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Foreign Direct Investment off to a positive start – central bank

Foreign Direct Investment off to a positive start – central bank

Net foreign direct investment (FDI) inflows increased to N$2.2 billion on an annual level during the first quarter of this year, according to the Bank of Namibia’s latest data.

According to the central bank, FDI improved on the back of higher inflows of reinvested earnings, equity and investment fund shares. This increase is a huge improvement from the N$0.5 billion during the same quarter last year.

During the period under review, FDI stock was mainly concentrated in the mining & quarrying (38.1%), financial intermediation (37%), manufacturing (9.6%) and fishing & fish processing (6%), sectors.

The central bank highlights that the majority of the FDI stock in the financial intermediation and retail sectors originated from South Africa, while investments in the mining and quarrying sector stemmed mainly from China and Mauritius and FDI in the fishing & fish processing sector emanated from Spain.

“Direct investment should continue to improve during 2018 in line with recovering commodity prices, which would boost mining companies’ profits and encourage new investment in the industry. However, an escalating global trade war could impede investment into Namibia,” PSG Konsult Namibia said.

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Donald Matthys

Donald Matthys has been part of the media fraternity since 2015. He has been working at the Namibia Economist for the past three years mainly covering business, tourism and agriculture. Donald occasionally refers to himself as a theatre maker and has staged two theatre plays so far. Follow him on twitter at @zuleitmatthys