Namibia has earned a reputation as one of Africa’s most attractive investment destinations. Yet, even as investor interest reaches new highs, the country’s proposed Investment Promotion and Facilitation Bill has become one of its most controversial pieces of legislation. Critics warn it could undermine the very investment it seeks to attract.
What is fuelling investor anxiety? The answer lies in a striking paradox: Namibia’s natural resources are abundant, but its legal framework remains uncertain. Offshore, TotalEnergies’ Venus discovery is estimated at 1-billion barrels of oil; the onshore reserves include uranium, lithium and renewable energy potential to power a future hydrogen economy. While the land beckons investors, regulatory ambiguity holds them back.
For over 30 years Namibia has struggled to modernise its outdated Foreign Investment Act of 1990 — a law widely regarded as obsolete by government officials, business leaders and legal experts. Attempts at reform have repeatedly faltered: a 2016 act was gazetted but never enacted; a 2021 bill was introduced only to be withdrawn; and subsequent drafts stalled in 2022 and 2023. The most recent draft, drawn up in 2025, was sharply criticised by top legal advisers as unconstitutional and too vague to implement.
Analysts say that whereas Article 99 of the constitution requires a comprehensive investment code, parliament has repeatedly introduced only incremental legislation, falling short of meaningful reform.
Sceptics contend that investment continues to flow despite policy uncertainty — foreign direct investment (FDI) amounted to approximately $2bn in 2024. The critics argue that when mineral wealth is abundant investors are willing to downplay political risk.
Vulnerability lies beneath Namibia’s wealth. In 2017, Fitch downgraded the country’s rating, citing the investment law. Energy company RWE abandoned a $10bn hydrogen project, and the Orange Basin oil finds remain stalled. The Economic Policy Research Unit describes this as a “permission-based economy” (2026).
Some warn that sovereignty risks becoming the authority to decide who invests and who is left out. Others say that legal certainty is not capitulation; a clear investment code can empower the state as much as it constrains it.
History instructs both sceptics and reformers. Namibia’s experience with foreign capital is marked by trauma: German concession companies fenced the land, and genocide emptied it. Against this backdrop, ministerial caution is rooted in collective memory, not whim. Policies like investment screening, reserved sectors and empowerment clauses reflect a government’s resolve never to lose control over its own resources again.
Yet hesitation comes at a cost. As investment bills stall, gross fixed capital formation has dropped from about N$45bn in 2015 to N$26bn in the early 2020s. Mining dominates 67.7% of FDI, while manufacturing lags at just 6.2%, reinforcing an enclave economy with few jobs and weak local links. Uncertainty isn’t abstract: it’s a factory that never opens, a licence that never lands, a young person who never clocks in.
It remains unclear whether these concerns will lead to a full bill rewrite. However, positive signs suggest Namibia is committed to maintaining financial credibility.
In 2025, the country reached a milestone by redeeming its second eurobond, valued at $750m, the largest single debt maturity in the country’s history.
Meanwhile, Namibia Investment Promotion and Development Board acting CEO Julia Muetudhana says Namibia has strengthened its regulatory and business environment by addressing 13 requirements of the Financial Action Task Force (FATF), leading to Namibia’s removal from the FATF grey list in June 2026.
“This restored international financial credibility and showed foreign investors the country’s system is transparent and secure."
In October 2025 the Namibia Regulators Forum was established via the Bank of Namibia to improve regulatory co-ordination and the ease of doing business.
“The first Namibia Public-Private Forum, chaired by President Netumbo Nandi-Ndaitwah, also advanced various investment reforms, including a commitment to a five-year investor visa,” Muetudhana says. Nonetheless, though the grey list is gone, the grey areas remain.
The rocks are patient; capital is not. Between them stands the law — and the law, for now, keeps everyone waiting.
Dunia P Zongwe is an associate professor in the School of Law at the University of Namibia and Linda Jager is a seasoned journalist working in Namibia and South Africa.
