When compared to some of its neighbouring countries in Africa, Namibia remains politically stable. Political governance is strong, with the government subject to judicial review.
Key features that make investing in Namibia an attractive option are a government policy that supports and encourages free enterprise; the incentives available for manufacturing and the export of manufactured goods; and a highly developed financial sector.
Because Namibia is located near the bustling economies of South Africa, Angola and Botswana, it provides good cross-border networking opportunities for businesses to take advantage of.
Thanks to the country’s financial sector and its financial market’s continual expansion, Namibia presents strong opportunities for economic growth.
Most food and consumer goods purchased in Namibia are imported from South Africa, alluding to import-substitution opportunities.
A five-year, N$223 billion infrastructure development plan began in early 2015 to boost Namibia’s status as a regional transport hub.
Moreover, the country’s real estate sector is experiencing a boom in prices and development due to a housing shortage and high demand from abroad.
There are also opportunities for foreign investors in the natural resources sector, thanks to the country’s positive medium- to long-term outlook. The Namibian government has provided incentives aimed at stimulating manufacturing, attracting foreign investment and promoting exports. To take advantage of these incentives, companies must be registered with the Ministry of Trade and Industry and the Ministry of Finance.
Incentives for manufacturing enterprises include, a 50% tax reduction for five years, phased out over a further ten years on a straight-line basis; accelerated depreciation on factory buildings, which can be written-off over ten years; and export promotion costs are deductible between 125% to 175%.
If you’re looking to upskill Namibians, training costs are tax deductible at 125%, and direct production wages deductible at 125%.
Depending on the sector you’re interested in, industrial studies can be made available to you at 50% of cost. Furthermore, cash grants of 50% of approved export promotion expenses and new investment or relocation packages are also available.
Incentives for exporters of manufactured goods include an 80% allowance on taxable income derived from the export of manufactured goods (except for fish and meat products).