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List of incentives available in this location for quick easy reference below.

Incentives

Table key

  • Incentive offered
  • Incentive not offered
  • Did not submit information
Cash grants/incentivesMore [+]Less [-]

There are a number of special non-tax incentives available for manufacturing enterprises. These include the following:

  • The export promotion funding of certain export and promotion activities up to a maximum of 50% of direct cost.
  • Industrial studies undertaken by Government can be made available t 50% of their production costs to companies that wish to develop investment opportunities.
  • Cash grants for exporters of locally manufactured goods of up to 50% of the real cost specified export promotion and marketing expenses incurred.

Additionally, are other incentives currently under investigation, which includes the following:

  • Reduced air flight costs for exporters
  • Subsidized transport
  • Subsidies on electricity, housing, training and relocation cost
  • Price preference on tenders.

Export Processing Zone (non-tax Incentives):

  • Government grants for the direct costs of on-the-job and institutional training of the Namibian workforce upon provision of pre-approved training plans, once training is complete;
Tax exemptionsMore [+]Less [-]

Export Processing Zone Incentives (tax exemption):

  • EPZ enterprises are exempted from paying corporate tax, Value added tax (VAT), Stamp Duty and Transfer Duty on goods and services required for EPZ activities and import duties on imported intermediate and capital flow.

Manufacturing enterprises (fiscal/tax incentives):

  • Additional 25% allowance on manufacturing
  • Additional 25% allowance on marketing expenses incurred in export countries in relation to goods exported for sale
  • An 80% allowance on manufacturing gross profit of a manufacture, whose income is mainly derived from the export of manufactured goods
  • An additional 25% allowance, for a period of 10 years from registration, on land based transport costs incurred in relation to materials used in the manufacturing activity or to the importation of manufacturing equipment
  • An initial building allowance of 20% on the erection costs of buildings used solely for manufacturing purposes in the year in which the building is brought into use for purposes of trade;
  • An annual building allowance of 8% on such erection costs as referred to above, for the next 10 years;
  • Registered Manufactures (fiscal/tax incentives):
  • Registered manufactures are taxed at 18% for the first 10 years from registration, and at 35% for all following years; and
  • Value Added Tax (VAT) exemption on the purchase and import of machinery and equipment used in the manufacturing process.
Property assistance / other fiscal incentiveMore [+]Less [-]

The Offshore Development Company and the Ministry of Trade and Industry have constructed and managed export-oriented business parks that are leased principally to exporters (to both domestic and foreign investors). The programme involves the construction of modular business premises, industrial parks and technology demonstration centers providing market sites and space for light manufacturing, trading and office operation as well as access to productive machinery and technology. A total of 35 business sites and premises have been constructed and are on lease under the Programme.
Training and labor market assistanceMore [+]Less [-]

The Government offers special tax deductions of up to 25% to manufacturing companies that provide technical training to employees. Government also reimburses companies for costs directly related to employee training under approved conditions.
Loan guarantees, cheap loans or finance
Exemptions from regulationsMore [+]Less [-]

The Foreign Investment Act allows operation of a foreign currency account, hence there are no restrictions. Exchange control permission is not required for inward transfer of equity bond capital, but permission is required for loan funds.
Target sectorsMore [+]Less [-]
  1. Manufacturing
  2. Mineral Processing
  3. Food production and processing
Sectors specific incentivesMore [+]Less [-]

While Namibia may not have sector-specific incentives, the only and current sector-specific incentives on offer are for manufacturers. However, these incentives can benefit any sector provided that the company applying for them is engaged in manufacturing.

Sponsorship

If you are the authorised promotions agency for Namibia and would like to have your location highlighted on fDi Atlas, you can contact our sales team on + 44 (0) 207 775 6667 or contact us here.