19.08.2013 Seite 1
The Namibian Business and Investment
Climate (namBIC) Survey 2013
Some highlights of the Zambezi and
Kavango regions
Presented by
Klaus Schade (IPPR)
Institute for Public
Policy Research
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Survey background
namBIC 2013…
Fourth consecutive annual survey capturing perceptions of business
people in Namibia concerning the business and investment climate.
Nation-wide survey covering all economic sectors and regions.
Substantially higher response rate allowed for regional analysis of most
questions.
Interviews of 200 informal (face-to-face) and 463 formal businesses
during October 2012 (telephonically) out of a sample of 800 formal
businesses. Zambezi and Kavango: 41 responses out of sample of 60
businesses (68%).
Guided by a Steering Committee consisting of NCCI, NMA, IPPR and
GIZ, and funded by GIZ on behalf of the German Federal Ministry for
Economic Cooperation and Development (BMZ).
Questionnaire design and data analysis carried out by the Institute for
Public Policy Research (IPPR).
Survey conducted by Business Intelligence Africa.
19 August 2013
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2
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Results – Economic condition
General economic
conditions
Businesses in the Zambezi and
Kavango regions are quite
optimistic about 2013, but business
people from Kavango do not share the
optimism regarding 2012.
Contrary to global economic
prospects, Namibian businesses in
general rated the business
conditions in 2012 more positively
than in 2011 and are even upbeat
about prospects for 2013.
Overall rating influenced by size with
large and medium businesses more
optimistic than small and micro
enterprises.
19 August 2013
3
0.0 0.5 1.0 1.5 2.0
Namibia
Zambezi
Kavango
economic conditions expected for 2013 economic conditions in 2012
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Results – Investment
Investment decisions
Positive mood not resulting in
investment though: 52% did not invest
during 2012 compared to 40% and 42%
in the two preceding years. Even fewer
companies in Zambezi and Kavango did
invest - 59% did not invest.
Outlook rather bleak since companies in
general intend to invest less than
average during 2013, with businesses in
Kavango and Zambezi being more
cautious than Namibian businesses on
average.
Businesses in the Kavango region slightly
more inclined towards Research &
Development, but in general Namibian
companies show very little appetite to
invest in R & D.
4
19 August 2013
-0.8 -0.6 -0.4 -0.2 0.0
Namibia
Zambezi
Kavango
Replacement Expansion
Below average Neutral
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Results – Labour market
Employment decisions
Fewer companies in Zambezi and Kavango
increased employment opportunities (29%),
while 4% reduced the labour force in 2012.
In Namibia, 43% of companies increased
work force in 2012 compared to 7% that
retrenched staff.
Improvement for labour market expected
More firms intend to increase the labour
force in Zambezi (54%) compared to 19% in
Kavango. Only minority expected to reduce
workforce (8% in Zambezi and none in
Kavango).
Labour relations are rated as being good
in Namibia (rating of 0.71). Businesspeople
in Kavango (1.04) rate the relationship
much better than their counterparts in
Zambezi (0.69).
5
19 August 2013
0 10 20 30 40 50 60
Namibia
Zambezi
Kavango
Reduce Increase
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Results - Obstacles
Obstacles to business growth
Overwhelming agreement amongst
business people concerning the most
severe obstacles to business
development.
Access to and cost of finance, access
to land and cost of utilities are the top
three factors for all types of businesses.
Demand for products and services
and crime and theft follow on places
four and five.
Access to land matters in the Zambezi
and Otjozondjupa regions more than
in other regions, taking first place.
Quality of service delivery of public
servants ranked third in Zambezi, while
cost of utilities not really of concern.
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19 August 2013
1 2 3
All
Access to and
cost of
finance
Access to
land
Cost of utilities
Micro
Access to and
cost of
finance
Access to
land
Cost of utilities
Small
Access to and
cost of
finance
Access to
land
Cost of utilities
Medium
Access to and
cost of
finance
Access to
land
Cost of utilities
Large
Access to and
cost of
finance
Access to
land
Cost of utilities
Caprivi
Access to land Access to
and cost of
finance
Quality of service
delivery of public
servants
Kavango
Access to and
cost of
finance
Access to
land
Cost of utilities
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Regulatory business
environment
Ease of registration viewed as
more challenging than in previous
years but remains on the positive
side. Registration in Zambezi rated
neutral while in Kavango and
Namibia at large slightly positive.
Cost of registration not regarded
as an obstacle in Namibia in
general, and particularly not in the
Zambezi region.
Time and complexity of
registration rated more favourably
in Kavango and Zambezi than in
the rest of the country, but still room
for improvement.
7 Results - Regulations
19 August 2013
0.0 0.5 1.0 1.5 2.0
Namibia
Zambezi
Kavango
Cost of registration Time and complexity Ease of registration
Very easy
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Corruption, crime, enforcement of contracts & property
rights
8
Companies in Zambezi and
Kavango more positive about
enforcement of contracts than
companies in other regions.
Corruption not perceived as a
problem in Namibia in general and
neither in the south although average
rating slightly below last year (1.27
compared to 1.64).
Crime regarded as a challenge in
Kavango but not in Zambezi.
Overall, crime seen as slightly more
challenging by respondents in
general (rating dropped from +0.13 to
-0.12).
Results – Corruption, crime…
19 August 2013
-1.0 -0.5 0.0 0.5 1.0 1.5
Namibia
Zambezi
Kavango
Perception of corruption Perception of crime Enforcement of contracts
Problem No problem
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Taxes
Only 16% of all respondents indicated
that they do not pay taxes.
Business people from Zambezi more
satisfied with the Receiver of Revenue
than in Kavango and Namibia in
general.
Handling of tax returns by RoR rated
as neutral (neither difficult nor easy) in
Kavango and slightly positive in
Zambezi.
Ease of paying taxes perceived as
more challenging in Kavango than in
Namibia at large contrary to Zambezi.
Tax rates are overwhelmingly
considered as being too high across
the country (rating of -1.31).
9 Results – Taxes
19 August 2013
-1.5 -1.0 -0.5 0.0 0.5
Namibia
Zambezi
Kavango
Level of tax rates Ease of paying taxes Satisfaction tax returns
Very high Neutral
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Cross-border trade
26% of all respondents are involved in
cross-border trade, but only 15% in
Zambezi and Kavango.
Business people from the north east
are least critical about border
procedures (rating of -0.3 and -0.1).
Rating by all respondents of
procedures on the Namibian side of
the border dropped dramatically
from +0.7 to -0.7.
All respondents rated on average
procedures on Namibian side worse
than the foreign side of the border
(-0.7 vs. -0.5).
10 Results – Cross-border trade…
19 August 2013
-1.5 -1.0 -0.5 0.0 0.5 1.0
Namibia 2012
Namibia 2013
North Central
North East
South
Procedures at Foreign border posts Procedures at Namibian border posts
Difficult Not difficult
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Access to Land
Demand for land dropped from 45%
of respondents to 32%. Serviced
land most in demand (26% of all
respondents). 35% of respondents
from Kavango and 15% from Zambezi
indicated that they are in need of
land.
Access to serviced land (-0.9) rated
more challenging than access to un-
serviced land (-0.3), but improved
compared to previous year.
However, it remains a serious
challenge in Kavango (rating of -1.3).
Cost of land identified as main
obstacle in Namibia in obtaining land
followed by bureaucratic procedures
and availability.
11 Results – Access to Land
19 August 2013
-1.5 -1.0 -0.5 0.0
Namibia 2011
Namibia 2012
Namibia 2013
North Central
North East
South
Obtain un-serviced land Obtain serviced land
Very difficult
Neutral
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Finance
Access to and cost of finance is of
great concern to the private sector.
Cost of finance is viewed as major
obstacle in Kavango and as an
obstacle in Zambezi. In Namibia at
large it is rated more challenging than in
previous years.
Provision of collateral not really a
critical issue, in particular not in the
Zambezi region.
Respondents from the Kavango,
Ohangwena and Oshana regions rated
access to and cost of finance worst.
12 Results - Finances
19 August 2013
-2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0
Namibia
Zambezi
Kavango
Providing collateral Cost of credit Access to credit
very difficult neutral
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Public / Private Dialogue
Some public/private meetings were
organised by NCCI and LEDA in the
south and north of the country.
Only minority of respondents across
Namibia are aware of these meetings
(20% compared to 43% a year earlier).
However, 75% of those who knew
about meetings attended these.
Slight improvement in satisfaction
with these meetings (rating up from
+0.60 to +0.75).
Respondents, in particular from large
companies, not impressed by the way
concerns were addressed after the
meetings (rating of -0.56).
Results–Public/Private Dialogue 13
19 August 2013
-0.6 -0.4 -0.2 0.0 0.2 0.4 0.6 0.8 1.0 1.2
All-2012
All-2013
Micro
Small
Medium
Large
Concerns addressed Satisfaction with meetings
Not satisfied Satisfied
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Recommendation namBIC2013
Regular public-private sector meetings
Increase efforts to attract the targeted audience
Increase frequency of meetings
Provide proper feedback on plan of action
Establish high level Business Council chaired by Prime Minister
Identify and address cross-border issues
Conduct in-depth study in order to implement efficient procedures
Address availability of serviced land
Provide transparent and simple information of existing financing
programmes, requirements and costs (DBN, Fides and SME Bank
and commercial banks)
Strengthen linkages between SMEs and large businesses and
address supply side issues
14
19 August 2013
19.08.2013 Seite 15 Page 15 19 August 2013
15 Sponsorship
Be among the first to become a namBIC Sponsor…
Gold Sponsor
Silver Sponsor
… and find your logo and/or name prominently on all
publications, namBIC Public-Private Dialogues, media
announcements etc.
Bronze Sponsor
19.08.2013 Seite 16
Thank you very much!
Download the full report and the summary at:
www.ncci.org.na
www.nmanamibia.com
www.ippr.org.na
or contact for hard copies:
Institute for
Public
Policy Research