Namibia is often described as Africa’s optimist – and with good reason. Not only does it enjoy one of the continent’s most pleasant, peaceful and politically stable environments, but also an infrastructure to rival many developed countries. Namibia has a wealth of attractions and advantages for foreign-owned companies looking for business opportunities.
Namibia has an advantageous legislative and fiscal environment and a government keen to foster the engines of economic growth and prosperity.
Namibia is a boutique investment destination and seeks foreign direct investment in the value addition and beneficiation of natural resources (diamonds, copper, zinc and phosphate), goods manufacturing and export of value-added products.
Namibia offers other significant opportunities for investment in sectors such as manufacturing, agriculture (agro-processing), transport and logistics, tourism and film making, to name but a few.
In Namibia’s quest to become an industrialized and prosperous nation – as outlined in the “growth at home” strategy, the “Harambee Prosperity Plan” (HPP) and vision 2030 – the government encourages foreign companies to engage in win-win partnerships that add value to products and stimulate economic growth and job creation.
REASONS TO INVEST
- 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. Stability is maintained by strict adherence to the constitution.
- SOUND MACROECONOMIC ARCHITECTURE
Namibia’s economy is stable and has successfully weathered international financial crises. It continues to develop in order to grow and meet its challenges.
- ENTERPRISE OPPORTUNITY
Namibia offers opportunities for investment in infrastructure through public-private partnerships (PPPs) or foreign direct investment (FDI). Due to its location Namibia also facilitates access for manufacturers and exporters to 15 SADC countries with a total population of +/- 280 million.Namibia values long-term relationships with foreign investors. An enabling environment is in place to assist with the identification of opportunities, syndicate financing, operating and tax incentives in certain sectors, particularly manufacturing, and one-stop bureau services for establishing the local operations of international companies.
- INVESTMENT ENVIRONMENT
The Namibian government sees foreign direct investment (FDI) as a key component of economic development and therefore proactively legislates and nurtures an environment that is equitable and attractive for FDI.Legislation ensures an enabling environment for foreign investors as much as for Namibian companies, which includes 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 the formation of businesses. Investors are encouraged to seek assistance from legal practitioners, auditors, accounting or secretarial firms for the process of registration.The Namibia Investment Centre offers services that range from early inquiries to operational phases. It informs 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 ensured that Namibia enjoys a high degree of financial stability and investment grade ratings.Namibia is part of the Common Monetary Area (CMA) with South Africa, Lesotho and Swaziland. The Namibian dollar is pegged to the SA rand.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 financing.Equity finance, local equity holdings and financing for infrastructure may be provided by various individual and syndicated sources.
- PARTNERSHIPS AND LOCAL EQUITY
Namibia encourages partnerships with local enterprises or through equity holdings. Local equity finance is provided by commercial banks and/or other financial institutions.