N$151bn later, Namibia still chasing the jobs

Namibia attracted N$151 billion in foreign direct investment between 2021 and 2024 — more than three times the N$50 billion recorded over the preceding decade, but legal experts say the harder task is translating that capital into broad economic benefits.

That was the central message from a webinar hosted by law firm Cliffe Dekker Hofmeyr (CDH), in which four directors from the firm's Namibian practice examined the forces driving the country's investment surge and the policy challenges that remain.

Patrick Kauta, managing partner and director of dispute resolution, said much of the recent foreign direct investment (FDI) had gone into exploration, which is itself capital-intensive. 

"The challenge now is to convert foreign direct investment into tangible improvements like job creation," he said.

Ilda Lomba, director of corporate and commercial, said Namibia's Sixth National Development Plan (NDP6) positions oil and gas as strategic drivers of economic transformation rather than simply revenue-generating sectors. "The focus is on value addition and beneficiation, rather than exporting raw resources," she said. "In essence, the plan shifts Namibia from a raw resource exporter to a resource-based industrial economy, aligning natural resources development with long-term national growth."

Mining at the centre 

The mining sector, which contributes approximately 13% to gross domestic product (GDP), sits at the centre of that ambition. Magano Erkana, director of banking, finance and projects, said the government needed to optimise returns from mineral resources and channel them into other sectors to sustain development and improve living standards.

The sixth national development plan (NDP6) sets a target of increasing processed mineral exports from 46.6% to 57% by 2030, alongside attracting N$30 billion in new mining investment. Erkana said projects in the pipeline were expected to drive capital expenditure of more than N$2.8 billion and create more than 500,000 jobs by 2030.

Building the gateway

Infrastructure development is a core plank of the strategy, with the government aiming to position Namibia as a logistics gateway connecting the Southern African Development Community (SADC) with global markets. Erkana pointed to a public-private forum, launched in October 2025, designed to institutionalise dialogue between the public and private sectors. Planned developments include warehousing facilities, logistics parks and expanded capacity along Namibia's four main transport corridors — Trans-Kalahari, Trans-Caprivi, Trans-Kunene and Trans-Oranje.

Lomba said energy infrastructure was a critical enabler that could not be separated from the oil and gas opportunity. "Without it, discoveries cannot be commercially developed," she said, citing the need for refineries, gas-to-power facilities and expanded port and storage capacity.

Funding the boom 

On project financing, Erkana said mining developments typically draw on a mix of debt and equity. "Equity financing offers access to capital without repayment obligations, but may result in equity dilution, whereas debt financing may come with higher interest rates and the pressure of meeting repayment schedules," she said. Royalty and streaming arrangements, she added, were gaining traction as an alternative, offering upfront capital whilst preserving balance sheet flexibility.

Mercy Kuzeeko, director of tax and exchange control, said investors needed to plan carefully from the outset. "Investors really have to determine the mode of entering the country and how they intend to fund their investment," she said, noting that the choice between equity and debt carried distinct tax and regulatory consequences.

Namibia operates a source-based tax system, meaning both foreign and resident investors are taxed only on income sourced within the country. Kuzeeko cautioned, however, that proposed legislative changes, including the recharacterisation of certain hybrid instruments, would affect how investors structure their market entry. She outlined three primary investment vehicles: subsidiaries, branches and joint ventures, stressing the importance of proper structuring to ensure the efficient repatriation of dividends and interest.

Keeping the gains local

On local content, Lomba said the principle was central to ensuring that resource wealth delivered broad-based benefits. "Under NDP6, the focus is not just on the number of jobs available now, but on job opportunities to be created over time," she said. She warned, however, that implementation required careful calibration. "If it is too strict too early, it may discourage investment, but if it's too weak, Namibia risks limited local benefit."

Erkana said ongoing regulatory reform, including a new Minerals Bill and a proposed Investment Promotion and Facilitation Bill, was aimed at streamlining processes and encouraging value addition. "The government is looking to create an environment in which businesses can grow and create jobs. The creation of this enabling environment includes removing barriers, cutting red tape, and ensuring that enterprises thrive and FDI continues to increase," she said.

Kauta said the direction of travel was clear. "Namibia is moving from a source economy to a competitive economy," he said.