1

A PRESENTATION

by the

HIGH COMMISSION OF NAMIBIA

to the

13th INVESTING IN AFRICAN MINING SEMINAR

TORONTO, CANADA

March 2015

NAMIBIA “A Gem Worth Investing In”

2

NAMIBIA AT A GLANCE

Area: 825,418 square kilometres

Population (2014): 2.348 million

Population growth rate (2013): 1.9%  

Language: English is the official language

3

OVERVIEW System of Government: v  Multi-party democracy and democratic constitution

v  Legislative, Executive and Judiciary tiers v  Parliamentary, presidential, regional and local elections every five years v  One of the most stable political environments in Africa

4

OVERVIEW

GDP (2013): 13.11 billion US Dollars GDP Growth (2013): 4.4% GNI Per Capita, Atlas meth. (2013): USD 5,870.00 Inflation Rate (2014): 4.97% (annual)

5

Currency: Namibian Dollar (N$) pegged 1:1 to the South African Rand

TAXATION Personal Income tax: 17.5% - 35% General corporate tax: 35% Value added tax (VAT): 15% Withholding tax (non-residents): 10% of declared dividends Export Processing Zone (EPZ): No Corporate Tax

Macroeconomic Overview cont…

6

MACROECONOMIC OVERVIEW CONT…

Main Exports: 52% minerals (±70% diamonds), 25% fish and fish products, 13% live animals, meat and animal products

Main Export Destinations: United Kingdom, Angola, Belgium, Botswana, Spain, Canada, Japan, Switzerland, United States,

Main Sources of Imports: South Africa, Switzerland, China, Germany, Zambia, Botswana, Singapore, United Kingdom.

7

KEY ECONOMIC SECTORS

Sectors   Mining

  Tourism

  Agriculture

  Fisheries

  Manufacturing

  Services

PREFERENTIAL MARKET ACCESS SACU: BLNS Countries

v Common external tariff and trade relations with third parties

v Free movement of products among

five countries v Double Taxation Avoidance

Agreement with South Africa

v Protection of infant industries for BLNS countries

v Common policies in the areas of

trade and industry: agriculture, competition and unfair trade practices

8

PREFERENTIAL MARKET ACCESS Southern African Development

Community Free Trade Area (SADC FTA) :

v  14 member states

v Created to develop long-term regional integration in order to accelerate economic growth.

v Market of over 260 million and GDP of over US$230 billion

v  Intra-SADC trade has more than doubled, with intra-SADC trade estimated to have grown from about US$13.2 billion in 2000 to about US$34 billion in 2009, representing an increase of about 155%.

v Rules of origin apply

9

MINING IN NAMIBIA

•  Mining  remains  the  mainstay  of  Namibia’s  economy,  being  the  largest  contributor  to  the  GDP.    

•  Namibia  is  the  fourth  largest  exporter  of  non-­‐fuel  minerals  in  Africa  and  the  world’s  fiAh  largest  producer  of  uranium.    

•  Rich  alluvial  diamond  deposits  make  Namibia  a  primary  source  for  gem-­‐quality  diamonds.    

•  Namibia  also  produces  large  quanFFes  of  lead,  zinc,  Fn,  silver,  and  tungsten.  

10

MINING IN NAMIBIA

•  Namibia’s  main  export  commodiFes  include  copper,  diamonds,  gemstones,  granite,  lead,  marble,  uranium  and  zinc.    

•  The  main  import  commodiFes  include  petroleum  products,  pharmaceuFcals,  plasFc  products,  rubber,  spare  parts,  texFles  and  knitwear  and  Fmber.  

11

FRASER INSTITUTE ANNUAL SURVEY 2014

•  Namibia  is  the  top  African  desFnaFon  for  investors  in  mining  according  to  the  

Fraser  InsFtute’s  latest  report  •  Namibia  is  regarded  worldwide  as  the  

25th  best  desFnaFon  

12

FRASER INSTITUTE ANNUAL SURVEY 2014

•  Factors  such  as  Namibia's  rule  of  law  as  well  as  its  tax  policy  is  a  major  aOracFon  for  investors.    

•  Also  its  infrastructure  and  costs  associated  with  mining  in  the  country  is  regarded  as  posiFve.  

13

FRASER INSTITUTE ANNUAL SURVEY 2014

•  Government  has  an  ongoing  consultaFon  policy  with  the  mining  industry.    

 •  It  has  an  open  door  policy  at  all  levels  in  most  ministries  and  is  complemented  by  arguably  the  most  cooperaFve    geological  surveys  in  the  world.  

14

Potential Areas for Investment mining and energy

Namibia has extensive mineral deposits. Its diamonds and uranium are world-class as are its gold, copper, lead, zinc and other base metals, a wide variety of semi-precious stones and many types of dimension stone.

Value-addition is encouraged in refining of base metals and other minerals, like manganese, processing of marble and granite, and cutting and polishing of precious and semi-precious stones. Good prospects for development of the jewelry industry.

Geophysical studies indicate good prospects for oil and gas exploration.

Namibian Rose Marble

Zebra Marble

Tourmalines

Diamonds

Gold

Potential areas for investment & business partnerships

§  Pharmaceuticals §  Steel manufacturing §  Manufacturing/assembly of electronic/electrical components §  Mineral prospecting and exploration §  Building materials production §  Textiles and garments §  Cutting & polishing of semi-precious & precious stones §  Port and harbour infrastructure and facilities §  Hospitality and tourism facilities

WHY INVEST IN NAMIBIA?

17

Peace, stability and good governance Fast, efficient and transparent bureaucracy First world road, rail and air infrastructure Excellent telecommunications network Strategically located, low cost and efficient port Generous investment regimes Wide inter-continental market access Liberal investment regime Low inflation Stable foreign exchange reserves Young and trainable labour force Good housing and recreational facilities Excellent medical services

BUSINESS CONDUCIVE ENVIRONMENT

18

MINISTRY OF TRADE AND INDUSTRY

Business registration and Licensing

Information on Investment Opportunities and Incentives

Facilitation of entry visas, work and resident permits

Registration of trademarks, designs and patents

Issuance of import/export permits

Organisation of trade fairs (in- & outward)

Facilitation of access to industrial land and utility services

INVESTMENT & BUSINESS FACILITATION SERVICES

19

NAMIBIA WELCOMES YOU

THANK YOU