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

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.