ABOUT NAMIBIA

Amongst all the countries in the African continent, Namibia is the 34th largest country in the region by area and the 4th least populated country in the African region. The capital of Namibia is Windhoek, which is the highest populated city in the country. According to the report of the World Bank, Namibia has been classified as an Upper Middle-Class income Nation. The currency of Namibia is the Namibian Dollar (NAD), and its value is approximately half that of the Indian Rupee at the time of writing this article. The population of Namibia is 2.5 million as of 2020. The neighboring countries of Namibia are Angola, Botswana, South Africa, and Zambia. The most commonly spoken languages in the country are English (official), Oshiwambo, Afrikaans, German, and various indigenous languages. The majority of the Namibian population practices Christianity, but other religions and traditional beliefs are also followed. Currently, there are 11 international airports in Namibia, with regular flights available from these airports to several parts of the world. The air connectivity of Namibia is very convenient. As the Atlantic Ocean borders Namibia, several commercial seaports in Namibia fulfill the trade requirements of the country. A lot of goods and resources are imported and exported through the seaports of the country.

The corporate tax rate for businesses in Namibia is generally 32% for non-mining companies and 37.5% for mining companies. A lower rate may apply to small and medium enterprises. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and, if required, even helping you find a rental property for your office.

Establishing a business in Namibia has to be done with utmost care, keeping in mind the laws of the country. The Companies Act of 2004 and subsequent regulations clearly state how a foreign investor can register a company in Namibia. A foreign investor who is planning to start his business in Namibia can form many different company types in the country, such as a Private Company (Pty) Ltd, Public Company, Close Corporation (CC), and External Company. A Private Company (Pty) Ltd formed and registered in Namibia allows foreign investors to own 100% of the company.

In case an investor is planning to establish a Private Company (Pty) Ltd in Namibia or a corporation business setup, Opesh Group will be helping you in taking the right decision for setting up your business in Namibia, and we will also guide you about how to follow the procedure while formulating your company in Namibia.

Types of Business which can be started in Namibia:

• Mining: Namibia is incredibly rich in natural resources, including diamonds, uranium, copper, and gold. The mining sector is a significant contributor to the country’s GDP, making it one of the most attractive sectors for foreign investment.
• Tourism: Namibia is known for its stunning natural landscapes, including the Namib Desert, Etosha National Park, and the Skeleton Coast. It attracts a significant number of tourists annually. There’s a strong demand for hospitality, tour operators, and related services.
• Agriculture: While a large portion of Namibia is arid, there are opportunities in areas like livestock farming, high-value horticulture, and game farming. Improving agricultural productivity and food security is a government priority.
• Renewable Energy: Namibia has abundant solar and wind resources. With a growing demand for energy and a focus on sustainable development, investment in renewable energy projects is highly encouraged by the government.
• Infrastructure: As a developing nation, Namibia has ongoing needs for infrastructure development, including roads, railways, ports, and housing. Companies in construction, civil engineering, and related fields can find opportunities.
• Logistics and Transport: With its strategic location and well-maintained port (Walvis Bay), Namibia serves as a gateway to other landlocked Southern African countries. Investment in logistics, warehousing, and transportation services can be highly profitable.
• Fishing: Namibia has a rich fishing ground along its Atlantic coastline, making the fishing industry a vital part of its economy. Opportunities exist in fish processing, aquaculture, and sustainable fishing practices.
• Information & Communication Technologies (ICT): The ICT sector in Namibia is expanding, with a growing demand for broadband internet, digital services, and technology solutions. The government is also encouraging investment in this area to bridge the digital divide.
• Manufacturing: While currently a smaller contributor to GDP, there are opportunities for value-added manufacturing, especially in processing local raw materials from mining, agriculture, and fishing.

Advantages of Starting Business in Namibia:

• Political Stability: Namibia is one of Africa’s most politically stable and peaceful countries, providing a secure environment for investment with low political risk.
• Strategic Location: Namibia’s well-developed port at Walvis Bay acts as a strategic gateway to Southern African markets, offering excellent logistical advantages for import and export. The government is also investing in further port expansion.
• Good Governance and Rule of Law: Namibia generally has strong institutions, a transparent legal framework, and a commitment to good governance, which instills confidence in investors.
• Abundant Natural Resources: The country’s rich mineral deposits and marine resources provide a strong foundation for industries like mining and fishing, attracting significant foreign direct investment.
• Developing Infrastructure: Namibia has a relatively well-developed infrastructure, particularly its road network and port facilities, which facilitates business operations.
• Access to Regional Markets: As a member of the Southern African Development Community (SADC) and the Southern African Customs Union (SACU), Namibia offers businesses access to a larger regional market.
• Investment Incentives: The Namibian government offers various incentives to attract foreign investment, including tax breaks and special economic zones.

Business Opportunities for Indians in Namibia:

There are excellent business opportunities in Namibia for new investors who are planning to start their business abroad. Namibia has opened its doors for foreign businesses and foreign investors. In Namibia, there are vast business opportunities for investors who are planning to start their business abroad. They can invest in mining, infrastructure, agriculture, and renewable energy sectors. In all these sectors, there has been a huge boom, and existing investors who have already invested in this sector have earned a lot. The mining sector has seen major investments in Namibia from all over the world, and big multinational corporations have invested a lot of money in this sector. However, that is not the only sector that can be explored in Namibia. Some sectors are seemingly less touched and have immense potential, which can not only open new doors for the investors to explore but give them good ROI.

Imports & Exports:

Many goods are imported and exported from Namibia. The imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from Namibia to India:

• Diamonds
• Uranium
• Copper
• Lead
• Zinc
• Fish and seafood products

Major items which are imported in Namibia from India:

• Pharmaceutical products
• Machinery and equipment
• Vehicles
• Textiles
• Food products
• Chemicals

Manufacturing:

There is a growing interest in setting up manufacturing plants in Namibia, particularly for value-added processing of local raw materials. Opportunities exist in food processing, mineral beneficiation, and light manufacturing.

Mining:

The mining business is one of the most profitable and well-invested ventures in Namibia, as a lot of valuable minerals are found in the country. Minerals such as diamonds, uranium, copper, and gold are found in abundance in the country, and a lot of companies are investing in huge numbers.

Major Indian companies which are currently working in Namibia:

(Specific Indian companies with significant operations in Namibia are not as widely published as those in Algeria. However, Indian companies have shown interest in mining, infrastructure, and renewable energy in Africa. For precise information, a targeted search would be required.)

• GDP = $12.3 billion (2023 est.)
• GDP Growth = 4.7% (2023 est.)
• Ease of doing business rank = 104 (2020)
• GDP per Capita = $4,800 (2023 est.)

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