A Gem Worth Investing In A PRESENTATION

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NAMIBIA
A Gem Worth Investing InA PRESENTATION
by Namibia Investment Centre MINISTRY OF TRADE
AND INDUSTRY
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Presentation Outline

• Macroeconomic Overview
• Key Economic Sectors
• Legal and Policy Framework on Investment Trade
• Market Access
• Potential Areas for Investment
• Services provided by the Ministry of Trade and
  Industry

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Namibia at a Glance
Area 824,269 square kilometres Population
(2007) 2,055 million Population growth rate
2.6  Language English is the official
language
NAMIBIA
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Macroeconomic Overview
GDP (2006) N45.87 billion (US6.1 billion)
GDP Growth (2002-2006) 4.5 average GDP Per
Capita (2006)   N 48,000(US6,990) Inflation
Rate (2007) 6.7 average
WINDHOEK, Capital City of Namibia
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Macroeconomic Overview Cont

• TAXATION
• Income tax
• 17.5 - 35
• General corporate tax
• 35
• Value added tax (VAT)
• 15
• Withholding tax (non-residents)
• 10 of declared dividends
• Export Processing Zone (EPZ)
• Zero Corporate Tax

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Macroeconomic Overview Cont
Main Exports 52 minerals (70 diamonds), 25
fish and fish products, 13 live animals, meat
and animal products Main Export Destinations
United Kingdom, South Africa, Spain, Germany,
Italy, France, Japan, Switzerland, United States,
Angola and the Netherlands Main Sources of
Imports South Africa, Germany, France, Italy,
Japan, United Kingdom, United States and China
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Key Economic Sectors

• Sectors
• Mining
• Tourism
• Agriculture
• Fisheries
• Manufacturing
• Services

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Legal and Policy Framework onInvestment

• Foreign Investment Act, No. 24 of 1993
• Main provisions
• Promotes free market economy in Namibia
• Equal treatment of national and foreign investors
• Full protection of investment
• No prescription of local participation
• Repatriation of profits
• Responsible Authority
• Namibia Investment Center,
• Ministry of Trade and Industry

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Legal and Policy Framework cont.

• Export Processing Zone (EPZ) Act, No. 9 of 1995
• The Namibian EPZ Regime
• Vehicle for attracting export-oriented domestic
  and FDI into the manufacturing sector
• Tax and duty free environment
• Export oriented (outside SACU)
• Local sales are conditional and dutiable
• Free dealing in foreign currency
• Free repatriation of capital and profits
• Free location of enterprise anywhere in Namibia
• EPZ has attracted investments valued over N 5,2
  billion and created more than 10,000 direct jobs.
  
• Responsible Authority
• The Offshore Development Company

Offshore Development Company (Pty) Ltd
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• SPECIAL INCENTIVES FOR MANUFACTURERS AND
  EXPORTERS
• Corporate tax 18 for a period of 10 years,
  where after it will revert to the general rate of
  35
• Value Added Tax (VAT) All inputs paid on
  acquisition and import of manufacturing machinery
  and equipment may be claimed
• Establishment Tax Package Negotiable rates and
  terms by special tax packages.
• Special Building Allowance Factory buildings
  written off at 20 in first year and balance at
  8 for 10 years.
• Transportation Allowance Allowance in respect of
  land-based transportation by road or rail
  amounting to a 25 deduction from the total cost
• Export Promotion Allowance Additional deductions
  from taxable income of 25.
• Cash Grants 50 of direct cost of approved
  export promotion activities.
• Exporters of Manufactured Goods 80 allowance on
  taxable income derived from the export of
  manufactured goods (excluding meat and fish),
  whether produced in Namibia or not.

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Preferential Market Access

• SACU
• SADC FTA
• AGOA
• ACP-EU Cotonou Agreement
• Bilateral Trade Arrangements
• Most Favoured Nations trade arrangements with
  Angola, DRC, Ghana, Tunisia, Cuba, India, China,
  DPR Korea, Malaysia, Romania and Russia
• Reciprocal Investment Promotion and Protection
  Agreements with several countries including in
  Europe

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• SOUTHERN AFRICAN CUSTOMS UNION (SACU)
• Botswana, Lesotho, Namibia, Swaziland and RSA
• Common external tariff
• Free movement of products among the five
  countries
• No customs duties
• No import/export restrictions
• No export/import license
• No rules of origin (certificates of origin not
  required)
• No customs control documentation (with
  exceptions)
• Double Taxation Avoidance Agreement with RSA
• Freedom of transit
• Protection of infant industries for BLSN
  countries
• No transport rate discrimination
• Common trade relations with third parties
• Common policies and cooperation in the areas of
  industrial development, agriculture, competition,
  unfair trade practices

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• SADC FREE TRADE AGREEMENT

• 13 member states
• A market of over 190 million inhabitants
• Tariff reduction elimination for all trade in
  goods
• 85 of trade to be duty free by 2008 and 100 by
  2010
• Better market access than accorded to RSA
  (differentiated market access offers)
• Goods subject to specific rules of origin
• Trade in services liberalization under
  negotiations

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AFRICA GROWTH AND OPPORTUNITY ACT (AGOA)

• Duty and quota-free market access to the US
  (lt8,000 products)
• Rules of origin apply
• Special regime for textiles and apparels
• Namibia has been granted LDC status (less
  stringent rules of origin)

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SACU-USA FREE TRADE AGREEMENT

• Pursuing a comprehensive FTA, consistent with the
  WTO provisions
• Establish mutually beneficial trade and
  investment arrangement
• Expand trade and market access opportunities
• Address non-tariff barriers
• Promote agricultural and industrial development
• Support regional integration in Africa
• Promote broader development cooperation
• Asymmetrical treatment and S D treatment
• Result in stable long-term trade and investment
  relationship

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Potential Areas for Investment mining and energy
Namibia has extensive mineral deposits. Its
diamonds and uranium are world-class as are its
gold, copper, lead, zinc and other base metals, a
wide variety of semi-precious stones and many
types of dimension stone. Value-addition is
encouraged in refining of base metals and other
minerals, like manganese, processing of marble
and granite, and cutting and polishing of
precious and semi-precious stones. Good prospects
for development of the jewelry industry. Geophysic
al studies indicate good prospects for oil and
gas exploration.
Zebra Marble
Gold
Diamonds
Namibian Rose Marble
Tourmalines
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fisheries
Namibias marine resources are among the richest
in the world. Fishing grounds are unpolluted. The
nutrient rich Benguela current produces numerous
commercially important species of fish and
shellfish. Many opportunities exist in value
addition activities and mariculture. Mariculture
potential exists to develop kob, blacktail,
turbot, cod and halibut as well as crustaceans,
molluscs and seaweed. Freshwater (aquaculture)
potential exists for tilapia, catfish and
tigerfish.
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agriculture/agro-industry

• 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, olive oil, jojoba and cut flowers.
• Cotton production and establishment of a cotton
  ginnery.

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tourism
Spectacular scenery and wildlife, excellent
infrastructure, warm climate and friendly
atmosphere ingredients for a burgeoning tourism
industry
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manufacturing

• Exceptional scope for manufacturing investment
  and value addition to local natural resources for
  domestic, regional and international export
  markets.
• Glassware and ceramics
• Steel manufacturing
• Electronic assembly
• Automotive components

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POTENTIAL AREAS FOR BUSINESS AND INVESTMENT
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• Potential areas for investment business
  partnerships
• Pharmaceuticals
• Steel manufacturing
• Manufacturing/assembly of electronic/electrical
  components
• Mineral prospecting and exploration
• Building materials production
• Textiles and garments
• Cutting polishing of semi-precious precious
  stones
• Port and harbour infrastructure and facilities
• Hospitality and tourism facilities

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• Potential areas for investment business
  partnerships continued .
• Leather and leather products
• IT and PC assembly
• Construction and physical infrastructure
  development
• Aquaculture and mariculture
• Poultry and piggery
• Cotton production and ginnery
• Hotel and restaurants
• Manufacturing of plastic products
• Furniture assembly

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why invest in Namibia?

• Peace, stability and good governance
• First world road, rail and air infrastructure
• Excellent telecommunications network
• Wide inter-continental market access
• Liberal investment regime
• Stable labour environment
• Generous investment regimes
• Fast, efficient and transparent bureaucracy
• Low inflation
• Stable foreign exchange reserves
• Strategically located, low cost and efficient
  port
• Young and trainable labour force
• Good housing and recreational facilities

Namibia A Gem Worth Investing In
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MINISTRY OF TRADE AND INDUSTRY

• INVESTMENT BUSINESS FACILITATION SERVICES
• Business registration and Licencing
• Information on Investment Opportunities and
  Incentives
• Facilitation of entry visas, work and resident
  permits
• Registration of trademarks, designs and patents
• Issuance of import/export permits
• Industrial parks, SME modules, CFCs and slaughter
  houses.
• Investor aftercare services
• Organisation of in/outward investment missions
• Organisation of trade fairs (in- outward)
• Facilitation of utility services provision

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Contacts

• OFFICE OF THE PERMANENT SECRETARY
• Dr. Malan Lindeque
• Tel [phone] Fax [phone]
• Email mlindeque_at_mti.gov.na
• NAMIBIA INVESTMENT CENTRE
• Ms. Bernadette Artivor
• Executive Director
• Tel [phone] Fax [phone]
• Email nic_at_mti.gov.na or artivor_at_mti.gov.na
• OFFSHORE DEVELOPMENT COMPANY
• Mr. Nghidinua Daniel
• Acting Chief Executive Officer
• Tel [phone] Fax [phone]
• Email odc_at_odc.com.na

• INDUSTRIAL DEVELOPMENT
• Mr. Steve Motinga
• Director
• Tel [phone] Fax [phone]
• Email motinga_at_mti.gov.na
• INTERNATIONAL TRADE
• Ms. A. Mwanyangapo
• Director
• Tel [phone] Fax [phone]
• Email mwanyangapo_at_mti.gov.na
• INTERNAL TRADE
• Mr. E. Kamboua
• Director
• Tel [phone] Fax [phone]

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NAMIBIAWELCOMES YOU
THANK YOU