Namibia is part of the Common Monetary Area with South Africa, Lesotho and Swaziland. The Namibian dollar is pegged to the SA rand. The financial sector is sophisticated and consists of a number of commercial banks with international ties to facilitate international banking and other sources of finance geared towards enterprise development.Namibia is endowed with mineral and natural resources and offers abundant investment opportunities in the sectors such as mining, agriculture, fishing, energy, tourism, manufacturing and services. The economy is predominately reliant on the primary sector, with mining, fisheries and agriculture as leading sectors. Mining is the biggest contributor to the Gross Domestic Product at around 11.1%. Though the country continues to receive investment from international investors, more opportunities remain in the exploration and mining of natural resources. Investment opportunities are also available in the infrastructure development through the public private partnership (ppp).
In its drive towards fostering a business friendly environment and economic diversification, the government of Namibia has adopted deliberate policies and incentive measures aimed at facilitating investments particularly in the manufacturing and local value addition.
Namibia values long-term relationships with foreign investors. The government has put in place enabling environment to increase investment into the country. Among others, is the investment promotion act 2016 which clearly defines the role and responsibilities of both the investor and government; the public private partnership act (PPPs) aimed at encouraging smart partnership with local enterprises; the growth at home strategy that provides a road map for the execution of Namibia’s industrial policy.
To further improve the easy of doing business, the Government of the Republic of Namibia through the Ministry of Industrialization, Trade and SME Development launched (2016) the One-stop shop called the Integrated Client Service Facility project that is aimed at creating a seamless and responsive client services to investors to start a business in Namibia. Through NamBizOne/ One Stop Shop, investors can learn more about Namibia’s potential as a business gateway to Africa and as an exciting place to start a business https://www.doingbusinessnamibia.com/.
The Single Window Project is also in the pipeline and is expected to be launched in 2018. The project will simplify the import, export and transit customs procedures by automating the exchange of information between the agencies involved in trade.
In terms of market access, Namibia is strategically locally located and offers market access to the 14 Southern African Development Community (SADC) with a population of about 280 million and Southern African Customs Union (SACU) comprised of Botswana, Namibia, Lesotho, Swaziland and South Africa. Namibia has ongoing trade relationships with a number of other national trading partners and economic blocks. Currently, India and SACU countries are negotiating trade agreement which is expected to increase the flow of trade and investments between the two nations.