Investment Opportunities in Namibia

Investment opportunities in Namibia

Namibia is an independent and is a democratically governed republic situated in the South- western coast of Africa. The Namibian government in the year 2008 launched a medium term economic plan called the Third Development Plan (NDP3).The plan covers a period of 4 years (2008 – 2012) and aims to transform Namibia into an industrialized nation by 2030. Namibia is a member of Southern African Development Community (SADC), the Southern African Customs Union and Common Market for Eastern and Southern Africa (COMESA).

Agriculture :

The agriculture sector is an important part of the Namibia’s economy contributing to around 6% to the GDP. Around 70% of the country’s population is dependent on this sector. There are two forms of agriculture in Namibia – subsistence and commercial. The climate and countryside have potential for extensive stock farming. The livestock sector exports to South Africa and the European Union while grain is mostly imported.

Potential for investment in this sector exists in the value adding processes of livestock, ostrich farming, crop production and food processing. Opportunities also exist in the field of horticulture in olive oil, jojoba and flowers production.

Fisheries :

Namibia has a coastline of 1,500 km and is recognized as one of the richest fishing grounds. The estimated national fish reserves are the biggest in Southern Africa and around 90% of the national output is marketed for exports.

During the time of independence though the fish stock levels had fallen dangerously, the government since then has maintained a conservative resource management policy. The main species found in Namibia are sardines, anchovy, hake, horse mackerel, sole, squid, deep-sea crab, rock lobster and tuna. Opportunities exist in this sector mainly in the areas of value – addition, marine – culture and ancillary and support functions.

Manufacturing :

The manufacturing sector of Namibia is relatively small and contributes around 16% to the country’s GDP in 2007.The main industries are food processing units, textile and garments manufacturers, cement and ceramic manufacturer. Namibia is imports almost all consumer goods and its exports are majorly unprocessed raw material. Thus there is a large scope for import substitution manufacturing as well as value addition to goods. To stimulate the expansion and diversification of the manufacturing sector for economic growth, the Government has put attractive packages of incentives for manufacturers and exporters of manufactured goods in place.

Tourism :

The tourism sector is one of the fastest growing sectors in Namibia. The country’s wildlife heritage is one of its richest assets. The international arrivals and domestic tourist have grown steadily in the year 2008. The government is trying to make this sector into one of the largest contributors to the GDP in the next ten years. The National Tourism Board is running targeted promotional campaigns in its traditional markets of Europe and has laid foundations to attract more visitors from the emerging markets of Asia and Middle Eastern markets.