PRESENTATION

TRADE AND INVESTMENT PROMOTION SEMINAR

HOSTED BY THE MCCI

by

BONAVENTURA HINDA COMMERCIAL COUNSELLOR

HIGH COMMISSION OF THE REPUBLIC OF NAMIBIAPRETORIA, SOUTH AFRICA

WEDESDAY, 29 OCTOBER 2013MANGAUNG, FREE STATE PROVINCE, SOUTH AFRICA

Namibia at a Glance

Macro Economy

Namibia – Competitiveness in Global Context

Trade

Investment - Policy Framework

Investment - Opportunities

Investment - Incentives

Starting a Business in Namibia

High Commission - Commercial Office Support

Presentation Outline

Namibia at a Glance

Area: 824,269 square kilometres

Population (2013): 2.1 million

Currency: 1 N$ = 1 ZAR

Language: English is the official language

Regions:13 Regions

Democratic and Politically Stable:General Elections every 5 yearsNext Election - 2014

Macro economy - Indicators

GDP at Current PricesN$ 121 034 (000) (2013 est.)

Real GDP Growth 4.7% (2013 est.)

NCPI (Annual est - 2013) 6.3%

Repo Rate (Current)5.50%

Prime Rate (Current)9.25%

Gini Coefficient 0.58%

Unemployment Rate 27.4%

Macro economy– GDP Growth

Macro economy – Key Sectors

Primary SectorAgriculture and Forestry 4.1%Mining and Quarrying 11.5%Fisheries 3%

Secondary Sector Manufacturing 11.6%

Construction 3.6%Utilities 2.3%

Tertiary SectorWholesale & Retail 12%Tourism (Hotels & Res only) 1.7% Transport & Communication 4.9%Financial Intermediation 5.2%Real Estate 7.4%Government 25%

Taxation – 2013/14Income tax: 18% - 37%General corporate tax: 32%Reg. Manufacturers 18%Value Added Tax (VAT): 15%Diamond mining 55%Other mining 37.5%Petroleum 35%Royalty Tax 30%Withholding tax (non-residents):

10% of dividends

DutiesExcise: Alcohol, Cigarettes etcAd Valorem: Luxury ItemsCustoms: Tv, Clothes, Tyres

Macro economy – Fiscal Policy

Namibia - Global Competitiveness Global Retail Development Index (GRDI

2013 )Ranking the top 30 developing countries – (Only 2 out of Africa) - Botswana: Strong retail growth - ranked 25th - Namibia: Rising regional star - ranked 26th

Frazer Institute Annual Survey of Mining 2012/2013- Namibia: ranked 3rd after Botswana and Morocco

World Economic Forum 2013 Competitiveness Ranking (144 economies)- Namibia: Ranked Globally - 90th – Africa – 8th

Trade - Market Access

Trade Agreements:•Africa – SACU and SADC•EU – SADC/EU (EPA Negotiations)•USA – AGOA•South America – SACU/ MERCOSUR•Asia – SACU/India (Negotiations)

Trade - Top 10 Trading Partners 2012

Imports• South Africa – 41 701 508

467• Switzerland• China• EPZ• United Kingdom• Germany• Zambia• Botswana• Netherlands• Singapore

Exports• South Africa – 7 693 917

881• United Kingdom• Angola• Belgium• Botswana• Canada• Spain• Switzerland• EPZ• United States of America

Investment - Policy Framework

Foreign Investment Act, No. 24 of 1993 (Review)

Export Processing Zone (EPZ) Act, No. 9 of 1995 (Review)

Namibian Industrial Policy (Finalized 2012)

Investment - Opportunities

Investment Opportunities

Mineral Exploration

& Beneficiation

Manufacturing

Logistics

Information Technology

(IT)

Tourism

Agriculture & Agro-

processing

Education, Skills

Training

Infrastructure Energy

Health & Pharmaceuticals

Investment Opportunities - EnergyNamibian Power Supply

39%

40%

9%

12%

Sources

Nampower

Eskom

Zesco

Zesa

Investment Opportunities – ManufacturingTrade Deficit Nam vs RSA

Main Exports Manufactured Prod Diamonds Metal Ores include

Uranium Fish and Marine

Products Beverages Refined Zinc Live Animals Meat and Processed

Meat Copper Crops, Fruit & Veg,

Forestry

Main Imports Chem, Rubber, Plastic Transport Equipment Machinery and

Equipment Refined Petroleum Food

Prod/Consumables Textile, Clothing,

Leather Fabricated and Basic

Metal Non-metallic Mineral Electrical Machinery Paper Products

2012Imports – N$41 701

508 467Exports - 7 693 917

881

Investment Opportunities - Agriculture

Location Nkurenkuru, 140km west of Rundu, Kavango Region. +-1km from the River.

Size Total 1,800ha – of which 1,250ha is planned for irrigation

Ownership Type

Commercial Large-Scale Irrigation Project

Water Water permit issued by MAWF for extraction from Kavango River

Crops Maize, wheat, sunflower, beans, paprika, etc.

Project Owner

Sihete Enterprises Pty LTD

Land Ownership

20 year Commercial Leasehold, Renewable.

Status Business Plan Developed in 2007 not implemented due to lack of funding.

Investment Opportunities - Tourism

Eco Tourism Lodge on Orange River bank - Sendelingsdrift Border Post in the /Ai-/Ais -Richtersveld Transfronteer Park

Required:JV Partnership with land owners

Convention Centre - Insufficient conferencing facilities to host major international events.

Lodge Position

Road to Aussenkehr, /Ai-/Ais

and Fish River

Incentives – Manufacturers & Exporters

Corporate Tax: 18% for 10 years

Value Added Tax (VAT): Claims on all inputs paid on acquisition and manufacturing equipment imported

Establishment Tax Package: Negotiate rates and terms by special tax packages

Special Building Allowance: Factory buildings written off at 10% in 1st year and balance at 8% for 10 yrs

Transportation Allowance: Road or rail allowance of 25% deduction from total cost

Incentives – Manufacturers & Exporters

Export Promotion Allowance: Additional deductions from taxable income 25%

Cash Grants: 50% of direct cost of approved export promotion activities

Exporters of Manufactured Goods: 80% allowance on taxable income derived from the export of Manufactured goods (excluding meat and fish) produced in Namibia or not.

Starting a Business in Namibia

• Contact Registrar of Companies – MTI

• Company Name Reservation ( Turn around time - 14 days)

• Company Registration ( Turn around time - 14 days)

• After successful registration of company, submit Temporary Residence Permit (TRP) application to the Namibia Investment Centre (NIC)

• NIC present application to ISB (Home Affairs) for approval

• Factors considered by ISB –investment capital, employment, skills transfer, downstream effect, overall significance to Namibian economy

• Approval of application not automatic

• No fee required upon submission, N$ 500 payable if approved

• Minimum investment capital – US$ 100 000

Commercial Office Support

Trade and investment enquiries

Investment and trade promotion

Facilitation of investment missions to Namibia

Facilitation of business missions from Namibia to South Africa

Participation in trade fairs in South Africa

Guidance on starting a business in Namibia

Where the Namib Desert and the Atlantic Ocean

congregates into a natural wonder, we strive to

conduct business with peace of mind ……

NAMIBIA

Thank You