While the Economic Association of Namibia (EAN) has welcomed government efforts to strengthen the country’s investment framework through the Draft Investment Promotion and Facilitation Bill, it has cautioned that the proposed law requires refinement to better support investment attraction and facilitation. 

Commenting on the draft legislation, the EAN stated that the Bill represents an important step toward consolidating investment policy, improving coordination across institutions, and aligning investment decisions with long-term domestic development objectives.

Furthermore, the association welcomed provisions on investor rights, dispute resolution, performance agreements, and transparency, noting that these measures signal an intention to enhance predictability and accountability within the country’s investment regime.

However, the EAN warned that the proposed legislation places greater emphasis on regulation, approval, and compliance than on actively encouraging investment. According to the EAN, this imbalance could create perceptions of complexity or uncertainty for prospective investors at a time when Namibia is competing with other countries for capital in a challenging global environment.

The EAN further stressed the importance of aligning the Bill with Namibia’s regional and continental commitments under the Southern African Customs Union (SACU), the Southern African Development Community (SADC) and the African Continental Free Trade Area (AfCFTA). 

This is because these frameworks aim to promote cross-border trade, regional value chains, and investment flows.  

Among the key issues the EAN identified for clarification are incentives for investors and the regulatory framework that would apply to other investments, raising questions about the regulatory framework that would apply to other investments. The EAN said this could create uncertainty and should be clarified.

The association also called for greater clarity around the designation of economic sectors and business activities, including clearer classification criteria, review periods, and transition arrangements. Such clarity, it said, would assist investors with long-term planning and reinvestment decisions.

In addition, the association cautioned that extensive approval and information requirements could disproportionately affect smaller businesses and called for a more proportionate, risk-based approach.

 It also urged clearer coordination with existing institutions to avoid duplication. Overall, the EAN stated that targeted refinements are needed for the Bill to fully support investment, job creation, and inclusive economic growth.  

– ebrandt@nepc.com.na