Chamwe Kaira
South Africa remained the largest recipient of dividend payments in 2024, according to the Foreign Investment Report by the Bank of Namibia and the Namibia Investment Promotion and Development Board (NIPDB).
Since 2019, more than 50% of dividend payments have gone to South Africa. This reflects strong profits in the financial, insurance, wholesale, and retail trade sectors.
Mauritius increased its share of dividends from 1.9% in 2019 to 28.1% in 2024, driven by better profitability in the gold industry.
The United Kingdom saw a decline in its dividend share in 2024. This was mainly due to weak diamond performance caused by lower demand in key markets like the US and China, falling prices, rising competition from lab-grown diamonds, and an oversupply of rough diamonds in the midstream.
Employment by foreign direct investment enterprises (FDIEs) rose alongside FDI inflows. In 2023, foreign-owned enterprises employed an estimated 62,817 people, up from 55,982 in 2019. These businesses added 6,835 jobs over five years, mostly in wholesale and retail, mining and quarrying, and financial sectors.
Employment by FDIEs fell by 2.9% in 2020, mirroring a drop in FDI flows during that year.
FDIEs made up about 11.5% of total employment, according to the 2023 Labour force survey. FDI mostly targets high-paying, capital-intensive sectors like mining, quarrying, and financial intermediation that need skilled workers.
As a share of formal employment, FDIEs accounted for 7.2% in 2023.
Between 2022 and 2024, Namibia’s net FDI inflows came mainly from China, the Arab Gulf states, the United Kingdom, and France.
In 2024, most FDI flowed into mining, especially oil and gas exploration and appraisal. The Arab Gulf States, Portugal, France, and the UK supplied much of this funding.
FDI from China stayed among the top three sources but dropped to N$4.3 billion in 2024 from N$10 billion. This decline was due to less intercompany debt taken by foreign mining firms.
Mergers and acquisitions in the manufacturing sector helped South Africa contribute N$4.1 billion in net FDI inflows in 2023.
Canada and Mauritius also supplied major FDI, mainly linked to mining and increased reinvestment of earnings by foreign investors.
FDI in transport and storage rose in 2024, supported by foreign investment tied to the concession of the port of Walvis Bay.
