Namibia's Oil and Gas Sector Attracts N$74.4 Billion in FDI

The oil and gas sector in Namibia has attracted significant foreign direct investment (FDI) over the past few years, with approximately N$74.4 billion pouring in between 2021 and 2025. This represents about 56% of total FDI inflows during this period.

Exploration activities have accounted for an average of around 30% of Gross Fixed Capital Formation (GFCF) between 2022 and 2025, highlighting the sector's importance to Namibia's economy.

In a recent symposium on 'Namibia's Pre-Oil Production Phase: Assessing Choices That Unlock Long-Term Economic Value', Bank of Namibia Governor Ebson Uanguta emphasized the need for building domestic capabilities, particularly in skills development and entrepreneurship, to maximize the long-term benefits of petroleum resources.

Uanguta identified three priorities for Namibia during the pre-production phase: building domestic capabilities, strengthening institutions and regulatory frameworks, and linking the oil and gas sector with the wider economy. He also highlighted the potential implications of petroleum development on Namibia's macroeconomic and financial environment.