Professional Documents
Culture Documents
Country Profile
Contents
2
2 Population
2.1
10
10
Background
Population figures
2.2
2.3
2.4
2.5
2.6
Ethnic groups
10
10
10
11
11
2.7 Religions
2.8 Language
2.9 Education
2.10 Health
6.21 Corruption
12
3 Economy
13
12
12
3.1
6.23 Labour
13
3.2
13
3.3
Annual trends
13
14
4.1
Political structure
14
7.1
Sovereign risk
14
7.2
Currency risk
14
5.2 Roads
7.3
14
5.3 Ports
7.4
Political risk
14
7.5
14
14
8.1
Political stability
14
8.2
Election watch
14
5.1 Railways
5.4
Air transport
5.5 Telecommunications
Investing in Namibia
6.1
6.2
8.3
International relations
15
8.4
Policy trends
15
Economic growth
15
6.3
Government tenders
6.4
8.5
6.5
8.6 Inflation
6.6
15
8.7
Exchange rates
15
External sector
15
16
6.7
8.8
6.8
6.9
Dispute settlement
2012 KPMG Services Proprietary Limited, a South African company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss
entity. All rights reserved. MC7204 KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (KPMG International), a Swiss entity. The foregoing information is for general use only. NKC does
not guarantee its accuracy or completeness nor does NKC assume any liability for any loss which may result from the reliance by any person upon such information or opinions.
1 Background
2 Population
Male
Female
0 14 years
34.2%
371,078
364,232
15 64 years
61.7%
671,853
652,414
65 years and
over
4.1%
38,851
49,157
Under 15 years
15 64 years
Total population
52.17 years
Male
52.47 years
Female
4.36 years
2012 KPMG Services Proprietary Limited, a South African company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss
entity. All rights reserved. MC7204 KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (KPMG International), a Swiss entity. The foregoing information is for general use only. NKC does
not guarantee its accuracy or completeness nor does NKC assume any liability for any loss which may result from the reliance by any person upon such information or opinions.
2.7 Religions
The Christian community makes up more than 90% of the population
of Namibia, with at least 50% of these Lutheran. At least 10% of the
population hold indigenous beliefs. The faith of the remaining portion
of the population is unknown.
Missionary work during the 1800s drew many Namibians to
Christianity. While most Namibian Christians are Lutheran, there
also are Roman Catholic, Methodist, Anglican, African Methodist
Episcopal, Dutch Reformed Christians and Mormon (Latter-Day
Saints) represented, as well as some Jewish people.
2.8 Language
The official language is English. Until 1990, German and Afrikaans
were also official languages. Long before Namibias independence
from South Africa, SWAPO had decided that the country should
become officially monolingual, consciously choosing this approach in
contrast to that of its neighbour, which was regarded as a deliberate
policy of ethnolinguistic fragmentation. Consequently, English
became the sole official language of Namibia. Some other languages
have received semi-official recognition by being allowed as medium
of instruction in primary schools.
Half of all Namibians speak Oshiwambo as their first language,
whereas the most widely understood language is Afrikaans. Among
the younger generation, the most widely understood language is
English. Both Afrikaans and English are used primarily as a second
language reserved for public communication, but small first-language
groups exist throughout the country.
While the official language is English, most of the white population
speaks either German or Afrikaans. Even today, 90 years after the
end of the German colonial era, the German language plays a leading
role as a commercial language. Afrikaans is spoken by 60% of the
white community, German is spoken by 32%, English is spoken by
7% and Portuguese by 1%. Geographical proximity to Portuguesespeaking Angola explains the relatively high number of lusophones.
2.9 Education
Namibia has compulsory free education for ten years between
the ages of six and 16. Grades 17 are primary level, grades 8 12
secondary. In 1998, there were 400,325 Namibian students in
primary school and 115,237 students in secondary schools.
Most schools in Namibia are state-run, but a few private schools
are also part of the countrys education system. Among these are
St. Pauls College, Windhoek Afrikaanse Privaatskool, Deutsche
Hhere Privatschule, Windhoek International School and Windhoek
Gymnasium. Curriculum development, educational research, and
professional development of teachers is centrally organised by the
National Institute for Educational Development (NIED) in Okahandja.
There are four teacher training colleges, three colleges of agriculture,
a police training college, a Polytechnic at university level, and a
National University.
2.10 Health
The AIDS epidemic is a large problem in Namibia. Though its rate
of infection is substantially lower than that of its eastern neighbour,
Botswana, approximately 15% of the adult population is infected
with HIV. In 2001, there were an estimated 210,000 people living
with HIV/AIDS, and the estimated death toll in 2003 was 16,000.
The HIV/AIDS epidemic is considered as a killer disease and as it has
reduced the number of working class people, the number of orphans
has increased. It falls to the government to provide education, food,
shelter and clothing for these orphans.
The malaria problem seems to be compounded by the AIDS
epidemic. Research has shown that in Namibia the risk of contracting
malaria is 14.5% greater if a person is also infected with HIV. The
risk of death from malaria is also raised by approximately 50%
with a concurrent HIV infection. Given infection rates this large, as
well as a looming malaria problem, it may be very difficult for the
government to deal with both the medical and economic impacts of
this epidemic.
3 Economy
The economy is heavily dependent on the extraction and processing
of minerals for export. Mining accounts for 8% of GDP, but provides
more than 50% of foreign exchange earnings.
Rich alluvial diamond deposits make Namibia a primary source for
gem-quality diamonds. Namibia is the worlds fourth-largest producer
of uranium. It also produces large quantities of zinc and is a small
producer of gold and other minerals. The mining sector employs only
about 3% of the population.
Namibia normally imports about 50% of its cereal requirements; in
drought years food shortages are a major problem in rural areas. A
high per capita GDP, relative to the region, hides one of the worlds
most unequal income distributions, as shown by Namibias 70.7
GINI coefficient.
The Namibian economy is closely linked to South Africa with the
Namibian dollar pegged one-to-one to the South African rand.
Until 2010, Namibia drew 40% of its budget revenues from the
Southern African Customs Union (SACU). Increased payments
from SACU put Namibias budget into surplus in 2007 for the first
time since independence. SACU allotments to Namibia increased in
2009, but dropped in 2010 and 2011 because of the global recession,
reducing Namibias overall SACU income.
Increased fish production and mining of zinc, copper, and uranium
spurred growth in 2003-08, but growth in recent years was undercut
by poor fish catches, a dramatic decline in demand for diamonds,
higher costs of producing metals, and the global recession. A
rebound in diamond and uranium prices in 2010 and the reopening
of copper mines in 2011 provided a significant boost to Namibias
mining sector.
2012 KPMG Services Proprietary Limited, a South African company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss
entity. All rights reserved. MC7204 KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (KPMG International), a Swiss entity. The foregoing information is for general use only. NKC does
not guarantee its accuracy or completeness nor does NKC assume any liability for any loss which may result from the reliance by any person upon such information or opinions.
2 Qtr
Prices
Consumer prices (Dec 2001=100)
Consumer prices (% change, year on year)
Financial indicators
Exchange rate N$:US$ (av)
Exchange rate N$:US$ (end-period)
Bank of Namibia overdraft rate (end-period; %)
Deposit rate (av; %)
Govt bond yield rate (av; %)
Lending rate (av; %)
Prime rate (av; %)
Treasury bill rate (av; %)
M1 (end-period; N$ m)
M1 (% change, year on year)
M2 (end-period; N$ m)
M2 (% change, year on year)
IJG/IPPR Business Climate Index (Jan
2006=100)
IJG/IPPR BCI (% change, year on year)
Foreign trade & reserves
Goods exports fob ( N$ m)
Diamonds
Other minerals
Food & live animals
Manufactures
Goods imports fob (N$ m)
Trade balance (N$ m)
Services balance (N$ m)
Income balance (N$ m)
Transfers balance (N$ m)
Current-account balance (N$ m)
Reserves excl gold (end-period; US$ m)
2011
4 Qtr
1 Qtr
2 Qtr
3 Qtr
4 Qtr
171.9
4.7
173.8
4
173.9
3.2
177.3
3.5
180.7
5.1
182.8
5.2
7.544
7.625
7
5.2
n/a
9.8
11.3
6.7
21,065
4.5
49,313
6.6
120.4
7.306
6.951
7
4.9
n/a
9.7
11.1
6.4
23,053
18.3
51,100
11.1
124.4
6.899
6.585
6
4.6
n/a
9.4
10.3
5.8
24,054
15.1
53,196
9.6
114.1
7.002
6.768
6
4.2
n/a
8.8
9.8
5.5
23,804
4.2
51,642
1.8
113.3
6.787
6.756
6
4.3
n/a
8.7
9.8
5.7
23,844
13.2
53,187
7.9
111.9
7.15
8.02
6
4.3
n/a
8.8
9.8
5.5
25,728
11.6
53,196
4.1
116.9
2.7
-6.3
-7.5
-7.1
-6
6,913
1,163
2,060
869
1,550
-8,179
-1,266
345
-737
1,841
183
1,803
7,478
1,896
1,540
1,078
1,436
-9,565
-2,087
358
-1,081
2,692
-118
1,833
8,125
1,973
1,775
933
1,823
-9,483
-1,358
320
-1,386
1,834
-590
1,696
7,275
1,034
1,679
828
1,811
-9,692
-2,417
242
-1,670
1,866
-1,979
1,536
8,340
1,961
1,577
1,014
1,891
9,197
17,537
3,065
2,254
2,514
25,370
1,821
7,570
1,452
1,642
1,056
1,433
-9,782
-2,212
531
-1,758
2,555
-884
1,413
2012
1 Qtr
185 189.7
6.4 7
8.099
8.075
6
4.3
n/a
8.7
9.8
5.6
27,851
15.8
60,530
13.8
121.8
7.749
7.659
6
4.3
n/a
8.7
9.8
5.9
27,465
15.4
59,978
16.1
121.3
6.7 7.1
8,751
1,951
1,825
1,180
1,813
-12,165
-3,414
469
1,079
2,665
799
1,787
8,229
1,847
1,797
962
1,712
11,979
20,208
421
-705
2,704
22,628
n/a
2011 (a)
4.2
2.4
5
7.2
8.8
-9.7
4,393
-5,345
-108
-0.8
4,537
7.26
9.1
10.65
12.65
2012 (b)
4.4
0.8
5.4
3.9
10.7
-4.6
4,639
-5,746
141
1
4,568
7.49
9.69
8.94
10.96
2013 (b)
4.6
1.8
4.5
4.2
11.5
-5.5
4,931
-6,234
-10
-0.1
4,553
7.67
9.53
9.85
12.16
2014 (b)
5.4
1.7
4.9
4.3
10.7
-2.6
5,527
-6,683
44
0.3
4,671
8.25
10.19
10.42
12.73
2015 (b)
6.1
1.9
5.2
5.1
10.3
-1.1
6,472
-7,118
309
1.8
4,741
8.55
10.43
10.92
13.26
2016 (b)
5.3
2.3
5.2
5
10.2
0.1
6,830
-7,473
226
1.3
4,771
8.95
10.79
11.46
13.84
2012 KPMG Services Proprietary Limited, a South African company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss
entity. All rights reserved. MC7204 KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (KPMG International), a Swiss entity. The foregoing information is for general use only. NKC does
not guarantee its accuracy or completeness nor does NKC assume any liability for any loss which may result from the reliance by any person upon such information or opinions.
National legislature
Bicameral; National Assembly, with 72 members elected by universal
suffrage and serving a five-year term, and up to six non-voting
members appointed by the President. National Council, with limited
powers of review and 26 members, two of whom are nominated by
each of the countrys 13 regional councils, serving a six-year term.
National elections
The last legislative and presidential elections were held in November
2009. The next elections are due in November 2014.
Head of state
The Head of State is Hifikepunye Pohamba, elected President by
universal suffrage in November 2009.
National government
President and his appointed cabinet; reshuffled in March 2010.
Key ministers
Prime Minister: Nahas Angula
Deputy Prime Minister: Marco Hausiku
Agriculture, Water and Forestry: John Mutorwa
Defence: Charles Namoloh
Education: Abraham Iyambo
Environment and Tourism: Netumbo Nandi-Ndaitwah
Finance: Saara Kuugongelwa-Amadhila
Fisheries and Marine Resources: Bernard Esau
Foreign Affairs: Utoni Nujoma
Gender Equality and Child Welfare: Doreen Sioka
Health and Social Services: Richard Kamwi
Home Affairs and Immigration: Rosalia Nghidinwa
Information and Communication Technology: Joel Kaapanda
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entity. All rights reserved. MC7204 KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (KPMG International), a Swiss entity. The foregoing information is for general use only. NKC does
not guarantee its accuracy or completeness nor does NKC assume any liability for any loss which may result from the reliance by any person upon such information or opinions.
5 Transport and
Communications
AU
FAO
G-77
IAEA
IBRD
ICAO
ICRM
IFAD
IFC
IFRCS
ILO
IMF
IMO
Interpol
IOC
IOM
IPU
ISO
ITSO
ITU
ITUC
MIGA
NAM
OPCW
SACU
SADC
UN
UNAMID
UNCTAD
UNESCO
UNHCR
UNIDO
UNISFA
UNMIL
UNMISS
UNOCI
UNWTO
UPU
WCO
WHO
WIPO
WMO
WTO
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entity. All rights reserved. MC7204 KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (KPMG International), a Swiss entity. The foregoing information is for general use only. NKC does
not guarantee its accuracy or completeness nor does NKC assume any liability for any loss which may result from the reliance by any person upon such information or opinions.
5.3 Ports
Namibias two harbours at Walvis Bay and Lderitz are operated by
the state-owned Namibian Ports Authority (Namport). The Walvis Bay
Corridor Group, a public-private partnership, is promoting the multimodal trans-Caprivi and trans-Kalahari corridors to develop Walvis Bay
into a regional cargo hub to provide a more direct route for trade with
the Americas and northern and western Europe than Africas ports on
the Indian Ocean.
Walvis Bay currently handles some 3m tonnes of cargo a year,
around one-third of which is containerised. Container capacity is
being expanded to handle 500,000 containers per year, compared
with 140,000 in 2007, under a five-year investment programme. The
harbour is also being deepened to accommodate larger vessels, and
a second ship-repair floating dock is being added. The much smaller
port at Lderitz has become an important base for the offshore
diamond industry, and extra capacity will be added when the Kudu
offshore gasfield is developed.
5.4 Air transport
New regional and international air links were established after
independence by the national carrier, Air Namibia, including direct
flights to Frankfurt in Germany and the UK capital, London. Flights
to London were discontinued in 2002 owing to the airlines financial
difficulties, but were resumed in mid-2005. The airline has incurred
persistent operating losses, and the government continues to bail it
out with financial subsidies, which have exceeded N$2.2bn to date.
The Namibia Airports Company is investing N$15m in upgrading
the main airports, including new passenger facilities at Windhoeks
Hosea Kutako International Airport.
5.5 Telecommunications
Namibia was one of the last countries in Africa to introduce competition
in the mobile communications sector when a second network finally
launched in 2007. Despite this, the country has achieved a market
penetration rate well above the regional average. However, the average
revenue per user has more than halved since then.
Both GSM operators MTC (managed by Portugal Telecom) and
Cell One (renamed Leo by its new owner, Orascom) have entered
the internet and broadband market with 3G mobile broadband
services in a bid to create new revenue streams. MTC introduced
fourth generation (4G) technology to the market in May 2012 when
it launched an LTE network in the capital, Windhoek. In addition,
Telecom Namibia (TN) is offering 3G mobile broadband services
using EV-DO technology.
Fixed-line services are still a monopoly of TN, but as a member of
the WTO the government plans to open the telecom sector to full
competition. TN entered the lucrative mobile market as the third
player with a CDMA network but was put on hold by the industry
regulator, the Namibian Communications Commission, until a new
communications law was enacted which, among other issues,
addresses fixed-mobile convergence. Since then, however, the
absence of effective regulation during the transition to a new
regulatory authority, the Communications Regulatory Authority of
Namibia, has led to further delays in market liberalisation.
Despite being reasonably competitive with six ISPs, development
of Namibias internet and broadband sector has been held back
by high prices for international bandwidth, caused by the lack of a
direct connection to international submarine fibre optic cables. This
changed in early 2011 when the WACS cable landed in the country,
with services launched in May 2012. In parallel, Namibia is working
to diversify its transit access routes via neighbouring countries,
but broadband price reductions on the retail level have only been
moderate so far.
6 Investing in Namibia
6.1 Openness to, and restrictions upon foreign investment
The Government of the Republic of Namibia (GRN) is committed to
stimulating economic growth and employment through attracting
foreign investment. The Foreign Investment Act of 1990 is the
primary legislation that governs foreign direct investment in Namibia.
The Ministry of Trade and Industry (MTI) is the governmental
authority which is primarily responsible for carrying out the provisions
of the Foreign Investment Act.
Under the Foreign Investment Act, the Ministry established the
Namibia Investment Centre (NIC). The NIC serves as Namibias
official investment promotion and facilitation office. It is often the
first point of contact for potential investors. The NIC is designed
to offer comprehensive services that range from the initial inquiry
stage through to operational stages. The NIC also provides general
information packages and advice on investment opportunities,
incentives, and procedures. The NIC is also tasked with assisting
investors minimise bureaucratic red tape by coordinating work
with government ministries as well as regulatory bodies.
The NIC is also responsible for screening all potential foreign
investments. The NIC does not follow a formal review process, but
it does evaluate the credibility of potential investors, their business
presentations, and gauges the potential economic benefit to the
country. The NICs decisions are forwarded to the Minister of Trade
and Industry for final approval/rejection.
The Namibian Competition Commission (NaCC), established in 2009
under the Competition Act of 2003 is charged by the Ministry of
Trade and Industry with reviewing mergers (foreign and domestic)
to safeguard and promote competition in the Namibian market.
See the section on Transparency of the Regulatory system for more
information on the Competition Commission.
The Foreign Investment Act guarantees equal treatment for foreign
investors and Namibian firms, i.e., 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. Investment incentives and special tax incentives are also
available for the manufacturing sector.
The Registrar of Companies in the Ministry of Trade and Industry is
responsible for managing, regulating, and facilitating the formation
of businesses. The Registrars office encourages investors to seek
professional advice from legal practitioners, auditors, accounting
officers, or secretarial firms when registering their businesses. The
Namibian Embassy in Washington provides a guide to registering a
business which can be found at: Register a Business
Other laws that impact foreign investors include the 2004 Companies
Act and the 1998 Close Corporation Act. These laws provide the legal
framework for the establishment of business entities. The 2004
Companies Act went into force on November 1, 2010.
6.2 Foreign ownership restrictions
While the Foreign Investment Act stipulates that foreign investors
should be treated the same as Namibian investors, the Act
acknowledges that the government has the right to impose
restrictions. Most restrictions have to do with land and natural
resource rights and government contracts (tenders). For example,
the government requires local participation before issuing licenses to
exploit natural resources and has implemented additional restrictions
in the case of certain strategic minerals.
Year
Score
TI Corruption Index
2011
2011
2012
78 of 183
MCC Government
Effectiveness
2009
0.55 (90%)
2009
0.59 (73%)
2009
0.64 (87%)
2009
1.3 (75%)
2009
88.4 (100%)
2009
0.18 (67%)
2009
0.928 (34%)
The board generally requires that companies are registered with the
Ministry of Trade and Industry and that are in good standing with
the Department of Inland Revenue (the tax authority) and the Social
Security Commission.
2009
0.571 (13%)
2009
78.16 (29%)
2012 KPMG Services Proprietary Limited, a South African company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss
entity. All rights reserved. MC7204 KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (KPMG International), a Swiss entity. The foregoing information is for general use only. NKC does
not guarantee its accuracy or completeness nor does NKC assume any liability for any loss which may result from the reliance by any person upon such information or opinions.
Under its land reform programme the government has attempted the
expropriation of unproductive agricultural land from both domestic
and overseas (primarily German) landowners. In 2005, the only year
in which the Government took such action, the GRN expropriated
four farms. The High Court of Namibia on March 6, 2008 made its
first ruling on the legality of expropriation under the land reform
programme. The Court ruled the programme was constitutional but
found that the Ministry of Lands and Resettlements administration
of the expropriation process had violated Namibian law on several
grounds. As a result of the ruling, two farms were returned to their
owners, while the GRN compensated in full the absentee owners of
the other two farms.
6.9 Dispute settlement
The Foreign Investment Act allows for the settlement of disputes by
international arbitration for investors that have obtained a Certificate
of Status Investment (CSI). The CSI must also include a provision
for international arbitration. The Act stipulates that arbitration shall
be in accordance with the Arbitration Rules of the United Nations
Commission on International Trade Law in force at the time when the
Certificate was issued unless the CSI stipulated another form of
dispute resolution.
There is no domestic arbitration body. Investors without a CSI
that encounter a dispute will have to address their dispute in
the Namibian courts, or the court system which has jurisdiction
according to the investors contract. The Namibian court system is
independent and is largely perceived to be free from government
interference. Per the Criminal Procedure Act of 2004, foreign court
judgments may be accepted if a bilateral treaty is in place.
Namibias legal system, based on the Roman Dutch Law, is similar to
South Africas legal system. The system provides effective means to
enforce property and contractual rights. The Companys Act of 1973
governs company and corporate liquidations while the Insolvency
Act 61 of 1936 governs insolvent individuals and their estates. The
Insolvency Act details sequestration procedures and the rights of
creditors. A new Insolvency Amendment Bill was passed in 2005 but
has not yet been signed into law.
As the one-stop-shop for investors, the NIC should be the body
that first learns of an investment dispute between a foreign investor
and a domestic enterprise. The NIC has never received a report of an
investment dispute.
Namibia signed but has not ratified the Convention on the
Settlement of Investment Disputes Between States and Nationals
of Other States.
6.10 Performance requirements/incentives
Namibia does not impose performance requirements as a condition
for establishing, maintaining, or expanding investments on foreign
investors. The requirements in place are mostly imposed as a
condition to access tax and investment incentives. For example,
to benefit from incentives in a planned export processing zone,
investors are required to export a certain percentage of the finished
product. There is no legal requirement for investors to purchase
from local sources. However, for certain industries, there are local
content requirements to exempt final products from duties under the
Southern African Customs Union (SACU).
Incentives:
Incentives are mainly aimed at stimulating manufacturing and
attracting foreign investment to Namibia and promoting exports. To
take advantage of the incentives, companies must be registered with
the Ministry of Trade and Industry (MTI) and the Ministry of Finance.
Tax and non-tax incentives are accessible to both existing and new
manufacturers. The MTI has developed a brochure titled Special
Incentives for Manufacturers and Exporters which is available from
the Namibia Investment Centre (NIC). Namibia has also established
an Export Processing Zone (EPZ) regime that offers favourable
conditions for companies wishing to manufacture and export
products for regional and international markets.
2012 KPMG Services Proprietary Limited, a South African company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss
entity. All rights reserved. MC7204 KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (KPMG International), a Swiss entity. The foregoing information is for general use only. NKC does
not guarantee its accuracy or completeness nor does NKC assume any liability for any loss which may result from the reliance by any person upon such information or opinions.
2012 KPMG Services Proprietary Limited, a South African company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss
entity. All rights reserved. MC7204 KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (KPMG International), a Swiss entity. The foregoing information is for general use only. NKC does
not guarantee its accuracy or completeness nor does NKC assume any liability for any loss which may result from the reliance by any person upon such information or opinions.
10
that the new act does not provide the CRAN enough regulatory
independence. Such groups note that the Minister of Information
and Communication Technology alone may appoint the CRAN
Chairperson and Vice-Chairperson, and that the Minister must concur
on the prescribing of any new broadcast licenses.
The state-owned Namibian Broadcasting Corporation (NBC) which transmits TV and radio services - is exempted from licensing
procedures enumerated in the act. The act also contains intelligence
gathering (intercept) provisions which civil society groups have
argued violate civil liberties and the Namibian constitution. To comply
with the intercept provisions, telecommunications companies could
be saddled with many technical burdens and significantly higher
costs, critics argue. Note, however, that these provisions have to
date never been implemented.
The Bank of Namibia (BoN) regulates the banking sector. In 2010,
the BoN rejected a bid by South Africas ABSA Group to acquire
a 70 percent stake in Capricorn Holdings, the parent company
of Bank Windhoek. The BoN argued that the ABSAs acquisition
would make all banks foreign-owned, as Bank Windhoek is the
only bank in Namibia that has majority domestic ownership. As
all other banks in Namibia are South African-owned the BoN also
argued that permitting the merger would have exposed Namibia to
single country risk and would make the banking system more
susceptible to cross-border shocks through the risk of contagion.
In November, the BoN granted a provisional license to SME Bank
Namibia Limited, a majority government owned banking institution
that the GRN wishes to use to help provide better access to financial
services for small and medium Namibian enterprises.
The Namibia Financial Institutions Supervisory Authority (NAMFISA)
regulates non-banking financial institutions. The authority aims
to reduce financial crime through developing and implementing
effective regulatory systems.
6.17 Efficient capital markets and portfolio investment
There is a free flow of financial resources within Namibia and
throughout Common Monetary Area (CMA) countries of the South
African Customs Union (SACU) which include Namibia, Swaziland,
South Africa and Lesotho. Capital flows with the rest of the world
are relatively free, subject to South African exchange controls
(discussed above in Conversion and Transfer Policies). The Namibia
Financial Institutions Supervisory Authority (NAMFISA) registers
portfolio managers and supervises the actions of the Namibian Stock
Exchange (NSX) and other non-banking financial institutions.
Although the NSX is the second largest stock exchange in Africa,
this distinction is largely because many South African firms listed on
the Johannesburg exchange are also listed (dual listed) on the NSX.
The government has also introduced investment incentives to attract
mutual funds and foreign portfolio investors that have energised
emerging stock markets elsewhere in the developing world. By
law, Namibias government pension fund and other Namibian funds
are required to allocate a certain percentage of their holdings to
Namibian investments. Namibia has a world-class banking system
that offers all the services needed by a large company. Foreign
investors are able to get credit on local market terms.
There are no laws or practices by private firms in Namibia enabling
incorporations to prohibit foreign investment, participation or control;
nor are there any laws or practices by private firms or government
precluding foreign participation in industry standards setting
consortia.
6.18 Competition from state-owned enterprises (SOEs)
While Namibian companies are generally open to foreign investment,
government owned enterprises have to date generally been closed to
all investors (Namibian and foreign). State Owned Enterprises (SOE
also known as parastatals) include a wide variety of commercial
companies, financial institutions, regulatory bodies, educational
institutions, boards and agencies. Generally, employment at SOEs
is highly sought after because their remuneration packages are not
bound by public service constraints. Parastatals provide most of the
2012 KPMG Services Proprietary Limited, a South African company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss
entity. All rights reserved. MC7204 KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (KPMG International), a Swiss entity. The foregoing information is for general use only. NKC does
not guarantee its accuracy or completeness nor does NKC assume any liability for any loss which may result from the reliance by any person upon such information or opinions.
11
2012 KPMG Services Proprietary Limited, a South African company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss
entity. All rights reserved. MC7204 KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (KPMG International), a Swiss entity. The foregoing information is for general use only. NKC does
not guarantee its accuracy or completeness nor does NKC assume any liability for any loss which may result from the reliance by any person upon such information or opinions.
12
FDI as Percent
of GDP
2007
733
43.6
35.3
2008
720
39.3
33.3
2009
516
33.6
24.5
2010
858
44.6
32.2
Total
2006
2007
2008
2618
5164
5951
2009 2010
(P)*
4376 5865
Equity capital
2948
3952
2622
275 66
145
Reinvested
earnings
1019
1318
1115
1327 3555
3237
Other capital
-1349
-106
2213
2774 2244
3649
Liabilities to
244
direct investors
-468
2218
2723 2012
2541
Claims on
-1594
direct investors
362
-5
52 232
21
*P - Provisional
2012 KPMG Services Proprietary Limited, a South African company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss
entity. All rights reserved. MC7204 KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (KPMG International), a Swiss entity. The foregoing information is for general use only. NKC does
not guarantee its accuracy or completeness nor does NKC assume any liability for any loss which may result from the reliance by any person upon such information or opinions.
13
Time to
complete
Associated
costs
1.
18 days
Included
in cost of
registration
2.
1 day
3.
14 days
4.
1 day
No charge
5.
1 day
No charge
6.
1 day
NAD 47.00
to NAD 350
depending
on the type
of business
NAD 270
About NAD
5,750+ NAD
556 notary
fees
7.
9 days
No charge
8.
4 days
(simultaneous
with previous
procedure)
No charge
9.
21 days
10.
20 days
(simultaneous
with previous
procedure)
NAD 10 per
employee
No charge
Aug
2012
BBB
BBB
BB
BBB
BBB
BBB
2012 KPMG Services Proprietary Limited, a South African company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss
entity. All rights reserved. MC7204 KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (KPMG International), a Swiss entity. The foregoing information is for general use only. NKC does
not guarantee its accuracy or completeness nor does NKC assume any liability for any loss which may result from the reliance by any person upon such information or opinions.
14
2012 KPMG Services Proprietary Limited, a South African company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss
entity. All rights reserved. MC7204 KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (KPMG International), a Swiss entity. The foregoing information is for general use only. NKC does
not guarantee its accuracy or completeness nor does NKC assume any liability for any loss which may result from the reliance by any person upon such information or opinions.
15
A Appendix sources of
information
Economist Intelligence Unit
CIA World Factbook
Bloomberg
World Bank
Wikipedia
Doingbusiness.org
US Department of State
2012 KPMG Services Proprietary Limited, a South African company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss
entity. All rights reserved. MC7204 KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (KPMG International), a Swiss entity. The foregoing information is for general use only. NKC does
not guarantee its accuracy or completeness nor does NKC assume any liability for any loss which may result from the reliance by any person upon such information or opinions.
16