Namibia’s standing as a competitive mining destination has come under renewed scrutiny after the Chamber of Mines of Namibia raised concerns over a sharp decline in the country’s performance in the Fraser Institute Annual Survey of Mining Companies 2025, warning that policy uncertainty could deter critical exploration investment.
The industry body said the country’s drop in the widely watched Investment Attractiveness Index (IAI) reflects weakening investor perceptions of Namibia’s policy and regulatory environment at a time when global capital is actively seeking new mineral opportunities.
“Namibia’s decline in the Investment Attractiveness Index signals that investor perceptions of our mining policy and regulatory environment have weakened,” Chamber president George Botshiwe said. “This is particularly concerning at a time when strong mineral commodity prices are driving significant global investment into high-risk exploration.”
He cautioned that unless Namibia is viewed as stable and predictable, the country risks losing out on exploration capital needed to unlock future mines.
According to the 2025 survey, Namibia’s IAI fell by 10 points, from 66 in 2024 to 56 in 2025. This translated into a steep drop in global ranking, from 30th out of 82 jurisdictions to 51st out of 68. Regionally, Namibia slipped from 4th position among African jurisdictions to 7th.
The IAI combines two core measures: the Policy Perception Index (PPI), which assesses regulatory and policy attractiveness, and the Best Practices Mineral Potential Index, which evaluates geological potential under ideal conditions. Namibia’s performance weakened across both indicators.
The PPI declined from 78 to 68, signalling growing investor concern about the policy environment. Meanwhile, the mineral potential score dropped from 58 to 47, suggesting reduced confidence in the country’s exploration prospects, even after adjusting for perceived risk.
Industry feedback captured in the survey points to policy signals as a key driver of the decline. Concerns were raised about proposals linked to Namibia’s National Development Plan No. 6, particularly discussions around a potential requirement for 51% local ownership in new mining projects.
Respondents also flagged uncertainty around pending legislation, including a new minerals bill, environmental regulations and water laws, as well as public statements made by policymakers during the 2025 Mining Expo and Conference.
These signals, the Chamber noted, created unease within the international investment community, with many interpreting them as a shift towards more restrictive ownership frameworks.
However, the government has since clarified its position.
Following engagements between the Chamber and President Netumbo Nandi-Ndaitwah, the National Planning Commission stated in December 2025, confirming that no fixed local ownership threshold has been adopted.
“It is important to clarify that Government has not set a fixed threshold for local ownership and remains open to consultations with stakeholders to ensure a balanced, win-win outcome,” the commission said.
The Chamber welcomed the clarification, describing it as a critical step in restoring confidence and reaffirming Namibia’s commitment to consultative, evidence-based policymaking.
The development underscores a broader challenge facing Namibia’s mining sector: balancing the push for greater local participation and beneficiation with the need to remain globally competitive in attracting capital.
With exploration investment highly sensitive to policy signals, the Chamber stressed that consistency, transparency and clear communication will be essential in reversing the country’s decline in future surveys.
The Fraser survey, regarded as one of the mining industry’s key barometers of investment sentiment, continues to shape global investors’ perceptions of jurisdictions.
Namibia’s performance in upcoming editions is likely to hinge on how effectively it addresses policy uncertainty while leveraging its strong geological potential.
