Namibia has a large urban population, with 70 percent of them living in the north. The trend towards urbanization is increasing in the north-central and northern-eastern regions, such as Oshakati. In addition, the majority of Namibia's younger population is located in northern regions. As such, the country is ripe for investment to meet the needs of the younger population and the growing urban middle class.

Investment opportunities

Investment in Namibia is an excellent option for those who want to make money and establish an office in the country. As one of Africa's most tiniest nations, Namibia has a small population, but an expanding urban middle class. The absence of a large government means that companies are able to leverage their strengths to take advantage of the rapidly growing economy in Namibia. Namibia is abundant in natural resources and has an extremely low tax rate. Also, it has a well-developed infrastructure to attract foreign investment.

The country is currently going through an ambitious plan of infrastructure renewal. Investment opportunities in Namibia may take the form of partnerships between public and private or equity holdings. The main areas of focus include power generation along with transmission and logistics. Opportunities exist in the construction and maintenance of road and rail infrastructure, as well as in affordable housing. When you decide to invest in Namibia ensure that you select a reliable bank. The government is looking for partners to support its ambitious plans.

The country is rich in natural resources that can help investors get the most out of their investments. Mining investments have been made by big Chinese companies as well as South African banks and diamond companies. Russia and Spain have made substantial investments in the fishing industry. Other countries have expressed an interest for exploration of Namibia's oil waters. Opportunities for FDI include logistics manufacturing mining. If you want to maximize your investment, Namibia is a great location to begin.

Challenges

In Namibia the startup ecosystem hasn't been able to match entrepreneurs with the right investors. Entrepreneurs are often drawn to bad investors that could cause more harm than good. The ideal investor how to get investors should provide access to time, money, and access to startups. New investors won't have the same connections or knowledge as experienced investors. Namibian investors should be cautious when deciding which projects to fund.

The investment environment in Namibia has improved dramatically in recent times, but Namibia faces a number of issues. Namibia has a weak domestic market, limited skilled labor pool, and high transportation costs. Despite these issues the country is going through an expansion of its vaccination program that is expected to ease production bottlenecks as well as reopen the tourism industry. The government has placed a high priority on attracting foreign investment, fighting the unemployment rate, and diversifying the economy.

There are numerous opportunities for FDI in Namibia. Numerous large Chinese companies have made significant investments in Namibia's uranium industry. Canada and South Africa are also significant investors in Namibia, with large holdings in banking and mining. The Office of the President is also focusing on the development of renewable energy sources. Other areas that are highly desirable include mining and tourism which are the principalstay of the country's economy. In general, commodity prices will rise over the coming years, which will allow more businesses to access private equity.

Government support

The Namibian government has acknowledged the bureaucratic processes that can hamper ease of doing business and is currently working to address these issues. The Investment Promotion Act is currently being examined. This new legislation is likely to replace the previous Foreign Investment Act. The new law is intended to draw foreign investment. However, investors who wish to invest in projects in Namibia need to be aware of the nuances. A business owner might not have access to information about a project, like the financial status of the owner.

The Registrar of Companies manages Namibia's companies and regulates the formation of businesses. Although registration is required however, investors should seek assistance from the Namibia Investment Centre. The Namibia Investment Centre offers services for investors, beginning with the initial inquiry phase and the end of operations. It also provides information about incentives, projects, as well as procedures. The investment center streamlines procedures and coordinates with regulatory and other government agencies. This allows investors to concentrate on projects that will positively impact the country.

While Namibia's private sector is heavily dependent on bank finance but the banking sector is relatively weak when it comes to funding new businesses. Many commercial banks in Namibia adhere to the standard lending practices, which requires start-up businesses to pledge collateral in exchange for loans. Unsecured loans are not allowed and bank loans are usually risky. Further, government support for investors looking to fund projects in Namibia is insufficient.

Financial institutions

If you're in search of a good project in Namibia there's no need to look elsewhere. The Namibian government and several financial institutions want to support economic development as well as private sector development. The Development Bank of Namibia (DBN) has recently convened a stakeholder meeting that revealed Namibia requires more than just grants. Public-private financing is crucial in order to build productive capacity as well as modernize customs and provide free access to information. The panel concluded, among other things, that transparency and a good corporate governance system were essential.

There are a variety of investors in Namibia. The Development Bank of Namibia (or Start-Up Namibia) are two examples of public funders. This initiative is aimed at promoting the start-up industry in Namibia. These funders are more diverse and may be focused on concessionary loans, rather than equity investments. They may also be a good fit for early-stage companies with an extensive social impact. It is important to be aware that government funds can limit the manner in which companies operate.

Although Namibia has not yet implemented a privatization program, talks have begun on privatizing state-owned enterprises. The Government Institutions Pension Fund, for instance, has committed 340 million USD to private equity funds since 2010, and has the mandate to finance infrastructure small and medium-sized companies development, and bulk municipality services. Recently the government announced plans to sell a portion of its stake in Air Namibia, the state-owned airline. The proceeds of the sale will be used to reduce the debt of the government.

Taxes

Namibia is not a country with a tax system exclusive for foreigners. However Namibia does have a number of tax-friendly options that could be of interest to foreign investors. One, foreign companies can't avoid paying Namibian dividend taxes which are a 10 percent tax on dividends that come from Namibia. There is no tax on securities in Namibia. Investors should be aware, however, that certain capital gains are subject to normal income tax. Third, Namibia is a member of the Common Monetary Area and its dollar is based on the South African rand. Finally, certain sectors require a certain percentage of local ownership for projects they fund.

Namibia's financial system is solid and transparent. Namibia is a member of the Common Monetary Area (a group of southern African nations). According to World Bank Development Indicators, Namibia's remittances of foreign currency have been consistently less than one-fifth its GDP over the last decade. The majority of Namibian remittances get handled by commercial banks. And the BON has not changed the policies for investment remittances in recent years.

Economic empowerment

This article can help investors seeking projects to finance in Namibia. Namibia's government controls numerous enterprises. These companies are known as parastatals. They account for more than 40 percent of GDP. They are generally unprofitable, however, Angel investors South Africa they receive financial aid from the government. Foreign angel investors south africa (listen to this podcast) are part of joint ventures, but this has hampered their growth.

The government is generally transparent when it comes to public policy. It releases its annual budget and mid-term reviews in the Government Gazette and consults with those who are interested in preparing the budget. It also publishes its debt position as well as contingent. The fiscal framework of Namibia is generally free of corruption. Furthermore, the Namibian government doesn't have any forced localization requirements. Government policies aim to encourage local content and promoting local ownership of state-owned enterprises.

The government of the country is trying to increase the size of its financial market and draw more foreign capital. The SDG Investment Fair brings together investors from various sectors to invest in sustainable development projects for developing nations. Namibia's Hydrogen Commissioner and Economic Advisor are represented by the President. Both countries are members of the Common Monetary Area. This agreement allows capital to flow freely between the two countries. Investors from around the world are invited to attend the event to view the current investment opportunities available in the country.

Sector of water

In Namibia the water sector has been allocated around 25 percent of the budget for Namibia. To this end, the Government of Namibia has set up a Namibia Water Sector Support Program to draw foreign investors. The goal of the program is to develop infrastructure that is water-related and supply potable water to the country. Currently, the government is trying to find international investors for the program including private sector firms. The African Development Bank Group has granted a grant to the government.

There are numerous opportunities for investment in the water sector in Namibia. EOS Capital is one such firm. It announced recently that it had raised 90 million Namibian dollars in its first Euphrates Agri Fund funding round. Cherry Irrigation Namibia was the fund's first investment. The firm intends to invest more in the country's water infrastructure as and in the agricultural sector.

There is a large market for green bonds in Namibia which could provide an attractive alternative to traditional bank lending. AFD has created an eco-friendly financing label for Namibia, which encourages the local commercial bank to expand its green lending services. The Bank Windhoek is working to build a pipeline of projects that are eligible for green financing and is considering a second issuance. A Green Bond is similar to a non-convertible debt. The main difference is that these securities are not secured by physical assets but are backed instead by the name of the issuer and the document in an indenture.