Africa-Press – Namibia. Namibia has made significant progress in the 2022 Fraser Institute Survey of Mining Companies, with an overall Investment Attractiveness Index (IAI) increase of 7 points, rising from 52 in 2021 to 59 in 2022. Out of the 62 jurisdictions surveyed, Namibia now ranks 38th, compared to 59th out of 84 jurisdictions in the previous year. Within Africa, Namibia secured the 6th position out of the 16 surveyed jurisdictions in terms of overall investment attractiveness.
Mr. Zebra Kasete, President of the Chamber of Mines, acknowledged the positive performance in the report, stating, “Namibia’s performance in the 2022 Fraser report is fairly good, although it could have been better. This is especially so as the Namibian government has greatly improved legislation that encourages exploration.”
The IAI combines the Policy Perception Index (PPI) and the Best Practices Mineral Potential Index to assess a country’s competitiveness. The PPI carries a 40% weighting, while the Best Practices Mineral Index carries a 60% weighting.
Namibia’s increase in IAI score can be attributed to a notable improvement in the Best Practices Mineral Potential Index, which rose by 12 points from 37 in 2021 to 53 in 2022.
The Best Practices Minerals Potential measures a country’s mineral attractiveness, assuming an ideal regulatory and policy environment. In 2022, Namibia witnessed a 12% increase in exploration expenditure, as per data from the Namibia Statistics Agency. This growth can be attributed to active exploration and the discovery of minerals such as lithium, uranium, and gold.
However, Namibia’s policy performance saw a decline, with the PPI score decreasing by 6 points from 75 in 2021 to 69 in 2022. Respondents in the survey cited concerns about unilateral powers granted to the Minister of Mines for various determinations, such as royalty levels, as well as a lack of minerals rights security.
Despite the decline in policy perception, a positive development was the recent Amendment to the VAT legislation, which allows exploration companies to register without hindrance and claim input VAT refunds. This change resolved a long-standing challenge faced by exploration companies, including those in the Oil & Gas sector.
While this positive outcome was not reflected in Namibia’s PPI score in the Fraser Survey, as the questionnaire closed before the amendment became known, it is expected to have a positive impact on future assessments.
Namibia received a commendation in the survey for its “good foreign investment policies into mining.” The country ranked 3rd highest in Africa on the PPI, indicating a relatively stable and attractive policy environment compared to other African nations. Globally, Namibia secured the 26th position on the PPI, an improvement of 3 places compared to the previous year, signalling increased favorability of Namibia’s policy environment among international jurisdictions.
The survey results are based on a representative sample of perceptions held by top-tier management from Namibian mining and exploration companies. The Chamber of Mines played a role in expanding the survey’s reach to the mining and exploration fraternity, ensuring a more comprehensive representation.
Mr. Veston Malango, CEO of the Chamber of Mines, expressed optimism about addressing policy concerns highlighted in the survey. The Chamber is actively engaging with the Minister of Mines and Energy in the Minerals Bill review, which is in an advanced stage. Malango believes that the finalization of this Bill will enhance Namibia’s overall investment attractiveness in the global mining sector.
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