PRESENTATION

to

DURBAN CHAMBER OF COMMERCE AND INDUSTRY

by

BONAVENTURA HINDA COMMERCIAL COUNSELLOR

HIGH COMMISSION OF THE REPUBLIC OF NAMIBIAPRETORIA, SOUTH AFRICA

THURSDAY, 5TH SEPTEMBER 2013DURBAN, KWA-ZULU NATAL PROVINCE, SOUTH AFRICA

Namibia at a Glance

Macro Economy

Market Access

Trade Statistics

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 (Preliminary - 2011): 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

Macroeconomic Indicators

GDP at Current PricesN$ 105 146(000) (2012 est.)

Real GDP Growth 4.6% (2012 est.)

NCPI (February - 2013) 6.20%

Repo Rate (Current)5.50%

Prime Rate (Current)9.25%

Macroeconomic Indicators – GDP Growth

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

2009 2010 2011 2012 (Prel) 2013 (Est) 2014 (Proj)

-1.1%

6.0%

4.9% 5.0%4.8%

5.0%

Perc

enta

ge G

row

th

4.5% 5.0%

Macroeconomic Indicators – 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 - 2012Income tax: 17.5% - 35%General corporate tax: 34%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

Macroeconomic Indicators – Fiscal Policy

Market Access

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

Trade Statistics: 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 OpportunitiesTarget Sectors

• Agriculture and Agro-processing – Cereal, Fruit, Vegetables

• Manufacturing – Current Exports (RSA to Nam and other countries north and north-east of Namibia)

• Education - Pre-primary, Secondary, Colleges, Artisan/Vocational Training

• Logistics & Infrastructure• Mining and Mineral Beneficiation• Energy Production – Renewable

Investment Opportunities - EnergyNamibian Power Supply

39%

40%

9%

12%

Sources

Nampower

Eskom

Zesco

Zesa

Investment Opportunities - Energy Industry Overview

Investment Opportunities - Energy Supply Solution

Project Installed Capacity

Implementation

1.

Short Term Critical Supply

Up to 400 MW 2012

2.

Kudu Gas to Power

800- 1000 MW (400 for Namibia)

2018

3.

Baynes Hydro Power Station

600 MW (300 MW for Namibia)

2022

Kudu Gas Project – Progress to Date• 800 - 1000MW CCGT plant at Oranjemund • With project commissioning Namibia becoming a net

exporter of electricity by 2018

Activities concluded since September 2012

• Allocation of resources (budget, staff, consultants) • Most outstanding issues resolved through negotiations

with upstream parties • Project Development Agreement (PDA) signed • Ongoing negotiations with regional off-takers for the 400MW

balance off-take • EPC Pre-qualification tender closed and evaluation in progress • Document with quantification of GRN guarantees being finalised • Re-confirmation of transmission integration requirements in

progress • Process to invite strategic equity partners under preparation

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

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

Incentives – Manufacturers & Exporters

Corporate Tax: 18% for 10 yrs thereafter 32%

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 Trade and investment enquiriesenquiries

Investment and trade Investment and trade promotionpromotion

Facilitation of investment Facilitation of investment missions to Namibiamissions to Namibia

Facilitation of business Facilitation of business missions from Namibia to missions from Namibia to South AfricaSouth Africa

Participation in trade fairs Participation in trade fairs in South Africain South Africa

Guidance on starting a Guidance on starting a business in Namibia 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