South African companies are significantly expanding their operations in Namibia as the country emerges as one of Africa’s hottest investment destinations, driven by its vast oil and gas potential. The surge in economic activity is deepening existing exposure across finance, industry, and retail sectors, prompting major South African corporations to invest in new capacity and strategic positioning.
Bidvest Group has become the latest to reveal plans for substantial expansion in Namibia, approving a R120-million investment package to build a multipurpose terminal and import warehouse facility. Bidvest Group chief executive Mpumi Madisa says the company has witnessed significant growth across all its Namibian operations over the past three years, attributing this success directly to increased oil and gas activity in the country.
“Oil and gas activity has materially changed that market,” Madisa explained. “We have seen significant growth coming out of all our operations in Namibia, whether it is freight, stationery, office automation or furniture. All our businesses have done well. We are seeing more cargo volumes coming through the system, and we are also providing clearing and forwarding services to the oil and gas sector.” The new facility, expected to be commissioned in the third quarter, will enable Bidvest to handle additional cargo volumes anticipated from 2026 onwards.
Namibia was ranked as Africa’s number-one foreign direct investment destination in the 2025 Greenfield FDI performance index published by FDi Intelligence, a specialist division of the Financial Times. The country was also ranked second globally, demonstrating its exceptional ability to attract investment relative to its economic size. According to the United States International Trade Administration, if recent oil finds prove commercially viable, Namibia could become a top 15 global oil producer by 2035, unlocking unprecedented revenue for the government.
South African banks are also positioning for growth in Namibia. Nedbank chief executive Jason Quinn recently met with high-ranking Namibian government officials to reaffirm the lender’s commitment to the country, with discussions including a potential model to bring local ownership to its Namibian subsidiary. Quinn expects Nedbank to play a significant role in financing oil and gas projects, having met with senior TotalEnergies officials to understand their extraction plans. The French major, which discovered light oil and gas on the Venus prospect in 2022, is reportedly in advanced discussions for a final investment decision in the region of $15 billion to $20 billion.
South African commercial law firms have also strengthened their presence in Namibia. Cliffe Dekker Hofmeyr opened an office in the country with four directors, following similar moves by Bowmans, ENS, and other rivals. Patrick Kauta, CDH Namibia managing partner, notes that Namibia’s upstream oil and gas sector is on the verge of rapid transformation, highlighting local content requirements, environmental compliance, and fiscal structure as key considerations for operators.
Beyond oil and gas, Namibia offers robust mining and quarrying sectors, agriculture, and ambitious hydrogen projects. Casey Sprake, an economist at Anchor Capital, describes Namibia as offering a compelling mix of familiarity and frontier potential for South African investors. The Namibia dollar’s one-to-one peg with the rand eliminates foreign exchange volatility, while the country’s tax regime features a top personal income tax rate of 37 percent compared with South Africa’s 45 percent, along with full repatriation of capital and profits. A well-functioning judicial system, strong property rights protection, and high-quality infrastructure further bolster investor confidence.
Source: namibian.com.na