Why Should Start a Business in Namibia:
South Africa is one of our closest trade partners, and it’s made up of eight provinces. Six of those provinces belong to Southern Africa Customs Union (SACU), which also includes Botswana, Lesotho, Swaziland and Namibia. As such, South African businesses have established trading relationships with each other.
A local business can expand its markets outside South Africa through exporting its goods or services to these neighboring countries. Here are some reasons you should start a business in Namibia
1. You get to do business in an English-speaking country where most of your customers speak English as well. This means that language barriers won’t be a problem when doing business here. It also means that you don’t need to hire translators for your website or marketing materials – saving you money!
2. The Namibian economy is growing at a rate of 5% per year, making it one of the fastest growing economies in Africa.
3. The cost of living in Namibia is lower than many other developing countries; yet there are still many opportunities for expats who want to live here permanently.
4. The population has grown by more than 2 million people since 2002; yet unemployment remains relatively low at around 15%.
5. Namibia’s main industries include mining, agriculture and tourism. Many foreign companies choose to set up their offices in Namibia because of its favorable tax laws, which encourage entrepreneurship.
6. There are few restrictions on foreign ownership of land or property in Namibia
7. English is widely spoken throughout Namibia
8. There are no personal income taxes
9. An impressive road network connects all major cities within Namibia
What are the Natural Resources in Namibia?
Namibia is a large country situated in southwest of Africa. The country is notable for being among the driest in the world as it receives an average of 14 inches of rainfall per year. Adding to the aridity of the country is the presence of two of Africa’s driest places, the Kalahari Desert and the Namib Desert which are both found in the country.
The arid country is endowed with natural resources examples of which include its wildlife and scenic terrain, agricultural products, and minerals all of which inject millions of dollars into the economy of Namibia. The country’s GDP stands at an estimated $17.79 billion. World’s total gem diamonds production.
Minerals: Diamonds
The most important mineral (from an economic standpoint) in Namibia is diamonds, a mineral which contributed $0.235 billion of revenue to the Namibian government in 2013. Some sources have it that the annual production of diamonds in Namibia stands at about 1.92 million carats which are equivalent to over $1.1 billion. Virtually all the diamonds produced from the country are shipped to international markets, and a tiny fraction is consumed in the country’s jewelry industry.
The country is ranked as the eighth largest producer of gem diamonds in the world and among the largest in Africa. The country’s diamond mining industry accounts for 2% of the world’s total gem diamonds production. The mining of diamonds in the country is primarily undertaken by the Namde Diamond Corporation, which is Namibia’s top diamond producer. In 2006, the company produced an estimated two million carats of diamonds.
Diamonds were first discovered in the country in the turn of the 20th Century, and the discovery triggered a huge diamond rush where prospectors rushed into the country to mine the precious stone which was then found lying on the surface.
What are the Business Opportunities in Namibia?
With more than 2 million inhabitants spread across an area roughly twice that of France or Spain, Namibia is one of Africa’s smallest but wealthiest countries. Although GDP per capita ranks among sub-Saharan Africa’s lowest at $737 per year—considerably below neighboring South Africa ($1179) and Botswana ($1281)—the country has made significant strides toward a more diversified economy over recent years.
Following independence from South Africa in If you’re thinking of starting a business in Namibia and don’t know what kind of business to start Opportunities there are for entrepreneurs most commonly: agriculture; tourism; transportation; manufacturing and industry; finance and insurance.
Business-Friendly Policies and Government Initiatives:
Business- friendly policies in Namibia. This will give you an overview of what you should expect from local government offices as well as some insight into how to navigate them. This initiative works to foster transparency and accountability through public policies and regulations that support open data and participation.
This kind of forward thinking is essential for growing businesses in any economy. For example, if you’re trying to start a new business as a foreigner in Namibia, you’ll be happy to know that your visa process will be relatively simple compared with other African nations.
What policies are available on both national and local levels for getting things done For example, there is a fairly liberal VAT (value-added tax) exemption policy for small businesses under $500K per year. In addition, there are laws designed to protect against discrimination based on race, gender, religion and other factors that can complicate life as an entrepreneur here.
Also note that no matter where you live in Namibia, Windhoek is home to many embassies and consulates with resources specifically geared toward expats living in or visiting Namibia. You should take advantage of these free services whenever possible. You might find someone at your embassy who has worked through similar issues; they may even have connections that can help smooth out some bumps along the way.
What Businesses are Successful in Namibia?
According to the World Travel and Tourism Council (WTTC), travel and tourism contributed approximately 14.7 percent of GDP in Namibia, and 15.4 percent to total employment in 2019. Excluding neighboring African countries, the United States represents Namibia’s third-largest tourist market (behind Germany and the United Kingdom).
Many American tourists visit as part of package tours. American game hunters are a growing and important segment for Namibian tourism operators. Hospitality, restaurant, hotel management and training. Information technology solutions for the hospitality industry
Operators (tour/transport companies, hotels, and restaurants) will increasingly need information technology solutions that will allow them to better control costs and understand their customers’ demands. Petroleum sectors are diverse and growing steadily, with food and beverages, textiles and footwear, chemicals, metal products, many men also run small food stands where they sell meat pies, shawarma sandwiches and other fast foods. If you don’t see any existing competitors offering something similar to your business idea, try looking online; there may be companies selling similar products on sites like Etsy or eBay.
What are the steps for Starting a Business in Namibia?
There are specific steps that you need to follow when starting a business in Namibia partnership or limited liability company (LLC). -Choose a name and register your business with both National and Local authorities. -Apply for any licenses or permits required by law before starting operations. -Open bank accounts and apply for any other financial services required by law. -Obtain insurance cover for your business In order to start a business, your first step will be choosing your company structure.
Then you’ll need to apply for startup authorization with the Commercial Registry, where you must also register for Value Added Tax (VAT). Once that’s done, you can open your business bank account. To operate and maintain your company over time, you’ll need policies and procedures in place along with various licenses, permits and registrations of Your Company and you have a start a business in Namibia.
Namibia Industrial Infrastructure:
Investment in large-scale infrastructure projects is one of the key strategies of Namibia to fuel economic growth. The government's effort to improve the country's infrastructure to sustain growth in the manufacturing sector and expand municipal utilities will contribute to the growth in construction spending.
Rising personal income levels, household growth, and population migration from rural to urban areas will augment the need for better construction facilities and road infrastructure developments in the country The Construction and Infrastructure Market research identifies that the competition continues to intensify year-on-year with emerging applications.
Namibia's population and economic outlook are also included in the report to provide insights and forecasts of macroeconomic factors shaping the future of Construction and Infrastructure markets. drive and elevated private sector and PPP commitment to infrastructural development, as well as mobilizing capital markets, local and international, for infrastructure funding and notably for ‘’green and blue’’ infrastructure.
Market size of Namibia:
Increasing government expenditure towards sustainable infrastructure development with continued investment in energy-efficient and environmentally sustainable assets is promoting the market demand for Namibia Construction and Infrastructure companies. The government is also encouraging companies that emphasize on technological advancements and standardizing modern methods of construction globally, industrialization and urbanization trends are propelling the demand for client-driven Construction and Infrastructure activities and augmenting demand for investment in railways, roads, ports, power transmission, and water utilities.
Growing demand for Building Information Modelling, Modular construction, and building materials industry is being observed across the Namibia Construction and Infrastructure market. Estimated construction and infrastructure growth of 6% CAGR is forecast globally between the global Construction and Infrastructure Market is poised to grow robustly over the forecast period 2020-2026.
Industrialization and urbanization trends are propelling the demand for client-driven Construction and Infrastructure structural reforms will be required to raise Namibia’s growth potential.
Industrial Growth:
Namibia is a small country of about 2.5 million people, with a long coastline on the South Atlantic, bordering South Africa, Botswana, Zambia and Angola. It is the driest country in Sub-Saharan Africa, and is rich in mineral resources, including diamonds and uranium.
Leading up to the growth outlook is subject to significant uncertainty given the unknown profile of the pandemic and likelihood of further restrictions in activity if additional infections waves materialize. Progress on structural reforms will be required to raise Namibia’s growth potential. Investments in mineral extraction, a boom in exports and government spending underpinned growth. Namibia subsequently suffered from falling commodity prices, weak growth in key trade partners (Angola, South Africa) and tight fiscal policy on the back of government’s effort to rebalance public finances. Manufacturing sector has not lived up to those expectations.
Although the sector has performed dismally for the period under review (1990 – 2016), there is still room for expansion towards the attainment of high and sustainable growth and sector contribution to GDP, increase in income as well as employment creation. The study found that issues of land, access to finance, utility costs, investment incentives, manufacturing status, unfair trade practices and skills shortages are the critical factors constraining the manufacturing activities in Namibia.
The study further found that the existing policies in place plays a major role in boosting the performance of the manufacturing sector, they just need to be executed fully and faster. The paper recommends the need for initiatives to improve skills and knowledge transfer as well diversification in the manufacturing activities in the country.