In today’s global economy, countries are more than political entities; they are key economic players competing for capital, talent, innovation and opportunities.
Like businesses, nations must create favourable conditions to attract investment, bolster productivity and achieve sustainable prosperity.
Central to this challenge is a concept gaining increasing importance worldwide: country competitiveness.
In June 2025, Namibia participated for the first time in the IMD World Competitiveness Yearbook (WCY), a respected index benchmarking countries on their economic, institutional and business ecosystems.
The results highlight Namibia’s reform efforts and competitive advantages, while signalling the need for further reforms to remain competitive in a rapidly changing global landscape.
What Is Country Competitiveness?
Country competitiveness is a nation’s ability to foster an environment where businesses can thrive, citizens can access opportunities and the economy can generate long-term value. It goes beyond traditional metrics like gross domestic product (GDP).
A key feature of competitiveness is the ability to measure and compare progress over time. Global indices like the IMD WCY, the Ibrahim Index of African Governance and RMB’s Where to Invest in Africa report provide critical insights.
These tools help countries assess their performance relative to peers, identify priorities for reform and attract investment.
Why Competitiveness Matters for Investment
Competitiveness is fundamental to attracting investment and driving economic growth. Investors look beyond natural resources or market size; they seek environments where capital is protected, regulations are predictable, skills are accessible and infrastructure is reliable.
Countries with strong competitiveness profiles attract diverse, long-term investments because they offer lower risks, greater certainty and opportunities for scale.
For Namibia, improving competitiveness is vital to expanding its industrial base, diversifying its economy and positioning itself as a trustworthy destination.
Namibia’s Competitiveness
Global benchmarks reveal a mixed picture of Namibia’s competitiveness.
The country performs well in price competitiveness, regulatory stability and macroeconomic resilience but faces challenges in digital infrastructure, skills development and export performance.
Namibia ranks highest in Africa for foreign direct investment inflows – 18.9% of GDP – and remains cost-competitive, with affordable office rentals, low living costs, competitive wages and inexpensive mobile rates.
In the IMD WCY 2025, Namibia scored 60.6% for economic opportunities, well above the global average of 41.1%, placing it among the top 10 globally.
However, translating these advantages into sustained growth requires policy certainty.
Finalising key legislation, such as the Namibia investment promotion and facilitation bill, special economic zone bill, and data protection bill, is crucial for boosting investor confidence.
Education spending is another strength as Namibia allocates 9.04% of GDP to education, the highest globally. With young people comprising 68.2% of the population, this presents a demographic opportunity.
Yet, youth unemployment remains high at 44.1%, and Namibia ranks poorly on skills availability (66th out of 69) and digital skills (68th), highlighting a disconnect between education outcomes and labour market needs.
In terms of government efficiency, Namibia ranks 55th globally, reflecting supportive policies but also room for improvement, especially in public finance management and institutional coordination.
Bridging the Gap
Strengthening data collection is essential. Namibia currently lacks comprehensive, up-to-date information on digital infrastructure, technology adoption and labour market dynamics, which hampers evidence-based policymaking.
Improved coordination between the Namibia Statistics Agency and relevant ministries can enhance data quality and timeliness.
Economic diversification is urgent. Namibia ranks 67th for export value and 60th for economic complexity, indicating reliance on primary exports. A targeted strategy focusing on high-value sectors can help Namibia compete regionally and globally.
Talent development and attraction are also critical.
Namibia ranks poorly in both local skills availability and immigration policies for foreign talent. Introducing mechanisms like a rare skills visa, improving immigration procedures and aligning education with industry needs are vital for fostering innovation and supporting high-value sectors.
Turning Insight into Impact
Encouragingly, Namibia has begun taking steps to boost competitiveness.
Tax relief measures and incentives introduced in the 2024/25 and 2025/26 budgets, including the national internship programme and youth tax incentive, target unemployment and skills gaps.
Public-private dialogues through sector-specific productivity task forces and the Namibia Public-Private Forum create platforms to address growth constraints.
Digital transformation initiatives, such as the e-visa system launched in March 2025 and plans for e-ID rollout in 2026, demonstrate a commitment to modernisation.
Moving forward, Namibia must focus on effective implementation. Finalising legislation, improving inter-agency coordination and adopting agile, evidence-based policies are crucial to translating reforms into tangible outcomes.
Competitiveness is a continuous process, not a destination. Namibia has a real opportunity to act decisively, align efforts and implement reforms that will unlock its full economic potential in an increasingly competitive global environment.
Victoria Wolf is a consultant on development and Partnerships.
Tupandule Shipo-Nghidengwa is a consultant of policy research at NIPDB.
In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch.
It’s an essential way to stay informed. Subscribe and join our newsletter community.
The Namibian uses AI tools to assist with improved quality, accuracy and efficiency,
while
maintaining editorial oversight and journalistic integrity.
Stay informed with The Namibian – your source for credible journalism. Get in-depth reporting and opinions for
only N$85 a month. Invest in journalism, invest in democracy –
Subscribe Now!