Investment Promotion Programme


The purpose of this programme is to achieve an increase in number, value and nature of domestic and foreign direct investment in Namibia. This objective is to be achieved by, among others, creating an enabling environment for investment, which involves having in place an appropriate legal and regulatory framework; a proper plan and strategy for marketing Namibia as a preferred investment destination and enhancing Namibia’s positive competitiveness ranking.

Investment Facilitation

A combination of domestic savings and foreign capital has boosted the country’s level of investment and industrial activity. During the reporting period, the Ministry, through its investment promotion agencies, implemented measures aimed at nurturing domestic investment and attracting foreign direct investments. During the reporting period the Ministry facilitated 7 new investments worth N$518.6 million and committed to create 220 permanent jobs. These investments are from South Africa and Germany in the following sectors; tourism, mining, construction, agriculture and manufacturing.

Furthermore, the Ministry facilitated and hosted 6 inward missions (South Africa, Netherlands, Poland, China, United States of America, Canada) and 9 outward missions (in which local business people took part from various regions) to and from various countries such as the United Arab Emirates, South Africa, Canada, Cuba, China, India, Mauritius, Turkey and the United States of America.  These interactions created linkages and interactions between NIC, Namibian business people and their counterparts.

As part of the review of investment incentives, the final draft of the investment incentives study was presented to the Cabinet Committee on Trade and Economic Development. In addition, the Ministry also entered into a Memorandum of Understanding (MoU) with PriceWaterHouseCoopers (PWC) to produce a booklet called “A Business and Investment Guide for Namibia”. This guide will contain useful information about Namibia’s economy and investment climate and will be a useful tool to the promotion of Namibia as a favourable investment location. The Guide will be launched in the last quarter of this financial year. Advertisment for marketing Namibia were placed in the Flamingo, Consumer News, Trade Directory, Olufuko Festival magazine, Vision 2030 and GDP Global.

The Ministry engaged the World Bank team, responsible for compiling the Ease of Doing Business report, in order to afford Government an opportunity to provide inputs on the correctness of the information gathered, in respect of legislative and policy matters. The World Bank team undertook to give Government an opportunity to provide direct inputs on any reform measures that it and the country in general has embarked on or is planning to undertake.  The Ministry thus engaged all relevant authorities and line Ministries during a workshop, to provide an update on any new laws, regulations, administrative procedures or reforms that have been implemented before 1 June, 2014, to bring about efficiency in service delivery to investors to do business in Namibia. The contributions were compiled in a report and forwarded to the World Bank.

Namibia never the less moved down to 8th position from 7th in Africa according to the Global Competiveness Index for 2013-2014. In this regard the Ministry will engage the World Economic Forum in the same way as the World Bank to validate information accuracy provided during the survey.  

 SOE Contribution

The Offshore Development Company is the ministry’s partner agency responsible for the promotion, marketing, monitoring and co-ordination of all export processing zone activities and the provision of an umbrella service to EPZ enterprises in the country in general. To complement its investment and trade promotion and facilitation efforts, the company through MTI has been developing and implementing various programmes and projects aimed at creating the necessary basic physical infrastructure to reduce the cost of doing business in Namibia and improve trade and investment activities.

The company manages Industrial and Business Parks and leases these premises to both foreign and domestic investors. These parks are located at Oshikango, Katima Mulilo, Katwitwi and Omahenene. A new park is being developed in Omahenene. These facilities are aimed at facilitating cross-border trading, import and export as well as light manufacturing activities. In addition, the company also manages two gemstone centres in Karibib and Keetmanshoop. A new project the Namibia Trade Hub Multi-use Complex will be developed in Windhoek.

Table 4:


Projects

Targets
(No. of warehouses/units)

2013/14
(Actual)

Oshikango EPZ Park

1

0

Katima Mulilo Park

0

0

Katwitwi Industrial Park Phase III

4

4

Omahenene Business Park (new)

1 (SME Module)

1

The Oshikango Park consists of 14 warehouses which are fully occupied by tenants. An amount of N$5,645,000 was allocated in 2013/14 financial year to construct one. Over 350 jobs have been created at the Katima Mulilo Park; Oshikango Park has generated around 220 jobs; Katwitwi Park has created 38 jobs during Phase III development; while at Omahenene Park, 57 jobs have been created during the construction phase. The construction of the SMEs modular market at Omahenene Business Park is underway and is expected to be completed during the reporting period.

EPZ Performance

With regard to the performance and achievements of the Export Processing Zone (EPZ), a new project in the amount of about N$3 million in the area of diamond and cutting polishing was approved under the EPZ in 2013. This investment of German origin is expected to create 37 local jobs. Overall, the total value of accumulated investment in EPZ for the period under review was N$12.7 billion, primarily as a reflection of the realization of the investment by Areva Processing and the reinvestment by Namibia Custom Smelter - now Dundee Precious Metals Tsumeb which amounts to N$760 million aimed at upgrading its production facility and environmental systems. Despite huge investment by Areva Processing, the company has postponed its operations based on economic reasons mainly the continuing decline in global uranium price. Exports in the EPZ regime during the 3rd and 4th quarter of 2012 amounted to N$ 3, 7 billion while the 1st quarter exports of 2013 were N$ 1, 1 billion bringing the total for export during the period under review to N$ 4, 8 billion.  In terms of employment, the total number of people employed by twenty-three enterprises currently operating in the EPZ has slightly declined to 2,518 in 2012 compared to 2,591 in 2011 mainly as a result of the scaling down of operations by some EPZ companies.  

 

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© Ministry of Trade and Industry 2013