REASONS TO INVEST IN NAMIBIA
Invest in Namibia Project Profiles
(Pdf pamphlet can be found here)
Sound Democratic Governance Architecture
Namibia, a multi-party democracy, has enjoyed a high degree of political stability since its independence from South Africa in 1990. This is preserved by adherence to its robust constitution.
Sound Macroeconomic Architecture
The country has a stable economy, which has successfully weathered international financial crises, and which evolves to grow, and meet its challenges.
Namibia offers opportunities for investment in infrastructure through public private partnerships (PPPs) or foreign direct investment (FDI). By virtue of its location, it offers access for manufacturers and/ or exporters to 15 SADC countries, with a population of ±280 million.
Namibia values long-term relationships with foreign investors. It has put in place an enabling environment to assist with identification of opportunities, syndicate financing, operating and tax incentives in certain sectors, particularly manufacturing, and one-stop bureau services for establishment of local operations of international companies.
Namibia provides numerous opportunities for international investors seeking a foothold and growth on the African continent.
Infrastructure and Logistics
Namibia has embarked on a large-scale programme of renewing and developing its infrastructure. Investment opportunities may take the form of public private partnerships (PPPs) either on a per-project basis or with equity holdings. Certain utilities may be wholly owned by investors. Current focal areas are development of infrastructure for water, power generation and transmission, as well as transport and logistics, notably road, rail and port infrastructure, with emphasis on corridors to SADC states.
Serviced Land and Housing
Namibia currently has a deficit of affordable serviced land and housing, and has opportunities for investment and operations in this field.
Manufacturing and Market Access
Namibia provides preferential incentives to manufacturing, particularly those that add value to local commodities. It provides access to the 15 SADC member states, with an estimated population of ±280 million. Physical trade is managed by the Walvis Bay Corridor Group, which oversees transport corridors to SADC markets. Namibia also has duty and quota-free access to the Southern Africa Customs Union (SACU). A wide range of trade agreements has been signed with blocs and nations of the African continent. Chief among these are AGOA with the USA, the EU-EPA, and the Cotonou Agreement between the EU and ACP states.
- SADC ±280 million people
- SACU ±57 million people
- Combined SADC & CMA market: approx ±280 million people
- Selected Rankings Transparency International: 1st in Africa for press freedom
- Fraser Institute: 2nd most favourable destination for mining and exploration in Africa
- World Economic Forum: 2nd best transport infrastructure in Africa
- Regional Tourism Organisation of Southern Africa: 4th best tourism destination in Africa
- Mo Ibrahim Foundation: 6th for Good Governance
- World Economic Forum: 22nd for Banking Institutions
To prepare for climate variability and mitigate against drought, climate change adaptive technologies are required for crop production.
Namibia welcomes private social enterprise, particularly specialising in health and education, to augment public provision of social services.
Namibia is a popular travel destination, and investment in tourism is welcomed, particularly accommodation. Further opportunities exist for PPPs in community conservancies.
The Namibian government views foreign direct investment (FDI) as a key component of economic development, so it proactively legislates and nurtures an environment that is equitable and attractive for FDI. Legislation ensures an enabling environment for foreign investors and Namibian firms, including international arbitration of disputes, the right to remit profits and access to foreign exchange. Investment incentives and special tax incentives are available for certain sectors.
Establishment and Regulation
The Registrar of Companies manages, regulates and facilitates formation of businesses. It encourages investors to seek assistance from legal practitioners, auditors, accounting officers, or secretarial firms when registering. The Namibia Investment Centre offers services that range from early inquiries to operational phases. It provides information on investment opportunities, incentives, and procedures. It assists investors by streamlining and coordinating with ministries and regulatory bodies.
Financial Environment and Governance
Namibia’s financial environment is well developed, and robust. This has ensures that Namibia enjoys a high degree of financial stability and has a favourable environment for investors. Namibia is part of the Common Monetary Area (CMA) with South Africa, Lesotho and Swaziland. The Namibian dollar (NAD) is pegged to the SA rand (ZAR). The financial sector is sophisticated and consists of a number of commercial banks with international ties to facilitate international banking, as well as commercial and governmental sources of finance geared to enterprise finance. Equity finance, local equity holdings and finance for infrastructure may be provided by various single and/or syndicated sources of finance. The Namibian governance code is known as NamCode, and is based on the principles encoded in King III.
Partnerships and Local Equity
Namibia encourages partnerships with local enterprises or through equity holdings. Local equity finance may be provided by commercial banks and / or other financial institutions.