Namibia’s Mining Investment Attractiveness declines in 2023 Survey
By Michel Haoses
The 2023 Fraser Institute Survey of Mining Companies reported that Namibia’s position on the overall Investment Attractiveness Index (IAI) declined by three points from 59 in 2022 to 56 in 2023, ranking 42 out of 86 surveyed jurisdictions compared to 38 out of 62 jurisdictions surveyed in 2022.
The Investment Attractiveness Index measures a country’s overall competitiveness and combines the Policy Perception Index (PPI) and Best Practices Mineral Potential Index carrying a weighting of 60% while the PPI carries a weighting of 40%.
According to the statement released by Chamber of Mines Economist, Lauren Davidson, the decrease in the IAI score was due to the decline of the Best Practices Mineral Potential Index that measures a country’s mineral attractiveness which is rated assuming a perfect regulatory and policy environment, and the Policy Perception Index that measures a country’s attractiveness of its mining policies and regulations.
Namibia’s Mineral Potential score, based on the perceptions and respondents fell from 54 in 2022 to 49 in 2023, the decline attributed to the competing jurisdictions being ranked more favourably.
Similarly, the Policy Perception Index also dropped from 69 in 2022 to 68 in 2023, the respondents in the survey citing “Exploration companies mandated to incorporate local ownership and “The proposed Investment Promotion Bill is heightening uncertainty and risk” as the reason for the decline.
Regarding policy matters, slow progress was made in finalising the Draft Minerals Bill in 2023, while Government made high-level pronouncements to introduce a state-owned free-carry in Namibian mining companies.
The deterioration in PPI comes despite a positive outcome in the reversal of the proposal to eliminate the fuel levy refund system in the Road Fund Administration Amendment Bill which was due to the persistent advocacy efforts by the Chamber.
Although slow progress may have characterised some of these key policy items Namibia was ranked fourth on the PPI in Africa demonstrating that Namibia remains to be perceived as a relatively stable country with an attractive policy environment compared to other countries.
Chamber of Mines President, Zebra Kasete although proud of the African ranking, still noted concern over the deteriorated score by three points on the absolute score and also on our global rankings shows that Namibia can do better with regards to mining policy and regulatory matters.
Chamber of Mines, Chief Executive, Veston Malango emphasised that the Chamber will be engaging the Government to de-risk the introduction of the proposed free-carry and continue advocating for the fast-tracking and finalisation of the Minerals Bill along with other pending policy matters such as the Namibian Investment Promotion and Facilitation Bill.
