China accounts for nearly 30% of total FDI

China remains the largest source of investment for Namibia, accounting for 29.6% of the total foreign direct investment (FDI), while the Asian country is also Namibia’s second-largest trading partner after South Africa. According to the Bank of Namibia, net FDI recorded an inflow of N$49 billion in 2023, more than double the N$17.3 billion registered the previous year. The significant inflow was attributed mainly to equity injections for oil and gas exploration and appraisal activities. China is not a significant player in this sector.The increase in Namibia’s net FDI inflow was, however, supported by the disposal of FDI equity by resident enterprises in the manufacturing sector, coupled with higher intercompany loans uptake.Speaking to the media on Tuesday, Chinese ambassador to Namibia Zhao Weiping highlighted the role his country is playing in the local economy, adding that numerous companies in China have been knocking on the embassy’s doors, seeking investment opportunities in Namibia.Zhao said there are currently over 50 Chinese investors operating in Namibia, including the Asian nation’s largest investment in Africa – Swakop Uranium’s Husab mine – as well as Rössing Uranium mine.No surpriseThe investment interest comes as no surprise, the ambassador said. “China’s direct investment accounts for 29.6% of the total FDI, [as] per data from the Bank of Namibia, and bilateral trade volume exceeded N$1.3 billion for the first time last year,” Zhao said.From January to June 2023, the trade volume between China and Namibia grew by 31% year-on-year.China&#039;s imports from Namibia amounted to nearly N$8 billion, showing a year-on-year increase of 21.5%. Namibia’s exports to China are mainly chemical products, mineral products and metals. Namibia is also the only African country exporting beef to mainland China.China exports machines, metals, textiles and electronics, among other things, to Namibia.50 enterprises and countingZhao further indicated that the construction of the Xinfeng lithium processing plant has been completed. “Xinfeng is expected to start production later this year. As you may already know, Chinese companies Yintai Gold and Sinomine Resource Group are proceeding with the acquisition of Twinhills gold mine and the Tsumeb smelter,” he said.He added that the Husab and Rössing Uranium mines are doing ‘very well’. In 2019, British-Australian multinational Rio Tinto sold its entire interest in Rössing to China National Uranium Corporation Limited (CNUC). Husab is majority-owned by China General Nuclear Power Group.In terms of development assistance cooperation, Zhao said a Chinese government grant has helped construct four schools in the northern parts of the country and a satellite data receiving station, where construction is set to be completed soon.According to Zhao, China’s largest grant project yet is the construction of the B2 section of the new Hosea Kutako International Airport road, which is “progressing as planned”. They have also implemented Chinese food emergency assistance, announced in October last year, which is in full swing, he noted.People-to-people relationsOn sub-national exchanges and Namibia-China people-to-people relations, Zhao highlighted the visit of the executive vice-governor of Jiangsu Province, Fang Wei, to Namibia in April, while representatives of the Association of Local Authorities in Namibia (ALAN) visited China last month.He said: “With the sponsorship of the Chinese government, the football team of the Namibia School Sport Union made its trip to China to participate in this year’s International School Sport Federation Football world cup. A group of five children from the Windhoek Children’s Home are also set to travel to China to attend the ‘China-Africa Children Hand-in-Hand’ programme, funded by our government.”Looking forward to the bilateral relations in the second half of the year, Zhao said the most important event will be the Forum on China–Africa Cooperation. “We are looking forward to the participation of Namibia in this important gathering of Chinese and African leaders,” he said.

China accounts for nearly 30% of total FDI

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Namibian Sun 2024-11-22

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China accounts for nearly 30% of total FDI

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Namibian Sun 2024-11-22

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