#1INVESTING IN NAMIBIA EMBASSY OF THE REPUBLIC OF NAMIBIA PRESENTATION BY AMBASSADOR BONNY HAUFIKU#2INVESTING IN NAMIBIA Republic of Namibia MINISTRY OF TRADE AND INDUSTRY Namsona INVESTMENT CENTRE#3NAMIBIA Location: Southern Africa Bordering the South Atlantic Ocean, Angola, Zambia, Zimbabwe, Botswana and South Africa Biggest export partners: Botswana (22% of exports) South Africa (20% of exports) Switzerland (15% of exports)#4Epupa Enyandi Swartbooisdrif Epembe Etanga Tsandi Okahao Ruacana Outapi Oshikango Ongenga Eenhana Oshikuku OHANGWENA Oshakati Opuwo Orupembe OMUSATI Otjondeka OSHANA Ondangwa OSHIKOTO Oshivelo KUNENE NAMIBIA Katima Mulilo Schuckmansberg Kalimbeza Nkurenkuru Kongola Rundu Mukwe Sibbinda CAPRIVIChinchimane Ngoma Bagani Linyanti Sangwali KAVANGO Sesfontein Warmquelle Möwe Bay Kamanjab Palmwag •Otjikondo Terrace Bay Okaukuejo Tsumeb Omatako Otavi Grootfontein Otjituuo Tsumkwe Kombat OTJOZONDJUPA Outjo Gam Fransfontein Khorixas Otjiwarongo Okakarara Toscanini Kalkfeld Omajete Osire Uis Okombah Omaruru Otjozondu Hochfeld Otjinene OMAHEKE Summerdown Mile 108 Epukiro Du Plessis ERONGO Wilhelmstal Steinhausen Talismanus Rietfontein Karibib Usakos Henties Bay Okahandja Otjihase Drimiopsis Omitara Buitepos Otjimbingwe Wlotskasbaken Swakopmund Walvis Bay Arandis Seeis Witvlei Gobabis WINDHOEK KHOMAS Groot Aub Dordabis Otjikoto Rehoboth ⚫ Leonardville Gobabeb Homeb Tsumis Aminuis Solitaire Klein Aub Rietoog Duineveld Schlip Kalkrand Aranos Stampriet Sesriem Mariental Sossusvlei Maltahöhe Gochas HARDAP Gibeon Asab Mata Mata Helmeringhausen. Tses Berseba Koës Bethanien Lüderitz Keetmanshoop Aus Rietfontein Seeheim Aroab KARAS Grünau Rosh Pinah Ai-Ais Karasburg Ariamsvlei Oranjemund Warmbad Noordoewer Veloorsdrif Independence: 21 March 1990 Capital: Windhoek Area: 824,292 km² Coastline: 1,572 km Population: 2,484,780 Official language: English 13 national languages Most frequent mother tongue: Oshiwambo (49%) Climate: hot and dry desert conditions with limited rainfall#5POLITICAL SYSTEM Government: Republic (bicameral system) Member of the Commonwealth of Nations Chief of State and Head of Government: President Dr. Hage Geingob Prime Minister: Saara Kuugongelwa-Amadhila Cabinet appointed by the President from among the members of the National Assembly Namibia is a stable multiparty and multiracial democracy. The protection of human rights is enshrined in the Namibian Constitution. Namibia has signed and ratified the UN Convention against Corruption and the African Union's Convention on Preventing and Combating Corruption.#6MAIN EXPORT PRODUCTS Windhoek AGER PREMI Windhoek LAGER#7NATURAL RESOURCES Diamonds Tungsten Copper Zinc Uranium Salt Gold Hydropower Silver Fish Lead Tin Lithium Cadmium . • ● High-quality diamond deposits make Namibia the top destination for gem-quality diamond mining World's third largest producer of diamonds based on the production value (dollars per carat) Forth largest producer of uranium, accounting for 8% of the world's production#8· INDUSTRIAL MINERALS AND GEMSTONES Namibia is heavily reliant on its mining industry In 2010 the diamond production increased by 42% Diamond is chiefly mined by NAMDEB and by the De Beers Marine Namibia (DMN). Production from land and marine deposits of DMN accounted for almost 89% of the total diamond production in 2010 The Namibian Government is working towards forming a substantial domestic market for diamond cutting#9INDUSTRIAL MINERALS AND GEMSTONES In 2010 Namibia's gold production increased by 30% AngloGold Namibia (Pty) Ltd operates the Navachab gold mine and requested permission to extend the mining license and the mining area until 2030 ● Weatherly International Plc operates the Matchless and Otjihase mines (silver, copper, gold) Other players in the copper sector include Sabre Resources Ltd, Takoradi Ltd of Australia and INV Metals Inc of Canada • Chinese foreign investments particularly in the uranium sector, projected to reach USD 6 billion by 2016#10NOTABLE COMPANIES IN OTHER Since. 1920 SECTORS Windhoek LAGER PREMIUM QUALITY Brewed using only malted . • • . First National Bank (FNB) Namibia Holdings -largest bank Bidvest Namibia - largest fisheries company Mobile Telecommunications Limited (MTC) largest telecom company - Namibia Breweries - largest brewery company Ohlhaver & List Group (O&L) - largest private holding (supermarket chain, fishery, brewery, tourism)#11INVESTMENT CLIMATE Namibia is a stable, democratic country and the Government is committed to stimulating economic growth and employment through foreign investment There is no local participation requirement, but the Government is emphasizing the need for investors to partner with Namibian-owned companies and/or have a majority of local employees The Ministry of Industrialization, Trade and SME Development is responsible for carrying out the provisions of the Foreign Investment Act#12INVESTMENT CLIMATE Factors facilitating Foreign Direct Investment (FDI): ● ● · Political stability Favourable macroeconomic environment Independent judicial system. Protection of property and contractual rights Confidence in the financial institutions Good infrastructure by regional standards Access to South Africa Access to Southern African Customs Union (SACU) Access to Southern African Development Community's Free Trade Area Access to markets in Europe#13GATEWAY TO SOUTHERN AFRICA THE SADC MALL Main Entrance Democratic Republic of Congo 66 million customers Angola 18.5 million customers Namibia 2.1 million customers Zambia 12.9 milion customers Botswana 1.95 million customers South Africa 49.3 million customers Zimbabwe 12.5 million customers Tanzania 43.7 million customers Malawi 15.2 million Mozambique 22.9 million customers N#14FOREIGN INVESTMENT The Foreign Investment Act (FIA) governs the foreign direct investment and provides for: • • equal treatment of foreign investors and Namibian firms possibility of fair compensation in the event of expropriation international arbitration of disputes the right to remit profits and access to foreign exchange Namibia has ratified Reciprocal Promotion and Protection of Investment Agreements (RIPPA) with Switzerland, Malaysia, France, Germany, the Netherlands, Cuba, Finland, Spain, Austria, Angola, Vietnam and Italy. The Agreements with China and Russia have yet to be ratified.#15LIMITS ON FOREIGN CONTROL • Foreigners must pay 10% non-resident shareholders tax on dividends There are no capital gains or marketable security taxes, although some capital gains are taxed as normal income As a member of the Common Monetary Area, the Namibian Dollar (NAD) is pegged one-to-one with the South African Rand#16INVESTMENT INCENTIVES • • Aimed at stimulating manufacturing, attracting foreign investment and promoting exports Companies must be registered with the Ministry of Industrialization, Trade and SME Development and the Ministry of Finance Namibia has an Export Processing Zone (EPZ) regime offering favourable conditions to companies wishing to manufacture and export products By 2013 there were some 20 EPZ companies in operation, mostly linked to minerals beneficiation EPZ benefits include no corporate tax, no import duties on the importation of capital equipment or raw materials, and no VAT, sales tax, stamp or transfer duties on goods and services required for EPZ activities#17• NAMIBIA INVESTMENT CENTER (NIC) Namabra INVESTMENT CENTRE Namibia's official investment promotion and facilitation office First point of contact for potential investors • Offers comprehensive services from the inquiry to the operational stages • Provides general information packages and advice on investment opportunities, incentives and procedures • • Assists investors in minimizing bureaucratic red tape, including obtaining work visas for foreign investors, coordinating with government ministries and regulatory bodies Evaluates the credibility of potential investors and its decisions are forwarded to the Minister of Industrialization, Trade and SME Development for final approval http://investnamibia.gov.na#18NATIONAL DEVELOPMENT PRIORITY SECTORS Windhoek REMIU Windhoek LAGER Manufacturing Logistics Agriculture Tourism ROAD TRAIN Namibia Endless horizons Network Namibia Event 2011 A gem worth investing in...#19• • . • INVESTMENT OPPORTUNITIES: MINING AND ENERGY Exploration, prospecting, mining and beneficiation Oil and gas exploration Hydro-power, wind, solar, biomass power generation RE systems for self-supply (e.g. for commercial enterprises, industry, private households, agricultural enterprises) RE mini grids for rural electrification (for REDS or municipalities) RE-Plant > 1 MW bis > 5 MW (implementation via REFIT Programme) RE large-scale plants > 5 MW (for NamPower through public tenders/competitive bidding)#20INVESTMENT OPPORTUNITIES: MANUFACTURING AND PROCESSING a NP Processing of fruits, vegetables, fish and beef Automotive parts and components Fertiliser and petrochemicals. Wood processing and furniture making Pharmaceuticals Assembling of electronic devices and components Steel and glassware manufacturing Production of textiles and garments Manufacturing of leather products (footwear, clothing, upholstery etc.)#21INVESTMENT OPPORTUNITIES: TRANSPORT AND LOGISTICS High demand for transport and logistics services (e.g. road, air and ocean freight solutions) Customized logistics solutions for sectors such as mining, agriculture, health care, oil and gas industries etc. • Training and education in logistics sector • Upgrade and expand rail infrastructure · • Customized logistics innovations for rural areas Establishment of large logistics parks#22• ● • • INVESTMENT OPPORTUNITIES: INFRASTRUCTURE Expansion of airport capacity Ship repair yards Dry bulk terminals, car-loading terminals Storage facilities, in particular cold storage facilities Infrastructure for retail, wholesale and trading sectors (e.g. shopping malls, supermarkets, business premises) Mass Housing Programme (185 000 homes) Port of Walvis Bay expansion Walvis Bay SADC Gateway Port (north of Walvis Bay) • Industrial parks#23• • • INVESTMENT OPPORTUNITIES: AGRICULTURE/AGRO-INDUSTRY • Environmentally friendly irrigation techniques Cultivation of fruits and vegetables Meat, fish, fruits and vegetable processing Expansion of the food industry Processing of caracul wool, cattle leather and wild silk Customized agricultural machinery and equipment Cooling rooms, maturation rooms, testing laboratories Agricultural training centres#24INVESTMENT OPPORTUNITIES: TOURISM • ● Lodges, hotels, restaurants Hotels, motels, restaurants, petrol stations and car services facilities along major highways Car hire Adventure tourism/activities Sport tourism (both leisure and professional, e.g. iron man, extreme marathon etc.) • Facilities for medical and recuperation tourism · Conferencing facilities for business tourism Cultural tourism and JVs with conservancies . • Training facilities in hotel industry, tourism industry or gastronomy industry#25THANK YOU! LH