligence projects that the country’s hydrocarbon discoveries could help Namibia record its first fiscal surplus since 2008 by the early 2030s, driven by rising foreign investment in the energy sector and spillover effects across the broader economy.
