presentation trade and investment promotion seminar hosted by the mcci by bonaventura hinda...
TRANSCRIPT
PRESENTATION
TRADE AND INVESTMENT PROMOTION SEMINAR
HOSTED BY THE MCCI
by
BONAVENTURA HINDA COMMERCIAL COUNSELLOR
HIGH COMMISSION OF THE REPUBLIC OF NAMIBIAPRETORIA, SOUTH AFRICA
WEDESDAY, 29 OCTOBER 2013MANGAUNG, FREE STATE PROVINCE, SOUTH AFRICA
Namibia at a Glance
Macro Economy
Namibia – Competitiveness in Global Context
Trade
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 (2013): 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
Macro economy - Indicators
GDP at Current PricesN$ 121 034 (000) (2013 est.)
Real GDP Growth 4.7% (2013 est.)
NCPI (Annual est - 2013) 6.3%
Repo Rate (Current)5.50%
Prime Rate (Current)9.25%
Gini Coefficient 0.58%
Unemployment Rate 27.4%
Macro economy– GDP Growth
Macro economy – 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 – 2013/14Income tax: 18% - 37%General corporate tax: 32%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
Macro economy – Fiscal Policy
Namibia - Global Competitiveness Global Retail Development Index (GRDI
2013 )Ranking the top 30 developing countries – (Only 2 out of Africa) - Botswana: Strong retail growth - ranked 25th - Namibia: Rising regional star - ranked 26th
Frazer Institute Annual Survey of Mining 2012/2013- Namibia: ranked 3rd after Botswana and Morocco
World Economic Forum 2013 Competitiveness Ranking (144 economies)- Namibia: Ranked Globally - 90th – Africa – 8th
Trade - Market Access
Trade Agreements:•Africa – SACU and SADC•EU – SADC/EU (EPA Negotiations)•USA – AGOA•South America – SACU/ MERCOSUR•Asia – SACU/India (Negotiations)
Trade - 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 - Opportunities
Investment Opportunities
Mineral Exploration
& Beneficiation
Manufacturing
Logistics
Information Technology
(IT)
Tourism
Agriculture & Agro-
processing
Education, Skills
Training
Infrastructure Energy
Health & Pharmaceuticals
Investment Opportunities - EnergyNamibian Power Supply
39%
40%
9%
12%
Sources
Nampower
Eskom
Zesco
Zesa
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
Investment Opportunities - Agriculture
Location Nkurenkuru, 140km west of Rundu, Kavango Region. +-1km from the River.
Size Total 1,800ha – of which 1,250ha is planned for irrigation
Ownership Type
Commercial Large-Scale Irrigation Project
Water Water permit issued by MAWF for extraction from Kavango River
Crops Maize, wheat, sunflower, beans, paprika, etc.
Project Owner
Sihete Enterprises Pty LTD
Land Ownership
20 year Commercial Leasehold, Renewable.
Status Business Plan Developed in 2007 not implemented due to lack of funding.
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
Incentives – Manufacturers & Exporters
Corporate Tax: 18% for 10 years
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 enquiries
Investment and trade promotion
Facilitation of investment missions to Namibia
Facilitation of business missions from Namibia to South Africa
Participation in trade fairs in South Africa
Guidance on starting a 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
Thank You