An agreement for the encouragement and protection of investment has been signed between the OPEC Fund for International Development and the Republic of Namibia. Drawn up within the framework of the Fund's Private Sector Facility, the convention was initialed by H.E. Mr. Nangolo Mbumba, Minister of Finance of the Republic of Namibia, and by H.E. Dr. Y. Seyyid Abdulai, Director-General of the OPEC Fund. 

The Fund's Private Sector Facility is a financing window, endowed with its own resources, through which the Fund channels support directly to the private sector in developing countries. The objectives of the Facility are to promote economic development by encouraging the growth of productive private enterprise and supporting the development of local capital markets. Under the Facility, loans are made to financial institutions for on-lending to small, medium and micro-enterprises, as well as directly to specific projects. Equity participation in private enterprises is also undertaken, either directly or through country or regional investment funds. As a pre-condition to such investment, the Fund requires signature of a standard agreement with the country concerned for the encouragement and protection of investment. The agreement accords the OPEC Fund the same privileges as those normally given to international development institutions in which the country holds membership.

Namibia's economy relies heavily on the extraction and processing of minerals, as well as on processed fish and other manufactures for export. The country is the world's fifth largest producer of uranium and a primary source of gem-quality diamonds. With a population of some 1.8 million people, the country's gross national income (GNI) amounted to US$3.6 billion in 2000, and GNI per capita was estimated at US$2,030. GDP growth rate reached 3.9% in that same year. Services account for 61% of GDP, whereas industry contributes 27% and agriculture 12%. Since gaining independence in 1990, Namibia has adopted a number of policies aimed at sustaining economic growth and diversifying the country's productive base, therefore attracting foreign investors. This and other measures have greatly enhanced openness and competitiveness, and have helped create a hospitable, enabling environment for the promotion of enterprises in the country's private sector, which is regarded by government as critical to the economic development of the country.