Namibia does not suffer from a lack of investor appetite for its mining sector, but rather from a shortage of advanced exploration projects capable of attracting capital, according to Appian Capital Advisory.
Speaking at the NamXplor Mining Project Pitch Challenge during the Namibia Mining Expo and Conference on Thursday, Appian Capital’s head of Africa, Khathutshelo (K2) Mapasa, said international investors remain eager to invest in Namibia’s mining industry, but many exploration projects are not yet sufficiently advanced to secure funding.
“I think we are very, very interested as an investor in investing in mining in Namibia, so there is no shortage of interest in terms of capital to come into Namibia and invest in mining,” he said.
“But what’s the gap? The gap is the discovery of those resources. There are not enough advanced projects in Namibia that can attract the capital that is so interested in investing here.”
He said this was the motivation behind Appian’s partnership with the Namibia Investment Promotion and Development Board (NIPDB) to sponsor the NamXplor Mining Project Pitch Challenge, which aims to help exploration companies transform early-stage prospects into bankable mining projects.
According to him, investors look beyond geology when assessing exploration opportunities. They want certainty over mineral rights, confidence that exploration licences are held by the companies seeking investment, experienced technical and business management teams, and project owners who understand and openly acknowledge the challenges facing their projects.
He said community engagement was increasingly becoming a key investment consideration, adding that projects with unresolved social issues often struggle to attract funding.
Rather than viewing difficult questions from investors as criticism, project promoters should regard them as an opportunity to strengthen their projects before approaching the market.
He also revealed that two projects originally scheduled to participate in the pitch challenge had withdrawn after signing non-disclosure agreements with investors between Monday’s preparation workshop and Thursday’s event, describing the development as evidence that the platform was already generating commercial interest.
Earlier, NIPDB acting chief executive Majoria Matadana said the initiative was created to connect Namibian project owners directly with investors, financiers and strategic partners capable of advancing exploration projects into operating mines.
She said mining contributes about 14% of Namibia’s gross domestic product and supports more than 20,000 direct jobs, but stressed that the country’s future mining growth would depend on projects that are still being explored and developed rather than existing operations.
The inaugural pitch challenge attracted interest from approximately 18 mining projects, but only 10 were selected to present due to time constraints. NIPDB said the remaining projects would continue to receive support through other investment promotion initiatives.
