SEBA 2021

Namibia has a large urban population, 70 percent of which reside in the north. The northern-central and north-eastern parts of Namibia such as Oshakati, are undergoing an enormous urbanisation trend. The majority of Namibia’s youth reside in the northern regions. As such, the country is prime for investment to meet the needs of the young population as well as the growing urban middle class.

Investment opportunities

Namibia is an ideal place to invest if you are trying to make money or establish a presence for your business. Namibia is one of the smallest countries in Africa. It does have an expanding middle class in urban areas as well as a tiny population. The absence of a huge government means that businesses can utilize their strengths to take advantage of the growing economy in Namibia. Namibia is abundant in natural resources and has an extremely low tax rate. Also, it has a solid infrastructure that can attract foreign investment.

The country is currently experiencing an ambitious plan of infrastructure improvement. Investment opportunities in Namibia could be in the form of partnerships between public and private or equity holdings. The main areas of focus include power generation, transmission and logistics. There are opportunities in both construction and maintenance of road and rail infrastructures as well as affordable housing. When investing in Namibia be sure to choose a reputable bank. The government is seeking partners to support its ambitious plans.

The country is rich in natural resources that can boost investors’ returns. Large Chinese companies have made investments in the mining sector as have South African businesses in the diamond and banking industries. Russia and Spain have made significant investments in the fishing industry. Other countries have expressed interest in oil exploration in Namibia’s waters. Opportunities for FDI include logistics manufacturing and mining. FDI in Namibia is an ideal place to start in order to increase your investment.

Challenges

The start-up ecosystem in Namibia isn’t successful in connecting entrepreneurs with the right investor. Because of this, entrepreneurs are often pursuing poor investors that can cause more harm than good. An ideal investor will provide time, access and capital to start-ups. New investors won’t have the same connections or knowledge as experienced investors. This is why Namibian investors need to be extremely cautious when deciding on projects to fund.

While the investment climate in Namibia has improved in recent years, there are significant obstacles. Namibia has a weak domestic market, limited skilled labor pool, and high transportation costs. Despite these difficulties the country is experiencing an expansion of its vaccination program which is expected to ease production bottlenecks as well as reopen the tourism industry. The government is focusing on the attraction of foreign investment, tackling unemployment and diversifying its economy.

There are numerous opportunities to FDI to Namibia. Namibia is home to a number of large Chinese companies, which have significant investments in the uranium industry. Canada and South Africa are also significant investors in Namibia with substantial investments in mining and banking. The Office of the President is also working to develop renewable energy sources. Mining and tourism are both highly sought-after industries. These are the primary drivers of the nation’s economy. The general trend is for commodity prices to rise in the upcoming years, which will enable more companies to access private equity.

Government support

The Namibian government has acknowledged the bureaucratic processes that hinder the business operations and is currently working to address these challenges. The Investment Promotion Act is currently being examined. This new law is likely to replace the previous Foreign Investment Act. The new law is intended to draw foreign investment. However investors looking to fund projects in Namibia must be aware of the specifics. A business owner may not be able to access details about a project including the financial situation of the owner.

The Registrar of Companies is responsible for managing businesses and regulating business formation in Namibia. While registration is mandatory however, investors are advised to seek assistance from the Namibia Investment Centre. The Namibia Investment Centre provides services to investors starting in the early inquiries to operations. It also provides information about projects, incentives and procedures. The investment centre is also able to streamline procedures and coordinates with regulatory and government agencies. This allows investors to concentrate on projects that will be beneficial to the country.

While Namibia’s private sector largely relies on bank financing The banking industry is relatively weak when it comes to funding start-ups. Many commercial banks in Namibia adhere to the standard lending practices that require start-up companies to pledge collateral in exchange for loans. Unsecured lending is not permitted and bank loans can be risky. Further, government support for investors looking for projects to fund in Namibia is insufficient.

Financial institutions

If you’re in search of a good project in Namibia it’s not a problem. The Namibian Government and several financial institutions are trying to boost economic development and private sector development. A recent stakeholder forum convened by the Development Bank of Namibia (DBN) revealed that the country needs more than grant funds. Public-private finance is crucial to boost productivity, modernize customs and provide access to information for free. In addition, the panel concluded that transparency and good corporate governance are crucial.

In Namibia there are many types of investors. The Development Bank of Namibia (or Start-Up Namibia) are two examples of public funders. This initiative promotes the startup community in Namibia. These funders are more eclectic and could focus more on grants or business funding concessionary loans instead of equity investments. These funders could be a good fit if you have a strong social impact and are in the beginning stages of your company. It is important to keep in mind that government funds can limit the manner in which companies operate.

While Namibia has not yet implemented an privatization plan, discussions have started on privatizing state-owned enterprises. The Government Institutions Pension Fund, for instance, has pledged the sum of 340 million dollars to private equity funds since the year 2010 and has been given been given the task of funding infrastructure, small and medium-sized enterprises development, and bulk municipality services. Recently the government announced plans to sell part of its stake in Air Namibia, the state-owned airline. The government will reduce its debts through the proceeds from the sale.

Taxes

Namibia is not a country with a tax system that is unique for foreigners. However it does have number tax-friendly features that might be of interest to foreign investors. For instance, foreign-owned companies cannot avoid paying dividend tax in Namibia that is a tax of ten percent on dividends that are sourced in Namibia. There is no securities tax in Namibia. However, investors should be aware that certain capital gains are taxed as normal income. Third, Namibia is a member of the Common Monetary Area and its dollar is pegged against the South African rand. Furthermore certain sectors require some percentage of their revenues be local for projects they finance.

In addition, Namibia’s financial environment is relatively stable and transparent. Namibia is part of the Common Monetary Area (a group of southern African nations). According to World Bank Development Indicators, Namibia’s foreign currency remittances have always been less than one-fifth of the GDP over the last decade. The majority of remittances processed are through commercial banks. And the BON has not changed its rules for investment remittances over the last few years.

Economic empowerment

This article will help investors in their search for projects to finance in Namibia. The government of Namibia owns an array of businesses. These are referred to as parastatals and account for over 40 percent of GDP. They are subsidized by the government, despite the fact that they are typically insolvent. Joint ventures are typically financed by foreign investors, which has slowed their expansion.

In terms of public policy The government is generally transparent. It releases its annual budget, mid-term and annual reviews and consults interested parties in the budget is being prepared. It also publishes the government’s debt position as well as contingent. Its fiscal framework is generally clean of corruption. The Namibian government doesn’t impose any mandatory localization requirements. The government’s policies encourage local content and foster local ownership of state-owned businesses.

The government of the country is working to expand its financial market and draw foreign capital. The SDG Investment Fair brings together investors willing to invest in africa (https://www.5mfunding.com) from various sectors to invest in sustainable development projects in developing countries. Namibia’s Hydrogen Commissioner as well as Economic Advisor are represented by the President. Both are members of the Common Monetary Area (CMA). This agreement allows capital to flow freely between the two countries. Investors from all over the world can attend the event and view the country’s current investment opportunities.

Sector of water

In Namibia, the water sector has been allocated about 25% of the national budget. To accomplish this the Government of Namibia has set up a Namibia Water Sector Support Program to draw foreign investors. This program is designed to improve infrastructure related to water and supply water to the country. At present, the government is trying to attract foreign investors to the program which includes private sector companies. The government has received a grant from the African Development Bank Group.

There are numerous opportunities for investment in Namibia’s sector. EOS Capital is one such firm. It announced recently that it had raised 90 million Namibian dollars in its initial Euphrates Agri Fund funding round. The fund’s first investment was Cherry Irrigation Namibia. The firm plans to invest more in the country’s water infrastructure as and in the agricultural sector.

There is a large market for green bonds in Namibia which could provide a lucrative alternative to traditional bank lending. AFD has created an eco-friendly financing label for Namibia which will encourage the local commercial bank to expand its green lending operations. The Bank Windhoek is currently working to create a pipeline of green financing projects and is looking into an additional issue. A Green Bond is similar to an unconvertible debt. The major distinction is that these bonds are not secured by physical assets, but are supported by the reputation of the issuer, investors willing to invest in africa as well as the indenture document.