In order to fuel the country's large scale mining infrastructure, foreign investors and governments invest heavily in Namibia's mining infrastructure and products. Foreign firms have over 4.3 billion US dollars in 2017 invested in Namibia.
Namibia has set up an interesting system connecting local firms with multinational corporations. In some cases the government has established that a Namibian based cooperation like Epangelo will own sole rights to a resource. In the case of Epangelo it has sole rights to mining exploration in the country. However then the local cooperation can work with international that have more advanced technologies and processes to actually do the exploration.
The president of Namibia, Hage Geingob, started making moves to nationalize more mining operations in 2014 and some of those movements have led to a steep decline of Foreign direct investment in the country. In 2015 there was 1.1 bil USD of investment while only $275 million in 2016.
This decrease could have played a role in the ongoing economic downturn in the country or could have alos been influenced by severe drought conditions in Namibia.
- Chris https://en.portal.santandertrade.com/establish-overseas/namibia/investing-3
https://assets.kpmg.com/content/dam/kpmg/pdf/2014/09/namibia-mining-guide.pdf
National mining operations have led countries like Australia to invest in new projects like cobalt mining and the life. I do wonder how there could have been such a steep decline in USD investment-- 1 billion to 275 million seems like a really dramatic decrease. - Elizabeth
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