nambian trade opportunities for kzn
TRANSCRIPT
PRESENTATION
to
DURBAN CHAMBER OF COMMERCE AND INDUSTRY
by
BONAVENTURA HINDA COMMERCIAL COUNSELLOR
HIGH COMMISSION OF THE REPUBLIC OF NAMIBIAPRETORIA, SOUTH AFRICA
THURSDAY, 5TH SEPTEMBER 2013DURBAN, KWA-ZULU NATAL PROVINCE, SOUTH AFRICA
Namibia at a Glance
Macro Economy
Market Access
Trade Statistics
Investment Policy Framework
Investment Opportunities
Investment Incentives
Starting a Business in Namibia
High Commission - Commercial Office Support
Presentation Outline
Namibia at a Glance
Area: 824,269 square kilometres
Population (Preliminary - 2011): 2.1 million
Currency: 1 N$ = 1 ZAR
Language: English is the official language
Regions:13 Regions
Democratic and Politically Stable:General Elections every 5 yearsNext Election - 2014
Macroeconomic Indicators
GDP at Current PricesN$ 105 146(000) (2012 est.)
Real GDP Growth 4.6% (2012 est.)
NCPI (February - 2013) 6.20%
Repo Rate (Current)5.50%
Prime Rate (Current)9.25%
Macroeconomic Indicators – GDP Growth
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
2009 2010 2011 2012 (Prel) 2013 (Est) 2014 (Proj)
-1.1%
6.0%
4.9% 5.0%4.8%
5.0%
Perc
enta
ge G
row
th
4.5% 5.0%
Macroeconomic Indicators – Key Sectors
Primary SectorAgriculture and Forestry 4.1%Mining and Quarrying 11.5%Fisheries 3%
Secondary Sector Manufacturing 11.6%
Construction 3.6%Utilities 2.3%
Tertiary SectorWholesale & Retail 12%Tourism (Hotels & Res only) 1.7% Transport & Communication 4.9%Financial Intermediation 5.2%Real Estate 7.4%Government 25%
Taxation - 2012Income tax: 17.5% - 35%General corporate tax: 34%Reg. Manufacturers 18%Value Added Tax (VAT): 15%Diamond mining 55%Other mining 37.5%Petroleum 35%Royalty Tax 30%Withholding tax (non-residents):
10% of dividends
DutiesExcise: Alcohol, Cigarettes etcAd Valorem: Luxury ItemsCustoms: Tv, Clothes, Tyres
Macroeconomic Indicators – Fiscal Policy
Market Access
Trade Agreements:•Africa – SACU and SADC•EU – SADC/EU (EPA Negotiations)•USA – AGOA•South America – SACU/ MERCOSUR•Asia – SACU/India (Negotiations)
Trade Statistics: Top 10 Trading Partners 2012
Imports• South Africa – 41 701 508
467• Switzerland• China• EPZ• United Kingdom• Germany• Zambia• Botswana• Netherlands• Singapore
Exports• South Africa – 7 693 917
881• United Kingdom• Angola• Belgium• Botswana• Canada• Spain• Switzerland• EPZ• United States of America
Investment Policy Framework
Foreign Investment Act, No. 24 of 1993 (Review)
Export Processing Zone (EPZ) Act, No. 9 of 1995 (Review)
Namibian Industrial Policy (Finalized 2012)
Investment OpportunitiesTarget Sectors
• Agriculture and Agro-processing – Cereal, Fruit, Vegetables
• Manufacturing – Current Exports (RSA to Nam and other countries north and north-east of Namibia)
• Education - Pre-primary, Secondary, Colleges, Artisan/Vocational Training
• Logistics & Infrastructure• Mining and Mineral Beneficiation• Energy Production – Renewable
Investment Opportunities - EnergyNamibian Power Supply
39%
40%
9%
12%
Sources
Nampower
Eskom
Zesco
Zesa
Investment Opportunities - Energy Industry Overview
Investment Opportunities - Energy Supply Solution
Project Installed Capacity
Implementation
1.
Short Term Critical Supply
Up to 400 MW 2012
2.
Kudu Gas to Power
800- 1000 MW (400 for Namibia)
2018
3.
Baynes Hydro Power Station
600 MW (300 MW for Namibia)
2022
Kudu Gas Project – Progress to Date• 800 - 1000MW CCGT plant at Oranjemund • With project commissioning Namibia becoming a net
exporter of electricity by 2018
Activities concluded since September 2012
• Allocation of resources (budget, staff, consultants) • Most outstanding issues resolved through negotiations
with upstream parties • Project Development Agreement (PDA) signed • Ongoing negotiations with regional off-takers for the 400MW
balance off-take • EPC Pre-qualification tender closed and evaluation in progress • Document with quantification of GRN guarantees being finalised • Re-confirmation of transmission integration requirements in
progress • Process to invite strategic equity partners under preparation
Investment Opportunities - Tourism
Eco Tourism Lodge on Orange River bank - Sendelingsdrift Border Post in the /Ai-/Ais -Richtersveld Transfronteer Park
Required:JV Partnership with land
owners
Convention Centre - Insufficient conferencing facilities to host major international events.
Lodge Position
Road to Aussenkehr, /Ai-/Ais
and Fish River
Investment Opportunities – ManufacturingTrade Deficit Nam vs RSA
Main Exports
Manufactured Prod Diamonds Metal Ores include
Uranium Fish and Marine Products Beverages Refined Zinc Live Animals Meat and Processed Meat Copper Crops, Fruit & Veg,
Forestry
Main Imports Chem, Rubber, Plastic Transport Equipment Machinery and Equipment Refined Petroleum Food Prod/Consumables Textile, Clothing, Leather Fabricated and Basic
Metal Non-metallic Mineral Electrical Machinery Paper Products
2012Imports – N$41 701
508 467Exports - 7 693 917
881
Incentives – Manufacturers & Exporters
Corporate Tax: 18% for 10 yrs thereafter 32%
Value Added Tax (VAT): Claims on all inputs paid on acquisition and manufacturing equipment imported
Establishment Tax Package: Negotiate rates and terms by special tax packages
Special Building Allowance: Factory buildings written off at 10% in 1st year and balance at 8% for 10 yrs
Transportation Allowance: Road or rail allowance of 25% deduction from total cost
Incentives – Manufacturers & Exporters
Export Promotion Allowance: Additional deductions from taxable income 25%
Cash Grants: 50% of direct cost of approved export promotion activities
Exporters of Manufactured Goods: 80% allowance on taxable income derived from the export of Manufactured goods (excluding meat and fish) produced in Namibia or not.
Starting a Business in Namibia• Contact Registrar of Companies – MTI• Company Name Reservation ( Turn around time - 14
days)• Company Registration ( Turn around time - 14 days)• After successful registration of company, submit
Temporary Residence Permit (TRP) application to the Namibia Investment Centre (NIC)
• NIC present application to ISB (Home Affairs) for approval
• Factors considered by ISB –investment capital, employment, skills transfer, downstream effect, overall significance to Namibian economy
• Approval of application not automatic• No fee required upon submission, N$ 500 payable if
approved• Minimum investment capital – US$ 100 000
Commercial Office Support
Trade and investment Trade and investment enquiriesenquiries
Investment and trade Investment and trade promotionpromotion
Facilitation of investment Facilitation of investment missions to Namibiamissions to Namibia
Facilitation of business Facilitation of business missions from Namibia to missions from Namibia to South AfricaSouth Africa
Participation in trade fairs Participation in trade fairs in South Africain South Africa
Guidance on starting a Guidance on starting a business in Namibia business in Namibia
Where the Namib Desert and the Atlantic Ocean
congregates into a natural wonder, we strive to
conduct business with peace of mind ……
NAMIBIA