(3 Minutes Read)
Namibia emerged as a global Foreign Direct Investment (FDI) pivot, securing the 5th position in the fDi Intelligence’s Annual FDI Standouts Watchlist. With GDP growth forecasted at 2.7% in 2024, according to fDi Intelligence. Kenya tops the list ahead of Namibia.
The study, which assesses the macroeconomic and FDI trajectories of the world’s top 50 FDI destinations using data from the International Monetary Fund and foreign investment monitor fDi Markets, singles out those countries entering the new year with strong macroeconomic and FDI momentum as the world continues to grapple with a patchy post-Covid recovery.
According to the report, green hydrogen and oil are driving factors in the significant foreign direct investment trend in Namibia.
The Bank of Namibia (BoN) stated that the oil and gas sector yielded N$33.4 billion in foreign direct investment (FDI) inflows between 2021 and 2023.According to the Bank’s Governor, Johannes !Gawaxab, these investments, with the potential to double the country’s gross domestic product (GDP), resulted from a massive oil discovery in 2022 and will position Namibia among the top 15 oil-rich countries globally.
Similarly, Namibia recorded a surge in foreign direct investment (FDI) during the first two quarters of 2023, reaching a record N$19 billion, attributed mainly to oil and gas investments and the acquisition of Namibia Breweries by Heineken. The figure accounted for 16.83% of the country’s gross domestic product (GDP), surpassing any annual inflow on record, according to Catalyst Investment Managers.
The Continent has seen a surge in foreign direct investment in various sectors. Recently, the U.S.-based pharmaceutical company Moderna finalized an agreement to invest up to USD 500 million to build its first African facility for the production of messenger RNA (mRNA) vaccines in Kenya—one of the first of its kind in Africa. The country’s energy sector has also attracted strong FDI interest, with Dubai-based AMEA Power announcing in September 2023 the intention to produce green hydrogen in Mombasa, with a total investment estimated at USD 2.29 billion.
Read Also:
https://trendsnafrica.com/namibia-riding-high-on-oil-and-gas-record-n19bn-fdi-in-6-months/
https://trendsnafrica.com/eu-namibia-business-forum-vying-european-fdi-for-namibias-green-economy/
https://trendsnafrica.com/namibias-q2-2023-fdi-clocks-usd-400-million/
FDI is a critical economic indicator measuring international investment inflow. For Namibia, ranking 5th implies a surge in global trust and capital flowing into the nation’s economic landscape. This also means an increase in economic growth and improving livelihoods by offering new opportunities and prosperity.
Investors worldwide closely monitor FDI standouts like Namibia because it signifies potential returns on investment, said fDi Intelligence. As Namibia secures its spot, it becomes a beacon for global investors seeking stable and growth-oriented markets.
