The government emphasizes the need for investors to partner with Namibian-owned companies and/or have a majority of local employees in order to operate in the country. Namibia’s judiciary is widely regarded as independent. In early 2017, the Namibian government implemented a new procurement act that is more in line with international standards and aims to ensure greater transparency.
The FIA calls for equal treatment of foreign investors and Namibian firms, including the possibility of fair compensation in the event of expropriation, international arbitration of disputes between investors and the government, the right to remit profits, and access to foreign exchange.
There are large Chinese foreign investments in Namibia, particularly in the uranium mining sector. Australia and the United Kingdom (U.K.) are other important investors in uranium mining. South Africa has considerable investments in the diamond mining and banking sectors, while the U.K. has additional investment in zinc and copper mines. Foreign investors from Brazil, Spain, the U.K, Netherlands, the United States, and other countries have expressed interest in oil exploration off the Namibian coast. European and Chinese companies are investing in the fisheries sector.
Namibia has a relatively small domestic market, high transport costs, relatively high energy prices, and a limited skilled labor pool. These disadvantages are offset by the main factors facilitating Namibia’s inward Foreign Direct Investment (FDI): political stability, a favorable macroeconomic environment, an independent judicial system, protection of property and contractual rights, good quality of physical and ICT infrastructure, and easy access to South Africa. Namibia also has access to the Southern African Customs Union (SACU), the Southern African Development Community’s (SADC) Free Trade Area, and markets in Europe. The investment climate is generally positive.
As a post-apartheid country and having one of the highest rates of inequality in the world, Namibia continues to look for ways to address historic economic imbalances. Proposed legislation, the New Equitable Economic Empowerment Framework bill, will look to transfer and to create economic and business opportunities for disadvantaged groups including in areas of ownership, management, human resource development, and value addition. The bill is expected to be tabled in Parliament in 2018. A planned land conference in 2018 will address land reform.
|TI Corruption Perceptions Index||2017||53 of 180||http://www.transparency.org/
|World Bank’s Doing Business Report “Ease of Doing Business”||2018||106 of 190||doingbusiness.org/rankings|
|Global Innovation Index||2017||97 of 127||https://www.globalinnovation
|U.S. FDI in Partner Country (M USD, stock positions)||2016||USD 8||http://www.bea.gov/
|World Bank GNI per capita||2016||USD 4,640||http://data.worldbank.org/