When people speak about Namibia, the typical descriptive comments are centred around the desert. Sometimes people haven’t even heard of Namibia. If you have been to the country, then at least the general comment of “wide open spaces” pops up here and there.
Let me give you a biased perspective – I am passionate about Namibia. I am wholeheartedly and proudly one of the small groups of German-speaking Namibians. I was born and raised in Namibia, as were my parents, as have my children. So, my view is probably (a little) biased. But my view also gives a unique perspective, having been around the world but still choosing Namibia. A land of (literally) endless opportunities.
Some people call (or at least used to call) Namibia the Switzerland of Africa. We have peace, stability, a strong financial system, a transparent political environment, an independent and strict judiciary, pristine nature and, yes, wide-open spaces. The Namibian government is committed to economic diversification and attracting international capital, creating an environment where businesses can thrive.
Namibia is pure – there are no hormones in milk, poultry or meat, there are no additives to our naturally-brewed beer, and the air is clean. Our untouched nature allows for immersive and authentic experiences. We are a culturally diverse Nation with 12 distinct ethnic groups (symbolised in the rays of the sun on our flag) who are all friendly, hospitable and authentic people. True and down-to-earth and some say how the world should be. While historical frictions sometimes raise their heads, this human diversity brings a unique openness and willingness to listen, to adapt, to entertain different views. This is not only evidently experienced in our booming tourism & hospitality industry, but also transforms into the investment environment, where Namibia has been ranked #1 in Africa (and #2 globally) for Greenfield FDI projects.
Yes, Africa is big and there are many players and indeed many opportunities all over. But what makes Namibia unique? And why now?
Namibia is small, yet big and has multiple world records to its name (google them). Some say Namibia is the laboratory of Africa, with easy access to test and start. In Namibia we can still change the world. The butterfly that coughs somewhere on the globe does create big winds here in paradise. Overseas investors are starting to pay attention and realise that small flapping of their wings creates big opportunities. Even the US has built one of their biggest African embassies in Namibia – not sure why, but maybe there is a method to the madness…
But why now and if the opportunities are so endless (as is the Namibian passion), what and where then?
While the stalwarts of the Namibian economy have always been centred around mining, agriculture, fishing and tourism – things are changing. Mining dynamics and resource contributions are changing, promising untapped potential. Agriculture is adapting with innovations in Agri-tech leading the way. Tourism is similarly changing with the post-Covid rebound overcome, the new reality favours the high-end eco-tourism space (refer above the truly Namibian attributes). And then there are two, not-so-small, “energy- elephants” in the room:
- Green Hydrogen – While renewable energy production is a huge topic for Namibian investors and producers alike, green hydrogen has become a similarly, big discussion point in recent years, although the excitement has somewhat waned. While the exciting prospect of a green, renewable, carbon-less energy future remains, the economics don’t seem to play along – much water will need to flow below many bridges before a commercially viable green-hydrogen energy solution can compete with existing energy options. There is huge potential.
- Oil & Gas – the big elephant. Huge reserves of light,sweet crude oil has been discovered at depths previously thought unviable. The volume and quality of these have made the world sit up and take notice with major petroleum companies considering major investment proposals. While the regulators and investors hash out the frameworks, once it happens it will change the world in Namibia. Think Guyana, think Norway, think Suriname, think Middle East before oil. Yes, it could be that big. And it is not just about the oil but also everything around it, from logistics, to accommodation, MICE, leisure, infrastructure, construction…the possibilities are incredible. Namibian GDP growth could quadruple!
Yes, Namibia has challenges, which may sound all-too-familiar in the African context – we all know them, and they don’t need repetition here.
But all (yes all) of these challenges can and will be overcome. The will is there.
With the fires of opportunities glowing just over the horizon, where then to deploy capital to unlock these opportunities?
In our view the high-growth investment opportunities arising in Namibia are centred around the following key industries:
- Mining – many promising projects are currently underway or in planning. From uranium to copper to gold, these projects represent a very large part of Namibian FDI.
- Oil & Gas – When it comes, it will be a tsunami. Best to have your surfboards readied for the ride that is to come.
Infrastructure to support the above – Downstream auxiliary industries and services will be the ones who will see the immediate impact of current investments and future production. - Agriculture – Namibia has an over-reliance on imported foodstuffs. Beef, poultry, fruit and cereals have seen significant growth. And while the internal market is limited – there is an opportunity for export goods, including grapes, dates, beef and other high value crops.
High-end eco-tourism (my personal favourite) – we believe the market share of the high-end tourism market is growing at an exponential rate, compared to the traditional Namibian mainstream tourism market. Recent investments and commitments to lodges and eco resorts are evident of this trend, partially also in response to the above opportunities mentioned. - Skills – these industries have a big need for human capital as an enabler to unlock potential.
Namibia finds itself at a unique and opportune time. Many wheels and cogs are spinning to allow these seeds of success to start sprouting. There is much interest, but success will come to those who are positioning themselves correctly now (with the right local partners) – and, who are able to make informed decisions on these opportunities to be able to be part of this growth journey. If you want to change the world, you can still do it in Namibia.
The time is now for considering hospitality and tourism investment – the Namibian engines are revving, get on board, buckle up and enjoy the ride.
Who is Norbert Wurm
Norbert Wurm writes for Business Events Africa in his private capacity. He is a Chartered Accountant and seasoned business executive, and is both a Partner in Shepherds Tree corporate advisory firm, and senior Partner in renowned hospitality advisory company, InnSight Advisory Namibia.
