Namibia

Namibia
Country Profile
Contents
2
6.10 Performance requirements/incentives
2 Population
2.1
6.11 Black economic empowerment

and affirmative action
10
6.12 Work permits
10
Background
Population figures
2.2
Population growth rate
2.3
Age structure (2012 estimates)
2.4
Gender ratios (2012 estimates)
2.5
Life expectancy (2012 estimates)
2.6
Ethnic groups
6.13 Right to private ownership and establishment
10
6.14 Real Estate
10
6.15 Protection of property rights
10
6.16 Transparency of the regulatory system
11
6.17 Efficient capital markets and portfolio investment
11
2.7 Religions
2.8 Language
2.9 Education
2.10 Health
6.21 Corruption
12
3 Economy
6.22 Bilateral investment agreements
13
6.18 Competition from state-owned enterprises (SOEs) 11

6.19 Corporate social responsibility
12
6.20 Political violence
12
3.1
Latest economic indicators
6.23 Labour
13
3.2
Five-year forecast summary
6.24 Foreign trade zones/free ports
13
3.3
Annual trends
6.25 Foreign direct investment statistics
13
14
Government and Politics
6.26 Setting up a company
4.1
Political structure
Country Risk Summary
14
7.1
Sovereign risk
14
Transport and Communications
7.2
Currency risk
14
5.2 Roads
7.3
Banking sector risk
14
5.3 Ports
7.4
Political risk
14
7.5
Economic structure risk
14
Country Outlook: 2012 2016
14
8.1
Political stability
14
8.2
Election watch
14
5.1 Railways
5.4
Air transport
5.5 Telecommunications
Investing in Namibia
6.1
Openness to, and restrictions upon foreign investment 7
6.2
Foreign ownership restrictions
8.3
International relations
15
8.4
Policy trends
15
Economic growth
15
6.3
Government tenders
6.4
Independent ratings on Namibias investment climate 8
8.5
6.5
Foreign investment in the Namibian stock exchange 8
8.6 Inflation
6.6
Infant industry protection
15
8.7
Exchange rates
15
External sector
15
Appendix sources of information
16
6.7
Conversion and transfer policies
8.8
6.8
Expropriation and compensation
6.9
Dispute settlement
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1 Background
2 Population
Namibia, officially the

Republic of Namibia, is a
country in southern Africa
whose western border
is the Atlantic Ocean. It
shares land borders with
Angola and Zambia to
the north, Botswana to
the east and South Africa
to the south and east.
It gained independence
from South Africa on 21
March 1990, following
the Namibian War of
Independence. Its
capital and largest city is
Windhoek.
2.1 Population figures

Namibia has a population of 2,165,828 (July 2012 est.)
The name of the country is derived from the Namib Desert,

considered to be the oldest desert in the world. Before its
independence in 1990, the area was known first as German SouthWest Africa (Deutsch-Sdwestafrika), then as South-West Africa,
reflecting the colonial occupation by the Germans and the South
Africans (technically on behalf of the British crown reflecting South
Africas dominion status within the British Empire).
The dry lands of Namibia were inhabited since early times by
Bushmen, Damara, and Namaqua, and since about the 14th century
AD by immigrating Bantu who came with the Bantu expansion. It
became a German Imperial protectorate in 1884 and remained a
German colony until the end of World War I. In 1920, the League of
Nations mandated the country to South Africa, which imposed its
laws and, from 1948, its apartheid policy.
In 1966, uprisings and demands by African leaders led the United
Nations to assume direct responsibility over the territory. It
recognized the South West Africa Peoples Organisation (SWAPO)
as the official representative of the Namibian people in 1973.
Namibia, however, remained under South African administration
during this time. Following internal violence, South Africa installed
an interim administration in Namibia in 1985. Namibia obtained full
independence from South Africa in 1990, with the exception of
Walvis Bay and the Penguin Islands, which remained under South
African control until 1994.
Hifikepunye Pohamba was elected president in November 2004
in a landslide victory replacing Sam Nujoma who led the country
during its first 14 years of self rule. Pohamba was re-elected in
November 2009.
2.2 Population growth rate

0.817% (2012 est.)
2.3 Age structure (2012 estimates)
Total percentage
Male
Female
0 14 years
34.2%
371,078
364,232
15 64 years
61.7%
671,853
652,414
65 years and
over
4.1%
38,851
49,157
Source: CIA World Factbook
2.4 Gender ratios (2012 estimates)

At birth
1.03 male / female
Under 15 years
1.02 male / female
15 64 years
1.03 male / female
65 years and over
0.78 male / female
Total population
1.02 male / female
Source: CIA World Factbook
2.5 Life expectancy (2012 estimates)

Total population
52.17 years
Male
52.47 years
Female
4.36 years
2.6 Ethnic groups

The majority of the Namibian population is black African mostly of
the Ovambo ethnicity, which forms about half of the population
residing mainly in the north of the country, although many are now
resident in towns throughout Namibia. Other ethnic groups are the
Herero and Himba people, who speak a similar language, and the
Damara, who are ethnically also of Bantu origin but speak the same
click language as the Nama.
In addition to the Bantu majority, there are large groups of Khoisan
(such as Nama and Bushmen), who are descendants of the original
inhabitants of Southern Africa. The country also contains some
descendants of refugees from Angola. There are also two smaller
groups of people with mixed racial origins, called Coloureds
and Basters, who together make up 6.5% (with the Coloureds
outnumbering the Basters two to one). There is a large Chinese
minority in Namibia.
Whites of Portuguese, Dutch, German, British and French ancestry
make up about 7% of the population; they form the second-largest
population of European ancestry, both in terms of percentage and
actual numbers, in Sub-Saharan Africa after South Africa.
Most Namibian whites and nearly all those of mixed race speak
Afrikaans and share similar origins, culture, and religion as the white
and coloured populations of South Africa. A smaller proportion
of whites (around 30,000) trace their family origins directly back
to German colonial settlers and maintain German cultural and
educational institutions. Nearly all Portuguese settlers came to the
country from the former Portuguese colony of Angola.
2.7 Religions
The Christian community makes up more than 90% of the population
of Namibia, with at least 50% of these Lutheran. At least 10% of the
population hold indigenous beliefs. The faith of the remaining portion
of the population is unknown.
Missionary work during the 1800s drew many Namibians to
Christianity. While most Namibian Christians are Lutheran, there
also are Roman Catholic, Methodist, Anglican, African Methodist
Episcopal, Dutch Reformed Christians and Mormon (Latter-Day
Saints) represented, as well as some Jewish people.
2.8 Language
The official language is English. Until 1990, German and Afrikaans
were also official languages. Long before Namibias independence
from South Africa, SWAPO had decided that the country should
become officially monolingual, consciously choosing this approach in
contrast to that of its neighbour, which was regarded as a deliberate
policy of ethnolinguistic fragmentation. Consequently, English
became the sole official language of Namibia. Some other languages
have received semi-official recognition by being allowed as medium
of instruction in primary schools.
Half of all Namibians speak Oshiwambo as their first language,
whereas the most widely understood language is Afrikaans. Among
the younger generation, the most widely understood language is
English. Both Afrikaans and English are used primarily as a second
language reserved for public communication, but small first-language
groups exist throughout the country.
While the official language is English, most of the white population
speaks either German or Afrikaans. Even today, 90 years after the
end of the German colonial era, the German language plays a leading
role as a commercial language. Afrikaans is spoken by 60% of the
white community, German is spoken by 32%, English is spoken by
7% and Portuguese by 1%. Geographical proximity to Portuguesespeaking Angola explains the relatively high number of lusophones.
2.9 Education
Namibia has compulsory free education for ten years between
the ages of six and 16. Grades 17 are primary level, grades 8 12
secondary. In 1998, there were 400,325 Namibian students in
primary school and 115,237 students in secondary schools.
Most schools in Namibia are state-run, but a few private schools
are also part of the countrys education system. Among these are
St. Pauls College, Windhoek Afrikaanse Privaatskool, Deutsche
Hhere Privatschule, Windhoek International School and Windhoek
Gymnasium. Curriculum development, educational research, and
professional development of teachers is centrally organised by the
National Institute for Educational Development (NIED) in Okahandja.
There are four teacher training colleges, three colleges of agriculture,
a police training college, a Polytechnic at university level, and a
National University.
2.10 Health
The AIDS epidemic is a large problem in Namibia. Though its rate
of infection is substantially lower than that of its eastern neighbour,
Botswana, approximately 15% of the adult population is infected
with HIV. In 2001, there were an estimated 210,000 people living
with HIV/AIDS, and the estimated death toll in 2003 was 16,000.
The HIV/AIDS epidemic is considered as a killer disease and as it has
reduced the number of working class people, the number of orphans
has increased. It falls to the government to provide education, food,
shelter and clothing for these orphans.
The malaria problem seems to be compounded by the AIDS
epidemic. Research has shown that in Namibia the risk of contracting
malaria is 14.5% greater if a person is also infected with HIV. The
risk of death from malaria is also raised by approximately 50%
with a concurrent HIV infection. Given infection rates this large, as
well as a looming malaria problem, it may be very difficult for the
government to deal with both the medical and economic impacts of
this epidemic.
3 Economy
The economy is heavily dependent on the extraction and processing
of minerals for export. Mining accounts for 8% of GDP, but provides
more than 50% of foreign exchange earnings.
Rich alluvial diamond deposits make Namibia a primary source for
gem-quality diamonds. Namibia is the worlds fourth-largest producer
of uranium. It also produces large quantities of zinc and is a small
producer of gold and other minerals. The mining sector employs only
about 3% of the population.
Namibia normally imports about 50% of its cereal requirements; in
drought years food shortages are a major problem in rural areas. A
high per capita GDP, relative to the region, hides one of the worlds
most unequal income distributions, as shown by Namibias 70.7
GINI coefficient.
The Namibian economy is closely linked to South Africa with the
Namibian dollar pegged one-to-one to the South African rand.
Until 2010, Namibia drew 40% of its budget revenues from the
Southern African Customs Union (SACU). Increased payments
from SACU put Namibias budget into surplus in 2007 for the first
time since independence. SACU allotments to Namibia increased in
2009, but dropped in 2010 and 2011 because of the global recession,
reducing Namibias overall SACU income.
Increased fish production and mining of zinc, copper, and uranium
spurred growth in 2003-08, but growth in recent years was undercut
by poor fish catches, a dramatic decline in demand for diamonds,
higher costs of producing metals, and the global recession. A
rebound in diamond and uranium prices in 2010 and the reopening
of copper mines in 2011 provided a significant boost to Namibias
mining sector.
3.1 Latest economic indicators

2010
3 Qtr
2 Qtr
Prices
Consumer prices (Dec 2001=100)
Consumer prices (% change, year on year)
Financial indicators
Exchange rate N$:US$ (av)
Exchange rate N$:US$ (end-period)
Bank of Namibia overdraft rate (end-period; %)
Deposit rate (av; %)
Govt bond yield rate (av; %)
Lending rate (av; %)
Prime rate (av; %)
Treasury bill rate (av; %)
M1 (end-period; N$ m)
M1 (% change, year on year)
M2 (end-period; N$ m)
M2 (% change, year on year)
IJG/IPPR Business Climate Index (Jan
2006=100)
IJG/IPPR BCI (% change, year on year)
Foreign trade & reserves
Goods exports fob ( N$ m)
Diamonds
Other minerals
Food & live animals
Manufactures
Goods imports fob (N$ m)
Trade balance (N$ m)
Services balance (N$ m)
Income balance (N$ m)
Transfers balance (N$ m)
Current-account balance (N$ m)
Reserves excl gold (end-period; US$ m)
2011
4 Qtr
1 Qtr
2 Qtr
3 Qtr
4 Qtr
171.9
4.7
173.8
4
173.9
3.2
177.3
3.5
180.7
5.1
182.8
5.2
7.544
7.625
7
5.2
n/a
9.8
11.3
6.7
21,065
4.5
49,313
6.6
120.4
7.306
6.951
7
4.9
n/a
9.7
11.1
6.4
23,053
18.3
51,100
11.1
124.4
6.899
6.585
6
4.6
n/a
9.4
10.3
5.8
24,054
15.1
53,196
9.6
114.1
7.002
6.768
6
4.2
n/a
8.8
9.8
5.5
23,804
4.2
51,642
1.8
113.3
6.787
6.756
6
4.3
n/a
8.7
9.8
5.7
23,844
13.2
53,187
7.9
111.9
7.15
8.02
6
4.3
n/a
8.8
9.8
5.5
25,728
11.6
53,196
4.1
116.9
2.7
-6.3
-7.5
-7.1
-6
6,913
1,163
2,060
869
1,550
-8,179
-1,266
345
-737
1,841
183
1,803
7,478
1,896
1,540
1,078
1,436
-9,565
-2,087
358
-1,081
2,692
-118
1,833
8,125
1,973
1,775
933
1,823
-9,483
-1,358
320
-1,386
1,834
-590
1,696
7,275
1,034
1,679
828
1,811
-9,692
-2,417
242
-1,670
1,866
-1,979
1,536
8,340
1,961
1,577
1,014
1,891
9,197
17,537
3,065
2,254
2,514
25,370
1,821
7,570
1,452
1,642
1,056
1,433
-9,782
-2,212
531
-1,758
2,555
-884
1,413
2012
1 Qtr
185 189.7
6.4 7
8.099
8.075
6
4.3
n/a
8.7
9.8
5.6
27,851
15.8
60,530
13.8
121.8
7.749
7.659
6
4.3
n/a
8.7
9.8
5.9
27,465
15.4
59,978
16.1
121.3
6.7 7.1
8,751
1,951
1,825
1,180
1,813
-12,165
-3,414
469
1,079
2,665
799
1,787
8,229
1,847
1,797
962
1,712
11,979
20,208
421
-705
2,704
22,628
n/a
Source: Economist Intelligence Unit
3.2 Five-year forecast summary

(% unless otherwise indicated)
Real GDP growth

Gross agricultural production growth
Consumer price inflation (av)
Consumer price inflation (end-period)
Lending rate (av)
Government balance (% of GDP)
Exports of goods fob (US$ m)
Imports of goods fob (US$ m)
Current-account balance (US$ m)
Current-account balance (% of GDP)
External debt (year-end; US$ m)
Exchange rate N$:US$ (av)
Exchange rate N$:100 (av)
Exchange rate N$: (end-period)
Exchange rate N$:SDR (end-period)
2011 (a)
4.2
2.4
5
7.2
8.8
-9.7
4,393
-5,345
-108
-0.8
4,537
7.26
9.1
10.65
12.65
2012 (b)
4.4
0.8
5.4
3.9
10.7
-4.6
4,639
-5,746
141
1
4,568
7.49
9.69
8.94
10.96
2013 (b)
4.6
1.8
4.5
4.2
11.5
-5.5
4,931
-6,234
-10
-0.1
4,553
7.67
9.53
9.85
12.16
2014 (b)
5.4
1.7
4.9
4.3
10.7
-2.6
5,527
-6,683
44
0.3
4,671
8.25
10.19
10.42
12.73
2015 (b)
6.1
1.9
5.2
5.1
10.3
-1.1
6,472
-7,118
309
1.8
4,741
8.55
10.43
10.92
13.26
2016 (b)
5.3
2.3
5.2
5
10.2
0.1
6,830
-7,473
226
1.3
4,771
8.95
10.79
11.46
13.84
a) Economist Intelligence Unit estimates; b) Economist Intelligence Unit forecasts

Source: Economist Intelligence Unit
3.3 Annual trends

Real GDP growth (% change)
4 Government and Politics

4.1 Political structure
Official name
Republic of Namibia
Form of state
Unitary republic
Legal system
The Namibian legal system is based on the constitution of 1990 and
Roman-Dutch law.
Consumer price inflation (av %)
National legislature
Bicameral; National Assembly, with 72 members elected by universal
suffrage and serving a five-year term, and up to six non-voting
members appointed by the President. National Council, with limited
powers of review and 26 members, two of whom are nominated by
each of the countrys 13 regional councils, serving a six-year term.
National elections
The last legislative and presidential elections were held in November
2009. The next elections are due in November 2014.
Head of state
The Head of State is Hifikepunye Pohamba, elected President by
universal suffrage in November 2009.
National government
President and his appointed cabinet; reshuffled in March 2010.
Current account balance (% GDP)
Main political parties

South West Africa Peoples Organisation (SWAPO), the ruling
party (54 of the elected seats in the National Assembly)
Rally for Democracy and Progress (RDP; 8 seats)
Democratic Turnhalle Alliance (DTA; 2 seats)
National Unity Democratic Organisation (NUDO; 2 seats)
United Democratic Front (UDF; 2 seats)
Congress of Democrats (CoD; 1 seat)
Republican Party (RP; 1 seat)
All Peoples Party (APP; 1 seat)
South West Africa National Union (SWANU; 1 seat)
Monitor Action Group (MAG)
Total external debt (% GDP)
Key ministers
Prime Minister: Nahas Angula
Deputy Prime Minister: Marco Hausiku
Agriculture, Water and Forestry: John Mutorwa
Defence: Charles Namoloh
Education: Abraham Iyambo
Environment and Tourism: Netumbo Nandi-Ndaitwah
Finance: Saara Kuugongelwa-Amadhila
Fisheries and Marine Resources: Bernard Esau
Foreign Affairs: Utoni Nujoma
Gender Equality and Child Welfare: Doreen Sioka
Health and Social Services: Richard Kamwi
Home Affairs and Immigration: Rosalia Nghidinwa
Information and Communication Technology: Joel Kaapanda
Justice: Pendukeni Iivula-Ithana

Labour and Social Welfare: Immanuel Ngatjizeko
Lands and Resettlement: Alpheus Naruseb
5 Transport and
Communications
Mines and Energy: Isak Katali

National Planning Commission: Tom Alweendo
Presidential Affairs and Attorney-general: Albert Kawana
Regional and Local Government, Housing and Rural Development:
Jerry Ekandjo
Safety and Security: Nangolo Mbumba
Namibias road network is generally well maintained, and its rail,

harbour and air services are by and large efficiently operated. The
economy is therefore largely free from transport bottlenecks. The
country inherited a relatively well-developed broad infrastructure at
independence, although the apartheid system had largely neglected
outlying rural areas.
Infrastructure development is a vital component of the governments
strategy for accelerating economic growth and raising living
standards across the country. However, the countrys large size and
overall low population density make the task both more difficult and
more expensive.
Speaker of Parliament: Theo-Ben Gurirab

Trade and Industry: Hage Geingob
Veterans Affairs: Nickey Iyambo
Works and Transport: Erkki Nghimtina
Youth, National Service, Sport and Culture:
Kazenambo Kazenambo
Governor of the Central Bank: Ipumbu Shiimi
International organisation participation
ACP
AfDB
AU
FAO
G-77
IAEA
IBRD
ICAO
ICRM
IFAD
IFC
IFRCS
ILO
IMF
IMO
Interpol
IOC
IOM
IPU
ISO
ITSO
ITU
ITUC
MIGA
NAM
OPCW
SACU
SADC
UN
UNAMID
UNCTAD
UNESCO
UNHCR
UNIDO
UNISFA
UNMIL
UNMISS
UNOCI
UNWTO
UPU
WCO
WHO
WIPO
WMO
WTO
Government capital spending on infrastructure over the next three

fiscal years is projected at N$10bn (US$1.22bn), more than double
the amount spent in the previous three years, to be supplemented by
N$5.5bn in concessional loans from donors. The countrys greatest
infrastructural weakness in recent years has been its failure to
increase national electricity-generating capacity and its over-reliance
on imported electricity from South Africa.
The water supply network, which is operated by a state-owned
company, Namwater, covers most of inland Namibia. It is fed by
a series of large dams and can normally meet most demand for
drinking water. However, demand has risen because of population
growth, and reservoirs can run dangerously low during droughts.
Water supplies in the coastal strip depend on underground aquifers
and will be inadequate to meet the demand of new uranium
mines being developed. One coastal desalination plant is under
construction to supply the Trekkopje uranium mine, due to start
operations by the end of 2009, and Namwater is planning to build a
larger plant to supply new uranium mines as well as its domestic and
industrial coastal customers.
5.1 Railways
The 2,380-km railway network is managed by TransNamib Holdings,
a state-owned company which also runs a large road-haulage
operation. In 2002 work began on the northern rail extension project
to connect the network to the main towns in Namibias densely
populated north, which would also provide a direct outlet to the sea
for southern Angolas main economic centres.
Construction of the 247-km first phase, between Tsumeb and
Ondangwa, was completed in 2006, and work on the 58-km second
phase, between Ondangwa and Oshikango on the Angolan border,
is under way. The third phase is a short branch between Ondangwa
and Oshakati. Government spending on railway infrastructure and
maintenance is projected at N$485m during 2007/08-2009/10, most
of which is for completing the northern rail extension, as well as
upgrading the Aus-Lderitz branch to mainline standard.
5.2 Roads
The road network comprises over 5,000 km of tarred and 27,000 km
of gravel roads. Road links to Namibias eastern neighbours have
been improved by the mainly donor-funded construction of the TransKalahari and Trans-Caprivi highways. The first, completed in 1998,
greatly reduces the road distance between South Africas Gauteng
province and Walvis Bay and is part of a plan to develop Walvis
Bay into the main port serving Southern Africa. So too is the TransCaprivi highway, from the Botswana border at Ngoma to Rundu and
Namibias road network, which was completed in 2001. The opening
of the Sesheke road bridge across the Zambezi river in 2004 has
provided a through-road to Livingstone and Lusaka in Zambia, ending
the need for lorries to be ferried across. A third road corridor to Walvis
Bay, the Trans-Cunene Corridor, is being planned, to link northern
Namibia with Lubango in southern Angola.
5.3 Ports
Namibias two harbours at Walvis Bay and Lderitz are operated by
the state-owned Namibian Ports Authority (Namport). The Walvis Bay
Corridor Group, a public-private partnership, is promoting the multimodal trans-Caprivi and trans-Kalahari corridors to develop Walvis Bay
into a regional cargo hub to provide a more direct route for trade with
the Americas and northern and western Europe than Africas ports on
the Indian Ocean.
Walvis Bay currently handles some 3m tonnes of cargo a year,
around one-third of which is containerised. Container capacity is
being expanded to handle 500,000 containers per year, compared
with 140,000 in 2007, under a five-year investment programme. The
harbour is also being deepened to accommodate larger vessels, and
a second ship-repair floating dock is being added. The much smaller
port at Lderitz has become an important base for the offshore
diamond industry, and extra capacity will be added when the Kudu
offshore gasfield is developed.
5.4 Air transport
New regional and international air links were established after
independence by the national carrier, Air Namibia, including direct
flights to Frankfurt in Germany and the UK capital, London. Flights
to London were discontinued in 2002 owing to the airlines financial
difficulties, but were resumed in mid-2005. The airline has incurred
persistent operating losses, and the government continues to bail it
out with financial subsidies, which have exceeded N$2.2bn to date.
The Namibia Airports Company is investing N$15m in upgrading
the main airports, including new passenger facilities at Windhoeks
Hosea Kutako International Airport.
5.5 Telecommunications
Namibia was one of the last countries in Africa to introduce competition
in the mobile communications sector when a second network finally
launched in 2007. Despite this, the country has achieved a market
penetration rate well above the regional average. However, the average
revenue per user has more than halved since then.
Both GSM operators MTC (managed by Portugal Telecom) and
Cell One (renamed Leo by its new owner, Orascom) have entered
the internet and broadband market with 3G mobile broadband
services in a bid to create new revenue streams. MTC introduced
fourth generation (4G) technology to the market in May 2012 when
it launched an LTE network in the capital, Windhoek. In addition,
Telecom Namibia (TN) is offering 3G mobile broadband services
using EV-DO technology.
Fixed-line services are still a monopoly of TN, but as a member of
the WTO the government plans to open the telecom sector to full
competition. TN entered the lucrative mobile market as the third
player with a CDMA network but was put on hold by the industry
regulator, the Namibian Communications Commission, until a new
communications law was enacted which, among other issues,
addresses fixed-mobile convergence. Since then, however, the
absence of effective regulation during the transition to a new
regulatory authority, the Communications Regulatory Authority of
Namibia, has led to further delays in market liberalisation.
Despite being reasonably competitive with six ISPs, development
of Namibias internet and broadband sector has been held back
by high prices for international bandwidth, caused by the lack of a
direct connection to international submarine fibre optic cables. This
changed in early 2011 when the WACS cable landed in the country,
with services launched in May 2012. In parallel, Namibia is working
to diversify its transit access routes via neighbouring countries,
but broadband price reductions on the retail level have only been
moderate so far.
6 Investing in Namibia
6.1 Openness to, and restrictions upon foreign investment
The Government of the Republic of Namibia (GRN) is committed to
stimulating economic growth and employment through attracting
foreign investment. The Foreign Investment Act of 1990 is the
primary legislation that governs foreign direct investment in Namibia.
The Ministry of Trade and Industry (MTI) is the governmental
authority which is primarily responsible for carrying out the provisions
of the Foreign Investment Act.
Under the Foreign Investment Act, the Ministry established the
Namibia Investment Centre (NIC). The NIC serves as Namibias
official investment promotion and facilitation office. It is often the
first point of contact for potential investors. The NIC is designed
to offer comprehensive services that range from the initial inquiry
stage through to operational stages. The NIC also provides general
information packages and advice on investment opportunities,
incentives, and procedures. The NIC is also tasked with assisting
investors minimise bureaucratic red tape by coordinating work
with government ministries as well as regulatory bodies.
The NIC is also responsible for screening all potential foreign
investments. The NIC does not follow a formal review process, but
it does evaluate the credibility of potential investors, their business
presentations, and gauges the potential economic benefit to the
country. The NICs decisions are forwarded to the Minister of Trade
and Industry for final approval/rejection.
The Namibian Competition Commission (NaCC), established in 2009
under the Competition Act of 2003 is charged by the Ministry of
Trade and Industry with reviewing mergers (foreign and domestic)
to safeguard and promote competition in the Namibian market.
See the section on Transparency of the Regulatory system for more
information on the Competition Commission.
The Foreign Investment Act guarantees equal treatment for foreign
investors and Namibian firms, i.e., fair compensation in the event of
expropriation, international arbitration of disputes between investors
and the government, the right to remit profits and access to foreign
exchange. Investment incentives and special tax incentives are also
available for the manufacturing sector.
The Registrar of Companies in the Ministry of Trade and Industry is
responsible for managing, regulating, and facilitating the formation
of businesses. The Registrars office encourages investors to seek
professional advice from legal practitioners, auditors, accounting
officers, or secretarial firms when registering their businesses. The
Namibian Embassy in Washington provides a guide to registering a
business which can be found at: Register a Business
Other laws that impact foreign investors include the 2004 Companies
Act and the 1998 Close Corporation Act. These laws provide the legal
framework for the establishment of business entities. The 2004
Companies Act went into force on November 1, 2010.
6.2 Foreign ownership restrictions
While the Foreign Investment Act stipulates that foreign investors
should be treated the same as Namibian investors, the Act
acknowledges that the government has the right to impose
restrictions. Most restrictions have to do with land and natural
resource rights and government contracts (tenders). For example,
the government requires local participation before issuing licenses to
exploit natural resources and has implemented additional restrictions
in the case of certain strategic minerals.
The country is well prepared for a broadband boom, with 3G and

4G mobile services and a national fibre backbone infrastructure in
place. Several WiMAX and other wireless broadband services offer
additional access options and are standing by to bring additional
competition to the voice market as well, once internet telephony
is deregulated.
In 2011, Cabinet declared uranium, diamonds, gold, copper and rare

earth metals as strategic minerals. The declaration aims to make
the Namibian Government and the people of Namibia meaningful
participants in the mining sector by granting a State owned company
the right to own all new licenses issued for the exploration and
mining of strategic minerals. While others may be formed, the
current company, Epangelo, is authorised to enter into joint ventures
with other parties for exploration and/or development. Renewal of
existing licenses will not be affected.
The Land Reform Act regulates the acquisition of agricultural land by
foreign nationals. No foreign national is allowed to acquire agricultural
land without the prior consent of the Minister of Lands.
6.3 Government tenders
Government transactions, including the procurement of goods
and services, are to be coordinated through the Tender Board of
Namibia (http://www.mof.gov.na/tender.htm). The board comprises
representatives from various government ministries appointed by
the Minister of Finance. The Government is required by law to
publicise calls for tenders in the local media and the Namibia
Government Gazette.
6.5 Foreign investment in the Namibian stock exchange

Foreigners must pay a 10% non-resident shareholders tax on
dividends; however there are no capital gains or marketable
securities taxes. As a member of the Common Monetary Area, the
Namibia Dollar (denoted as N$) is pegged one-to-one with the South
African Rand.
6.6 Infant industry protection
The dairy and pasta industries have enjoyed infant industry protection
since 2003 under the terms of a provision in the Southern African
Customs Union (SACU) Agreement. This means the government
charges up to 40 per cent import tariffs on imported Ultra High
Temperature (UHT) milk products and pasta. This protection is valid
until 2012 and 2014 for milk and pasta respectively.
Index/ranking
Year
Score
TI Corruption Index
2011
Score 4.4 | Ranking 57

of 183
Heritage Economic Freedom
2011
Score 62.7 | Ranking

73 of 179
World Bank Doing Business
2012
78 of 183
Although the primary aim of the tender board is to ensure that

tenders are awarded to the best bid in an open bidding process, the
procurement policy of Namibia does permit preferences according
to certain socio-economic goals and strategies. Beneficiaries of
these preferences are not exclusively restricted to the historically
disadvantaged or Namibian citizens but are reserved for individuals
and companies domiciled in Namibia. In addition, the Tender Board
may exempt procurements from the tender procedures if they are
valued at less than $N10,000, or the Board finds good cause to deem
it impracticable or inappropriate to invite tenders.
MCC Government
Effectiveness
2009
0.55 (90%)
MCC Rule of Law
2009
0.59 (73%)
MCC Control of Corruption
2009
0.64 (87%)
MCC Fiscal Policy
2009
1.3 (75%)
MCC Trade Policy
2009
88.4 (100%)
MCC Regulatory Quality
2009
0.18 (67%)
MCC Business Start Up
2009
0.928 (34%)
The board generally requires that companies are registered with the
Ministry of Trade and Industry and that are in good standing with
the Department of Inland Revenue (the tax authority) and the Social
Security Commission.
MCC Land Rights Access
2009
0.571 (13%)
MCC Natural Resource

Management
2009
78.16 (29%)
6.4 Independent ratings on Namibias investment climate

Independent ratings confirm that Namibia enjoys a relatively positive
investment climate. The World Bank ranked Namibia 78th among
183 countries in its 2012 Doing Business report. Namibia has seen
a steady decline in its rankings since 2007, when it was ranked 42nd
among the 175 countries evaluated. For the 2012 report, Namibia
received its lowest rankings for registering property, trading across
borders and starting a business. The World Bank reported that
Namibia requires on average 10 procedures and 66 days to start a
business. Registering property takes on average 7 procedures and
39days, and the process costs 13.7 of the propertys value. It takes 9
documents and approximately 29 days to export a product and while
it takes 7 documents and 24 days to import an item (trade across
borders), according to the World Bank.
In September 2011, Moodys assigned Namibia its second credit
rating (in addition to a previous Fitch rating) of Baa3/stable. In
December 2011, the Fitch Ratings service once again issued Namibia
a long term foreign currency rating of BBB-, consistent with the
ratings Fitch has issued since 2005. For more information go to:
http://www.fitchratings.com.
In 2005, the Southern Africa Global Competitiveness Hub (or Trade
Hub), funded by the U.S. Agency for International Development
(USAID), at the request of the MTI, conducted an Investor Roadmap
Study for Namibia. The study identified 51 recommendations to
improve administrative, regulatory, and procedural issues that
could have a potential positive impact on the attractiveness of
Namibia to foreign direct investment (FDI). In 2010, the Trade Hub
conducted a follow-up audit to review progress on implementing the
recommendations identified in the 2005 Investor Roadmap. The audit
determined that 16 recommendations had been implemented, and
24 others were pending.
6.7 Conversion and transfer policies

The Foreign Investment Act of 1990 offers investors meeting certain
eligibility criteria the opportunity to obtain a Certificate of Status
Investment (CSI). A status investor is entitled to:
Preferential access to foreign exchange to repay foreign debt, pay
royalties and similar charges, remit branch profits and dividends
Preferential access to foreign currency in order to repatriate
proceeds from the sale of an enterprise to a Namibian resident
Exemption from regulations which might restrict certain business
or categories of business to Namibian participation
Right to international arbitration in the event of a dispute with
the government
Payment of just compensation without undue delay and in freely
convertible currency in the event of expropriation
To obtain a CSI, an investor must apply to the Ministry of Trade and
Industry. The investors application must demonstrate the extent to
which the proposed investment will:
Contribute toward Namibias development objectives
Utilise Namibian labour and natural resources to contribute to
the economy
Assist in the advancement of socially, economically or
educationally disadvantaged Namibians
Make provisions for equal opportunities for women
Likely impact the environment, and the proposed measures to
mitigate adverse environmental consequences
Non-status investors are subject to exchange controls under the

South African regulations applicable to the Common Monetary Area
(CMA) South Africa, Lesotho, Swaziland and Namibia.
There is no limit on investment transfers by corporations to other
countries. The Bank of Namibia processes applications. Nonresidents may access local credit up to 200 percent of their total
shareholders investment to finance foreign direct investments
in Namibia. The banking system is modern and closely tied to the
South African system. Three of the four local commercial banks
are subsidiaries of South African banks. All local commercial banks
handle international transactions and trade financing. Banking fees
and charges are among the highest in the world.
The Bank of Namibia (BoN) must approve all loans originating from
foreign lenders no matter how the loan is denominated. To approve
a loan the BoN reviews the loan agreement between the two
(foreign and local) parties. The documentation is provided by the local
commercial bank in which the loan funds will be deposited. The BoN
usually responds within three days.
Loans may be denominated in local or foreign currency; however
interest rate caps on foreign loans are contingent on the currency
denomination. The South African Rand (ZAR) is viewed as local
currency.
Interest rate caps on foreign originating loans:
Foreign originating loans denominated in a foreign currency may
not exceed LIBOR + 200 basis points
Foreign originating loans denominated in a local currency (ZAR or
N$) many not exceed the local prime rate + 300 basis points
These caps are determined by the Common Monetary Area
The BoN requires that the principal payment on a foreign originated
loan may not be shorter than six months. The BoN must approve
the principal payment prior to the transaction. The BoN essentially
reviews that the principal payment is in line with what was in original
loan agreement. The local commercial bank handling the principal
payment provides the requisite documents to the BoN. The BoN
usually responds within 3 days.
The BoN does not review interest payments. In other words,
commercial banks can transmit interest payments without the BoNs
review. The BoN has never faced a situation in which it restricted a
loan repayment. Foreign currency reserves have, to date, always
been sufficient to cover foreign loan payments. The CMA and thus
the BoN is moving toward relaxing the controls on foreign loans (i.e.,
no longer requiring approval).
6.8 Expropriation and compensation
Government expropriations are rare. According to the Foreign
Investment Act, foreign investors who have received a Certificate of
Status Investment (CSI) are entitled to just compensation without
undue delay and in freely convertible currency if the government
expropriates the investors property. Furthermore, the courts are
generally independent and uphold contracts.
The primary mechanism for land reform that the government
continues to pursue is a willing buyer-willing seller programme,
which is rooted in Namibian law specifically the Land Reform Act
of 1995. In 2003, this Act was amended to allow the expropriation
of property in the public interest subject to the payment of just
compensation and in accordance with legal procedures. Landowners
have the option to challenge the Government, including the price
offered for expropriation, through the court system. As in other
Southern African countries emerging from apartheid, land reform
is at the forefront of public debate. The land reform process draws
criticism for the slow pace of acquiring commercial farmland and
resettling Namibias landless.
Under its land reform programme the government has attempted the
expropriation of unproductive agricultural land from both domestic
and overseas (primarily German) landowners. In 2005, the only year
in which the Government took such action, the GRN expropriated
four farms. The High Court of Namibia on March 6, 2008 made its
first ruling on the legality of expropriation under the land reform
programme. The Court ruled the programme was constitutional but
found that the Ministry of Lands and Resettlements administration
of the expropriation process had violated Namibian law on several
grounds. As a result of the ruling, two farms were returned to their
owners, while the GRN compensated in full the absentee owners of
the other two farms.
6.9 Dispute settlement
The Foreign Investment Act allows for the settlement of disputes by
international arbitration for investors that have obtained a Certificate
of Status Investment (CSI). The CSI must also include a provision
for international arbitration. The Act stipulates that arbitration shall
be in accordance with the Arbitration Rules of the United Nations
Commission on International Trade Law in force at the time when the
Certificate was issued unless the CSI stipulated another form of
dispute resolution.
There is no domestic arbitration body. Investors without a CSI
that encounter a dispute will have to address their dispute in
the Namibian courts, or the court system which has jurisdiction
according to the investors contract. The Namibian court system is
independent and is largely perceived to be free from government
interference. Per the Criminal Procedure Act of 2004, foreign court
judgments may be accepted if a bilateral treaty is in place.
Namibias legal system, based on the Roman Dutch Law, is similar to
South Africas legal system. The system provides effective means to
enforce property and contractual rights. The Companys Act of 1973
governs company and corporate liquidations while the Insolvency
Act 61 of 1936 governs insolvent individuals and their estates. The
Insolvency Act details sequestration procedures and the rights of
creditors. A new Insolvency Amendment Bill was passed in 2005 but
has not yet been signed into law.
As the one-stop-shop for investors, the NIC should be the body
that first learns of an investment dispute between a foreign investor
and a domestic enterprise. The NIC has never received a report of an
investment dispute.
Namibia signed but has not ratified the Convention on the
Settlement of Investment Disputes Between States and Nationals
of Other States.
6.10 Performance requirements/incentives
Namibia does not impose performance requirements as a condition
for establishing, maintaining, or expanding investments on foreign
investors. The requirements in place are mostly imposed as a
condition to access tax and investment incentives. For example,
to benefit from incentives in a planned export processing zone,
investors are required to export a certain percentage of the finished
product. There is no legal requirement for investors to purchase
from local sources. However, for certain industries, there are local
content requirements to exempt final products from duties under the
Southern African Customs Union (SACU).
Incentives:
Incentives are mainly aimed at stimulating manufacturing and
attracting foreign investment to Namibia and promoting exports. To
take advantage of the incentives, companies must be registered with
the Ministry of Trade and Industry (MTI) and the Ministry of Finance.
Tax and non-tax incentives are accessible to both existing and new
manufacturers. The MTI has developed a brochure titled Special
Incentives for Manufacturers and Exporters which is available from
the Namibia Investment Centre (NIC). Namibia has also established
an Export Processing Zone (EPZ) regime that offers favourable
conditions for companies wishing to manufacture and export
products for regional and international markets.
The Ministry of Trade and Industry is reviewing the Foreign

Investment Act. According to government sources, the impetus
to change the act is the desire to provide domestic investors with
the same incentives afforded foreign investors. Government is also
contemplating expanding incentives beyond the manufacturing
sector to service industries (primarily hospitality and tourism).
Import Permits:
The Ministry of Trade and Industry requires import permits for
products entering the country. Products subject to non-automatic
import licensing are:
Medicines
Chemicals
Frozen and chilled fish
Meat including game
Live animals
Genetic materials
Pornographic materials
Controlled agronomic products
Controlled petroleum products
Firearms and explosives
Diamonds
Coins
Gold, and other minerals
Works of art which have been in Namibia for more than 50 years
Almost all second-hand goods, including clothing and
motor vehicles
In practice, the Ministry of Trade and Industry does not issue licenses
for used clothing imports.
Most non-agricultural imports only require a permit issued by
MTI. However, depending on the agricultural product, additional
documentation may be necessary. The Namibian Agronomic Board
issues permits for the import, export, and transit of controlled
agronomic crops such as wheat, wheat products, corn, and corn
products. Agronomic crops and derivatives and plants and plant
products also require a phyto-sanitary certificate issued by the
Ministry of Agriculture, Water and Forestry (MAWF).
Retailers of fruits, vegetables, and other crop products must
purchase 27.5 percent of their stock from local farmers. The Namibian
Meat Board regulates the import and export of live animals (cattle,
sheep, goats and pigs) and derivative meat products. Importers of
these products must demonstrate compliance with the countrys
animal health standards by obtaining a veterinary import permit
from the Directorate of Veterinary Services. The import of wood and
lumber products requires permits from the MAWF.
Namibia is a party to the WTO Agreement on Import Licensing.
6.11 Black economic empowerment and affirmative action
The government actively encourages partnerships with historically
disadvantaged Namibians. Although the Government does not have a
codified Black Economic Empowerment (BEE) program, the Ministry
of Labour and Social Welfares Equity Commission requires all firms
to develop an affirmative action plan for management positions and
to report annually on its implementation.
In November 2011, the Prime Minister tabled the New Equitable
Economic Empowerment Framework which aims to create
conditions in which the distribution of income becomes far more
equitable than it is at present. It is not clear whether this policy will be
approved and implemented. Namibias Affirmative Action Act strives
to create equal employment opportunities, improve conditions for
the historically disadvantaged, and eliminate discrimination.
The commission facilitates training programmes, provides technical

and other assistance, and offers expert advice, information, and
guidance on implementing affirmative action in the work place.
In certain industries the government has employed different
techniques to increase Namibian participation. In the fishing sector,
companies pay lower quota fees if they operate Namibian-flagged
vessels that are based in Namibia, with crews that are predominantly
Namibian. The Minister of Mining and Energy has made clear
that prospective mining companies must indicate and show
commitment to empower previously disadvantaged Namibians in
their applications for exploration and mining licenses.
6.12 Work permits
The lengthy and administratively burdensome process of obtaining
work permits is among investors greatest complaints in Namibia.
Although the government cites the 51 percent unemployment rate
as its motivation for a strict policy on work permits, generally Namibia
does not yet have the available skills capacity to fill the jobs which
foreigners seek.
6.13 Right to private ownership and establishment
The Namibian Constitution guarantees all persons the right to
acquire, own and dispose of all forms of property throughout
Namibia, but also allows Parliament to make laws concerning
expropriation of property and to regulate the right of foreign nationals
to own or buy property in Namibia. There are no restrictions on the
establishment of private businesses, size of investment, sources
of funds, marketing products, source of technology, or training in
Namibia.
6.14 Real Estate
Foreign investors can purchase and own land in Namibia. There is an
exception related to agricultural land. Due to Namibias ongoing land
reform and resettlement process, legislation restricts non-resident
foreigners from purchasing agricultural farmland. Some stakeholders
have called for the expropriation of agricultural land owned by
non-resident foreigners (so-called absentee owners). However,
to date, the government has not engaged in any significant
expropriation of farmland.
6.15 Protection of property rights
The Namibian legal system protects and facilitates acquisition and
disposition of property such as land, buildings, and mortgages. All
deeds of sales are registered with the Deeds Office. Property is
usually purchased through real estate agents and most banks provide
credit through mortgages. The Namibian Constitution prohibits
expropriation without just compensation.
Namibia is a party to the WIPO Convention, the Berne Convention
for the Protection of Literary and Artistic Works, and the Paris
Convention for the Protection of Industrial Property. Namibia is also a
party to the Protocol Relating to the Madrid Agreement Concerning
the International Registration of Marks and the Patent Cooperation
Treaty. Namibia is a signatory to the WIPO Copyright Treaty and the
WIPO Performances and Phonograms Treaty.
The responsibility for IPR protection is divided among three
government ministries. The Ministry of Trade and Industry oversees
industrial property and is responsible for the registration of
companies, private corporations, patents, trademarks, and designs.
The Ministry of Information and Communication Technology
manages copyright protection, while the Ministry of Environment
and Tourism protects indigenous plant varieties and any associated
traditional knowledge of these plants.
In April, 2010 the Ministry of Trade and Industry tabled the updated
Industrial Property Bill, which proposes to establish an Industrial
Property Office to handle the administration of patents, marks and
designs. However, parliament has not yet passed the bill.
The Ministry of Information and Communication Technology has
drafted amendments to the Copyright and Neighbouring Rights
Protection Act of 1994 with the aim of bringing it in line with the
TRIPS Agreement and the WIPO treaties. The amendments also
aim to improve standards of IPR protection and include new aspects
10
such as satellite, traditional knowledge and folklore issues. The new

amended act has however not yet been passed.
Two copyright organisations, the Namibian Society of Composers
and Authors of Music (NASCAM) and the Namibian Reproduction
Rights Organisation (NAMRRO), are the driving forces behind
the governments anti-piracy campaigns. NASCAM administers
intellectual property rights for authors, composers and publishers
of music. NAMRRO protects all other intellectual property rights
including literary, artistic, broadcasting, satellite, traditional
knowledge and folklore.
6.16 Transparency of the regulatory system
The Competition Act of 2003 establishes the legal framework to
safeguard and promote competition in the Namibian market. The
government, through the Competition Act, has designed a legal
and regulatory framework that attempts to safeguard competition
while boosting the prospects for Namibian businesses as well as
recognising the role of foreign investment. The act is intended to
promote:
The efficiency, adaptability and development of the Namibian
economy
Competitive prices and product choices for customers
Employment and advancement of the social and economic
welfare of Namibians
Expanded opportunities for Namibian participation in world
markets
Participation of small enterprises in the economy by ensuring a
level playing field
Greater enterprise ownership particularly among the historically
disadvantaged
The act established the Namibia Competition Commission (NaCC)
which was officially launched in December 2009. The NaCC has the
mandate to review any potential mergers and acquisitions that might
limit the competitive landscape or adversely impact the Namibian
economy. The Minister of Trade and Industry is the final arbiter
on merger decisions and may accept or reject an NaCC decision.
Any investor can file an appeal with the MTI but there is no formal
process. In 2010 the NaCC approved some mergers by foreign
buyers and rejected the merger of two cement companies. In 2011,
the roles and authorities of the Ministry and the NaCC came under
question in the Namibian courts in the proposed merger between
Walmart and South African Massmart. A decision is expected in
spring 2012.
In many sectors, a relatively effective and transparent regulatory
system exists. In 2000, the government established the Electricity
Control Board (ECB), which is responsible for regulating the
energy sector. The Namibian parastatal responsible for providing
electricity, NamPower, currently enjoys a virtual monopoly. Though
procedures for the establishment of Independent Power Producers
(IPP) exist, to date no power purchasing agreements of note have
been concluded. However, the ECBs core function is to regulate
electricity generation, transmission, distribution, supply, import and
export within the country. The ECBs vision is for Namibia to have
a competitive and transparent electricity market. As regulator, the
ECB is responsible for recommending to the Minister of Mines and
Energy which companies or entities should receive licenses.
In October 2009 President Pohamba signed into law a new
Communications Act replacing the Communications Commission
Act (Act 4 of 1992). The 2009 act also amended certain sections
under the Posts and Telecommunications Act, 1992 (Act 19 of 1992).
Advocates of the new act argued it was needed to level the playing
field for all telecommunication operators and improve competition.
Many implementing regulations are not yet in place.
Under the act, the Communications Regulatory Authority of Namibia
(CRAN) replaces the Namibian Communication Commission (NCC),
which only had limited regulatory authority. Civil society groups argue
that the new act does not provide the CRAN enough regulatory
independence. Such groups note that the Minister of Information
and Communication Technology alone may appoint the CRAN
Chairperson and Vice-Chairperson, and that the Minister must concur
on the prescribing of any new broadcast licenses.
The state-owned Namibian Broadcasting Corporation (NBC) which transmits TV and radio services - is exempted from licensing
procedures enumerated in the act. The act also contains intelligence
gathering (intercept) provisions which civil society groups have
argued violate civil liberties and the Namibian constitution. To comply
with the intercept provisions, telecommunications companies could
be saddled with many technical burdens and significantly higher
costs, critics argue. Note, however, that these provisions have to
date never been implemented.
The Bank of Namibia (BoN) regulates the banking sector. In 2010,
the BoN rejected a bid by South Africas ABSA Group to acquire
a 70 percent stake in Capricorn Holdings, the parent company
of Bank Windhoek. The BoN argued that the ABSAs acquisition
would make all banks foreign-owned, as Bank Windhoek is the
only bank in Namibia that has majority domestic ownership. As
all other banks in Namibia are South African-owned the BoN also
argued that permitting the merger would have exposed Namibia to
single country risk and would make the banking system more
susceptible to cross-border shocks through the risk of contagion.
In November, the BoN granted a provisional license to SME Bank
Namibia Limited, a majority government owned banking institution
that the GRN wishes to use to help provide better access to financial
services for small and medium Namibian enterprises.
The Namibia Financial Institutions Supervisory Authority (NAMFISA)
regulates non-banking financial institutions. The authority aims
to reduce financial crime through developing and implementing
effective regulatory systems.
6.17 Efficient capital markets and portfolio investment
There is a free flow of financial resources within Namibia and
throughout Common Monetary Area (CMA) countries of the South
African Customs Union (SACU) which include Namibia, Swaziland,
South Africa and Lesotho. Capital flows with the rest of the world
are relatively free, subject to South African exchange controls
(discussed above in Conversion and Transfer Policies). The Namibia
Financial Institutions Supervisory Authority (NAMFISA) registers
portfolio managers and supervises the actions of the Namibian Stock
Exchange (NSX) and other non-banking financial institutions.
Although the NSX is the second largest stock exchange in Africa,
this distinction is largely because many South African firms listed on
the Johannesburg exchange are also listed (dual listed) on the NSX.
The government has also introduced investment incentives to attract
mutual funds and foreign portfolio investors that have energised
emerging stock markets elsewhere in the developing world. By
law, Namibias government pension fund and other Namibian funds
are required to allocate a certain percentage of their holdings to
Namibian investments. Namibia has a world-class banking system
that offers all the services needed by a large company. Foreign
investors are able to get credit on local market terms.
There are no laws or practices by private firms in Namibia enabling
incorporations to prohibit foreign investment, participation or control;
nor are there any laws or practices by private firms or government
precluding foreign participation in industry standards setting
consortia.
6.18 Competition from state-owned enterprises (SOEs)
While Namibian companies are generally open to foreign investment,
government owned enterprises have to date generally been closed to
all investors (Namibian and foreign). State Owned Enterprises (SOE
also known as parastatals) include a wide variety of commercial
companies, financial institutions, regulatory bodies, educational
institutions, boards and agencies. Generally, employment at SOEs
is highly sought after because their remuneration packages are not
bound by public service constraints. Parastatals provide most of the
11
essential services such as telecommunications, transport, water, and

electricity. The following are the most prominent commercial SOEs:
Air Namibia (Air carrier)
Namibia Airports Company (Airport management company)
Namibia Wildlife Resorts (Tourism)
Namport (Maritime Port Authority)
Nampost (Postal and courier services)
Namwater (Water sanitation and provisioning)
Roads Contractor Company
Telecom Namibia (Fixed-line telecommunications)
TransNamib (Rail company)
NamPower (Energy generation and transmission)
The government owns a host of other enterprises, from media
ventures to a fishing company. In December 2009, the Minister
of Mines and Energy inaugurated Epangelo Mining, a wholly
government-owned mining company. Parastatals own assets
worth approximately 40% of GDP and most receive subsidies from
government. In certain industries, SOEs have been perennially
unprofitable and have only managed to stay solvent because of
government subsidies. In industries where private companies
compete with SOEs (i.e., tourism, fishing, communications, etc)
SOEs are sometimes perceived to receive favourable concessions
from government.
Foreign investors have participated in joint ventures with government
in certain sectors (i.e., mobile telecommunications and mining).
The Government sold a 34% share in 2006 in its state-owned
mobile phone company, MTC, to Portugal Telecom. However, a U.S.
business criticised the process for a lack of transparency and unfair
bidding practices designed to favour one party. NamDeb, a 50-50
partnership between the government and DeBeers has mined
Namibias land-based diamonds since 1994. There has been some
debate on whether to list parastatal companies on the Namibian
Stock Exchange (NSX), but there are no plans to do so in the near
future.
The 2006 State Owned Enterprises Governance Act, which has yet
to be fully implemented, requires each SOE to submit an annual
business and financial report to its portfolio minister at least three
months prior to the beginning of each financial year. With important
exceptions, very few SOEs have consistently provided such annual
reports. This Act has established a Cabinet Committee called the SOE
Governance Council consisting of the Prime Minister, the Minister of
Finance, the Minister of Trade and Industry, the Attorney General and
the Director General of the National Planning Commission which will
be tasked with developing common principles of good governance
and a common policy framework. This Council also will approve the
appointment of board members.
To date, the Cabinet Minister whose portfolio includes oversight of
a particular SOE nominates the SOEs board members but must
get Cabinet approval before the board member can be officially
appointed. Chief Executive Officers (CEO) report to the board and
senior management report to the CEOs. In most cases, SOEs can
make business decisions without consulting government. In May
2010, Parliament approved the Governance Policy Framework on
SOEs. This framework requires that performance agreements be
signed between all SOEs and Government. All chief executives
and chairpersons of boards will be required to enter into five-year
performance agreements with Government.
Namibia does not have a Sovereign Wealth Fund (SWF). The
Government Institution Pension Fund (GIPF) is a pension fund
established to provide retirement and benefits for employees in
the service of the Namibian Government as well as institutions

established by an Act of the Namibian Parliament. According to the
GIPF, it represents 61% of the Namibian retirement funds industry.
6.19 Corporate social responsibility
There is a general awareness of Corporate Social Responsibility
(CSR) in Namibia amongst the business community, although there
is little research to show that Namibian consumers choose to trade
with firms based on their CSR programmes.
Most large firms including SOEs have well defined (and publicised)
social responsibility programmes that provide assistance in areas
such as education, health, environmental management, sports, and
Small Medium Enterprise (SME) development. Many firms include
their Black Economic Empowerment (BEE) programmes within their
larger CSR programmes.
Firms operating in the mining sector Namibias most important
industry generally have visible CSR programmes that focus on
education, community resource management and environmental
sustainability, health, and BEE. Many Namibian firms have HIV/AIDS
workplace programmes to educate their employees about how to
prevent contracting and spreading the virus/disease. Some firms also
provide anti-retroviral (ARV) treatment programmes beyond what
may be covered through government and private insurance systems.
6.20 Political violence
Namibia is a stable multi-party and multi-racial democracy. The
protection of human rights is enshrined in the Namibian constitution,
and the government generally respected those rights. Political
violence is rare, but there were some political confrontations
and violent incidents in 2008 and 2009 between supporters of
the opposition Rally for Democracy and Progress (RDP) and progovernment SWAPO party members. Nevertheless, damage to
commercial projects and/or installations as a result of political
violence is considered unlikely. State Departments 2010 Human
Rights Report for Namibia provides additional information on
incidents of political violence in the country.
6.21 Corruption
Transparency Internationals 2011 Corruption Perceptions Index
ranked Namibia 56out of 182 countries.. A score of 10 reflects a
highly clean and 0 reflects a highly corrupt nation. Namibia
scored 4.4 just behind South Africas score of 4.5. Only five subSaharan African countries (Botswana, Mauritius, Cape Verde,
Seychelles and South Africa) ranked higher.
There are no international or regional watchdog organisations
operating in the country.
The Namibian Government passed the Anti-Corruption Act in May
2003, appointed the director and deputy director of the resulting
Anti-Corruption Commission in October 2005, and launched
the opening of the office in 2006. The Commission attempts to
complement civil societys anti-corruption programmes and support
existing institutions such as the Ombudsmans Office and Attorney
General. Anti-corruption legislation is in place to combat public
corruption. Some critics charge that the ACC narrowly interprets its
mandate and focuses on minor cases. The ACC has countered that
it requires additional funding in order to properly fulfil its mandate.
The ACC receives 700 to 900 reports of corruption per year, but
less than 10 percent are deemed pursuable. In a nationwide
survey commissioned by the ACC and released in December 2011,
corruption was listed at the second most important development
challenge facing Namibia (12.8 percent, after unemployment at 39.6
percent). Just over half (54 percent) of respondents rated corruption
as very high, although relatively few professed a personal
experience with corruption.
Namibia has signed and ratified the UN Convention Against
Corruption and the African Unions African Convention on Preventing
and Combating Corruption. Namibia signed the Southern African
Development Communitys Protocol Against Corruption.
12
6.22 Bilateral investment agreements

Namibia has ratified reciprocal investment promotion and
protection treaties with Switzerland, Malaysia, France, Germany,
the Netherlands, Cuba, Finland, Spain, Austria, Angola, Vietnam,
Italy. China and the Russian Federation have signed investment
agreements with Namibia, but the agreements have yet to be
ratified. There is no bilateral investment agreement and no bilateral
tax treaty between the United States and Namibia. In 2008, SACU
(of which Namibia is a member) signed a Trade, Investment and
Development Cooperation Agreement (TIDCA) with the United
States of America, and work continues in pursuit of a Free Trade
Agreement between the United States and SACU.
Export processing Zones (EPZ):

Companies with Export Processing Zone (EPZ) status can set up
operations anywhere in Namibia. There are no restrictions on the
industrial sector provided that the exports are destined for markets
outside the SACU region, earn foreign exchange, and employ
Namibians. EPZ benefits include no corporate tax, no import duties
on the importation of capital equipment or raw materials, and no VAT,
sales tax, stamp or transfer duties on goods and services required for
EPZ activities. Non-residents operating in an EPZ may hold foreign
currency accounts in local banks. The Government also provides
grants to EPZ companies for training programs to improve Namibian
workers skills and productivity.
As a member of the Southern African Customs Union (SACU),

Namibia will be a beneficiary of SACUs free trade agreement
with the European Free Trade Association (Iceland, Lichtenstein,
Norway, and Switzerland) currently awaiting signatures and is part of
negotiations for trade agreements with Mercosur (Argentina, Brazil,
Paraguay, and Uruguay). SACU plans to extend its free trade network
to the EU, China, Egypt, India, Kenya, and Nigeria. Namibia also has
an FTA with Zimbabwe that was finalized in 1993.
The Offshore Development Company (ODC) administers the

countrys Export Processing Zone (EPZ) regime. However, ODC
has been at the centre of a 2005 corruption scandal involving the
loss of 100 million Namibian dollars (approximately 10 million
US$) in investments. ODC maintains that it is financially stable
and is negotiating repayment; however, to date, the funds remain
unaccounted for.
The Southern African Development Community (SADC) negotiating

bloc have agreed on an interim Economic Partnership Agreement
(EPA) with the European Union, but Namibia remains the only
country which has not yet ratified it.
6.23 Labour
The Namibian Constitution allows for the formation of independent
trade unions to protect workers rights and to promote sound labour
relations and fair employment practices. Namibia has ratified six of
the International Labour Organisations fundamental conventions.
Businesses operating within the EPZ are required to adhere to the
Labour Act.
While there is a pool of qualified workers in varying professions in
Namibia, there is a shortage of specialized skilled labour. Employers
often cite labour productivity and the shortage of skilled labour as
one of the biggest obstacles to business growth. This shortage
appears to be linked to weaknesses in Namibias education sector.
The 2012 World Economic Forum, Global Competitiveness Report
ranked Namibia 113th out of 139 countries in the Higher Education
and Training category, and 114th in the Health and Primary Education
category. Additionally, that report identified poorly educated
workforce as the most problematic factor for doing business in
Namibia (selected by 16.9 percent of respondents).
The Government offers manufacturing companies special tax
deductions of up to 25 percent if they provide technical training to
employees. The Government will also reimburse companies for costs
directly related to employee training under approved conditions.
The 2007 Labour Act, which entered into force in November 2008
contained a provision that prohibited the hiring of temporary
or contract workers (labour hire), but the provision was ruled
unconstitutional by the Supreme Court. In late 2011, the Government
tabled in Parliament amendments to the Labour Act introducing very
strict regulations with respect to the use of Labour Hire, and defining
the user of temporary workers as their legal employer, under a
triangular employment relationship. In addition the amendments
place strict limitations on short-term employment contracts. These
amendments may effectively make the use of labour hire non viable.
The amendments have yet to be gazetted and implemented.
6.24 Foreign trade zones/free ports
Foreign firms enjoy the same investment opportunities as local
companies. There are no free ports in Namibia, although NamPort,
the national port authority, is considering establishing a free port
distribution centre at Walvis Bay. Botswana, Zambia and Zimbabwe
have concluded agreements to establish dry ports for the clearance
of goods destined to their countries; however, to date, only Zambia
has begun construction.
6.25 Foreign direct investment statistics

The Bank of Namibia (BoN) maintains statistics on foreign direct
investment in Namibia which it shares with the United Nations
Conference on Trade and Development (UNCTAD). UNCTAD
estimates that in 2010, FDI stocks were equivalent to 45 percent
of GDP, and FDI inflows represented 34 percent of gross fixed
capital formation.
Value of FDI Inflows:
Year USD
(Millions)
FDI as Percent
of GDP
FDI as Percent of Gross

Fixed Capital Formation
2007
733
43.6
35.3
2008
720
39.3
33.3
2009
516
33.6
24.5
2010
858
44.6
32.2
Although decreased investments in Namibian equities led to a steep

decline in FDI in 2009, FDI figures have rebounded in 2010 and
continue to hold steady in 2011 in spite of the ongoing global financial
slump. In fact, a significant jump in the third quarter of 2011 resulted
in total inflows already well in excess of any previous year on record.
This increase stemmed from both the reinvested earnings and
other capital sub-categories. The increase under other capital
reflects funds borrowed by Namibian subsidiaries from their parent
companies, especially for capital expenditure. Outflows in portfolio
investment continued to outpace inflows, however, as is usually the
case in Namibia.
Composition of Direct investment in Namibia (In N$ Millions):
Total
2006
2007
2008
2618
5164
5951
2009 2010
(P)*
4376 5865
2011 Q1Q3 (P)*

7031
Equity capital
2948
3952
2622
275 66
145
Reinvested
earnings
1019
1318
1115
1327 3555
3237
Other capital
-1349
-106
2213
2774 2244
3649
Liabilities to
244
direct investors
-468
2218
2723 2012
2541
Claims on
-1594
direct investors
362
-5
52 232
21
*P - Provisional
13
6.26 Setting up a company

The table below represents the steps required to open a business
in Namibia. It also indicated the time involved as well as the
associated costs
No Procedure
Time to
complete
Associated
costs
1.
Obtain the approval for a

company name from the
Registrar of Companies
18 days
Included
in cost of
registration
2.
Pay the registration fees

and buy revenue stamps at
the Receiver of Revenue
1 day
3.
Hire an attorney to register

the company with the
Registrar of Companies;
obtain the certificate to
commence business
14 days
4.
Deposit the initial capital in

a bank account
1 day
No charge
5.
Apply for a town planning

certificate
1 day
No charge
6.
Apply for a trading license

from the local municipality
1 day
NAD 47.00
to NAD 350
depending
on the type
of business
NAD 270
About NAD
5,750+ NAD
556 notary
fees
7.
Register for VAT with the

Receiver of Revenue at the
Ministry of Finance
9 days
No charge
8.
Register for PAYE with the

Receiver of Revenue
4 days
(simultaneous
with previous
procedure)
No charge
9.
Register workers with

the Social Security
Commission
21 days
10.
Register workers with the

Workmens Compensation
Commission
20 days
(simultaneous
with previous
procedure)
NAD 10 per
employee
No charge
7 Country Risk Summary

Sovereign Currency Banking Political Economic Country
risk
risk
sector
risk
structure risk
risk
risk
Aug
2012
BBB
BBB
BB
BBB
BBB
BBB
(AAA=least risky, D=most risky)
7.1 Sovereign risk

Stable. Namibias BBB rating will be supported by its low level of
external debt, good payment record and the tightening of fiscal policy
in 2012-13.
7.2 Currency risk
Stable: Fairly robust investment inflows will support the value of
the South African rand, to which the Namibia dollar is pegged,
although it will remain vulnerable to shifts in global sentiment and
local policy developments.
7.3 Banking sector risk

Stable. The banking sector is well-regulated, profitable and
characterised by good capital-adequacy ratios and low nonperforming loans. Nevertheless, we have changed the risk outlook
from positive to stable, as a resurgence of global economic
uncertainty has weighed on the sectors prospects.
7.4 Political risk
The political environment is stable but dominated by a single party,
the South West Africa Peoples Organisation (SWAPO); divisions
within SWAPO and ideological bias undermine
effective policymaking.
7.5 Economic structure risk
The economys dependence on mining which accounts for more
than 10% of GDP and 50% of exports but employs just 3% of the
workforce needs to be reduced to redress the grossly uneven
distribution of income. Progress will be slow, partly as the inadequate
education system makes skilled labour scarce.
8 Country Outlook: 2012

2016
8.1 Political stability
The South West Africa Peoples Organisation (SWAPO), which has
governed Namibia since the country achieved independence in 1990,
will continue to dominate the political scene. Whoever is elected
as the partys vice-president at the SWAPO elective congress in
late 2012 will automatically be its candidate at the November 2014
presidential election, as Hifikepunye Pohamba will stand down
when his second and constitutionally stipulated final term as
president ends.
The current SWAPO Vice-President, the trade and industry minister,
Hage Geingob, is the narrow favourite to succeed Mr. Pohamba,
but he will face a strong challenge from SWAPOs secretarygeneral, Pendukeni Iivula-Ithana, as well as the regional and local
government minister, Jerry Ekandjo. The backing of SWAPOs
dominant Nujomaist faction, loyal to Namibias founding president,
Sam Nujoma, is likely to be crucial to the rival candidates prospects,
although it is unclear who will receive it.
If Mr. Pohamba stands down before the election the Prime Minister,
Nahas Angula, would take over as interim President. This could
change the likely outcome of the succession battle within SWAPO,
especially as Mr. Pohamba has reportedly urged Mr. Angula, so far
without success, to stand for the vice-presidency. Regardless of
who succeeds Mr. Pohamba, political stability is expected to be
maintained.
8.2 Election watch
SWAPO retained control of most authorities in the regional and local
elections in November 2010, although voter turnout was only 38%
- the lowest ever in a nationwide poll. The party is almost certain to
keep hold of the presidency (Mr. Pohamba won 75% of the vote at
the last election) and its current parliamentary majority at the next
elections, due in November 2014.
Even if the main opposition parties manage to form an electoral pact
before then of which there is currently little sign this would do
little to weaken SWAPOs hegemony at the national level; under the
party-list system used in national elections, each party is allocated
seats in proportion to its share of the national vote, so an opposition
alliance would be unlikely to have much success unless it were
able to cut into SWAPOs vote in its northern, Oshivambo-speaking
heartland and in major towns. However, it could have some impact at
the regional/local level.
14
8.3 International relations

Namibia is not expected to face any external threats over the forecast
period. The expansion of economic ties with other countries in the
region notably Angola, Zambia and South Africa will remain a
priority. Relations with Western trading partners are expected to
stay amicable.
An economic partnership agreement with the EU is likely to be
signed over the next two years, without which Namibia would risk
losing duty-free access to the main market for its substantial beef
and fish exports. Political and economic links with Brazil, Russia, India
and China will expand further; all are keen to gain access to Namibias
natural resources. Namibia opposed the UN Security Councilapproved NATO intervention in Libya and, for historical reasons,
will continue to align itself with China and Russia in international
disputes.
8.4 Policy trends
Broad policy continuity is expected in 2012-16. Unemployment,
which is officially estimated at 51% (but quite possibly overstated), is
expected to decline slightly as the public job-creation programme is
implemented, although the government has yet to clarify how it plans
to pursue its objective of promoting job creation in the private sector.
The fourth national development plan (NDP4; 2012/13-2016/17),
due to be published in mid-2012, will prioritise measures to reduce
poverty and income inequality. It is also expected to incorporate the
provisions of a proposed new industrialisation policy and those of the
BEE law, the New Equitable Economic Empowerment Framework
(NEEEF), which are to be enacted in 2012.
Firms operating in Namibia will need to comply with several
empowerment pillars, including provisions to transfer equity
shareholdings to BEE entities. Most firms appear relaxed about the
prospect, provided that such transfers are on commercial terms.
The target for the mining industry has been set at 27% by 2014/15,
although we dont expect this to be achieved. The private sector
has urged the government to widen NEEEFs focus to include the
development of entrepreneurship and skills. Some of its proposals
are likely to be taken on board, but the general thrust of the policy,
including the focus on ownership transfers, is unlikely to change
dramatically.
8.5 Economic growth
Real GDP growth is forecast to moderate to 4% in 2012, from an
estimated 4.9% in 2011, as a result of fragile agricultural output,
slower public-spending growth and an increase in global economic
uncertainty, which will constrain export growth. The main drivers of
growth will be the construction sector, the performance of which will
be supported by Namibias strong pipeline of investments in mining
and infrastructure, and the mining sector, which will see a sharp
expansion in uranium output and offshore diamond production.
Growth is forecast to pick up to 4.6% in 2013 as lower inflation
supports domestic demand, mining investments expand and
Namdeb a joint venture between the government and De Beers
increases diamond output to more than 1.5m carats per year (from
1.3m carats in 2011) through investment in onshore mining capacity.
A more robust expansion is expected in 2014-16, driven by faster
export growth.
Full production of 3,000 tonnes/year (t/y) is expected in 2014 at the
Trekkopje mine (owned by the French nuclear energy group, Areva),
which would raise uranium output by around 50%. However, there is
a risk that Areva will shelve the project, as the company has lowered
substantially its estimates of Trekkopjes mineral reserve (resources
that are economically feasible to extract), partly in light of current
uranium prices. In 2015 and 2016 the Husab mine and probably
also the Etango mine are likely to begin production. Their forecast
output of more than 9,000 t/y would double Namibias yellowcake
production (with most of the increase taking place in 2015) and also
spur faster growth in manufacturing, because of the impetus for
downstream activities such as the production of industrial chemicals.

Overall, growth is forecast at 5.5% in 2014 and 6.1% in 2015, before
moderating to 5.3% in 2016 as export growth moderates. Growth
would be lower if the onset of production at Husab and Etango were
delayed beyond 2015-16.
8.6 Inflation
The bulk of Namibias imports including most food products will
continue to be sourced from South Africa. As a result, domestic
inflation will remain largely influenced by inflationary trends in South
Africa, along with global oil prices. Sound policies, sluggish consumer
demand, spare industrial capacity and relatively stable commodity
prices will help to keep inflation in South Africa in check, but upward
pressure will come from wage increases and 25% annual rises in
electricity tariffs in the early part of the forecast period.
Above-inflation electricity tariff increases are likely in Namibia as well.
Inflation is expected to rise from an average of 5% in 2011 to 5.8% in
2012, before moderating to 4.8% on average in 2013-14 and edging
up to 5.2% in 2015-16.
8.7 Exchange rates
The South African rand to which the Namibia dollar will remain
pegged at parity staged a modest recovery in early 2012 from
R8.01:US$1 in January to R7.60:US$1 in March, supported by a large
interest-rate differential with rich-country markets. However, it has
encountered greater volatility since, in response to renewed global
uncertainty and a shift in sentiment away from riskier emergingmarket assets.
The rand fell to an average of R8.40:US$1 in June, its lowest level
since April 2009 and 23.7% weaker year on year, before recovering
some ground in early July. The rand is expected to move within
the R7.5-8.5:US$1 range during the remainder of 2012, despite
inevitable daily volatility, provided that the euro-zone debt crisis does
not spiral out of control. A gradual rand depreciation is forecast in
2012-16 because of South Africas persistent current-account deficit,
relatively high inflation and political uncertainty surrounding the 2014
elections. The rand is expected to decline from R7.26:US$1 in 2011
to R7.90:US$1 in 2012 and R8.17:US$1 in 2013. Thereafter, it will drift
to R8.95:US$1 in 2016, although exogenous shocks or unwelcome
policy shifts could lead to a faster decline.
8.8 External sector
Export growth is forecast to slow in 2012 as commodity prices are hit
by adverse global economic conditions. Diamond prices will continue
to rise, but at a slower rate than in 2011. Imports will grow robustly,
mainly because of higher imports of capital goods for the new mines
and a further increase in global oil prices. The surplus on the services
account is forecast to decrease as growth in tourist arrivals is offset
by increased freight costs. The income deficit is forecast to widen
because of higher profit remittances (mostly by mining companies).
The current transfers surplus will increase owing to larger receipts
from SACU, resulting from higher imports and a windfall payment to
compensate for underpayments in 2011.
Overall, a tiny current-account surplus is expected in 2012. Another
substantial trade deficit is expected in 2013 as investment in the
new mines continues to boost imports of capital goods. This will be
largely countered by continued strong SACU receipts and a decline in
the income deficit as increased development costs lead to a smaller
share of mining profit being repatriated. The trade deficit will narrow
in 2014-15 because of faster export growth as production begins
at the Trekkopje, Husab and Etango uranium mines, while import
growth slows following the completion of major mining projects.
This is expected to tip the current account into surplus from 2014,
although there is a risk that the Trekkopje project will be shelved,
in which case another modest current-account deficit would be
recorded in 2014. The current-account surplus is forecast to moderate
in 2016 as growth in mineral exports slows.
15
A Appendix sources of
information
Economist Intelligence Unit
CIA World Factbook
Bloomberg
World Bank
Wikipedia
Doingbusiness.org
US Department of State
16

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6.10 Performance requirements/incentives

6.11 Black economic empowerment

6.12 Work permits

Population growth rate

Age structure (2012 estimates)

Gender ratios (2012 estimates)

Life expectancy (2012 estimates)

6.13 Right to private ownership and establishment

6.14 Real Estate

6.15 Protection of property rights

6.16 Transparency of the regulatory system

6.17 Efficient capital markets and portfolio investment

6.22 Bilateral investment agreements

6.18 Competition from state-owned enterprises (SOEs) 11

6.20 Political violence

Latest economic indicators

Five-year forecast summary

6.24 Foreign trade zones/free ports

6.25 Foreign direct investment statistics

Government and Politics

6.26 Setting up a company

Country Risk Summary

Transport and Communications

Banking sector risk

Economic structure risk

Country Outlook: 2012 2016

Openness to, and restrictions upon foreign investment 7

Foreign ownership restrictions

Independent ratings on Namibias investment climate 8

Foreign investment in the Namibian stock exchange 8

Infant industry protection

Appendix sources of information

Conversion and transfer policies

Expropriation and compensation

Namibia, officially the

2.1 Population figures

The name of the country is derived from the Namib Desert,

2.2 Population growth rate

Source: CIA World Factbook

2.4 Gender ratios (2012 estimates)

1.03 male / female

1.02 male / female

1.03 male / female

65 years and over

0.78 male / female

1.02 male / female

Source: CIA World Factbook

2.5 Life expectancy (2012 estimates)

2.6 Ethnic groups

3.1 Latest economic indicators

Source: Economist Intelligence Unit

3.2 Five-year forecast summary

Real GDP growth

a) Economist Intelligence Unit estimates; b) Economist Intelligence Unit forecasts

3.3 Annual trends

4 Government and Politics

Consumer price inflation (av %)

Current account balance (% GDP)

Main political parties

Total external debt (% GDP)

Justice: Pendukeni Iivula-Ithana

Mines and Energy: Isak Katali

Namibias road network is generally well maintained, and its rail,