iGuide Namibia

Register your business

There are two categories of business entities that an investor can choose from when intending registering a business in Namibia:

• Foreign existing company registration

• New Namibian entity registration

Register a foreign existing company in Namibia

The procedure for investors is as follows:

1. Submit a name application/reservation form CM5. Name reservations can also be done online. 

2. Once the name reservation is approved, apply for a Certificate of Incorporation and Certificate to Commence Business. This requires the submission of the following documents:

• Certified copy of the Memorandum and Article of Association in triplicate, as it was registered in its original country
• Notice of postal and registered address on CM22;
• List of Directors, Auditors and Public Officers on CM29;
• Appointment of an Auditor on CM31;
• Alteration to Memorandum of External Company on CM39;
• Application of Certificate of Registration of Memorandum of External Company CM49;
• Statement by each Director regarding the Adequacy if Capital of Company on CM47;
• Request for submission of additional Copies on CM51.

Register a new Namibian entity

For investors choosing to register any of the following entities when establishing a business in Namibia, the proecedure is as follows: Public Company, Private Company, Partnership, Joint Venture, Close Corporation, Sole Proprietor and a Business Trust.

1. Submit a name reservation with the Business and Intellectual Property Authority (BIPA);
2. Prepare and submit registration documents with BIPA;
3. Receive a certificate of incorporation;
4. Apply for a taxpayer identification number with the Namibia Revenue Agency (NamRA);
5. Register for VAT;
6. Register for Social Security;
7. Register for PAYE tax.

Registration Procedures for other types of business entities

Close Corporations:

1. Submit  a name application/reservation form CC8. 

Name reservations can also be done online 

2. On approval of name reservation, submit a Founding Statement, form CC1. This requires the submission of the following documents:

• Copy of the approved form for name reservation;
• Founding statement in triplicate;
• Consent letter from the accounting officer;
• Certified Copy of passport in case of foreigners.

Private (proprietary) Limited and Public (Limited) Companies

1. Submit name application/reservation form CM5 or reserve a name online

2. Upon approval, you may apply for a Certificate of Incorporation and Certificate to Commence Business. This requires the submission of the following documents:

• Memorandum and Article of Association in triplicate of forms CM3, CM4, CM44B and CM44C;
• Copy of approved name on CM5;
• Notice of postal and registered address on CM22;
• List of Directors, Auditors and Public Officers on CM29;
• Appointment of an Auditor on CM31;
• Application of Certificate of Registration of Memorandum of External Company CM46;
• Request for submission of additional Copies on CM51.

Investment concessions

Namibia offers a number of different concessions for investors The Namibia Investment Promotion and Development Board (NIPDB) is the first point of contact in order to obtain up-to date information on, and assistance with investment incentives. Below are some of the incentives that are available for investors:

Tax Incentives

The Income Tax Amendment Act, 2020 repealed the provisions relating to tax incentives for manufacturers. These special income tax incentives granted to registered manufacturers by the time of the amendment in 2020, in relation to the above shall continue to apply until the end of the 2025 tax year in respect of each registered manufacturer. 

The Ministry of Industrialisation and Trade, the Ministry of Finance and NIPDB are in the process of developing new incentives schemes for various investments outside the Special Economic Zones. The new incentives scheme is expected to be in place together with the special economic zones incentives scheme by mid-year 2023.

Special Economic Zones (SEZs)

These are geographically delineated areas subject to differentiated regulation and administration from the host country in which they reside. The intention is to provide an internationally competitive environment and quality infrastructure for the attraction of investment, industrial development and promotion of exports. 

Namibia has begun working on the National SEZ Policy which expands and subsumes the existing Export Processing Regime (EPZ). 

The SEZ policy was finalized and adopted in August 2022, but the SEZ Act will only be enacted in year 2023.

In order to ensure a seamless transition from the Namibian Export Processing Zone model to the envisaged SEZ, the policy recommends the following:

• The Ministries of Finance and Industrialisation and Trade will allow for a grandfathering period of a maximum of 5 years for existing investors in the Export Processing Zones, effective from 31 December 2020 to 31 December 2025,
• An approved enterprise under the existing EPZ Act that intends to continue its activities as an SEZ enterprise under the proposed SEZ legislation shall have to apply to the Minister of Industrialisation for approval.
• Notwithstanding the repeal of the EPZ Act and the provisions for manufacturers incentives in the Income Tax Act, an approved enterprise under the EPZ law will be entitled to receive existing benefits during the grandfathering period.

Hereunder are the identified incentives:

The SEZ policy has made a provision for both fiscal and non-fiscal investment incentives for various investment categories among others, Exporters and Manufacturers. Hereunder are some of the identified, but not limited to; 

a) Fiscal Incentives

• Lower Corporate Income Tax rates
• Reduced Import duties/customs tariffs.
• Capital Deductions Allowance
• Research and Development Allowance

b) Non Fiscal Incentives 

• Establishment of One-Stop Shop
• Competitive Utility Tariffs

Supportive and directed approach to provision of Visa for non-resident foreign investors. The detailed Investment Incentives Schedule can be obtained from NIPDB.

Environment Impact Assessment (EIA)

If you are investing in a project that may have an environmental impact you will need to obtain an Environmental Impact Assessment Clearance Certificate. The Environmental Management Act No. 7 of 2007 requires Environmental Assessments to be conducted for business projects and activities that have a potential impact on the environment.

The Government notice below provides a list of activities that may not be undertaken without an Environmental Clearance Certificate. EIA are widely undertaken in various sectors in Namibia and in particular in the mining and petroleum industries. 

The environment impact assessment process involves the following steps:

• Application:  A person who wants to carry out a listed activity (the “proponent”) applies to the competent authority for an environmental clearance certificate. The competent authority forwards the application to the Environmental Commissioner.  A competent authority is an organ of state which is responsible, under any law, for granting or refusing an authorisation.

• Screening: The Environmental Commissioner decides if an environmental assessment is required. 

• If it is found that EIA is not required, the Environmental Commissioner decides whether or not to grant the environmental clearance certificate. 
• If it is found that the EIA is required, the follwing steps must be followed:
• Scoping: the Environmental Commissioner decides on the scope and procedure for the assessment. The Environmental Commissioner tells the proponent what must be done and sets a time frame for the assessment.

• Assessment: The proponent carries out the assessment and submits an assessment report to the Environmental Commissioner. 

• Public Consultation: Persons who may be affected by the activity must be notified and given a chance to inspect the assessment report and make submissions on it. 

• Review: The Environmental Commissioner reviews the application for the environmental clearance certificate. This process can include further consultations or investigations. 

• Decision on Certificate: The Environmental Commissioner decides whether or not to grant the environmental clearance certificate. 
•  It can result in approval, under certain conditions or amendments, or rejection of the clearance.
• Any person who feels that the Environmental Commissioner’s decision was not fair can appeal to the Minister responsible for the environment. 

Population

Namibia has an estimated population of 2.4 million in 2018. The labour force was estimated at 1.1 million in the same year, with an unemployment rate of about 33 percent.

Skills

According to UNESCO Namibia has an adult literacy rate of 92%.

The education system in Namibia comprises compulsory and free primary education, three years of junior secondary and two years of senior secondary education, from the age groups of six to sixteen. In addition to this, there is also the Government-established Namibia College of Open Learning (NAMCOL), which provides alternative secondary education for adults and out of school youth.

There is additionally, tertiary education in Namibia, which comprises of two public institutions of higher learning. These are the Namibia University of Science and Technology (NUST) and the University of Namibia (UNAM) . 

There are moreover, private institutions of higher learning, such as the International University of Management (IUM).

Parallel to the university system is the vocational post-secondary system which offer certificates, diplomas and higher national diplomas for two to three year courses, but may not offer degrees. 

Employment and contracts

The employment and contract rules in Namibia are governed by the Labour Act 11 of 2007. 

Employment contracts in Namibia are deemed to be for an indefinite term unless the employer has a reason to hire an employee for a fixed term. Written agreements must contain the workplace details, salary, employer and employee identification, the nature of the job, working hours, the date of commencement of the work, the end date if for a fixed term, and in the local language of the employee.

There is no statutory limitation on the duration of a fixed-term contract. Rather, the duration is determined by an agreement between the employee and employer or collective agreement. Likewise, there is no statutory provision related to the length and term of the probation period. Employers and employees can agree to a probation period through an individual or collective agreement.

Employers and employees can terminate an employment contract in Namibia. During the termination process, an employer is prohibited from dismissing an employee without a valid and fair reason and must follow a fair procedure stipulated by law, regardless of whether notice is given.

Termination of the employment contract is considered unfair when the employer dismisses an employee for reasons such as:

• Disclosure of information that the employee is legally entitled or required to disclose
• Refusal to do anything unlawful
• Exercise of right given by law or in an individual or collective agreement

A fair reason to dismiss an employee depends on the nature and seriousness of the cause. Just cause can include, but is not limited to employee misconduct, employee incapacity, whether performance or health-related, employee incompatibility, the unsuitability during the probationary period and the operational requirements of the business.

Whether the termination is by the employee or by the employer, the notice period varies depending on the length of time worked.

A more extended period of notice is allowed if both the employer and employee agree, provided that the notice period applies equally to the employer and employee. It is prohibited to give notice during any leave granted to the employee. The employer may provide pay in lieu of notice in the amount the employee would have received during the work period of notice. Also, the employer has the right to waive notice given by an employee with the payment of the employee’s remuneration in lieu of the notice.

Upon termination, an employer is responsible for paying any work done before the termination notice, annual leave entitlements, paid time off for Sunday work or public holiday (if applicable), severance pay (if applicable) and transport allowance (if applicable).

Severance pay is equal to at least one week’s remuneration for each year of continuous service with the employer, after 12 months of uninterrupted service.

Wages

There is no official minimum wage rate in Namibia, except for domestic workers (see regulations below). Collective agreements in different sectors may set the minimum wage. This has been done for the construction industry (see below). 

Furthermore, annual bonuses are not required but some employers do pay them.

Hereunder are examples of approximate wages payable:

Non-wage benefits

Social Security contributions

Social Security

Namibia has a limited social security system. The Maternity Leave, Sick Leave, and Death Benefit Fund are compulsory for all employees. It is funded by employer and employee contributions of 0.9% of the basic salary, with a maximum contribution of NAD 81 per month each (i.e. the total monthly contribution of both the employer and the employee will amount to NAD 162).

Workmen's compensation

Under the Employees' Compensation Act 30 of 1941, employers are required to contribute to a fund that provides cash benefits for industrial injury, disability, and death. Contribution rates vary according to inherent occupational risk, from less than 1% in most low-risk commercial/administrative occupations to 8% for high-risk sectors (drilling, tunnelling, and rock-blasting). 

Employees whose annual remuneration exceeds NAD 81,300 are normally excluded from coverage.

Work permits

A work permit allows the employee to stay and work in the country for one to three years. A Namibian employment work permit is normally issued for a period of between 1 and 3 years.  The immigration board can within the provisions of the act extend the period for which, an employment work permit was issued.

Work permits are primarily approved by the Ministry of Home Affairs, Immigration, Safety and Security.

In applying for a work permit, employers are required to demonstrate that having called for applications through the publication of a job vacancy, a suitable applicant could not be found locally.

There are some key considerations that the Immigration board take into account when accessing whether to issue a Namibia employment work permit:

• It is essential to prove that the applicant possesses the required skills, qualifications and experience in their specific field.
• That the prospective employer has been unable to recruit and full the position with a Namibian candidate. Currently Namibia does have shortage of skills in certain areas and there is a basic understanding of the need to recruit expatriate workers to fill these positions.

 All applicants should be in possession of their permit prior to entry into Namibia.

Applications for a visa can take anywhere between three and nine months to process.

Spouses and children

Spouses and children may also be issued within the Namibia employment work permit permission to enter and stay in Namibia.

Guarantee payment

There is an onus on the Namibia employment work permit holder to adhere to the terms and conditions that the permit was issued under. To ensure this a guarantee payment may need to be made as specified in the appropriate Gazette.

Electricity

NamPower is Namibia’s national electric power utility. It supplies bulk electricity to Regional Electricity Distributors (REDs), mines, farms and local authorities (where REDs are not operational) throughout Namibia.

Namibia generates electricity from the Ruacana hydropower station when it is running at full capacity, especially in the rainy season, the coal-fired Van Eck statio, and the Paratus power station near Walvis Bay.

Water

The state-owned Namibia Water Corporation (NamWater) supplies water in bulk to industries, municipalities and the Directorate of Rural Water Supply, which is responsible for supplying water to rural communities.

Telecommunications

Namibia has two main telecommunication providers: Telecom Namibia (Telecom) and Mobile Telecommunications Company (MTC). These provide telephone, cellphone and internet services.

Transport infrastructure

Below is a description of Namibia's transport infrastructure:

Road

The country's roads are administered by the Roads Authority. Namibia's road network has been ranked among the safest, most efficient and sustainable in the region.The growth of the road infrastructure and the expansion of the road network have contributed immensely to the economic development of Namibia and the SADC sub-region as a whole.

The majority of towns and communities can be reached by a network of quality gravel trunk, main and district road networks totalling a distance of 48,117 km, including 4,500 km of tarred roads. The Trans-Kalahari and the Trans-Caprivi Highways provide a fast and comfortable road link between Namibia’s port of Walvis Bay on the Atlantic coast, and landlocked neighbouring countries. In particular, the Trans-Kalahari Highway links the port to Botswana, and the Gauteng province, the industrial heart of South Africa. The Trans-Caprivi Highway links Namibia’s landlocked neighbouring countries of Botswana, Zambia, Zimbabwe and the Democratic Republic of Congo to the port of Walvis Bay.

Rail

Namibia's railway network is managed by TransNamib Holdings Ltd and comprises 2 382 km of 1.067 m narrow gauge railway lines. The main line runs from the South African border via Keetmanshoop to Windhoek, Okahandja, Swakopmund and Walvis Bay. A northern section links up with Omaruru, Otjiwarongo, Otavi, Tsumeb and Grootfontein. 

Air

Namibian airports are developed and managed by the Namibia Airports Company. Several privately-owned domestic charter companies offer regional flights on a regular basis.

Ports

Walvis Bay is the country’s main port while Lüderitz is a smaller, secondary port. The ports are operated by the Namibian Ports Authority. The port of Walvis Bay has a depth of 12.8 metres and can accommodate container vessels with a capacity of 2 200–2 400 tonnes. Lüderitz Harbour boasts a new cargo and container quay wall which is 500 metres in length and the channel has a draft of 8.15 metres, which can accommodate vessels up to 150 metres in length.

For more information on Port tariffs 

Other costs

For indicative purposes, a basket of goods and services that investors may face is included below.

Types of land

In Namibia, there are four main categories of land:

• State land: This is land owned by the State and used for nature conservation (for example, Etosha National Park) and military bases.
• Urban land: This land can be owned by the State, by a local authority or by private individuals inside the boundaries of local and regional authorities.
• Commercial farmland: This is agricultural land held under a freehold title.
• Communal land: This is land held in trust by the State for the benefit of the communities living on it.

Acquisition procedures

Land can either be leased or bought from the government.

There are a few acquisition procedures namely:

• Willing buyer, willing seller: Government buys farms at market prices from willing sellers
• Compulsory acquisition: Government expropriates farms
• Market-assisted: Beneficiaries purchase land themselves with subsidies
• Negotiated transfers: Government and land owners strike a deal

However, it must be noted that all title deeds should be in conformity to with the Deeds Registries Act 47 of 1937.

Land costs

Unfortunately, Namibia has no database for land costs and as such it does not publish land price statistics which makes ascertaining land costs difficult.

Indicative land costs are displayed below.

Construction permit procedures

Whether planning a whole new architecture, renovating an old ruin, or making additions to a family home all may require building, construction permits and if so need an inspection by building construction inspection services. 

In the City of Windhoek, below are the procedures that need to be followed in order to obtain a buidling permit:

Step 1: Complete a Permit Application

An application has to be completed by the owner of the property or their agent through a formal power of attorney. 

Step 2: Submit the Permit Application

The completed application form together with the required drawings and other documents as may be required is submitted against the payment of the gazette fee at the respective Customer Care Centres.

Step 3: Building Permit Issued

Following a review of the application against the applicable regulations (Building, Fire, Health, Planning Scheme, etc.) and upon confirmation of compliance thereto a Building Permit will be issued. The permit legally allows the construction of the planned structures to commence and is an important document for safekeeping together with all drawings so approved.

Step 4: Scheduled Inspections

The Building Permit will require mandatory inspections by a Council authorised agent. These inspections are aimed at safeguarding the health, safety, and welfare of the building’s future occupants. The successful completion of these inspections are also a prerequisite for achieving certification for occupation. Attendance and oversight of the required inspections by the owner is therefore strongly recommended.

Step 5: Certificate of Occupation

The use and/or occupation of any structure erected in terms of a Building Permit issued by Municipality requires formal certification by an authorised agent of the Council. Such a certificate allows the owner to legally occupy a building or allow it to be occupied, hence it is an important document for safekeeping.

Below you will find a document on the procedure for obtaining a building permit in Windhoek. 

Also see information on Environmental Impact assessment at "Get Started".

Special Economic Zones (SEZs)

The Export Processing Zone Act 9 of 1995 regulates the export processing zone (EPZ) regime for export-oriented manufacturing enterprises in the country, in exchange for technology transfer, capital inflow, skills development and job creation. In terms of this Act, several special incentives are offered to EPZ companies including a corporate tax holiday, exemption from import duties, free repatriation of profits, factory facilities at economic rates and a guarantee of free repatriation of capital and profits.

Namibia is preparing to discontinue this regime. 

It will be replaced by the Special Economic Zones (SEZ), which will be established as soon as the SEZ Act has been enacted in 2022.

Please see the discussion on SEZ under Investment Concessions at "Get Started".

Tax registration

Payment of tax is a requirement in terms of Namibian law. Income from a source within Namibia or deemed to be within Namibia will be subject to tax in Namibia, unless a specific exemption is available. 

A newly registered business entity must apply for a taxpayer identification number and certificate from the Inland Revenue Department. Registration of tax is done through the NamRA. All application forms can accessed on the NamRA ITAS 

(Integrated Tax Administration System) website. An entity can appoint an accounting officer or agent to attend to the registration process on their behalf.

Corporate tax

In Namibia, the Corporate Income tax rate is a tax collected from companies. Its amount is based on the net income companies obtain while exercising their business activity, normally during one business year. The benchmark used refers to the highest rate for corporate income. 

Personal income tax

Namibia has a source-based tax system, which means that income from a source within Namibia or deemed to be within Namibia will be subject to tax in Namibia, unless a specific exemption is available.  

Individual tax is therefore calculated on the total amount, in cash or otherwise, received by or accrued to any person from a source within, or deemed to be within, Namibia, excluding receipts of a capital nature. 

Property taxes

Property rates are levies paid by all property owners including commercial, business, industrial, and residential and government.

Property rates are based on the municipal value of your property. The charges differ from area to area due to the value of the property.

This means that the charges differ from property to property. The municipal value of the property is worked out by considering the municipal value of property, which includes land and improvements.

Capital gains taxes

Capital gains are not taxed in Namibia. 

Custom duties

Other taxes

Workmen's compensation

Under the Employees Compensation Act 30 of 1941, employers are required to contribute to a fund that provides cash benefits for industrial injury, disability, and death. Contribution rates vary according to inherent occupational risk, from less than 1% in most low-risk commercial/administrative occupations to 8% for high-risk sectors (drilling, tunnelling, and rock-blasting). Employees whose annual remuneration exceeds NAD 81,300 are normally excluded from coverage. 

Social security contributions

Social security contributions are payable by the employer for employees working in Namibia. Social security is based on a principle of 50/50 contributions from employers and employees. It is calculated at 0.9% of earnings, with a minimum monthly contribution of NAD 2.70 and a maximum monthly contribution of NAD 81 each (i.e. the total maximum monthly contribution of both the employer and the employee will amount to NAD 162). 

Payroll taxes

Any remuneration paid by an employer to an employee will place an obligation on the employer to withhold employee taxes. The employee taxes are due on the 20th day of the month following the month during which the payment was made. The tax tables applicable to individuals are provided in the Taxes on personal income section of Namibia’s Individual tax summary. 

Annual duty

Annual duty is levied in terms of the Companies Act at an amount of NAD 6.5 for every NAD 10,000 (or part thereof) of the issued share capital of a company, with a minimum duty of NAD 120 per annum. Issued share capital includes ordinary shares, share premium, and preference shares.

Stamp duty

Certain transactions may attract stamp duty. The amount of stamp duty payable differs and is based on the nature of every individual transaction.

The basic transactions can be summarised above. 

Additional stamp duty of NAD 5 for every NAD 1,000 of debt secured is payable on the registration of a bond over immovable property. 

Transfer duty

Transfer duty is payable at 12% of the acquisition value where property is acquired by non-natural persons (a sliding scale applies to property purchases by natural persons). While it is normally payable by the buyer, the agreement for the sale of the property may determine the person liable to pay these costs. 

Property taxes

Property taxes are levied by municipalities based on municipal valuations of properties. 

Environmental levies

Namibia introduced environmental levies on the following products imported or manufactured locally:

• Carbon dioxide emissions from a wide range of vehicles, including trucks. Certain light bulbs.
• Certain lubricants.
• Pneumatic tyres.
• Disposable batteries. Certain plastic bags. 

Customs and excise duties

Namibia is a member of the Southern African Customs Union (SACU), and customs duties are not levied on intra-SACU trade (i.e. between Botswana, Lesotho, Namibia, South Africa, and Swaziland).

Customs duties are payable according to the Common Customs Tariff of SACU on imports from outside SACU. Preferential duty rates apply on imports from Southern African Development Community (SADC) countries, MERCOSUR countries, EFTA states, and in terms of the African Continental Free Trade Agreement, while goods may be imported free of customs duties from Zimbabwe in terms of the Namibia-Zimbabwe Free Trade Agreement. 

Excise duties are levied on local production of excisable products (e.g. cigarettes, liquor, fuel) and are included on most excisable products imported from another SACU country in terms of the duty at source procedures. Identical excise duty rates are applied throughout the SACU.

Importation of excisable products from outside the SACU is subject to customs duties and specific customs duties. Current specific excise/customs duty rates for the above-mentioned products are as follows:

Value-added tax (VAT)

VAT is a transaction tax, and the implications will vary for different transactions. Some transactions are taxed at a rate of 15% or 0% while other transactions are exempt from VAT. Input tax deductions may be claimed, subject to certain provisions.

VAT is levied on every taxable supply by a registered person. A taxable supply means any supply of goods or services in the course or furtherance of a taxable activity. A taxable activity means any activity that is carried on continuously or regularly in Namibia that involves the supply of goods or services for consideration. 

Double taxation agreements

Where Namibia has entered into a Double Tax Agreement (DTA) with the country where the foreign company resides, such entity will only be taxable in Namibia if it has established a Permanent Establishment (PE) in Namibia. If a PE exists, only the portion of income attributable to the PE will be subject to tax in Namibia.

Namibia has entered into DTAs with the following countries:

• Botswana 
• France
• Germany 
• India 
• Malaysia 
• Mauritius 
• Romania 
• Russian Federation
• South Africa
• Sweden
• United Kingdom

Legal framework and Investment protection

The Namibian legal system is comprised of Roman-Dutch Common law, Statutory law, Customary law and International law. The Attorney General, the Chief Justice, Judges, and Magistrates administer justice in the country. Appeals from the High Court are considered by the Supreme Court which is the final court of Appeal within Namibia. 

The Constitution of Namibia provides that the state is "a democratic and unitary state founded on the principles of democracy, the rule of law and justice for all". Consequently all application of laws related to business and investment have to be measured against the Constitution.

Since independence, the Namibian government has pursued free-market economic principles with a view to attracting foreign direct investment. There are certain legal and treaty measures that exist to provide protection. These apply equally alike to local investors as they do to foreign investors.

Expropriation

The Constitution of Namibia guarantees protection of private property in Article 16. The Foreign Investments Act of 1990 guarantees against expropriation of private property by government. However, private property may be expropriated where it is in the public interest and where due process is followed as set out in the Constitution, as well as the Agricultural (Commercial) Land Reform Act 6 of 1995.

Adequate and prompt compensation must be provided in cases of expropriation. 

Namibia is a signatory to and member of the Multilateral Investment Guarantee Agency (MIGA), an affiliate of the World Bank, which insures investors against loss of Investment to political problems in host countries. 

Dispute settlement

If a dispute arises, investors have the option to seek the intervention of the courts in resolving the dispute. Alternative dispute resolution methods are also available and encouraged.

Arbitration is governed by the Arbitration Act 42 of 1965. Parties opting to refer their present or future differences to arbitration must include an arbitration clause in their agreement. The authority of an arbitrator appointed by virtue of such an agreement is irrevocable, except by leave of the High Court or unless a contrary intention appears in the agreement. 

Industrial labour disputes can be adjudicated by the in terms of the Labour Act of 2007.

Arbitation in Namibia is furthermore facilitated by the following agreements to which Namibia is a signatory:

• The Convention on the Recognition and Enforcement of Foreign Arbitral Awards agreed at the United Nations Conference on International Commercial Arbitration held in 1958 in New York (“the New York Convention”) which aims to facilitate the recognition and enforcement of foreign arbitration agreements and awards in the same way as domestic arbitration agreements and awards
• The Model Law on International Commercial Arbitration of the United Nations Commission on International Trade Law (“UNCITRAL”) 1985 as amended in 2006. 
• UNCITRAL Arbitration Rules 1976, revised in 2010, amended by the addition of article 1 paragraph 4 in 2013. 

International investment agreements

• Namibia has ratified Bilateral Investment Treaties (BITs) with:

Austria, Finland, France, Germany, Italy, Malaysia, the Netherlands, Spain, and Switzerland.  Angola, Cuba, China, the Russian Federation, and Vietnam have signed investment agreements with Namibia, but the agreements are not in force. 

There is furthermore a Trade, Investment, and Development Cooperation Agreement (TIDCA) btween SACU and the United States.

• Namibia has double taxation agreements with: 

Botswana, France, Germany, India, Malaysia, Mauritius, Romania, the Russian Federation, South Africa, Sweden, and the United Kingdom. 

Repatriation of funds

Namibia has a law in place known as Exchange Control Regulations of 1961. Responsibility for the execution of this law rests with the Minister of Finance and the Treasury with certain powers being delegated to the Bank of Namibia, Exchange Control Department. This is done in conjunction with the South African Reserve Bank as a result of Namibia forming part  of the Common Monetary Area (includes South Africa, Lesotho and Swaziland.

These Exchange control regulations aim to limit and control the selling of foreign currencies. This function has also been delegated to commercial banks which hold Exchange Control Rulings and are thereby authorised to act on behalf of the Bank of Namibia. 

The Foreign Investments Act provides for protection from exchange control rules to registered companies which hold a Certificate of Status Investment. These companies therefore have the right to repatriate all capital, royalties, dividends and profits free of all taxes or any other charges on foreign exchange transactions. 

Intellectual property

Namibia is a member of the World Intellectual Property Organization (WIPO) and its various conventions and protocols, as well as the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), and the African Regional Industrial Property Organization. The Country has laws in place aimed at the registration and enforcement of intellectucal property rights. Foreign investors also benefit from the same rights as local investors.

Intellectual Property Rights to intellectual property are protected under Namibian law largely by statute but also at common law. Some of the statutes overlap with the common law and with each other. 

Patents, designs and trademarks are governed by the Industrial Property Act 1 of 2012. The common law recognises that an unregistered mark used by a trader which distinguishes such trader's goods or services from those of others is of a proprietary nature and deserves protection. 

Any of the works listed in the Copyright and Neighboring Rights Protection Act 6 of 1994 are eligible for copyright protection. Copyright comes into existence without registration and the Act prohibits the unauthorised reproduction, publication, broadcast, performance, transmission or adaptation of a literary, dramatic or musical work.

Infringement procedures are also set out in the different legislative texts.

The following IPR treaties and agreements have been signed/ratified by Namibia. For more information see WIPO commitments

International agreements

WIPO - Berne Convention

Berne Convention for the Protection of Literary and Artistic Works (1886) establishes minimum standards regarding the national protection of copyrights in signatory countries, and guarantees the application in these countries of the national copyright law to artistic works originating from another signatory country.

Link to WIPO website

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Relevant documents

WIPO Berne Convention

WIPO Convention

Convention Establishing the World Intellectual Property Organization (1967)

Link to WIPO website

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Relevant documents

WIPO Convention

WIPO - Paris Convention

The Paris Convention for the Protection of Industrial Property (1883) establishes industrial property protection rules regarding patents, marks, industrial designs, trade names, geographical indications and the repression of unfair competition. Its provisions include regulations regarding the national treatment, the right of priority and a number of common rules.

Link to WIPO website

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Relevant documents

WIPO Paris Convention

WIPO - Madrid Agreement (Registration of Marks)

Madrid Agreement Concerning the International Registration of Marks (1891)

Link to WIPO website

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Relevant documents

WIPO Madrid Agreement (Marks)

ARIPO - Harare Protocol

The Protocol empowers the ARIPO Office to receive and process patent and industrial design applications on behalf of states party to the Protocol.

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Harare Protocol

ARIPO - Banjul Protocol

The protocol establishes a trademark filing system along the lines of the Harare Protocol. Under the Banjul Protocol an applicant may file a single application either at one of the contracting states or directly with the ARIPO Office and designate states in the application where he wishes his mark to be protected.

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Banjul Protocol

African Organization for Intellectual Property

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Agreement Revising the Bangui Agreement of March 2, 1977, on the Creation of an African Intellectual Property Organization (Bangui (Central African Republic), February 24, 1999) Bangui Agreement Relating to the Creation of an African Intellectual Property Organization, Constituting a Revision of the Agreement Relating to the Creation of an African and Malagasy Office of Industrial Property (Bangui (Central African Republic), March 2, 1977) Regulations Under the Agreement Revising the Bangui Agreement of March 2, 1977 on the Creation of an African Intellectual Property Organization (of February 24, 1999)

WTO - TRIPS

Established under the World Trade Organization, the TRIPS Agreement plays a critical role in facilitating trade in knowledge and creativity, in resolving trade disputes over intellectual property, and in assuring WTO members the latitude to achieve their domestic objectives. The Agreement is legal recognition of the significance of links between intellectual property and trade.

WIPO - Patent Cooperation Treaty (PCT)

Patent Cooperation Treaty (1970)

Link to WIPO website

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WIPO Patent Cooperation Treaty

Competition law

The Competition Act 2 of 2003 was issued to safeguard and promote competition in the Namibian market and to establish the Namibian Competition Commission.

The Namibia Competition Commission is tasked with providing consumers with competitive prices and product choices; promoting employment and advance the social economic welfare of Namibians; expanding opportunities for Namibian participation in world markets while recognizing the role of foreign competition in Namibia; ensuring that small undertakings have an equitable opportunity to participate in the Namibian economy; and promoting a greater spread of ownership, in particular to increase ownership stakes of historically disadvantaged persons.

Economy and production

Namibia is an open economy, whose tertiary industry remains the greatest GDP contributor. This is followed by the primary and secondary industries. 

The Bank of Namibia retains the sole mandate in terms of Section 19 of the Bank of Namibia Act, 1997 (Act No. 15 of 1997) to produce and issue Namibian currency. The Namibian dollar (N$) is pegged one to one (1:1) to the South African Rand (ZAR).

The key economic sectors within Namibia are: Agriculture, Fisheries, Manufacturing, Mining, Tourism and Service Industry. 

Also see:

World Bank Country Profile: Namibia

Market access

Namibia is a member of the WTO as well as a number of regional groupings. Namibia has a preferential trade agreement with Zimbabwe, governed by rules of origin, came into force on 17 August 1992. Goods grown, produced or manufactured in Namibia may be imported into Zimbabwe free of customs duty, and vice versa, if they are wholly produced/obtained in the country of origin.

Namibia is also a member of the Southern African Customs Union (SACU) 1990. In terms of the SACU agreement, there is free movement of goods among the members. Article 2 of the agreement prevents members from imposing duties or quantitative restrictions on goods grown, produced or manufactured in the common customs area. Duties are levied on goods upon entry into the common customs area, but once inside it, no further duties are charged.

Moreover, Namibia is a member of the EFTA and SACU Free Trade Agreement, the Trade, investment and development cooperative agreement between the United States and the Southern African Customs Union, the SADC  Economic Partnership Agreement (EPA) with the European Union, as well as the African, Caribbean and Pacific–European Union (ACP–EU) trade agreement, granting non-reciprocal preferential access to some of the ACP products into the EU market. 

The above agreements provide free, and or preferential access to the Sothern African, US and EU markets.

Namibia’s strategic location on the southwestern coast of Africa places it in an ideal position to facilitate trade between landlocked southern African countries and global markets through four well-developed transport corridors. The Walvis Bay Corridor Group promotes trade through four corridors: the Trans Kalahari Corridor (Namibia, Botswana, and South Africa), Walvis Bay-Ndola-Lubumbashi Corridor (Namibia, Zambia, and the Democratic Republic of Congo), the Trans Cunene Corridor (Namibia and Angola) and the Trans Oranje Corridor which links the port of Lüderitz with the Northern Cape Province in South Africa and the capital Windhoek. see Namibia Trade Directory

In addition, Namibia is member of the following regional organizations and trade agreements:

Southern African Development Community

SADC is a regional organization bringing together countries in the Southern Africa region. It provides for cooperation in a number of areas through legally-binding protocols. The SADC Free Trade Area provides for common external tarrifs on a range of goods. It is envisaged that the free trade area will be integrated into the Continental Free Trade Area.

African Growth and Opportunity Act (United States)

Under the African Growth and Opportunity Act (AGOA) Sub-Saharan African countries benefit from duty-free access to the United States for an additional range of 1,800 products that are excluded from the Generalized system of preferences. These include most textiles and apparel; watches; and most footwear, handbags, and luggage products. With regards to apparels, the textiles and yarns must in general originate from Sub-Saharan African countries or the United States.

Tourism

The tourism sector is the fastest growing in the economy in terms of contribution to GDP. Tourism is the second largest contributor to the country’s GDP after mining and is one of the country’s dominant industries and provides significant employment opportunities. Namibia is a secure investment environment primarily based on the political stability.

Namibia has a unique mix of wildlife, spectacular scenery, and diverse cultures.  Natural attractions include the Namib Desert, which is the oldest desert in the world; the Fish River Canyon, which is the second-largest canyon after the Grand Canyon; the world-famous sand dunes at Sossusvlei; the Skeleton Coast with its extraordinary landscapes; and Etosha National Park, one of the largest game reserves in Africa.- See Official Website of the International Trade Administration

The disruption in the industry that was caused by COVID19, is most likely to reshape Namibia’s tourism industry and could create new opportunities for investors. Opportunities in the tourism industry include investment in accommodation facilities and PPPs in community conservancies.

Education

Namibia allows the establishment of private primary, seconday and tertiary education institutions subject to compliance with the national laws. Opportunities exist to establish higher education centres aimed at students from the neighbouring countires, where shortages of places in home countries exist. 

Agriculture

The agricultural sector directly or indirectly supports over 70% of the total population of Namibia, and its main sources of income are:( i) livestock, beef and mutton production,  and (ii) agronomic production. 

There are opportunities available in value addition to agricultural products.

According to the NIPDB, the following opportunties are available in agriculture:

Water

The Government of the Republic of Namibia is implementing Namibia Water Sector Support Program (NWSSP) in a bid to address the water supply and sanitation challenges that is affecting the country. The following opportunities have been identified by the NIPDB, in the area of water in Namibia:

Renewable energy

Namibia has a wealth of renewable energy resources. It boasts the world's second highest solar irradiation regime, high wind power, large supply of invasive plant species bioenergy, hydropower potential, as well a green hydrogen. The following opportunities have been identified for investment in the area of renewable energy:

Housing and Real estate

Namibia currently has a deficit of affordable serviced land and housing, and has opportunities for investment and operations in this field. 

From a legislative and policy perspective, the Urban and Regional Planning Act of 2018, the amended Local Authorities Act of 2018, the National Housing Enterprise Act of 2000, and the Flexible Land Tenure Act of 2012 cohesively work together to expedite and enable dual-land development processes in Namibia. 

The state continues to act as an enabler by contributing to people-driven initiatives, facilitating the funding efforts of initiatives such as the Ongos Housing Development Programme alongside private investors.

From an investor’s perspective, opportunities lie in the lower mass market, where the need for affordable housing is great. Another rather promising opening is student accommodation complexes that can accommodate students from low-income households. Housing Finance Africa

Please see below for a possible investment project presented by the NIPDB:

Logistics

Namibia has the potential to be the transport and logistic hub of the Southern Africa as it strategic location also means that it is poised to be the new gateway to the rest of the continent. 

Namibia currently has the following corridors facilitated through the Walvisbay Corridor Group : The Port of Walvis Bay and the Port of Lüderitz; the Walvis Bay-Ndola-Lubumbashi Development Corridor (WBNLDC) links the Port of Walvis Bay with Zambia, the Southern Democratic Republic of Congo (DRC) and Zimbabwe; the TrasnsKalahari orridor stretches over 1,900 km linking the Port of Walvis Bay with Botswana and South Africa. Walvis Bay-Windhoek-Gaborone-Johannesburg/Pretoria; the Trans-Cunene corridor links the Port of Walvis Bay with southern Angola up to Lubango; and the rans-Oranje Corridor (previously known as the Southern Extension) is a tarred road linking the Ports of Walvis Bay and Lüderitz with the Northern Cape Province of South Africa. 

There are a few investment opportunities identified in relation to logistics:

Manufacturing

The manufacturing sector plays a strategic role in economic development and is a component of industry that presents greater opportunities for sustained growth, employment, and income inequality and poverty reduction. Manufacturing activities in the country are concentrated in the subsectors of meat processing, fish processing, other food and beverages, and mineral beneficiation. The latter largely represents the smelting of copper and zinc ore, and the cutting and polishing of rough diamonds. Manufacturing sector

Manufacturing activities in the country are concentrated in the subsectors of meat processing, fish processing, other food and beverages, and mineral beneficiation. The latter largely represents the smelting of copper and zinc ore, and the cutting and polishing of rough diamonds.

Namibia’s manufacturing sector has considerable investment potential as the domestic economy is relatively well endowed with natural resource factors such as raw materials, required labour force, abundant land, and rich minerals. The following opportunities can be tapped into:

• Steel manufacturing and metal fabrication
  
• Automotive parts
  
• Fodder and Pet Food Production
  
• Jewellery industry
  
• Production of Chemicals
  
• Manufacturing of leather, wool and textiles
  

Private Public Partnerships (PPP)

Recognizing the importance of leveraging PPP as an instrument for achieving its social objectives (such as black empowerment, increased employment for the historically disadvantaged, encouraging managerial and entrepreneurial capability in the local population, stimulating small and medium enterprises, achieving economic equality through the ‘Transformation Economic and Social Empowerment Framework’), the namibian Govenrment developed the Namibia Public Private Partnership (PPP) Policy. This policy is implemented by the PPP Unit, under the Minstry of Finance. 

On 16 June 2021, the Minister of Finance, Iipumbu Shiimi announced the top five priority projects under the public private partnership (PPP) initiative: the Wastewater Direct Reclamation Plant (City of Windhoek), Otjiwarongo Wastewater Treatment Works (Otjiwarongo Municipality), Desalination Water Supply Project (NamWater), Concentrated Solar Power with PV, (NamPower, and Development of Student Village (Ministry of Higher Education, Training and Innovation). See Priority projects for PPP

Some of these projects are others are included in the booklet prepared by the NIPDB, which can be accessed below.

Why invest in the country?

Country data

Country map

Country Map

Encyclopedia Britannica Namibia | History, Map, Flag, Population, Capital, & Facts | Britannica