A roadmap for private-sector development

Starting point

The quest for ongoing growth

Namibia has seen strong economic progress following independence in 1990. Driven primarily by capital accumulation, this notable economic expansion has contributed to rapid per capita income expansion and a marked decline in poverty levels. In 2015, however, the Namibian economy stopped growing and has languished since.

Various analyses have identified multiple reasons behind this stagnation: overall economic productivity has contracted; specialist skills have been in short supply; the State has grown faster than the private sector; and the natural resource sector has arguably crowded out other opportunities. Policy efforts have focussed on identifying interventions to help revitalise economic activity.

Our approach

A comprehensive planning process

Our client—a major economic player with an extensive footprint across the country– seeks to contribute to economic revitalisation. They engaged Ergo Strategy Group to map commercially attractive, scalable, and sustainable opportunities that they could promote alongside strategic partners. We structured the work in four sequential components:

• Detailed baseline: Sectoral and spatial analyses across relevant development considerations in Namibia to consolidate a comprehensive database.
• Integrated diagnostic: Specialist economic assessment to identify binding constraints and sectoral opportunities reflective of competitive advantage.
• Deep dives on priority value chains: Specialist analyses of prioritised industries and specific economic activities to articulate investable projects.
• Economic blueprint: An integrated vision of increasing economic diversification outlining our client’s role with specific interventions and a clear implementation strategy.

The outcome

New investment portfolio in strategic sectors

The study designed roadmaps for sector development and detailed five investment opportunities to catalyse private investment, linking short-term commercial interventions with broader mid-and long-term industry expansion. The identified industry opportunities encompassed:

1. Climate-smart agriculture, combining compact irrigation technology and renewable energy solutions to foster intensive blueberry production in arid climates.
2. A net-zero industrial park, to maximise value from Namibia’s competitive export facilities and enormous local potential for green hydrogen production.
3. A leather processing centre, capturing upside for a traditional, low-value industry by fostering manufacturing and marketing capabilities in luxury leather accessories.
4. Trade hubs, unlocking value in the logistics sector by exploiting Namibia’s strategic position as gateway to global markets for landlock neighbours.
5. A southern tourism corridor, adding a dramatic yet barely known geographical destination to Namibia’s world class tourism portfolio.