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After a challenging year, Namibia is poised for a significant rebound in foreign direct investment (FDI) this year, with a projected surge driven by the restart of idled uranium operations, aggressive oil exploration by global energy giants, and ambitious green hydrogen projects. This comes after a 25% decline in FDI in 2024, signaling renewed confidence in the southern African nation’s economic prospects.
According to Francois van Schalkwyk, an executive at the Namibia Investment Promotion and Development Board, the country is strategically positioning itself to become a magnet for fresh capital in these critical sectors. In an emailed response to questions, Van Schalkwyk expressed optimism about the unfolding developments.
“A number of the international oil companies are continuing to invest in exploration, but also in related services to potentially develop their projects,” he stated, hinting at the imminent transformation of Namibia into a major oil and gas producer. The nation is currently on the cusp of this milestone, following significant offshore discoveries in the Orange Basin by industry titans like BP Plc and TotalEnergies SE. Total’s Venus discovery, in particular, is slated for a crucial final investment decision next year, a move that could unlock billions in development.
Beyond hydrocarbons, Namibia is also making a concerted push to establish itself as a key player in the burgeoning green hydrogen sector. While acknowledging the current price challenges associated with green hydrogen, Van Schalkwyk highlighted encouraging progress in areas where the clean fuel has clear applications. “We anticipate that one of the larger-scale projects could reach FID within the next year,” he revealed, underscoring the government’s commitment to diversifying its energy portfolio.
The mining sector, a traditional pillar of the Namibian economy, is also set for a significant boost. As the world’s third-largest uranium supplier, Namibia is benefiting from improved global uranium prices. “While not at their peak, they are at a level that has supported the restart of several mines that were placed under care and maintenance during the pandemic,” Van Schalkwyk explained. He added that these mines have now resumed operations, leading to “active production across Namibia’s uranium industry.”
The good news doesn’t stop there. New investments are already underway, with the hopeful expectation that three new uranium mines will come online within the next five years, further solidifying Namibia’s position in the global uranium market.
This confluence of renewed interest in its natural resources and a forward-looking approach to sustainable energy development paints a promising picture for Namibia, suggesting a vibrant period of economic growth and job creation lies ahead.
