Recognised for its highly stable political and economic environment, Namibia is one of Africa’s gems. Considered among the safest democratic nations in Africa, the country offers impressive infrastructure and excellent quality of life.
This was shared in the African Wealth Report for March 2023. The report is the definitive guide to Africa’s wealth and luxury sector, it provides a comprehensive review of private wealth in Africa, including high-net-worth-individuals, luxury and wealth management trends, as well as expert insights on investing in Africa, the investment migration sector, and economic mobility on the continent.
The Namibian government is actively seeking foreign investment to boost the country’s economic growth and diversify the economy. Thus, the country decided to develop new engines of growth such as the green hydrogen project, which is expected to pump billions of dollars into the domestic economy.
“It provides many opportunities for international investors seeking a foothold and growth on the African continent, including tax incentives, financing, and a one-stop bureau service for international companies. Namibia offers an attractive territorial tax system, which means that residents will not generally be taxed on income generated outside the country,” reads the report.
It added tax rates are relatively low in Namibia when compared to most other African markets. The top rate of income tax in the country is a relatively modest 37%, and perhaps most notably there is no estate duty or capital gains tax in the country.
Additionally, it added Namibia is Africa’s new frontier as it is expected to be one of Africa’s fastest-growing markets going forward, with high-net-worth growth of over 60% forecast for the next decade (to 2032).
Leading industries expected to drive the local economy are mining (diamonds, uranium, gold, zinc, and copper), eco-tourism (safari lodges and hunting), farming, fishing and manufacturing.
As of December 2022, the report stated total investable wealth held in Namibia account to US$26 billion.
Furthermore, CEO of the Namibia Investment Promotion and Development Board Nangula Uaandja, last year said promoting Namibia at this point in time is a very easy task due to new developments the country has confirmed, such as green hydrogen and recent oil discoveries.
At the time, she noted this momentum has placed Namibia at the forefront in the international arena. The NIPDB CEO added that the country is experiencing a significant increase in investment inflows that are knocking at the country’s doors, looking for opportunities to invest.