Why Trade and Invest with Namibia?
The Namibian Government and private sector throughout the country are seeking partners in realising identified viable projects and business opportunities on a mutually beneficial basis. Such partnership include: Direct private investment; Financing; Joint venture; Public-private partnership
Why invest in Namibia?
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 countries around the world. There are many reasons why one would invest in Namibia, amongst them are:
- Our country enjoys preferential trade links to the 190 million inhabitants of the Southern African Development Community (SADC) as one of the 14 member states.
- Namibia belongs to the Southern African Customs Union (SACU) affording duty and quota free access to the South African market and others.
- Namibia is signatory to the Cotonou Agreement, giving duty free access to the European Union for a wide range of manufactured and agricultural products.
- Namibia has duty and quota free access to the lucrative US market under the Africa Growth and Opportunity Act (AGOA).
- Namibia offers among the attractive fiscal incentives in Africa via its Export Processing Zone (EPZ) regime.
- 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.
Potential areas for Business and Investment in Namibia
Namibia’s agricultural sector is also imperative to the country’s economy with a thriving red meat industry and the cultivation of crops such as maize, wheat, pearl millet, groundnuts, beans and cotton.
- Investment opportunities exist in value-added local processing of livestock, ostrich farming, crop production and food processing.
- Good prospects exist for extensive horticulture, such as grapes, olive oil, jojoba and cut flowers.
- Cotton production and establishment of a cotton ginnery
The Government of the Republic of Namibia adopted a policy for the establishment of an Export Processing Zone (EPZ) regime to serve as a tax haven for export-oriented manufacturing enterprises in the country, in exchange for technology transfer, capital inflow, skills development and job creation. This policy decision was translated into law through the passage in Parliament of the Export Processing Zone Act (Act No. 9 of 1995). The implementation of this initiative started in 1996.
As a policy instrument, the EPZ regime is designed to:
- Facilitate imports of foreign productive capital and technology as well as the transfer of technical and industrial skills to the local workforce;
- Contribute towards an increased share contribution of the manufacturing (industrial) sector to job creation, the country’s gross domestic product (GDP) and exports of manufactured goods; and
- Enhance the diversification of the local economy.
Key Features of Namibia’s EPZ Regime
Namibia’s EPZ regime offers export-oriented manufacturers a range of internationally competitive advantages.
EPZ enterprises are exempted from corporate income tax, duties and value-added tax (VAT) on machinery, equipment and raw materials imported into Namibia for manufacturing purposes. The only taxes payable are personal income tax on employees’ income as well as the 10% withholding tax (non-resident shareholders) on declared dividends. In addition, EPZ enterprises are allowed to hold foreign currency accounts at commercial banks as well as to repatriate their capital and profits.
No Time-bound Incentives
The incentives referred to above are for an indefinite period or apply for the lifetime of the approved project in Namibia.
Equal Treatment of Investors
Local and foreign investors who meet the conditions for admission under the EPZ enjoy equal treatment and eligibility to the applicable EPZ incentives.
Freedom of Location
EPZ enterprises are free to establish themselves anywhere in the country. An EPZ enterprise can set up as a single factory enterprise at any clearly demarcated location of choice. Where an industrial zone or park has been developed, interested investors may choose to locate in such industrial zone or park to take advantage of the affordable factory shells or warehouses that have been constructed and are on lease by the ODC or the Walvis Bay EPZ Management Company if the harbour town of Walvis Bay is the preferred location.
Business and Industrial Infrastructure
The ODC develops and leases serviced industrial and business sites and factory shells. Four multi-purpose industrial parks have been developed at various locations in the country. A Park has been developed at Oshikango, Helao-Nafidi Town near the Angola-Namibia northern borders purposely to support and boost cross-border trade with neighbouring Angola. The other industrial and business Parks are in Windhoek, the capital city; Ondangwa in the northern part of the country; and Katima Mulilo near the north-eastern borders with Zambia, Zimbabwe and Botswana. A new industrial park development is underway at the border settlement of Katwitwi in the Kavango Region on the Angola-Namibia border.
Chief Executive Officer, Offshore Development Company
Private Bag 13379
Namibia has rich fishing grounds, with their stock of both demersal and pelagic species, which place the country among top 10 nations in the international fishing sector.
- Namibia has rich marine resources and fishing grounds.
- Mariculture and aquaculture potentials exist.
- Opportunities exist for fish processing and canning.
Namibia has an abundance of natural resources, among them, a wide range of mineral deposits including world class diamonds and uranium, copper, lead, zinc, gold, semi-precious stones, industrial minerals, salt and fluorspar.
- Extensive mineral deposits
- Diamonds, uranium, gold, copper, lead, zinc and other base metals
- Semi-precious stones and many types of dimension stones.
- Value-addition encouraged
- Manufacturing (jewellery)
- Good prospects for oil and gas prospecting, exploration and processing
Namibia’s Tourism sector continues to be a booming industry for reasons such as:
- Spectacular scenery and wildlife
- Excellent infrastructure, warm climate and friendly atmosphere
- Opportunities in the development of up-market hotels, International conference centres, lodges, game parks, traveling and general hospitality industry
Opportunities abound in these areas as well:
- Cutting and polishing of precious and semi-precious stones, marbles and granites
- Leather products
- Glass products
- Manufacturing of pharmaceutical products
- Down-stream processing of gas
- Cement manufacturing
- Steel manufacturing
- Textiles and garments manufacturing
- Household appliances
- Electric and electronic components assembly
- Manufacturing of automotive components
- Construction and physical infrastructure development
- IT (hard and software assembly/manufacturing)
- Poultry and piggery
- Hotel and restaurants
- Upmarket tourism development
- Manufacturing of plastic products
- Manufacturing of building materials
- Furniture assembly