Ongoing oil exploration and appraisal activities have propelled Namibia's net foreign direct investment (FDI) to N$13.9 billion in the first quarter of 2025, according to the Bank of Namibia.
The surge represents a 28.8% increase from the previous quarter and a 14.5% rise year on year, underscoring the impact of sustained activity in the country's emerging oil sector.
"Both yearly and quarterly growth in net foreign direct investment were mainly attributed to increased equity injections in the ongoing oil exploration and appraisal activities," the central bank says in its first quarter of 2025 report.
The bank also notes that the rise in FDI was supported by intercompany borrowing, particularly within the transport and mining sectors.
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In contrast, other investment flows recorded a net outflow of N$2.6 billion, compared to a net inflow of N$5.6 billion in the previous quarter and a marginal outflow of N$4 million in the first quarter of 2024.
The decline was mainly due to the repayment of foreign trade credits by resident companies, especially in the mining and wholesale sectors. It also included a principal repayment by government on its IMF Rapid Financing Instrument loan.
Meanwhile, longer-term trends show a growing appetite for investment in Namibia. According to the United Nations Conference on Trade and Development (Unctad), the country's inward FDI stock rose to US$10.995 billion in 2024, up from US$9.2 billion the previous year.
"The upward trend in investment reflects renewed interest in Namibia's mining, energy and infrastructure sectors," Unctad says in its World Investment Report 2025.
The agency also reports a significant rise in greenfield investment activity.
Announced greenfield FDI projects totalled US$2.2 billion in 2024, up from US$1.2 billion in 2023 and US$576 million in 2022. Namibia recorded 19 greenfield project announcements in 2024, the highest since 2017.
Namibia's outward FDI stock also rose to US$854 million.
