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Analysing the Scope of Local Authorities (LAs) in Facilitating and Influencing the Sustainability of Foreign Direct Investment in Namibia: A Case Study of the Windhoek and Walvis Bay LAs

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  • Ralph Vezembouua Marenga

    (Department of Public Management and Political Studies, School of Business Management, Governance and Economics, Faculty of Commerce, Management and Law, University of Namibia, 340 Mandume Ndemufayo Avenue, Windhoek 13301, Namibia)

  • Lesley Blaauw

    (Department of Public Management and Political Studies, School of Business Management, Governance and Economics, Faculty of Commerce, Management and Law, University of Namibia, 340 Mandume Ndemufayo Avenue, Windhoek 13301, Namibia)

  • Omu Kakujaha-Matundu

    (Department of Economics, School of Business Management, Governance and Economics, Faculty of Commerce, Management and Law, University of Namibia, 340 Mandume Ndemufayo Avenue, Windhoek 13301, Namibia)

Abstract

The negative and neutral developmental experiences of the Windhoek and Walvis Bay local authorities (LAs) with facilitating foreign direct investment (FDI) are disconcerting and contradict the bottom-up development approach in Namibia. The objective of this study is to analyse the legislative scope of LAs in facilitating and influencing FDI sustainability. A qualitative research method was followed by analysing secondary data and interviewing purposely selected key respondents. The thematic analysis of data was guided by two independent variables of interest: (1) decentralised functions of FDI facilitation in a multi-level governance (MLG) system; and (2) policy and legislative harmonisation in an MLG system. The key findings of this study indicate that the current scope of Namibian LA FDI facilitation functions are insufficient for influencing FDI sustainability for local development. The theoretical implications of this study are that it contributes to the sustenance of the MLG theory—which is inept at explaining the dynamics LAs experience in MLG systems. In the absence of an enabling legislative framework, the current study suggests the following practical implications: (1) bottom-up development using FDI cannot be achieved; (2) LAs cannot influence the sustainability of FDI for local development impact; and (3) LAs cannot protect local communities against the capitalist wrath and exploitative tendencies of FDI.

Suggested Citation

  • Ralph Vezembouua Marenga & Lesley Blaauw & Omu Kakujaha-Matundu, 2023. "Analysing the Scope of Local Authorities (LAs) in Facilitating and Influencing the Sustainability of Foreign Direct Investment in Namibia: A Case Study of the Windhoek and Walvis Bay LAs," Sustainability, MDPI, vol. 15(2), pages 1-18, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:1288-:d:1030697
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    References listed on IDEAS

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    1. Wojciech Dziemianowicz & Julita Łukomska & Adam A. Ambroziak, 2019. "Location factors in foreign direct investment at the local level: the case of Poland," Regional Studies, Taylor & Francis Journals, vol. 53(8), pages 1183-1192, August.
    2. Li, Zhongmin, 2013. "How Foreign Direct Investment Promotes Development: The Case of the People’s Republic of China’s Inward and Outward FDI," ADB Economics Working Paper Series 304, Asian Development Bank.
    3. HE Canfei, 2006. "Regional Decentralisation and Location of Foreign Direct Investment in China," Post-Communist Economies, Taylor & Francis Journals, vol. 18(1), pages 33-50.
    4. K. Kuswanto & Herman W. Hoen & Ronald L. Holzhacker, 2017. "Bargaining between local governments and multinational corporations in a decentralised system of governance: the cases of Ogan Komering Ilir and Banyuwangi districts in Indonesia," Asia Pacific Journal of Public Administration, Taylor & Francis Journals, vol. 39(3), pages 189-201, July.
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