Incentives to Investment in Namibia

Namibia has a highly competitive incentive and fiscal regime, which adds to its attractions for foreign investors, as well Felsenkirche, an old German church in Luderitz, Namibiaas creating an ideal business environment. The corner stones of this regime are the Foreign Investment Act and its provision for a Certificate of Status Investment, the Special Incentives for Manufactures and Exporters and the Export Processing Zone Incentives.
The Foreign Investment Act led to the creation of the Namibian Investment Center within the country’s Ministry of Trade and Industry, designed to facilitate the process off investment. The Act provides for:

  • • Liberal foreign investment conditions;
  • • Equal treatment of foreign and local investors;
  • • Openness of all sectors of the economy to foreign investment;
  • • Full protection of investments;
  • • The granting of a Certificate of Status of Investment (CSI).

The Namibian Government is committed to the stimulating of economic growth and employment and to establish Namibia as a gateway location in Southern African region.

To this end the Government has introduced numerous incentives that are largely concentrated on stimulating manufacturing in Namibia and prompting exports into the region and to the rest of the world.
General tax regulations that are indicative of Government’s commitment are:

  • • Non – resident Shareholders’ Tax is only 10%.
  • • Dividends accruing to Namibian companies or resident shareholders are tax-exempt.
  • • Plant, machinery and equipment can be fully written off over a period of three years.
  • • Buildings Buildings of non-manufacturing operations can be written off, 20% in the first year and the balance at 4% over the ensuing 20 years.
  • • Import or purchase of manufacturing machinery and equipment is exempted from Value Added Tax (VAT).
  • • Preferential market access to EU, USA and other markets for manufacturers is provided.

To make manufacturing in Namibia more competitive, Government has introduced a further package of tax and non-tax special incentives, applicable to both existing and new manufacturing enterprises, exporters and Export Processing Zone (EPZ) enterprises. Companies operating under the regime are free to locate their operations anywhere in Namibia. Though the Offshore Development Company (ODC), EPZ enterprises also have access to factor facilities rented at economical rates