Namibia: Towards a Logistics Hub for Southern Africa

The document analyzes Namibia's shift from a liberal FDI regime toward one with more state regulation via the New Investment Bill, which introduces performance requirements and reserves certain activities for citizens. It argues that while mandatory requirements may work in the extractives sector, incentives are more effective for non-resource sectors to avoid deterring investors. The paper also explores the potential for a regional investment framework within SADC and SACU and highlights how FDI from China, Germany, and South Africa is critical to expanding the Port of Walvis Bay and its associated transport corridors.

• Namibia is transitioning from a liberal FDI regime toward a more regulated approach through the New Investment Bill (NIB), which aims to address dissatisfaction with FDI's role in creating local employment and empowering disadvantaged citizens.
• The New Investment Bill proposes reserving specific business activities for Namibian citizens and the government, particularly focusing on SMEs (e.g., taxi services, small retail) and state-owned utilities, rail, and air transport.
• The effectiveness of mandatory performance requirements, such as joint ventures or local hiring, depends on the state's bargaining power; these are more successful in the extractives sector but may deter investment in manufacturing or logistics.
• Namibia's 'Namibianisation' policy in the fisheries sector successfully increased local ownership and employment through quota fee rebates, although it faced challenges with 'fronting' by foreign companies.
• Severe local skills shortages make mandatory human capital requirements inefficient; an incentive-based approach is more likely to attract investors and encourage genuine skills development.
• The Southern African Customs Union (SACU) is identified as a potential 'building block' for a broader SADC regional investment framework due to its relative stability and the fact that its secretariat is based in Windhoek.
• FDI is essential to Namibia's goal of becoming a regional logistics hub, specifically through the expansion of the Port of Walvis Bay and the development of the Walvis Bay corridors.
• Major infrastructure projects in Namibia's logistics sector, including the new container terminal and the SADC Gateway Port, rely heavily on joint ventures with the China Harbour and Engineering Company (CHEC).

APA

Schoeman, M. (2016). Namibia: Towards a Logistics Hub for Southern Africa. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2016/08/Occasional-Paper-236.pdf

Chicago

Schoeman, Mark. Namibia: Towards a Logistics Hub for Southern Africa. South African Institute of International Affairs, 2016. https://saiia.org.za/wp-content/uploads/2016/08/Occasional-Paper-236.pdf.

Wikipedia

{{cite report |last1=Schoeman |first1=Mark |title=Namibia: Towards a Logistics Hub for Southern Africa |publisher=South African Institute of International Affairs |date=July 2016 |url=https://saiia.org.za/wp-content/uploads/2016/08/Occasional-Paper-236.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{schoeman2016namibia, author = {Schoeman, Mark}, title = {{Namibia: Towards a Logistics Hub for Southern Africa}}, institution = {South African Institute of International Affairs}, year = {2016}, month = jul, url = {https://saiia.org.za/wp-content/uploads/2016/08/Occasional-Paper-236.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }