Namibia’s Chinese Investment Inflows Take a Hit, But FDI Outlook Remains Positive-☕ # ISSUE 45

Dear valued, subscribers this is what to expect in our issue today:

-Boxer Retail Surpasses Growth Targets, Creates Nearly 3,000 Jobs Amid Expansion Drive

-Namibia’s Chinese Investment Inflows Take a Hit, But FDI Outlook Remains Positive

-Namibia Emerges as Africa’s Rising Financial Hub Amid Digital Security Challenges

Stay tuned for more!

BUSINESS & ECONOMY

Boxer Retail Surpasses Growth Targets, Creates Nearly 3,000 Jobs Amid Expansion Drive

JSE-listed Boxer Retail has marked a significant milestone, creating almost 3,000 new jobs in the 53 weeks leading up to 2 March. This growth follows the opening of more than 40 new stores and the company meeting its financial forecasts shared with investors months ago.

Expansion on Track

The soft discount retailer expanded its footprint by adding 48 net new stores, growing its network across South Africa and Eswatini to 525 outlets. Looking ahead, Boxer plans to open another 60 stores in the new financial year, including 25 superstores and 35 liquor outlets.

CEO Marek Masojada also revealed plans to boost distribution centre capacity, particularly in northern KwaZulu-Natal, to support this rapid expansion.

Jobs and Community Impact

The additional hires have brought Boxer’s workforce close to 32,000 employees, underscoring the company’s commitment not only to growth but also to uplifting the communities and towns where it operates.

Financial Performance Exceeds Expectations

Boxer outperformed its pre-listing guidance with a 5.4% trading margin over 52 weeks, surpassing the 5% forecast made prior to its JSE debut. The company’s first annual financial results since its landmark listing-the largest on the JSE in eight years-show strong performance and steady market share gains.

Turnover rose 13.2% to R42.3 billion, while trading profit increased 9.9% to R2.3 billion. Excluding one-off non-cash gains from the prior year, growth was even stronger at 17%.

On a pro forma 52-week basis, turnover grew 10.4%, aligning with IPO guidance, and trading profit increased 7%, or 14% when excluding prior-year one-offs.

Navigating Economic Pressures

Masojada highlighted that despite rising living costs, Boxer successfully kept selling price inflation flat, reflecting consumers’ growing focus on value. This trend was evident in increased uptake of promotional activities, tracked closely by the group.

The company’s “Lower Prices Every Day” promise was evident in a normalized full-year internal selling price inflation of just 0.3%, after adjusting for product mix changes influenced by promotions.

Loyalty and Customer Insights

Boxer’s investment in its Rewards Club loyalty programme has paid off, attracting over 1.9 million members since its October 2024 launch. The programme offers discounts on repeat shopping and provides valuable data that helps Boxer better understand and serve its customers.

Challenges and Outlook

Headline earnings remained flat at -0.1%, affected by higher finance costs linked to approximately R850 million in new external debt from pre-IPO restructuring and an increased effective tax rate. These factors offset operational gains.

No final dividend was declared for the 2025 financial year, consistent with pre-listing guidance. However, Boxer remains cash generative, focused on debt reduction, and targets a dividend payout by the first half of the 2026 financial year.

Looking Ahead

“We’re excited about the opportunities ahead. While economic pressures persist, Boxer thrives on meeting challenges-this resilience is part of our DNA. Our focus remains on execution to capture growth opportunities,” Masojada concluded.

Source: The Namibian

Namibia’s Chinese Investment Inflows Take a Hit, But FDI Outlook Remains Positive

Namibia’s foreign direct investment (FDI) landscape has seen a notable shift, with investment inflows from China declining by N$5.9 billion. According to a recent report by the Bank of Namibia (BoN) and the Namibia Investment Promotion and Development Board (NIPDB), Chinese FDI currently stands at N$4.1 billion, down from N$10 billion recorded before 2024.

What’s Behind the Decline?

The main driver of this decrease is a significant reduction in borrowing by Chinese foreign-owned mining companies from their parent firms. The report highlights that “inflows from China remained among the top three, although declining largely due to lower uptake of intercompany debt by foreign-owned enterprises operating in the mining sector.”

Despite this dip, Namibia continues to attract substantial FDI from other regions. Between 2022 and 2024, net inflows primarily came from China, the Arab Gulf states, the United Kingdom, and France, with a strong focus on oil and gas exploration and appraisal activities.

Diverse Investment Sources and Sectors

South Africa contributed a net FDI inflow of N$4.1 billion in 2023, largely driven by mergers and acquisitions in the manufacturing sector. Other significant sources of FDI include Canada and Mauritius, with investments linked mainly to mining activities, particularly through reinvestment of earnings by foreign investors.

The transport and storage sector also saw growth in 2024, buoyed by foreign investments tied to the concessioning of the Walvis Bay port-an important infrastructure asset for Namibia’s trade and logistics ambitions.

Historical Context and Future Prospects

BoN Governor Johannes !Gawaxab reflected on Namibia’s FDI journey since independence, noting a decline until 2020. Between 1998 and 2008, Namibia attracted approximately N$25.7 billion in net FDI, primarily in manufacturing projects such as the Skorpion Zinc Refinery and diamond processing.

The following decade (2009–2018) saw stronger momentum, with net FDI inflows reaching N$56.5 billion, driven by greenfield investments in mining, particularly uranium and gold. Economic growth between 2010 and 2015 further bolstered investor confidence, increasing investments in financial services and wholesale and retail trade.

However, Namibia faced challenges between 2016 and 2020, marked by declining investment inflows and net outflows due to structural issues and external shocks.

Since 2021, the country has experienced a robust rebound, with cumulative net FDI inflows reaching N$114.9 billion. This positive trend is expected to continue, supported by private sector projects valued at N$224.7 billion currently facilitated by the NIPDB.

In 2024 alone, net FDI amounted to N$37 billion-signaling renewed investor confidence.

Impact on Employment

Foreign-owned enterprises remain significant employers in Namibia, with an estimated 62,817 people employed in 2023, up from 55,982 in 2019. These enterprises account for approximately 11.5% of total employment, according to the 2023 Labour Force Survey. Job creation has been especially strong in wholesale and retail, mining and quarrying, and financial services sectors.

The Bottom Line

While Chinese investment inflows have declined, Namibia’s FDI landscape remains diverse and resilient. With strong backing from multiple regions and sectors, coupled with a pipeline of major projects, Namibia is poised to sustain and grow its foreign investment footprint-key to driving economic growth and job creation in the years ahead.

Source: The Namibian

OPINIONS

Namibia Emerges as Africa’s Rising Financial Hub Amid Digital Security Challenges

Namibia is rapidly positioning itself as one of Africa’s premier financial hubs, drawing investors and solidifying its role in regional trade. According to the latest Africa Trade Barometer (ATB), Namibia now ranks as the continent’s second most attractive trade destination, underscoring its growing economic influence.

Strategic Advantages Fueling Growth

The country’s investor-friendly policies, abundant natural resources-including uranium, diamonds, and gold-and modern infrastructure create a compelling environment for business expansion. The government, through the Namibia Investment Promotion and Development Board (NIPDB), further enhances this appeal by offering tax incentives, streamlined permits, and favourable customs duties to global investors.

Navigating the Digital Security Landscape

However, with rapid growth comes new challenges. The surge in digital transactions and cross-border trade has heightened risks of cybercrime. In 2024 alone, Namibia experienced over 1.1 million cyber incidents across retail, gaming, and financial services sectors. Although 1.6% of digital transactions in the first half of the year were flagged as suspected fraud, these challenges have sparked unprecedented collaboration and innovation within the sector.

Victor Ashikoto, Chief Operating Officer at Nedbank Namibia, highlights the bank’s proactive response to the N$18.6 million in fraudulent activities reported in 2024. “We have transformed these statistics into actionable intelligence, developing sophisticated detection systems that safeguard our customers and uphold the integrity of our financial services,” he explains.

Leading the Charge in Cybersecurity

Nedbank Namibia is pioneering a comprehensive approach to digital security, viewing cybersecurity not as an obstacle but as an opportunity to strengthen the nation’s digital infrastructure. Awareness campaigns are raising public vigilance, while investments in cutting-edge technology help close infrastructure gaps.

Recognizing that digital resilience requires a collective effort, Nedbank partners with educational institutions to cultivate the next generation of cybersecurity experts and collaborates with industry peers to share threat intelligence and best practices.

Legislative Progress and Industry Collaboration

The forthcoming Cybercrime Bill marks a pivotal moment for Namibia’s digital economy. Nedbank Namibia has played a key role in shaping the legislation, contributing expertise on digital investigations, forensic tools, and interception measures. This framework is expected to bolster the country’s digital future significantly.

Emerging Threats: AI, Cryptocurrency, and Fraud

Cybercriminals are increasingly leveraging artificial intelligence to craft convincing phishing emails, automate scams, and fabricate fake identities. The rise of cryptocurrencies has introduced new vulnerabilities, with fraudulent trading platforms and deceptive investment schemes causing substantial financial losses. For instance, a Namibian entrepreneur lost over N$300,000 to a fake crypto exchange in 2024.

Identity theft and card-not-present (CNP) fraud are also on the rise. Scammers impersonate banks or government agencies to extract sensitive information, often using vishing tactics-posing as trusted representatives to deceive victims over the phone. A notable case involved a 60-year-old pensioner from the Omusati Region who lost N$1.1 million to such scams.

Nedbank Namibia’s Robust Fraud Prevention Strategy

To combat these threats, Nedbank Namibia employs advanced detection technologies, stringent authentication measures, and continuous staff training. The bank’s Fraud Standard Operating Procedure (SOP) ensures a rapid 24/7 response to suspicious activities, minimizing losses and securing compromised accounts.

Customer education is a cornerstone of the bank’s strategy, with targeted campaigns designed to help clients recognize and prevent fraud. Compliance with industry best practices-such as two-factor authentication (2FA) and Visa 3D Secure-adds vital layers of protection.

Building a Secure Financial Ecosystem Together

Beyond individual cases, Nedbank Namibia actively collaborates with regulators and participates in fraud prevention forums to strengthen financial security nationwide. Under the guidance of the Bank of Namibia (BoN), institutions have intensified cybersecurity efforts, including the establishment of the Financial Industry Cybersecurity Council, which fosters coordinated responses to cyber threats.

The Virtual Assets Act of 2023 further enhances oversight of digital currencies, reinforcing Namibia’s regulatory framework.

Empowering Individuals to Stay Safe

While banks bolster defenses, individuals must remain vigilant. Phishing scams remain prevalent, and users are urged to verify sources before clicking links or sharing information. Strong, unique passwords and enabling 2FA are essential steps to protect personal data. Importantly, banks will never request detailed personal information over the phone-customers should always verify caller identities and contact their bank directly if in doubt.

Looking Ahead

“At Nedbank Namibia, securing a trustworthy banking environment is a strategic priority,” says Ashikoto. “Through ongoing investment in technology, education, and partnerships with law enforcement, we are committed to combating fraud and fostering a resilient financial ecosystem.”

By working together-banks, regulators, businesses, and individuals-Namibia can continue to grow as a secure and thriving destination for trade and investment, turning challenges into opportunities for all.

- Victor Ashikoto, Chief Operating Officer, Nedbank Namibia

PERSONAL DEVELOPMENT

A key personal development tip for unemployed Namibians is to focus on upskilling and continuous learning to improve employability in a competitive job market. With Namibia’s unemployment rate forecast around 19-20% in 2025 and youth unemployment particularly high, acquiring new skills-especially in digital literacy, entrepreneurship, and vocational trades-can open doors to emerging opportunities.

Engaging in online courses, vocational training, or apprenticeships helps build relevant competencies aligned with sectors showing growth, such as wholesale and retail, mining, and financial services, which have driven recent job creation2. Additionally, developing soft skills like communication, problem-solving, and adaptability enhances one’s ability to navigate the evolving labor market.

Networking and leveraging local initiatives, including government programs and private sector partnerships, can also increase access to job leads and mentorship. Staying informed about economic trends and sectors with investment inflows can guide targeted skill development.