Deloitte | Africa | Namibia | Invest in Namibia - Harnessing investment to drive economic recovery has been added to your bookmarks.
Invest in Namibia
Harnessing investment to drive economic recovery
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Favourable investment climate
Although Namibia no longer boasts a unanimous investment-grade rating, the country has a positive growth outlook with investment potential.
The southern African country is home to one of the most politically stable democracies in the sub-Saharan Africa (SSA) region, with a relatively robust macroeconomic environment that draws from the country’s independent judicial system, the protection of property and contractual rights, and good infrastructure quality. Namibia is one of the most competitive economies on the African continent, and also outperforms most of its regional peers in the ease of doing business rankings.
Positive growth outlook Despite the disappointing performance in the frst quarter, the Namibian economy is expected to recover from sluggish growth in 2017. Namibia’s forecast recovery of 3.8% in 2018 is set to stem from a rebound in the agricultural and mining sectors.
Strong bilateral ties
Given an increasingly protectionist global trade environment, it has become even more important for countries to recognise the mutual benefts of freer trade by solidifying existing relationships and agreements. Namibia has done relatively well in this regard, boasting membership of key economic and trade communities, international tax treaties, and trade agreements. Namibia has several key community memberships, notably forming part of the Southern African Customs Union (SACU) and the Southern African Development Community (SADC).
While the Namibian economy boasts multiple opportunities and an upbeat outlook with signifcant potential, there are several potential downside risks that the private and public sectors alike must be cognisant of. There is a valid argument that current economic expansion projections are overly optimistic, which could trigger further sovereign rating downgrades. Additional challenges include the country’s twin fscal and current account defcits, rising public debt, and policy uncertainty.