Namibia has emerged as Africa’s second-fastest-growing market and fifth in the world in terms of foreign direct investment (FDI), with GDP growth forecasted at 2.7% in 2024, according to fDi Intelligence.
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.
This comes as 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.
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