ANNEX 3 
NAMIBIA  
 
 SACU-Namibia WT/TPR/S/222/NAM 
 Page 203 
 
 
CONTENTS 
    Page 
I. THE ECONOMIC ENVIRONMENT 207 
(1) M AIN FEATURES  207 
(2) R ECENT ECONOMIC DEVELOPMENTS  209 
(3) T RADE PERFORMANCE AND INVESTMENT  210 
(i) Trade in goods and services 210 (ii) Investment 213 
(4) O
UTLOOK  214 
II. TRADE AND INVESTMENT REGIMES 215 
(1) G ENERAL  215 
(2) T RADE AGREEMENTS  217 
(3) I NVESTMENT FRAMEWORK  219 
(4) T RADE -RELATED TECHNICAL ASSISTANCE  220 
(i) General 220 
(ii) Specific TA and training needs as a ssessed by Namibia in the context of the 
WTO 220 
(iii) The way forward 222 
III. TRADE POLICIES AND PRACTICES BY MEASURE 223 
(1) I NTRODUCTION  223 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  224 
(i) Registration, and import duties and related measures 224 
(ii) Import prohibitions and licensing 225 
(iii) Standards and other technical requirements 227 (iv) Government procurement 228 
(v) Local-content requirements 229 
(vi) Other measures 229 
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  229 
(i) Registration and taxes 229 
(ii) Export prohibitions, controls, and licensing 230 (iii) Export subsidies, assistance, and processing zones 230 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  232 
(i) Incentives 232 (ii) State trading and st ate-owned enterprises 234 
(iii) Competition policy and price controls 236 
(iv) Protection of intellectual property rights 237 
IV. TRADE POLICIES BY SECTOR 241 
(1) I
NTRODUCTION  241 
(2) A GRICULTURE AND RELATED ACTIVITIES  242 
(i) Main features 242 
(ii) Policy developments 243 
(3) F ISHERIES  246 
 WT/TPR/S/222/NAM Trade Policy Review 
Page 204 
 
 
    Page 
(4) M INING AND ENERGY  249 
(i) Mining 249 
(ii) Energy 252 
(5) M ANUFACTURING  255 
(6) S ERVICES  257 
(i) Telecommunications and post 258 (ii) Financial services 259 
(iii) Transport 261 
(iv) Tourism 263 
REFERENCES   265 
APPENDIX TABLES  269 
  SACU-Namibia WT/TPR/S/222/NAM 
 Page 205 
 
 
TABLES 
    P a g e  
I. ECONOMIC ENVIRONMENT  
I.1  Main economic and social indicators, 2008 208 
I.2 Sectoral breakdown of GDP, 2003-08 208 
I.3 Main economic indicators, 2003-08 210 
I.4 Balance of payment, 2001-07 211 I.5 Foreign direct investment, 2000-07 213 
II. TRADE AND INVESTMENT REGIMES  
II.1 Main trade-related legislation, 2009 216 
II.2 Selected notifications to WTO, 2003-09 218 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
III.1 Additional tariff for infant industries, 2001-14 224 
III.2 Investment, employment, and export in EPZs, 2009 232 
III.3 State-owned enterprises, 2009 234 
IV. TRADE POLICIES BY SECTOR  IV.1 Fish landings (main commercial species), 2001-08 247 
IV.2 Total allowable catch (TACs), 2001-08 247 
IV.3 Revenue from the marine fishing industry, 2001-08 249 
IV.4 Output of selected minerals, 2003-07 250 
IV.5 Contribution to GDP by manufacturing, 2003-08 255 IV.6 Summary of special incentives for manufacturers and exporters, 2009 256 
IV.7 Contribution to GDP by services, 2003-08 257 
IV.8 Tourism indicators, 2003-07 264 
APPENDIX TABLES 
I. ECONOMIC ENVIRONMENT  
AI.1 Structure of exports, 2001-07 271 
AI.2 Destination of exports, 2001-07 272 
AI.3 Structure of imports, 2001-07 273 
AI.4 Origin of imports, 2001-07 274  
 
 SACU-Namibia  WT/TPR/S/222/NAM 
 Page 207 
 
 
I. THE ECONOMIC ENVIRONMENT 
(1) MAIN FEATURES  
1. The Republic of Namibia, on the west coast of  southern Africa, has an area of 824,418 km2 
and 1,572 km of coastline.  It has land borders with Angola, Botswana, S outh Africa, Zambia, and 
Zimbabwe.  The population of Namibi a was estimated at 2.1 million in 2007 and grew at an annual 
rate of 1.3% between 2001 and 2007.  About 36% of the population live in urban areas.1  Some 60% 
of the population are between 15 and 64 years old, 37% are in the 0-14 age group and only 4% are 65 years or over.  Windhoek, the capital, is the most  densely populated area and the biggest city (over 
250,000 people). 
2. Namibia is a lower middle-income country, with a per capita income of about US$3,455 in 
2007.  In recent years, real GDP growth has been quite strong, averaging 6.0% between 2003 and 2008.  In addition, several human development indi cators show that Namibia has made considerable 
progress since independence in 1990.  Life expectan cy, infant mortality, access to improved water 
sources, literacy and school enrolment are all signi ficantly better than the averages for sub-Saharan 
Africa (Table I.1).  However, despite being am ong the top twenty countries worldwide in public 
expenditure on education as a percentage of GDP (6 .9%), and third in Africa in per capita expenditure 
on health (US$407), Namibia ranks 129 (out of 179 countries) in the UNDP's Human Development Indices rankings.
2  Unemployment (estimated at 36.7% of the labour force in 2004)3, poverty (56% of 
the population live on less than US$2 a day), the HIV/AIDS pandemic4, and household food 
insecurity are among the main problems facing Namibia.5 
3. Namibia has large reserves of minerals, particul arly diamonds and uranium but also including 
zinc, copper, and gold.6  The mining and quarrying sector cont ributed 9% to real GDP in 2008 
(Table I.2) and 45% of the total value of merchandi se exports.  But, given the capital-intensive nature 
of mining, the sector employs only 2% of the tota l labour force.  The services sector is the most 
important in terms of contribution to real GDP ( 58% in 2008) and Namibia is a net exporter of 
services.  Manufacturing accounted for 12% of real GDP in 2008 (14.0% in 2003), and 48.5% of the 
total value of merchandise exports. Agriculture's relatively small contribution to GDP (5% in 2008) 
belies its important role in Namibia's social, political, and economic condition, as it employs about 
30% of the labour force. 
                                                      
1 World Bank (2008). 
2 UNDP online information, "Human Development Indices :  A statistical update 2008:  HDI rankings ".  
Viewed at:  http://hdr.undp.org/en/statistics/.  Namibia's living standards are, on average, higher than those of 
other sub-Saharan countries.  It has a relatively well developed basic infrastructure, such as transportation and telecommunication networks. 
3 National Planning Commission (2008). 
4 HIV prevalence in the adult popu lation was reduced from 22% in 2003 to 19.9% in 2006 largely due 
to the National Awareness Campaign jointly run by the government, private sector and international agencies. 
The programme of public provision of antiretroviral (ART) drugs, launched in 2003, currently covers about 40,000 patients, i.e. 70% of those who could benefit fr om ART treatment.  In addition, the tuberculosis and 
malaria prevalence in Namibia are amon g the highest rates in the world. 
5 According to the World Food Programme, Namibia is  expected to lose about 26% of its agricultural 
labour force through AIDS during 1985-20 (WFP online information. Viewed at:  http://www.wfp.org/ 
food_aid/doc/HIV_Food_Security.pdf). 
6 Namibia has the sixth largest diamond industry in the world, and is the fourth largest producer of 
uranium. WT/TPR/S/222/NAM Trade Policy Review 
Page 208 
 
 
Table I.1 
Main economic and social indicators, 2008 
Land area 824,418 km2 Nominal GDP at current market prices (2007) US$6.7 billion 
Population (2007) 2.1 million GDP per capita (2007) US$3,455 
Population growth (2005) 1.3% GDP per cap ita annual growth rate (1997-07) 4.5% 
UN human development index (2008)  GDP shares (2007):  
Overall ranking 129 out of 179 Primary 23.0% 
Category Medium human development Secondary 14.3% 
Ranking within category 53 out of 77 Tertiary (including electricity, water, and 
construction) 54.6% 
Life expectancy at birth (2006) 51.9 years Enrolment ratio (net) in education (2005):  
Infant mortality rate o/oo (2005) 45 Primary 72 
Adult literacy (2006) 87.6% Secondary 39 
Urban share of population (2007) 36%    
Source : UNDP (2008), Human Development Report ;  Bank of Namibia (2008), Quarterly Bulletin ;  Central Bureau of 
Statistics/National Planning Commission (2008), National Accounts 2000-2007 , October;  and World Bank (2008), 
Namibia at a glance . 
Table I.2 
Sectoral breakdown of GDP, 2003-08 
(N$ million and per cent)  
 2003 2004 2005 2006 2007 2008 
GDP at constant 2004 prices (N$ mi llion) 38,028 42,679 43,758 46,853 49,421 50,867 
 (per cent) 
Primary, of which: 17 19 18 19 17 16 
Agriculture 6 5 6 6 5 5 
Fishing 4 4 3 3 2 2 
Mining and quarrying 8 10 8 10 10 9 
Secondary, of which: 19 17 18 19 19 19 
Manufacturing 14 13 13 13 13 12 
Construction 3 3 3 3 4 4 
Electricity and water 2 2 3 3 2 3 
Tertiary, of which:   58 57 57 56 57 58 
Wholesale and retail trade  11 11 12 12 12 12 
Hotels and restaurants 2 2 2 2 2 2 
Transport and communication 5 6 6 6 6 7 
Financial intermediation 3 3 3 3 3 4 
Real estate and business services 10 9 10 9 10 10 
Public administration and defence 10 9 8 8 8 9 
Education 7 8 7 7 7 7 
Health 5 4 3 3 3 3 
Private households with employed persons 1 1 1 1 1 1 
Taxes, less subsidies  7 8 8 8 8 8 
Source : WTO estimates, based on Bank of Namibia (2009), Quarterly Bulletin , June. 
4. Over the last few years, Namibia has embarked  on an ambitious development programme that 
aims to:  reduce poverty, create employment, pr omote economic empowerment, stimulate sustained 
economic growth, reduce inequalities in income  distribution, reduce regional development 
inequalities, promote gender equality and equity, enha nce environmental and ecological sustainability, 
and combat the further spread of HIV/AIDS.7  To do so, the third National Development Plan (NDP3) 
                                                      
7 These were the objectives in Namibia's second National Development Plan 2001/02-2005/06 (NDP2) 
(National Planning Commission online information.  Vi ewed at:  http://www.npc. gov.na/docs/ndp2info.htm). SACU-Namibia  WT/TPR/S/222/NAM 
 Page 209 
 
 
2007/08-2011/12 and the long-term Vision 2030 are being implemented with the support of 
international institutions such as the IMF and the World Bank.8   
(2) RECENT ECONOMIC DEVELOPMENTS  
5. Namibia's development strategy has resulted in a positive economic performance in the past 
few years, with recent high GDP growth, relatively low inflation, and surpluses in both its overall 
fiscal position and external current account.  Real GDP grew at an annual average of 6.0% during 
2003-08 (compared with 3.8% during 1990-99), led by buoyant diamond production and sustained 
strengthening of the non-mining sectors such as manufacturing and services.9  However, real GDP 
growth declined to 2.9% in 2008 and is expected to fall further to 1.0% in 2009.  The decline in 
diamond prices and the global economic crisis h as also reduced expectations for growth.  
6. The annual inflation rate in Namibia, as meas ured by the consumer price index (CPI), 
averaged 6.9% during 2000-07 (down from 10.2% over 1990-99).  In the period under review, inflation fell from 7.2% in 2003 to 2.2% in 2005 before rising again to 10.3% in 2008 (Table I.3), due to high world commodity prices, particularly oil and cereals.
10  The Bank of Namibia's core monetary 
policy objective is the maintenance of price stab ility through targeting and supporting the fixed 
exchange rate parity of the Namibi an dollar with the South African rand.11  The parity link means that 
monetary policy is largely set by the South A frican Reserve Bank (SARB), and Namibian interest 
rates closely track South African levels.  However, in practice, because of capital controls, the Bank 
of Namibia does have some monetary policy autonomy to  deviate its repo rate from the SARB rate.      
7. Fiscal policy, aimed primarily at stimulating em ployment and investment, plays a crucial role 
in stabilizing the macro-economy.  Namibia's fiscal  position has changed dramatically over the past 
few years.  The public sector balance (including gr ants) improved from a deficit of 7.2% of GDP in 
2003 to a surplus of 2.1% in 2006 and 5.2% in 2007.  However, a deficit of 0.7% of GDP is estimated 
for 2008 (Table I.3).   
8. The shift from deficit to surplus was a direct result of tight spending policies and an increase 
in Namibia's receipts from the SACU customs revenue pool from 9.4% of GDP in 2005/06 to 13.9% 
of GDP in 2006/07.12  Total revenue and grants, as a percen tage of GDP, rose from 28.3% in 2003/04 
to 32.8% in 2007/08 while total expenditures declined slightly from 35.4% to 33.6% of GDP.   
Namibia is taking steps to address a possible dec line in SACU import duty revenue, which currently 
accounts for about 40% of budget revenue:  the broadening of the tax base and improved tax 
administration are envisaged.  In addition, steps to  improve oversight of the public sector, such as the 
State-owned Governance Act (No. 2 of 2006) an d the creation of the State-owned Enterprises 
Governance Council will reduce risks to the budget from over-spending and poor  financial reporting. 
9. Part of the SACU revenue windfall has been  used to reduce public debt and increase 
international reserves.  As a result, and coupled with strong economic growth, public debt fell from a 
five-year peak of 33.8% of GDP in 2004 to 20.5% in 2008, although external debt rose from 5.6% to 
                                                      
8 The main theme of the NDP3 is "accelerated ec onomic growth and deepening rural development", 
while under Vision 2030 Namibia aims to become an industrialized/knowledge-based economy (National Planning Commission, 2007). 
9 Bank of Namibia (2008b). 
10 IMF (2008c). 
11 The rand can circulate freely in Namibia but th is is not the case for the Namibian dollar in 
South Africa.  The Bank of Namibia was established under Article 128 of the Namibian Constitution (Bank of 
Namibia online information, "About us".  Viewed at:  http://www.bon.com.na/content/aboutus).  
12 IMF (2008b). WT/TPR/S/222/NAM Trade Policy Review 
Page 210 
 
 
6.6% of GDP during the same period.  Namibia's gr oss official reserves reached over US$1 billion at 
end 2008 (4.0 months of imports of goods and services) from US$313.2 million in 2003 (1.5 months of imports) (Table I.3). 
Table I.3 
Main economic indicators, 2003-08 
 2003 2004 2005 2006 2007a 2008a 
Miscellaneous       
GDP at current prices (N$ m illion) 34,506 37,300 41, 526 48,228 53,564 59,516 
GDP per capita (US$) 2,253 2,816 3,073 3,389 3,562 .. 
Real GDP growth (% change) 3.5 6.6 4.7 3.9 3.6 3.9 
Consumer price inflation (period average;  % change)  7.2 4.1 2.2 5.1 6.7 10.3 
Consumer price inflation (end of period;   % change)  2.6 4.3 3.5 6.0 6.7 .. 
Monetary sector        
Broad money (% change) 3.3 22.8 8.3 32.0 10.1 17.9 
Deposit rate (end of period;  %) 6.9 6.4 6.0 6.9 8.3 8.6 
Lending rate (end of period;  %) 12.9 10.7 10.8 12.4 13.6 13.7 
Government finance (% of GDP)b       
Overall balance (including grants) -7.2 -3.6 -0.2 2.1 5.2 -0.7 
Revenue and grants 28.3 30.6 33.1 36.8 32.7 32.8 
Expenditure and net lending 35.4 34.2 33.4 34.7 27.5 33.6 
Public debt outstanding 29.5 33.8 30.1 31.4 18.9 20.5 
External sector       
Real effective exchange rate 96.0 103.3 94.0 93.4 90.1 86.5 
Current account (% of GDP) 6.7 8.2 5.5 13.8 9.2 -0.3 
Gross official reserves (US$ m illion) 313.2 322.2 292. 7 417.5 937.6 1,277.8 
Gross official reserves (months of imports) 1.5 1.5 2.7 1.7 3.0 4.0 
External debt (% of GDP)b 4.6 5.6 4.7 4.8 4.8 6.6 
.. Not available. 
a Estimates. 
b Fiscal year.  
Source : IMF (2008), Namibia:  Staff Report for th e 2007 Article IV Consultation ;  and information provided by the 
 Namibian authorities.  
(3) T RADE PERFORMANCE AND INVESTMENT  
(i) Trade in goods and services 
10. Until 2008, when a deficit of 0.3% is expected, Namibia had recorded uninterrupted external 
current account surpluses since independence in 199013, although, in general, they were not enough to 
offset the financial account deficits (Table I.3).  The growth in the surplus up to 2007 was led by a 
surge in SACU receipts, from US$448.4 million in  2003 to an estimated US$957.1 million in 2007.  
Trade in goods also improved from a deficit of about US$282.8 million in 2003 to a surplus of 
US$95 million in 2006, although a deficit of US$172 million was again recorded in 2007.14    
11. Namibia's economy is highly dependent on internat ional trade with an average ratio of exports 
plus imports of goods and services to GDP of over 88% between 2000-07.  In 2007, Namibia ranked 
89th among world merchandise exporters (considering the EC member states together and excluding 
                                                      
13 Namibia's current account surplus as a percentage of GDP went from annual averages of 3% during 
1990-02, to 7% over 2003-05, and then to an estimated 17% in 2006-07 (IMF, 2008a). 
14 Central Bureau of Statistics/National Planning Commission (2008). SACU-Namibia  WT/TPR/S/222/NAM 
 Page 211 
 
 
intra-EC trade), and 93rd among importers.  In services trade, Namibia ranked 96th among exporters 
and 117th among importers.15  
12. Mining, especially diamonds, dominates exports . Exports of diamonds alone made up 19.9% 
of total exports in 2007, up from 10.8% in 2003.16  Other exports include metal ores and metals and 
animal products, food and be verages (Table AI.1).  Exports are heavily concentrated geographically 
towards South Africa and Europe, the destinations for most diamonds.  Exports to the 
European Communities have increased considerab ly since 2003, both in nominal terms and in 
proportion to total exports, particularly to the United Kingdom (predominantly diamonds) and Italy (predominantly zinc).  At the same time, exports to  other African countries have declined in relative 
terms (Table AI.2).   
13. Namibia's main imports are food, fuel, and p assenger vehicles.  Chemicals, beverages, and 
metals are also important (Table AI.3).  Imports  are mainly from South Africa (around 78% by value) 
(Table AI.4):  a large portion of Namibia's impor ts enter from South Africa although they may have 
arrived, via South Africa, from another country of origin.   
14. Balance-of-payments data indicate that Namibia is usually a net exporter of services with an 
average surplus of US$83.8 million per year during 2003-07 (Table I.4).  Rela tively large surpluses 
for travel and communications services offset  deficits for transport, financial, and 
computer/information services (Table I.4).  
Table I.4 
Balance of payments, 2001-07 
(US$ million) 
  2001 2002 2003 2004 2005 2006 2007 
Current account 20.8 90.8 265.7 446.3 344.8 1,106.22 803.91 
A.  Goods -202 -210.9 -464 -282.8 -256.5 95 -172 
Credit 1,147.00 1,071.60 1,262.00 1,827.50 2,066.70 2,652 2,915.50 
Debit -1,349.00 -1,282.50 -1,726.00 -2,110.30 -2,332.20 -2,557 -3,087.50 
B.  Services 18.3 38.8 138.2 55.2 43.5 97.3 84.91 
Total credit 293.9 272.5 414.5 475.4 412.6 529.2 597.8 
Transportation services, credit 37 35.9 54.1 25.5 22.5 102.1 120 
Travel, credit 236.3 218.1 332.5 404.8 349 384.4 433.5 
Other services, credit 20.6 18.5 27.9 45 41.1 3.3 2.1 
Communications 4.8 4 8.5 15.5 16.8 15.7 15 
Construction 1.1 1.5 .. .. .. .. .. 
Insurance -0.3 0.1 0 0 0.1 2 5.1 
Financial 1.2 1.3 0 .. 0.1 0 0 
Computer and information .. .. 0 0.1 0 1.2 1.2 
Royalties and licence fees 4.7 3.8 .. .. .. .. .. 
Other business services (admin and 
prof) 0.4 0.4 3.4 9.7 2.4 1 1.9 
Personal, cultural, and recreational .. .. .. .. .. .. .. 
Government, n.i.e. 8.8 7.3 16 19.8 21.7 20.2 19.2 
Total debit -275.6 -233.7 -276.3 -420.2 -368.8 -432 -512.8 
Transportation services, debit -82.4 -73.1 -61.1 -135.5 -130.7 -151 -240.3 
Travel, debit -70.5 -64.8 -101 -122.8 -108.2 -119 -132 
Table I.4 (cont'd) 
                                                      
15 WTO Statistics database, "Trade Profiles:  Namibia" .  Viewed at:  http://stat.wto.org/CountryProfile/ 
WSDBCountryPFView.aspx?Language=E&Country=NA 
16 Exports of diamonds were unusually low in 2003 and 2007.  During the 2003-07 period, they 
averaged 22% of total exports. WT/TPR/S/222/NAM Trade Policy Review 
Page 212 
 
 
  2001 2002 2003 2004 2005 2006 2007 
Other services, debit (admin + prof) -122.7 -95.8 -114.2 -161.9 -129.9 -73 -61 
Communications -0.2 -0.2 -0.2 -0.3 -0.3 -0.3 -0.3 
Construction -22.6 -18.4 -2.7 -4.4 -3.9 -24.6 -9 
Insurance -13.8 -11.8 -17.5 -17.7 -9.4 -19 -27 
Financial -2.1 -1.3 -5.4 -3.1 -9.5 -4.4 -4.9 
Computer and information -13.4 -8.8 -12.3 -14.6 -13.1 -21 -15.6 
Royalties and licence fees 0 -1.7  -3.6 -3.2 -1 .8 -3 -1.9 
Other business services -60.2 -44.4 -65.1 -109.5 -82.7 -7 -11.7 
Personal, cultural, and recreational .. .. .. .. .. .. .. 
Government, n.i.e. -10.5 -9.3 -7.5 -9.2 -9.3 -9 -8.4 
C.  Income -147.8 -11.9 131.3 4.9 -127.2 -31 -106.7 
Total credit 120.9 110.2 184.8 217 225.4 270 313.6 
Total debit -268.7 -122.1 -53.6 -212.1 -352.6 -301 -420.3 
D.  Current transfers 352.3 274.8 460.3 669.1 669.88.0 949.8 1,000.40 
Credit 388 304.4 487.5 703.9 717.7 995 1,052.00 
General government 371.2 289.9 462.1 676.8 692 968 1,029.70 
Other sectors 16.8 14.6 25.4 27.1 25.8 27.2 22.9 
Debit -35.6 -29.7 -27.2 -34.9 -44.7 -45.4 -52.3 
General government -32 -26 -23.1 -30 -39.9 -40.8 -47.9 
Other sectors -3.7 -3.7 -4.2 -4.8 -4.9 -4.6 -4.4 
Capital and financial account 7.4 -106.9 -176.9 -561.6 -590.15 -945.8 -401.4 
Capital account 95.8 40.7 68.3 77.2 79.6 85 83.9 
Total credit 96 40.9 68.6 77.6 80.2 85 83.9 
Total debit -0.2 -0.2 -0.4 -0.5 -0.5 -1 0 
Financial account -88.4 -147.7 -245.1 -638.7 -669.5 -1,030.50 -484.5 
A.  Direct investment  381.7 179.4 157.6 246.1 397.6 398.5 729.2 
Direct investment abroad 12.5 5.1 11.5 22.7 12.5 11.6 -2.8 
Equity capital -0.1 0.9 1.2 1.2 1.5 5.4 -2.8 
Reinvested earnings 2.1 1 1.8 2.3 -2.1 1.3 0 
Other capital 10.5 3.2 8.6 19.2 12.8 5 0 
Direct investment in Namibia 369.1 174.4 146.1 223.4 385 387 732 
Equity capital 344.6 132.3 111.3 133.4 222.9 436 560 
Reinvested earnings 111 11 -69.8 70 206.3 151.2 187 
Other capital -86.4 31.1 104.7 20 -38.3 -199 -15 
B.  Portfolio investment  -439.8 -431.8 -635.2 -845.4 -1043.65 -1,112.40 -1470.31 
Assets -451.7 -419.1 -612.3 -825.5 -1,052.80 -1,119.50 -1,476.50 
Liabilities 11.9 -12.7 -22. 9 -19.9 7. 3 7.1 6.3 
C.  Financial derivatives .. .. .. .. .. .. .. 
D.  Other investment 39.9 113.4 125.3 -53.6 -23.5 -316.7 256.6 
Assets -42.4 8.6 23.3 44.6 45.4 -362.2 127.6 
Liabilities 82.3 104.8 102 - 98.2 69 -45. 5 -28.9 
E.  Reserve assets -70.2 -8.7 107.2 14.2 -292.6 -417.4 -937.5 
Monetary gold .. .. .. .. .. .. .. 
Special drawing rights 0 0 0 0 0 0 0 
Reserve position in the Fund 0 0 0 0 0 0 .. 
Foreign exchange -70.2 -8.7 107.2 14.2 -292.6 -417.4 -937.5 
Other claims .. .. .. .. .. .. .. 
Net errors and omissions -28.2 16.1 -88.8 115.3 109.4 337.2 252.9 
.. Not available. 
Source:    IMF (2008) International Financia l Statistics (IFS) CD-Rom version 1. 1.0.105;  and data provided by the 
 Namibian authorities. SACU-Namibia  WT/TPR/S/222/NAM 
 Page 213 
 
 
(ii) Investment 
15. Investment, as measured by gross fixed capital formation, grew on average 12% per year 
during 2001-06, with the private sector accounting fo r 72.6% of the total in 2006 (up from 60.2% in 
2001), followed by the government (15.1%), and state-owned enterprises (12.3%).  The mining and 
manufacturing sectors absorbed the bulk of private investment.  Total investment, as a proportion of 
GDP, averaged 24.9% per year over 2001-06;  private investment averaged 17.5%, state-owned enterprises 3.7%, and government 3.6%.
17  
16. Namibia's average annual inflow of foreign dir ect investment (FDI) more than tripled from 
US$97 million during 1990-00 to US$375.8 milli on over 2003-07, reaching US$732 million in 2007 
(Table I.5). The main factors facilitating Nami bia's inward FDI have been political stability, 
favourable macroeconomic environment, independen t judicial system, protection of property and 
contractual rights, good quality of infrast ructure, and easy access to South Africa.  
Table I.5 
Foreign direct investment, 2000-07 
  2000 2001 2002 2003 2004 2005 2006 2007 
  (US$ million) 
Flow          
Direct investment in Namibia 186 365 181 149 226 385.1 387 732 
Direct investment abroad 3 -13 -5 -10 -22 -13 -12 -3 
Stock          
Direct investment in Namibia 1,276 715 1,822 2,952 4,120 2,440 2,757 3,859 
Direct investment abroad 45 14 27 82 101 25 7 16 
  (as percentage of GDP) 
Flow          
Direct investment in Namibia 5.5 11.4 5.8 3.3 3.9 0.8 0.7 1.2 
Direct investment abroad 0.1 -0.4 -0.2 -0.2 -0.4 0 0.2 0 
Stock          
Direct investment in Namibia 37.4 22.2 58.4 66 71.7 5.3 5.1 6.3 
Direct investment abroad 1.3 0.4 0.9 1.8 1.8 0.1 0 0 
Source:  UNCTAD, foreign direct i nvestment database.  Viewed at:  http ://stats.unctad.org/FDI/TableViewer/ 
 tableView.aspx and Na mibian authorities. 
17. Namibia has substantially improved its FDI performance over the past decade, progressing 
from an "under-performer with low FDI potential"  to a "front-runner FDI performer with high FDI 
potential".  On the basis of UNCTAD's Inward  FDI Performance Index, Namibia ranked 28th out of 
141 economies in 2007 (46th in 2006), reflecting general openness to  foreign investors in all activities 
(Chapter II(3)).18  In UNCTAD's Inward FDI Potential Index, it was 95th in 2006 (88th in 2005).  
Namibia ranks 51st (out of 178 economies) in the World Bank's Ease of Doing Business 2009 Index.19  
                                                      
17 National Planning Commission (2007). 
18 UNCTAD's Inward FDI Performance Index measures  the extent to which host countries receive 
inward FDI, and ranks countries by the amount of FDI they receive relative to th eir economic size.  It is 
calculated as the ratio of a country's share in global FD I inflows to its share in global GDP (UNCTAD, 2008).  
19 The index is based on ten topics (Namibia's ranking), i.e. starting a business (112);  dealing with 
construction permits (38);  employing workers (34);  regi stering property (129);  getting credit (12);  protecting 
investors (70);  paying taxes (96);  trading across borders (150); enforcing contracts (36);  and closing a business 
(52) (World Bank Group online information, "Doing Business:  Namibia". Viewed at:   http://www.doingbusiness.org/ExploreEcono mies/?economyid=135) [June 2009]. WT/TPR/S/222/NAM Trade Policy Review 
Page 214 
 
 
(4) O UTLOOK  
18. Under the NDP3 (2007-12) and the long-term Vision 2030, Namibia's economic policy is 
aimed at achieving economic diversification and rapi d growth in order to reduce widespread poverty, 
unemployment, urban-rural disparities, and th e incidence of HIV/AIDS, while accelerating 
productivity increases in agriculture, particularly in s ubsistence agriculture.  To this end, Namibia is 
to accelerate the pace of its struct ural reforms, with a focus on encouraging domestic and foreign 
investment through, inter alia , a more flexible labour market and further improving the business 
climate.20 
19. Both the Bank of Namibia and the National Planning Commission estimate that the Namibian 
economy will contract in 2009.  This contraction re flects the effects of the pronounced developments 
in the external and internal economic environmen t.  The internal economic slowdown is mainly 
reflected in the decline of diamond production.  This is mainly due to the effects of the global financial crisis, which has dampen ed demand, coupled with the continued decline in onshore diamond 
recoveries.  Nevertheless, the driving force for gr owth would remain the mining sector, particularly 
increased production in uranium.  
20. As a small open economy with trade as a large proportion of GDP, Namibia is vulnerable to 
external shocks.  Thus, the slump in the globa l economy remains the greatest threat to economic 
growth as it limits exports and, therefore, a dversely affects domestic employment, incomes, and 
expenditure.  The country is facing major cha llenges emanating from the economic crisis;  these 
include maintaining and ensuring employment crea ting growth.  Furthermore, the uncertainty of 
SACU revenue poses a challenge to fiscal manage ment, as these receipts account for the bulk of 
government revenue
21;  hence, the authorities recognize the need to strengthen fiscal policy. 
21. Despite the difficulties facing the Namibian economy, growth is expected to resume in 2010, 
based on higher commodity prices, especially for uranium, increased demand for commodities, and 
the Government's fiscal stimulus policies. 
 
 
                                                      
20 National Planning Commission (2007). 
21 South Africa has called for a review of SACU's revenue-sharing arrangement that may result in 
lower shares for member countries.  In addition, SA CU revenues could be affected by a slowdown in 
South Africa and the reduction in SACU's CET rates due to trade liberalization.  Developments under 
COMESA, SADC, and the European Partnership Agreements would also have revenue implications for Namibia. SACU-Namibia  WT/TPR/S/222/NAM 
 Page 215 
 
 
II. TRADE AND INVESTMENT REGIMES 
(1) GENERAL  
22. Namibia's trade policy instruments are mostly set  at the regional level within the context of 
the Southern African Customs Union (SACU) (Main Re port, Chapter II(2)).  On the domestic front, in 
areas not covered by the SACU Agreement, the Ministry of Trade and Industry has primary 
responsibility for formulating and implementing trade policies.  Within the Ministry, foreign trade 
policy, including multilateral, regional, and bilate ral trade relations, is the responsibility of the 
Directorate of International Trade.22 
23. Other institutions that have important input in to Namibia's trade-related policies include the 
Ministries of Finance (budget, expenditure/revenue  measures, including tariff and macroeconomic 
policies); Mines and Energy; Fisheries and Marine  Resources; Agriculture, Water, and Forestry; 
Environment and Tourism; Works and Transport; Foreign Affairs; and Information and Communication Technology; as well as the National Planning Commission in the Office of the President (development plans); Namibia Financial Institutions Supervisory Authority (NAMFISA);  
and the Bank of Namibia (the Central Bank).  The respective roles of these institutions vis-à-vis  trade 
policy have not changed since the last TPR of SACU.  
24. The 2002 SACU Agreement provides for a nationa l body to be established in each member 
country;  the body will be in charge of SACU issu es (including tariff change s) at the national level 
and will make recommendations to the Custom s Union Commission via the SACU Tariff Board 
(Main Report, Chapter II(2)(ii)).  Enactment of the requisite legislation to establish the Namibia 
Board of Trade is at an advanced stage;  th e Board will operate as the designated SACU national 
body, and is expected to become operational in the course of 2010. 
25. All proposed trade-related measures are form ulated by the sponsoring Ministry, which 
undertakes detailed policy work, including research, na tional consultations, and considers submissions 
from interested stakeholders.  Trade-related submis sions are reviewed and considered by the Cabinet 
Committee on Trade and Economic Development, chai red by the Minister of Trade and Industry, 
before being submitted to Cabine t.  Policy proposals are submitted to Cabinet as memorandums and 
become government policy on approval.   
26. Other important entities include the Presidentia l Economic Advisory Council, coordinated by 
the Office of the President
23, and the Namibia Trade Forum, wh ich serves as a platform for public-
private dialogue on trade and investment related matters.  There is also a WTO National Committee, 
comprising senior officials from various ministries a nd agencies and chaired by the Ministry of Trade 
and Industry.  Sector-specific technical sub-committe es, such as on agriculture, intellectual property, 
and services, report to the Committee.   
27. The independent Namibian Economic Polic y Research Unit (NEPRU) conducts economic 
research and advises on economic policies, including trade policies.24  In addition, the independent 
Institute for Public Policy Resear ch (IPPR) provides analytical res earch into social, political, and 
economic (including trade) issues.  Furthermore, an Industrial Development Committee, comprising 
officials from the Ministries of Trade and Industry, and Finance, as well as the Bank of Namibia, was 
established to fast-track the development of key i ndustrial projects and to stimulate manufacturing.   
                                                      
22 See WTO (2003), Annex 3, p. 162, for details on the Directorate. 
23 See WTO (2003), Annex 3, p. 162, for details on the Office. 
24 See WTO (2003), Annex 3, p. 163, for details on the Unit. WT/TPR/S/222/NAM Trade Policy Review 
Page 216 
 
 
28. From the foregoing, it is apparent that there is  significant consultation or interaction between 
the public and private sectors on trade policy formulation and implementation.  Private-sector representatives are also usually members of committees for coordinating government activities.  In this regard, the main bodies repre senting the private sector's views to Government are the Namibia 
Trade Forum and its committees, the Non-Agri cultural Market Access Committee (NAMA), the 
Agriculture Committee, the Trad e in Services Committee, the Ai d-For-Trade Committee, and the 
Fisheries and Aquaculture Committee.  The NAMA group membership include the Namibia Chamber 
Commerce and Industry (NCCI), the Namibia Manufact uring Association (NMA), and the Indigenous 
People Business Forum (IPBF);  the Agriculture Trade Committee is anchored on the Agriculture 
Trade Forum (AFT);  and the Fisheries and Aquacu lture Committee covers va rious fishery companies 
and associations, as well as INFOSO.   
29. Trade and investment promotion remain ke y elements of Namibia's trade policy and 
development strategy.
25  The Government's main objectives are further trade liberalization and export 
expansion, including diversifi cation of products, export market s, and import sources.  Export 
promotion, through such measures as tax-based incentives and export-processing zones, remains a 
high priority for the Government in order to attr act investment, increase value added, and encourage 
production of non-traditional goods.  This also enco mpasses a broadening of Namibia's industrial base 
and promoting growth in small and medium-sized enterprises (SMEs).   
30. Overall, the Government aims to create an  appropriate enabling business environment to 
facilitate meaningful private-sector development.  To  this end, Namibia has been gradually removing 
entry barriers, and regulatory and administrative re quirements (e.g. licences, permits, and registration 
procedures) have been gradually simplified.  Seve ral programmes administered by the Ministry of 
Trade and Industry provide financial and instituti onal support (Chapter III(3)(iii)).  Furthermore, 
various trade-related laws have  been enacted, revised or amended since 2000 (Table II.1). 
31. Namibia's Vision 2030, which was conceptualized  in January 2000, is being managed by the 
National Planning Commission.  The Vision has the ove rall target of alleviating poverty in Namibia 
by achieving an average annual growth ra te of not less than 6% until the year 2030.   Vision 2030 
provides the long-term development framework fo r the country to become a prosperous and 
industrialized nation, developed by its human r esources, and enjoying peace, harmony and political 
stability.  
Table II.1 
Main trade-related legislation, 2009 
Subject Legislation  
Agriculture Agronomic Industry Act, 1992;  Meat Industry Am endment Act, 1992;  Karakul Pelts and Wool Act, 1982;  
Agricultural (Commercial) Land Reform  Amendmen t Act, 2003;  Stock Brands Act, 1995;  Meat 
Corporation Act, 2001 
Competition Trade Practices Act, 1976;  Merchandise Ac t, 1941;  Competition Act (No 2), 2003;  Companies Act 
(No 61), 1973 
Economic zones Export Processing Zones Act, 1995 
Exports and imports Customs and Excise Act, 1998;  Value-A dded Tax Amendment Act, 2002;  Imports and Exports Control 
Act, 1994 
Fisheries Marine Resources Act, 2000;  Regulations Relating to the Exploitation of Marine Resources, 2001 
Foreign investment Foreign Invest ment Act, 1990 and 1993 amendments 
Government procurement Tender Board of Namibia Act, 1996 
Table II.1 (cont'd)
                                                      
25 WTO (2003), Annex 3, p. 163.  A research report by NEPRU found that trade liberalization would 
contribute to economic growth and poverty alleviation (Hansohm et al., 1999). SACU-Namibia  WT/TPR/S/222/NAM 
 Page 217 
 
 
Subject Legislation  
Intellectual property rights Copyright and Neighbouring Rights Protection Act, 1994;  Patents and Design Act, 1952;  Patents Ac t, 
1978;  Proclamation No. 17, 1923;  Trade Marks in South West Africa Act, 1973 
Mining Minerals (Process and Mining) Act, 1990;  Di amond Act, 1999;  Petroleum Products and Energy Act, 
1990;  Petroleum Exploration and Production Act, 1991  
Price control Petroleum Products and Energy Act, 1999 
Services  
General Electricity Act (No. 2), 2000;  Electricity Regulati ons:  Administrative Electricity Act, 2000;  Air Services 
Act, 1949 and 1998 amendments;  Aviation Act, 1962 and 1998 amendments;  Telecommunications Policy 
and Regulatory Framework for Namibia, 1999;  Na mibian Communications Commission Act (No. 4), 
1992, as amended;  Post and tel ecommunications Act (No. 19) 1992, as  amended;  Namibia Broadcasting 
Act, 1991;  Road Traffic and Transport Act,1999;  Ro ad Traffic and Transport Regulations, 2001;  Road 
Fund Administration Act, 1999;  Namibia Ports Authority  Act, 1994, as amended;  Airports Company Act, 
1998;  National Transport Services Holding Company Ac t, 1998;  Supervisory Authority Act (No.3), 2001;  
Building Societies Act, 1986 (No. 2), 1986;  Accomm odation Establishments and Tourism Ordinance Act 
(No. 20), 1973;  Casinos and Gambling Houses Act, 1994;  Liquor Act (No.6), 1998 (as far as it apply to 
accommodation establishments);  National  Housing En terprise Act (No. 5), 1993;  Pension Funds Act 
(No. 24), 1956;  Electricity Act (No. 2), 2000 
Financial  Currency and Exchanges Act, 1933;  Preventi on of Counterfeiting and Currency Act, 1965;  Bank of 
Namibia Act, 1997;  Agriculture Bank of Namibia Act (No.13), 1994;  Banking Institutions Act, 1998;  
Payment Systems Management Act, 2003;  Financia l Intelligence Act, 2007;  Long-Term Insurance Act 
(No. 5), 1998;  Public Accountan ts and Auditors Act (No. 51), 1951;  Stock Exchanges Control 
Amendment Act (No. 26), 1992 
Standardization Sta ndards Act (No 18), 2005 
Source:  WTO Secretariat; information provi ded by the Namibian authorities. 
32. The National Development Plans (NDP) are the ma in vehicles for translating the Vision into 
action.  NDP3 is the first plan geared systematica lly towards this objective;  it runs from 2007-12, and 
was prepared in close consultation with all releva nt stakeholders.  The Plan places great emphasis on 
rural development, including infrastructure and provi sion of public services, employment, agricultural 
development, land tenure reform, and private-sector  development, as essential ingredients for poverty 
alleviation. 
33. NDP3 differs from NDP2 and NDP1 in that it is  based directly on the broad objectives of 
Vision 2030;  it is formulated with a central focu s on development results, building on other on-going 
initiatives; and it sets out the implementation arrange ments and puts in place monitoring, reporting, 
and evaluation arrangements for achieving the targeted results. 
34. Trade is expected to play a central role in at least two of the ten key result areas under the 
plan, i.e. competitive economy (macro-economy), thr ough increased smart partnerships and      
private-sector development;  and regional and intern ational stability and integration, by promoting 
integration in the regional and global economies.   
(2) TRADE AGREEMENTS  
35. Namibia has been a WTO Member from its in ception, hence its trade policy is heavily 
influenced by this membership, to which Namibia attaches great importance.  Namibia is committed 
to a liberal trade regime26;  however, it is encountering certain difficulties in meeting its notification 
obligations (Table II.2). 
36. Namibia is a member of the Southern African Development Community (SADC), and the 
African Union/African Economic Community, of which all SACU countries are also members 
                                                      
26 WTO document G/AG/NG/W/143, 23 March 2001. WT/TPR/S/222/NAM Trade Policy Review 
Page 218 
 
 
(Main Report, Chapter II).27  Namibia was previously a member of the Common Market for Eastern 
and Southern Africa (COMESA), from whic h it withdrew on 31 May 2004 (Main Report, 
Chapter II(1)). 
Table II.2 
Selected notifications to WTO, 2003-09 
WTO Agreement Description of requirement Periodicity Most recent  
notification Comment 
Agreement on Agriculture 
Articles 10 and 18.2 Export subsidies Once G/AG/N/NAM/15 
27 February 2004 No export subsidies maintained 
during 2000 and 2001 
General Agreement on Tariffs and Trade 1994  
Article XXIV: 7(a) Territorial Application – 
Customs Unions Once WT/REG231/N/1 
28 June 2007 SACU notified to WTO 
Article XXIV: 7(a) Territorial Application –  
Free Trade Areas Once WT/REG256/N/1 
3 November 2008 SACU-EFTA Agreement notified 
to WTO 
Agreement on Technical Barriers to Trade 
Annex 3C Code of good practice for 
the preparation, adoption, 
and application of standards Once G/TBT/CS/N/121/Corr.1
20 February 2009 Notification under para. C of WTO 
Code of Good Practice – NSIQO 
Annex 3C Code of good practice for 
the preparation, adoption, 
and application of standards Once G/TBT/CS/N/176 
20 February 2009 Notification under para. C of WTO 
Code of Good Practice – NSI 
Source:  WTO documents. 
37. Namibia believes that the negotiation of an ec onomic partnership agreement (EPA) with the 
EC provide an opportunity for SACU countries to harmonize their trade relations with the EC, which 
would facilitate and support the SACU integration agenda.  
38. Namibia has extensive bilateral trade agreem ents, almost all of which are on general 
cooperation matters, and reiterate the MFN principle in its trade relations.  These non-preferential or 
MFN-type agreements are maintained with Angol a, China, Cuba, and the People's Democratic 
Republic of Korea.  All these were signed during th e first decade of independ ence, with the exception 
of the agreement with Angola, which was signed in March 2004. 
39. Namibia's only preferential bilateral trade agreement was signed with Zimbabwe in 1992.28  
In general, the Namibia-Zimbabwe Trade Agreemen t provides for reciprocal duty-free market access, 
subject to rules of origin requiring at least 25% local content for manufactured goods, and Namibia or Zimbabwe (as exporter) should be the last place of th is substantial manufacturing.  Negotiations for a 
bilateral agreement with Zamb ia, which were elevated to SACU-Zambia negotiations, were 
unsuccessful, as they became obsolete by the estab lishment of the SADC free-trade area as from 
September 2000, under the SADC Protocol on Trade.  
40. As a developing country, Namibia is eligib le for GSP treatment from most developed 
countries.  These schemes provide preferential access  at zero or reduced tariffs on eligible products, 
subject to rules of origin.  Product coverage and ru les of origin vary between countries, but generally 
require the goods to be wholly obtained or su fficiently processed in Na mibia, as evidenced by 
certificates of origin from the Ministry of Finan ce.  Namibia receives GSP treatment from Australia, 
Canada, the EC, Japan, New Zealand, Norway, Ru ssia, Switzerland, and the United States.  The 
schemes have been of limited importance to Namibia and have benefited only a few industries, mainly 
                                                     
 
27 Namibia adopted the SADC Protocol on Trade on 7 August 2000 (ratified on 22 December 1998) 
and ratified the SADC Amendment Protocol on 4 July 2001 (signed 4 April 2001).  
28 WTO (2003), Annex 3, p. 168. SACU-Namibia  WT/TPR/S/222/NAM 
 Page 219 
 
 
because most of the schemes are either dormant or  unused by the business community or have been 
made obsolete by other preferential schemes, su ch as the African Growth and Opportunity Act 
(AGOA) with the United States, and the preferen tial arrangements with the EC under the successive 
Lomé Conventions and then Cotonou Agreement, in  the form of the interim Economic Partnership 
Agreements (EPAs).  
41. Namibia has been a beneficiary under th e AGOA since it was enacted (Main Report, 
Chapter II(3)(v)).  On 6 August 2002, the United Stat es extended "lesser developed country" status to 
Namibia, thereby allowing producers to use thir d-country fabric in qualifying clothing exports 
(AGOA II).  According to the au thorities, the AGOA has generate d substantial investment in 
Namibian textiles and clothing industries, and expor ts to the United States have increased steadily.  
Other industries potentially benefiting from the AG OA are ostrich meat, grapes, dates, fish, and 
handicrafts.   
(3) INVESTMENT FRAMEWORK  
42. Namibia's investment framework remains largely the same as at the time of the last TPR of 
SACU in 2003.  The 1990 Foreign Investment Act and its 1993 amendments represent the main thrust 
of its foreign investment policy.29  Tax incentives are available to investors, including in 
export-oriented activities, with the possibility of  negotiation of special tax packages through the 
Ministry of Trade and Industry.  Namibia ha s benefited from its political and macroeconomic 
stability;  independent judicial system and protec tion of property and contractual rights;  good quality 
infrastructure;  and easy trade access to Sout h Africa, the region's and continent's economic 
powerhouse.30  
43. The Namibian Investment Centre under the Ministry of Trade and Industry provides investors 
with information and assists them with customs ma tters, information on use of incentives, and other 
approval procedures.  Foreign inv estors generally receive full national treatment in Namibia, where 
almost all economic activities are open to foreign investors.31  Local-participation requirements apply 
to fishing under "Namibianization" policies and mining.  
44. Foreign investment approval is only required wh ere the investor is applying for a Certificate 
of Status Investment (CSI).  This requires mini mum investment of N$2 million (or acquisition of not 
less than 10% of the share capital of a Namibian  company), and the project to be assessed as 
contributing to Namibia's development, employment, or workforce training.  A CSI is free of fees and provides additional benefits to fore ign investors, like exemption from any future decisions to reserve 
activities to Namibians, and the right to internatio nal arbitration in case of governmental disputes.  
However, foreign ownership restric tions apply to agricultural land, and in recent years Namibia has 
expressed a desire to redress the very inequitable distribution of fertile land;  in this regard, 
Government has the first option to buy agricu ltural land that becomes available for sale. 
45. Namibia is a member of the Multilateral Investme nt Guarantee Agency (MIGA).  At the time 
of the previous review of SACU, it had bilatera l reciprocal investment promotion and protection 
treaties with Germany, Malaysia, and Switzerland;  since then, it has ratified bilateral treaties with 
Austria, Cuba, Finland, France, Italy, the Netherlands, Spain, Angola, China, and the 
United Kingdom;  negotiations with Belgium, Luxe mbourg, and Romania are under way.  Namibia 
has double taxation agreements with France, German y, India, Malaysia, Mali, Mauritius, Russia, 
                                                     
 
29 See WTO (2003) for details on the broad parameters of the Act.  
30 Basu and Srinivasan (2002). 
31 Although the legislation enables the Minister of Trade and Industry to reserve certain activities for 
Namibians, this has not been used. WT/TPR/S/222/NAM Trade Policy Review 
Page 220 
 
 
Portugal, South Africa, Sweden, and the United Kingdom.  It has now ratified its accession to the 
Convention on the Settlement of Investment Disputes  Between States and Nationals of Other States.  
(4) TRADE -RELATED TECHNICAL ASSISTANCE  
(i) General 
46. Namibia faces several constraints in developi ng its trade policy, including the implementation 
of WTO Agreements;  human and institutional cap acity limitations;  and supply-side issues.   
47. Namibia opened its WTO diplomatic representation in Geneva in April 2004.  Although the 
mission has only one diplomat, it has helped Namibi a to be well informed on issues in the multilateral 
trading system, including the DDA negotiations.  Na mibia has extensive na tional coordination on 
trade matters;  its National WTO Committee is an inter-ministerial committee to deal with WTO 
matters, but due to capacity constraints, it has not b een active.  However, the Ministry of Trade and 
Industry has been restructured and is in the process  of filling relevant positio ns with the appropriate 
personnel, which should help resurrect the Committ ee.  Nevertheless, effective liaison needs to be 
maintained between Geneva and the capital to ensure  that Namibia's aspirations in the MTS are being 
properly channelled.   
48. Since 2003, ten national activities have been organi zed in Namibia by the WTO.  In addition, 
Namibia has participated in num erous regional activities.  Further, from 2003 to the present, 
Namibian officials have been admitted to three of  the three-month trade policy courses held at the 
WTO Secretariat.  Namibia has also sent officials to each of the regional trade policy courses held in 
Africa since their inception.  Namibia hosted the th ree-month regional trade policy course for English-
speaking Africa, for 2006 and 2007;  this enabled Nami bia to enrol more participants on this course 
than other participating countries. 
49. Most of Namibia's human and institutional s hortcomings can be addressed through a focused, 
targeted programme of technical  assistance and capacity building, as well as through greater 
coordination amongst the providers of such assistance.  In the last few years, both factors have begun 
to occur.  The WTO has moved to a two-year T echnical Assistance (TA) Plan, which allows for 
incremental capacity building; and there has been  much more coordination of TA programmes, both 
within the WTO Secretariat and with other agencies providing TRTA.  
50. In its needs for the 2008-09 TA cycle, Nami bia has requested national activities on trade 
facilitation, non-agricultural market access (NAMA), a nd trade remedies.   In addition, due to the 
complex negotiating agenda under the DDA, trai ning on trade negotiating skills would enhance 
Namibia's participation in these negotiations.   
(ii) Specific TA and training needs as assessed  by Namibia in the context of the WTO 
51. Namibia has conducted its needs assessment in light of its engagement in the multilateral 
trading system.  The following were the key observations: 
(a) Supply side constraints:  Namibia is a small ec onomy and thus constrained by the size of its 
domestic market, its capacity to produce on a larg e scale, the inability to meet the standards 
and technical regulations in export markets, as well as high production costs.  Although the 
Government has taken a number of initiatives to  address the supply-side constraints, Namibia 
would like to improve its export performance  by addressing these constraints at the 
multilateral level in a manner that results in  improved market access for Namibian products.  
The Aid for Trade Initiative could be u sed to complement national initiatives. SACU-Namibia  WT/TPR/S/222/NAM 
 Page 221 
 
 
(b) Institutional capacity building:  institutional capac ity needs to be strengthened to make better 
use of available instruments/tools.  Namibi a faces some difficulties in implementing WTO 
Agreements;  a dedicated mechanism is require d in the capital to deal with WTO issues. 
Capacity-building programmes also need to be targeted at specific areas such as rules of 
origin or SPS measures, to promote exper tise within the country in those areas.   
(c) Trade in services:  there is a need to enhance the technical capacity of Namibia's experts, not 
only to negotiate but also to propose and draf t high quality offers and to make requests on 
trade in services.  Namibia needs assistance to set up a trade in services negotiating strategy. 
(d) Information and policy analysis:  Namibia n eeds assistance in analysing information and 
documentation in order to effectively participat e in the negotiation process.  Hence, it requires 
a long-term TA programme with resources targ eted at enhancing capacity to understand and 
implement the WTO Agreements.  More traini ng and follow-up is needed for all the actors 
who require expertise on multilateral trade agre ements so that they can advise decision 
makers on implementing various policy instru ments.  Trade policy courses and workshops 
have been very helpful, but not sufficient, and there is a need to develop analytical capacity. 
(e) Product and market diversification:  Namibia' s major export markets are South Africa and the 
European Communities.  It will need to divers ify its export markets in order to reduce its 
dependency on traditional markets and its re liance on primary commodities and products. 
Technical assistance targeted at export promo tion activities and geared towards market and 
product research would complement existing national efforts.  Furthermore, assistance is 
needed to improve the quality of Namibian products. 
(f) Product and market development: Namibia is reliant on a relatively limited number of 
markets and products. With the current global eco nomic meltdown, all efforts to broaden the 
contributors to the Namibian economy will help mitigate the effects of the economic crises.  
In this regard, Namibia requires technical a ssistance for the development of new quality 
products and markets for these products.  
(g) Product labelling and branding:  Namibia has to  comply with a number of requirements in 
export markets that affect its ac cess to those markets.  Theref ore, Namibia will need to be 
assisted in developing a labelling and branding  programme for products for export. In 
addition, assistance will be required to de velop labelling requirements for imports.  
(h) Processing/value addition:  Namibia has taken an initiative of promoting domestic value 
addition and processing of raw materials, as value addition has the potential to create 
employment opportunities.  To facilitate the achievement of this objective, food/product 
quality and production standards are needed in or der to ensure that the finished products 
comply with consumer requirements in the destination markets.  
(i) Compliance with international standards:  new international trade regulations are developed 
and implemented continuously.  Compliance with these standards and regulations is a 
prerequisite for market access.  For example,  compliance with the HACCP will be critical to 
the success of Namibia's agri-processing objectives.  Therefore, an HACCP Management System is of utmost importance to Namibia.   
(j) Enhancing customs enforcement capacity:  Nami bia needs to enforce/strengthen its customs 
procedures, in particular in the field of customs valuation, rules of origin, and 
inspection/investigation.  Intensive training for Customs and Police officers would help to 
identify and impound counterfeit goods.  The World Customs Organization (WCO) WT/TPR/S/222/NAM Trade Policy Review 
Page 222 
 
 
comprehensive diagnostic study on Namibian Cu stoms authority identified some of the above 
constraints.  Namibia needs assistance with an action plan to implement the findings and recommendations of this diagnostic study, in cluding through the WTO's trade facilitation 
initiatives. 
(k) Standardization:  the Namibia Standards In stitute now conducts export certification in 
Namibia, and it would be useful to assist Namibia in strengthening its own process of certification.  Regarding sanitary and phyto sanitary measures (SPS), there is a need for 
infrastructure development and training of officials to comply with international requirements.  In addition, assistance is need ed in enforcement of national measures and 
standards:  reliable product inspection services are vital at the point of entry for all products 
entering the country. 
(iii) The way forward 
52. Namibia's technical assistance needs encompass a broad range of trade-related issues.  Many 
of these issues have been addressed by the WTO and/ or other organizations, but these efforts seem to 
have been insufficient to solve a ll the issues.  The requests received focus on some priority areas, in 
particular training. 
53. The technical assistance that could be offered by the WTO Secretariat would be insufficient 
to cover these needs;  a more durable and funda mental approach would have to be envisaged. 
54. Specifically, the possibility of targeting resources at long-term training for Namibia's 
capital-based trade-policy personnel, with internationa l institutions that have the capacity to do so 
could be explored.  This would create the necessary enduring capacity and be more cost effective than 
numerous short-term courses. 
55. Moreover, careful monitoring should done to s upport that has been provided or will be given 
under current programmes, as well as by other organi zations and donors, so as to avoid duplication 
and overlap. 
 
 
 
 SACU-Namibia  WT/TPR/S/222/NAM 
 Page 223 
 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION  
56. As a member of SACU, Namibia applies the tr ade policy measures already harmonized at the 
regional level, including the common external tariff (CET) and contingency trade remedies.  As over 
78% of Namibia's imports are from South Africa and enter Namibia duty free, its purely MFN regime 
applies to a relatively small propor tion of its imports, mostly transport and machinery equipment from 
China, France, Germany, and Spain.  Neverthe less, a number of important non-tariff trade policy 
measures have not been harmonized within SACU , such as customs procedures, standards and 
technical regulations, sanitary and phytosanitary  measures, public procurement, and internal 
incentives and taxes.   
57. All imports into Namibia require licences which, in most cases, are automatic.  Non-
automatic licences are required for fish, meat, a nd second-hand goods, and us ually require permits 
from the relevant ministries.  Seasonal import pr ohibitions on "controlled" products (white maize, 
wheat and pearl millet, and products thereof) are applied each year until all domestic production has 
been sold.  In addition, imports of horticultural pr oducts are contingent on local purchases, and higher 
duties are applied to all imports of UHT milk and pasta under the infant industry clause of the 2002 
SACU Agreement.   
58. The Namibian Standards Institution (NSI) was est ablished in 2005 and is  expected to reduce 
Namibia's reliance on the South African Bureau of Standards, although, in most cases, Namibian 
standards are based on South African and internat ional norms.  Namibia is not a member of, nor 
observer to, the WTO plurilateral Agreement on Govern ment Procurement.  The Tender Board lets all 
government procurement contracts above N$10,000 by public tender although Namibian suppliers 
receive price preferences based on local content.  
59. Government policy is to diversify the econom y and encourage export-led economic growth.  
Export licences are required for all products;  in most cases, these are automatic.  Exports of diamonds are subject to export taxes and, in addition, certain  quantities of diamonds have  to be made available 
to domestic polishers and cutters.  Exports of some agriculture products are also contingent on 
providing certain quantities for domestic processing.  A number of tax incentives are in place for manufacturing enterprises.  More generous tax in centives apply to enterprises that export a large 
portion of production and to manufacturing enterprises that have Export Processing Zone status.  EPZ status is not restricted to any specific locality.  To qualify a manufacturer must export all production 
(with some exceptions), and the benefits incl ude total exemption from corporation tax.   
60. Namibia has recently introduced new legislation on competition policy;  this will soon 
become operational.  It is in the process of enac ting legislation on industria l property, but this may 
take some time to become operational as it will requ ire a range of administrative regulations as well as 
the creation of an Industrial Property Office and I ndustrial Property Tribunal and appointees to these 
two bodies. 
61. Namibia has many parastatals some of which are monopolies or near-monopolies or have 
exclusive rights, e.g. over the supply of utilities.  Some of these entities have performed poorly and/or 
do not meet their reporting obligations.  The G overnment is taking steps to improve their 
performance:  it has passed legislation and estab lished a State-owned Enterprises Governance Council 
to oversee parastatals and to enforce financial and op erational reporting.  At present, privatization is 
not under active considera tion although it has been discussed in the past. WT/TPR/S/222/NAM Trade Policy Review 
Page 224 
 
 
(2) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Registration, and import duties and related measures 
62. Under the SACU Agreement, the BLNS count ries (Botswana, Lesotho, Namibia, and 
Swaziland) apply import duties and related measures in line with South Africa.  Applied customs 
tariffs, excise duties, valuation methods, rules of origin, and contingency trade remedies are 
harmonized throughout SACU (Main Report, Chapter III).  However, other trade policy measures are 
the responsibility of each member.      
63. Namibia uses a single administrative documen t (SAD 500) for customs declaration and the 
ASYCUDA++ customs management system.32  Customs maintains a consolidated monthly import 
entry procedure to enable regular importers of SACU products to enter data on a monthly customs 
declaration.  It also has a Direct Trader Input  (DTI) system linked to the ASYCUDA++ system.  The 
DTI is for use by cargo carriers and freight forwarders and enables entry documentation to be processed electronically.  According to the authorities,  it usually takes between two and  four hours to 
clear commercial imports, provided that all documents  are in order.  Under a bond guarantee system, 
which operates on goods in transit through Namibia, im porters lodge a security to cover all charges, 
including local taxes and VAT;  the bond may be redeemed once the goods have left Namibia. 
64. The 2002 SACU Agreement (Article 26) maintain s the previous SACU provisions relating to 
protection for infant industries for the BLNS c ountries, along with the definition that these are 
industries that have been established for not more th an eight years.  Protection of infant industries can 
be provided for a period of up to eight years, unless otherwise determined by the SACU Council.  
Namibia invoked infant industry protection for UHT milk in 2001 and pasta in 2002.  The additional 
tariffs for UHT milk were set at:  10% for the first th ree years; 7% for the next three years; and 4% for 
the last two years.  However, this protection h as been extended to 2012 with applicable tariffs 
decreasing gradually from 40% in 2009 to 0% in 2012  (Table III.1).  The additional tariffs for pasta 
were set at:  40% for the first four years;  30% for th e next two years;  and 20% for the last two years.  
The SACU Council granted an extension of infant indus try protection up to 2014 at a constant tariff of 
40% (Table III.1).  Although infant industry prot ection for the broiler industry was granted by the 
SACU Council and published in the Government Gazette  in 2002 it has not yet been implemented 
because the industry has not been established. 
Table III.1 
Additional tariff for infant industries, 2001-14 
(Per cent)  
 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 
UHT milk 
HS 0401 10 10 10 7 7 7 4 4 40 26.8 13.6 0 0 0 
Pasta 
HS 1902 40 40 40 40 30 30 20 20 40 40 40 40 40 40 
Source:    Republic of Namibia, Government Gazettes . 
65. SACU has no specific guidelines or procedures for determining whether to grant infant 
industry protection under Article 26 of the SACU Ag reement or what level of protection should be 
applied.  However, discussions are ongoing for the development of guidelines to assist the 
implementation of Article 26 of the SACU Ag reement.  In Namibia, upon request from and 
consultations with the relevant industry, the Gove rnment prepares and submits a request to the SACU 
                                                      
32 UNCTAD ASYCUDA online information, "Coun try Status:  Namibia".  Viewed at:  
http://www.asycuda.org/dispcountry.asp?name=Namibia [February 2008]. SACU-Namibia  WT/TPR/S/222/NAM 
 Page 225 
 
 
Council for consideration.  After the measures are approved by the Council, prices are monitored to 
ensure that they remain competitive, that is, that they do not change substantially after infant industry 
protection is applied. 
66. In November 2000, the general sales tax (GST)  and the additional sales duty (ASD) were 
replaced with a value-added tax (VAT) on goods and ser vices at a standard rate of 15%.  Exports are 
zero-rated.33  Some basic household commodities and ser vices, such as medical, education, and 
certain financial services, are exempt.  In r esponse to high food prices, the Value-Added Tax 
Amendment Act, 2008 (No.4 of 2008) reduced to zero the VAT applied to some staple foods, such as 
beans, sunflower cooking oil, animal fat, bread, and flour.  VAT on domestically produced goods and 
services must be paid bimonthly, except for farmi ng where an option is available to register on a 
4, 6 or 12-months basis.  
67. VAT is levied on all imports based on the f.o.b. price plus 10% or, if greater, the "open 
market value" of the product (Value-Added Tax Amendment Act, No. 6 of 2002).  In practice, 
however, VAT is applied to the f.o.b. price plus 10%. 
(ii) Import prohibitions and licensing 
68. Few significant changes have occurred in Nami bia's import licensing regime since 2003.  All 
imports, including agricultural commodities, must be licensed by the Ministry of Trade and Industry.  In general, the licences are for statistical purpo ses (automatic licences).  However, non-automatic 
licensing applies to imports of medicines;  chemical s;  frozen or chilled fish and meat;  live animals 
and genetic materials;  controlled petroleum products ;  firearms and explosives;  diamonds, gold, and 
other minerals;  and all second-ha nd goods, such as clothing and motor vehicles.  The issuance of a 
non-automatic licence is generally subject to a pe rmit from the relevant ministry, for example, the 
Health Ministry for medicines, the Ministry of Mines and Energy for minerals, the Ministry of 
Agriculture, Water and Forestry for agriculture and related products, the Ministry of Fisheries for live 
marine organisms, the Ministry of Environment and Tourism for endangered species covered by the 
Convention on International Trad e in Endangered Species of Wild Fauna and Flora (CITES), etc. 
69. The Namibian Agronomic Board controls the tr ade (import and export) of controlled products 
(Agronomic Industry Act (No. 20 of 1992) , and its regulations) through permits.
34  Whole-grain 
(white) maize, wheat, pearl millet (mahangu) and their milled products are controlled crops in 
Namibia and subject to seasonal import restrictions  under which no import licences are issued until all 
domestic production has been sold.  For example, in 2006 no imports of white maize were permitted 
between 1 May and 16 October.35  Normally, the import of wheat flour into Namibia is prohibited 
although imports may be permitted depending on market conditions.  The restriction is aimed at 
promoting the domestic processing industry.  Yellow maize meal for animal feed may be imported into Namibia without restrictions.  The export from the BLNS into the SACU market of wheat flour 
and products processed from re bated grain is prohibited. 
70. Prices for controlled commodities are determin ed by the industry, through negotiations 
between producers and processors, based on the S outh African Futures Exchange (SAFEX) and 
adjusted to import parity prices, mainly from S outh Africa.  The Agronomic Board monitors these 
prices for statistical purposes but is not involved in the process of setting them or their enforcement.   
                                                     
 
33 Suppliers of zero-rated products (e.g. exporters), can  claim tax credits for VAT paid on inputs, while 
those of exempt products cannot. 
34 Namibian Agronomic Board online information, "Grain:  Controlled Crops".  Viewed at:  
http://www.nab.com.na/controlled_crops.htm [February 2009]. 
35 Namibian Agronomic Board (2007a). WT/TPR/S/222/NAM Trade Policy Review 
Page 226 
 
 
71. To meet EC food safety require ments for beef exports, including tracing of animals, re-
exports of meat are banned.  Imports of animals and animal products from outside Namibia must have 
veterinary import permits as required by the Anim al Diseases and Parasites Act (No. 13 of 1956).  
Veterinary permits, usually for one  importation only, are available from the Directorate of Veterinary 
Services in Windhoek on delivery of the completed app lication form and payment of a N$50 fee.  The 
veterinary permit includes a health certificate, whic h must be completed and signed by an authorized 
veterinary official in the exporting country.  Meat  Board Permits are also required for the import of 
livestock and meat products.  The permits are free of charge but an import levy is payable.  Imports 
from South Africa and Botswana of pets (dogs and cats only) and anim al products for personal use are 
subject to a special arrangement that allows the pe ts and limited quantities of some animal products to 
be imported without a Namibian veterinary import permit.  In many cases, however, such an import 
would still require an authorized veterinary certificate from the country of origin.36 
72. The Ministry of Agriculture, Water, and For estry is also responsible for issuing import 
authorizations for fresh fruits and vegetables.  An  Import Authorization is usually valid for one year 
and lists the products that may be imported.  It al so lists the pests the imports must be certified as 
being free from.  An import permit from the Namibian  Agronomic Board is also required;  this is 
valid for three months and is reissued for an im port quantity based on the performance of the previous 
three months.  Imports must be accompanied by a phytosanitary certificate from the public authorities 
of the country of origin, and a phytosanitary import permit from the Namibian authorities for N$200.  Importers are also required to pay a levy of 1.2% in addition to th e standard-rate VAT of 15% on the 
landed cost of the consignment.
37  In addition, under the Hor ticulture Development Initiative, 
importers are obliged to make monthly returns to the Agronomic Board showing that they satisfy the 
Market Share Promotion scheme, which requires th em to purchase a specific percentage of their 
supply from the domestic market.38  The domestic purchase requirement under the Market Share 
Promotion scheme was recently increased from 25%  to 30%.  There is some flexibility in 
implementing the scheme and lower proportions of do mestically sourced products may be accepted if 
it can be demonstrated that not enough do mestically sourced products are available.39 
73. Non-automatic licences apply to imported sec ond-hand goods, such as clothing, leather 
products, and motor vehicles.  In practice, only regi stered welfare agencies can import used clothing 
and leather products.  Import permits are required fo r commercial imports of used cars.  Permits are 
limited to right-hand drive cars of five years or less,  that meet road worthin ess standards.  According 
to the authorities, imports of used fishing vessel s are also prohibited for safety and environmental 
reasons. 
74. SACU tariff quotas apply to imports into the BLNS of wheat, cheese, butter, and skimmed 
and whole milk powder.  Namibia's quotas ar e 50,000 tonnes for wheat, 300 tonnes for cheese, 
400 tonnes for butter, 700 tonnes for skimmed milk powder, and 400 tonnes for whole milk powder.  
The in-quota tariff is 0% for all these products.  The tariff quota administration method is first-come, 
first-served.  Each August, the Ministry of Agricultu re, Water, and Forestry invites applications from  
interested companies;  applications, in writing, in dicate the quantities the applicants wish to import.  
Tariff rebate permits for each consignment are issu ed by the MAWF to the companies for submission 
                                                      
36 Ministry of Agriculture, Water, and Forestry  (2004);  and WTO document G/LIC/N/3/NAM/3, 
6 April 2000. 
37 Namibian Agronomic Board (2007).  
38 Horticulture online information, "FAQ" .  Viewed at:  http://www.horticulture.nab.com.na/ 
faq.php#3 [February 2009]. 
39 Namibian Agronomic Board online information, "Horticulture Import Permit".  Viewed at:  
http://www.horticulture.nab.com.na/forms_documents.php [June 2009];  and information provided by the Namibian authorities. SACU-Namibia  WT/TPR/S/222/NAM 
 Page 227 
 
 
to the customs authorities at the port of entry.40  Re-export to other SACU members of goods 
imported under these tariff quotas are prohibited. 
75. Import prohibitions also apply to obscene mate rials and environmenta lly hazardous products, 
including toxic or radio-active waste, to protect hea lth, safety, and morality.  Namibia is a signatory to 
the Montreal Convention on the Emission of Oz one Depleting Substances, and the Vienna 
Convention and the London Amendment;  the Intern ational Atomic Energy Agency;  the Basel 
Convention on Trade in Toxic or Hazardous Waste;   the Convention on International Trade in 
Endangered Species of Wild Fauna and Flora;  and the Cartagena Protocol on Biosafety. 
(iii) Standards and other technical requirements 
76. From 1991 to 2005, the South African Bureau of Standards undertook Namibia's 
standardization and quality assurance functions.41  Under the Standards Act, 2005 (No. 18 of 2005),  
Namibia created the National Standards Institution (N SI) as the entity responsible for standardization 
and conformity assessment, as well as providing certification services for management systems, products, and persons.  The NSI has been notified by the ISO/IEC Information Centre as a standardizing body that has accepted the Code of Good Practice for the Preparation, Adoption and 
Application of Standards contained in Anne x 3 of the TBT Agreement with effect from 
29 February 2008.
42  Imported and domestically produced goods  are covered mainly by South African 
and ISO standards, on which Namibian standards ar e based.  The NSI also participates in the SADC 
Standardisation, Quality Assurance, Accr editation, and Metrology (SQAM) Programme. 
77. The NSI has put in place the procedures for setting and adopting standards.  Technical 
committees are established to prepare, adopt, and pub lish standards.  According to the NSI, it has 
established a TBT enquiry point for the WTO but th is has not been notified to the TBT Committee, 
which still lists the enquiry point as the Nami bia Standards Information and Quality Office.43  The 
NSI is responsible for technical regulations, sta ndards, and conformity assessment procedures, and 
represents Namibia in international and re gional standards-development organizations. 
78. The NSI is currently preparing for accreditation of is conformity assessment services to the 
relevant international standards:  ISO/IEC 17020:20 04:  general criteria for the operation of various 
types of bodies performing inspections;  ISO/IEC 17021:2006:  conformity assessment requirement 
for bodies providing audit and certification of mana gement systems;  ISO/IEC 17024:2003:  general 
requirements for bodies operating certification of persons;  ISO/IEC Guide 65:1996:  general 
requirements for bodies operating product certification systems;  and ISO/IEC 17025:2005:  general 
requirements for the competence of testing and calibration laboratories. 
79. A memorandum of understanding was signed on technical cooperation between Namibia's 
NSI and South Africa's Regulator for Compulsory  Specification (NRCS).  The memorandum provides 
for the availability of qualified staff from NRCS, assistance on establishing a system regarding the 
fishing and canned meat sectors, in-hou se training, and related activities.   
80. The NSI has established procedures for sampli ng and inspecting imported products, however, 
it is still in the process of co-ordinating implemen tation with the customs authorities to ensure that 
products regulated under the Standards Act are inspected before release.   
                                                      
40 Ministry of Agriculture, Water, and Forestry (undated). 
41 WTO document G/TBT/2/Add.42, 9 December 1997. 
42 WTO document G/TBT/CS/N/176, 20 February 2009. 
43 WTO document G/TBT/ENQ/35/Rev.2, 13 May 2009. WT/TPR/S/222/NAM Trade Policy Review 
Page 228 
 
 
81. The NSI has officially assumed responsibility as the technical inspection body for fish and 
fish products and is responsible for inspecting an d certifying such products.  The EC, as Namibia's 
main trading partner, has been informed and, sin ce April 2009, all health certificates on consignments 
exported to the EC have been issued  by the NSI.  However, at present, the bulk of fish and shellfish 
samples are tested in South Africa by accredited labor atories.  The NSI testing laboratories (biotoxins 
and microbiology) are in the process of preparing for accreditation;  once they have been accredited 
by the EC (for exports to the EC), testing will be done in Namibia.   
82. Sanitary and phytosanitary provisions apply to  animal and plant imports, such as livestock, 
meat, and cereals.  All imports of plants and plant products, including the controlled commodities 
(wheat, maize, and pearl millet), require an import permit (Agricultural Pest Act (No. 3 of 1973)).  
The permit is issued by the Ministry of Agricultu re, Water and Forestry and requires the importer to 
submit a phytosanitary certificate and country of origin certificate from the exporting country.  The Ministry also imposes strict veterinary controls :  import permits are required for imports from any 
country.  To obtain an import permit an importer of live animals and/or animal products must have a 
veterinary permit issued by the Ministry (Veterinary Services), or by the Livestock Improvement 
Board for stud animals (Animal Diseases and Parasites Act (No.13 of 1956)).  For the veterinary 
permit to be valid the importer must have the orig inal health certificate issued by the veterinary 
authority in the exporting country.  The OIE Animal health Code is used as a guide for setting import 
requirements relating to SPS and quarantine.
44  As parts of Namibia are free of foot-and-mouth 
disease, without vaccination, Namibia only permits imports from countries and zones with FMD-free 
status, using the OIE official list as a guide.  This measure is deemed essential to protect its exports to 
the European Communities. 
83. The MAWF regularly reviews animal and plant legi slation.  As a result, it has prepared a new 
Animal Health Bill to replace the 1956 Animal Diseases and Parasites Act. 
(iv) Government procurement 
84. Namibia is not a member of, nor observer to, the WTO plurilateral Agreement on 
Government Procurement.  Govern ment procurement of goods and ser vices must be made through the 
Tender Board, established by the Tender Board of Namibia Act (No. 16 of 1996);  statutory bodies, local authorities, and regional counc ils approved by the Minister of Finance are not convered.   
State-owned enterprises have their own procurement rules and policies although the principles of the 
Tender Board Act apply to them. 
85. The Minister of Finance appoints Board member s from various ministries.  Contracts above 
N$10,000 must be let by public tender.
45  Tenders are advertised wide ly in the press and are open to 
foreign suppliers.  The Board operates a single-envelope tendering system.  Technically complex tenders are subject to prequalification and a two-envelope system. 
86. Namibian-registered domestic suppliers (includi ng subsidiaries of foreign-owned enterprises) 
receive price preferences based on local content.  For Namibian-made goods, price preferences range 
from 6% where local content (in production) is between 10% and 25%, up to 20% for local content exceeding 90%.  For goods assembled in Namibia, price preferences range from 3% for local content 
of 10% to 25%, to 10% if local content exceeds 90% .  In the case of services, domestic suppliers and 
CSI (Certificate of Status Investment) foreign investors receive price preferences of 5%, while preferences for small-scale dom estic industries range from 2% to 5%, depending on employment 
                                                     
 
44 WTO document G/LIC/N/3/NAM/3, 6 April 2000. 
45 Treasury instructions and public rules apply to te nders below N$10,000;  for example, at least three 
quotations are required. SACU-Namibia  WT/TPR/S/222/NAM 
 Page 229 
 
 
levels.  Price preferences of 2% to 5% also  apply for suppliers located in communal or 
underdeveloped areas, and of 2% for a fully do mestically owned Namibian public company.  
Preferences are cumulative, and are applied to tender prices.  In rare cases where tenders are equal after allowing for all adjustments, including price preferences and socio-economic factors, contracts 
are awarded based on local content levels.    
87. The authorities state that, in comparing tenders, the Board is giving effect to the price 
preference policy of the Government to redress so cial, economic, and educational differences, to 
protect and promote Namibian companies, empow erment groups, vulnerable groups, and companies 
based in the regions (including rural and unde rdeveloped areas, local manufacturers and producers 
and SMEs).  The objective is to use targeted assistan ce to help develop local industry and previously 
disadvantage groups.  Such assistance includes subcontracting opportun ities, allocation of 
preferences, and set-aside programmes for small entrepreneurs and youth groups and other groups 
mentioned above.  The Tender Board has made it a pr iority to award tenders/bids to these groups.   
88. Tender decisions may be appealed to the Boar d, the Office of the Ombudsman, the Office of 
the Prime Minister, Anti-Corruption Commission, a nd the courts.  In 2003/04 N$712.3 million of 
government procurement was through tendering and N$624.4 million in 2007/08. 
(v) Local-content requirements 
89. Preferences granted to Namibian-registered  suppliers, under the government procurement 
regime, are based on local content (section (iv)).  "Namibianization" policies in fisheries also favour local content (Chapter IV(3)).  The official po licy of developing a horticulture sector includes a 
domestic purchase requirement for domestically pr oduced horticulture products under the Market 
Share Promotion Scheme (section (ii)). 
(vi) Other measures 
90. Namibia has no official countertrade or import-offset arrangements, or agreements designed 
to influence the quantity or value of goods and services exported to Namibia.  
91. In response to high prices for cereals in 2007 and into early 2008, the Ministry of Agriculture, 
Water, and Forestry started to develop a strategi c food reserve by constructing silos for storage of 
pearl millet, maize, and wheat in the crop-producing regions of Namibia.  Total storage capacity is set 
to reach 27,000 tonnes with procurement expected to  prioritize domestic suppliers;  storage capacity 
of approximately 12,000 tonnes had been construc ted in June 2009.  Operational policies for the 
strategic reserve are being developed which takes into account the market situation in Namibia. 
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration and taxes 
92. The only registration requirement specific to exporters is that meat exporters must be 
registered with the Meat Board.  
93. There is a 10% tax on unprocessed diamond expor ts.  Export levies apply to live exports of 
slaughter-ready cattle at N$39.50 per head, and small stock (sheep and goats) at N$7.90 per head.  All 
these export levies include a 15% VAT.  Raw hides a nd skins (wet and dry salted), and pickled hides 
and skins are subjected to an export levy of 60% a nd 15% respectively.  Furthermore, an export levy 
is payable on slaughter cattle (cattle > 450 kg = 30%). WT/TPR/S/222/NAM Trade Policy Review 
Page 230 
 
 
(ii) Export prohibitions, controls, and licensing 
94. Exports, except to SACU members, of nearly all products are subject to automatic licensing.  
The exceptions, which require a non-automatic permit, include:  medicines;  live animals and genetic 
materials;  all ostrich-breeding materials; meat  and game products;  protected species under CITES; 
plants and plant products; firearms and explosives;  minerals, including diamonds and gold;  coins and 
bank notes;  certain works of art and archaeological findings;  and oysters.   
95. Export permits from the Meat Board of Namibia are required for exports of livestock 
(slaughter cattle, non-slaughter cattle, breeding ca ttle, weaner cattle, sheep, and goats).  Export 
permits for maize, wheat, and mahangu are required fr om the Namibian Agronomic Board at a cost of 
N$50.00.  At the request of the exporter, and to meet the requirements of the importing country, the 
Directorate of Veterinary Services in the Ministry  for Agriculture, Water, and Forestry can provide 
certification to show exports of meat, livestock or ga me are free of pests and diseases. Restrictions on 
the export of sheep require that six sheep must be slaughtered locally for each sheep exported live.   
96. The Namibia Diamond Trading Company, a 50:50 joint venture between De Beers and the 
Government and operated by De Beers, market s all Namibia's diamonds.  Through the Namdeb 
Diamond Corporation (also a 50:50 joint venture between Namibia and De Beers) some diamond 
production is made available for sorting and sal e in Namibia and 15% of production of cuttable 
diamonds are sold for local processing (Chapter IV(4 )).  Namibia also applies the Kimberley Process 
Certification Scheme through the Diamond Board of the Ministry of Mines and Energy, to certify that Namibia's rough diamonds are from areas free of conflict.
46  Trade measures necessary to implement 
the Kimberley Process are covered by a WTO waiver.47  
(iii) Export subsidies, assistance, and processing zones  
97. The Ministry of Trade and Industry (Export Promotion Subdivision) funds limited export 
promotional activities, such as participation of co mpanies in overseas trade fairs and exhibitions, 
including meeting costs of travel, accommodation,  and production of promotional brochures.  
98. Namibia operates a number of schemes provi ding tariff exemptions and concessions on 
imported inputs for exporters selli ng to non-SACU markets.  These include duty drawback on capital 
equipment and manufactured inputs used in exports , and remissions on imported goods used in the 
manufacture, processing, equipping or packing of go ods exclusively for export.  A SACU-wide duty 
credit certificate scheme also provides full duty credits on imported inputs used in manufacturing (including of clothing and accessories) for export;  at  present, this is not being used in Namibia. 
99. An 80% tax deduction scheme is in place for in come derived from exports of manufactured 
goods, other than meat or fish.  Eligible manufacturer s must be registered with the Ministry of Trade 
and Industry and the Ministry of Finance.  Add itional income tax deducti ons of 25% to 75% of 
eligible export-promotion expenditure depend u pon the firm's average export growth over the 
previous three-years.
48  Eligible expenditure includes: over seas market research;  overseas advertising 
and promotional expenditure, such as attending exhibitions;  bringing foreign buyers to Namibia;  
                                                      
46 The Kimberley Process Certification Scheme was established in 2003 on the basis of United Nations 
Resolution 55/56 to certify that consignments of rough diamonds came from areas free of conflict.  The 2009 
chair of the KPCS is Namibia.  For more information, see Kimberly Process online in formation.  Viewed at:  
http://www.kimberleyprocess.com/. 
47 WTO document WT/L/676, 19 December 2006. 
48 The additional tax deduction is 25% of eligible expe nditure if export growth is 10% or less; 50% if it 
is between 11% and 24%; and 75% for growth of more than 24%. SACU-Namibia  WT/TPR/S/222/NAM 
 Page 231 
 
 
submitting quotes for foreign orders;  finalizing cont racts;  and appointing overseas agents under a 
programme approved by the Ministry of Trade and Industry.49  Advance grants of up to 50% of 
eligible expenditure on the direct costs of securi ng new export markets are also available for activities 
approved by the Namibian Investment Centre. 
100. The majority state-owned Offshore Developmen t Company (ODC) was entrusted to manage a 
IRs 200 million (US$4.4 million equivalent) line of credit from the Export-Import Bank of India.  The credit facility was made available from 1999 and was initially valid until October 2004.  It was made 
possible with a guarantee from the Government of Na mibia, given on condition that the facility would 
be used by existing and aspiring Namibian manufac turers who wished to import capital goods, i.e. 
machinery and equipment, from India.  Only one project, a modern printing press plant, met the 
lending conditions and was thus successfully finan ced to the tune of Rs  28,928,750 (US$640,000).  
The ODC was assigned the responsibility of administering this credit facility pending the establishment of an appropriate financing ins titution.  Subsequently, when the Government 
established the Development Bank of Namibia (DBN ) in 2004, consultations took place between the 
Ministry of Finance (Guarantor), the ODC, and DB N on the possible continuation of the facility under 
the management of the new Bank, but no definite position has been reached.   
101. The Government of Namibia provided a loan of N$50.0 million for the Northern Tannery 
project;  the promoters contributed N$1.0 million as pa rt of their equity contribution to the project.  
The government loan was mainly to finance proc urement of machinery/equipment imported from 
China and Italy, and the cost of the factory build ing.  The project was commissioned into production 
in April 2001, but was not successful.  The problems we re identified as:  lack of working capital;  lack 
of managerial skills;  and constraints on marketing and market development.  As a result the company 
operated at a loss, failed to repay the Government loan and closed its  operations entirely in May 2006.  
The Government has converted the loan into equity and plans to lease out the facility to interested 
investors. 
102. The ODC (in collaboration with the Namibian Inv estment Centre) is also responsible for the 
administration of export processing zones (EPZ).  The objective of the EPZ scheme is to encourage 
export-led industrialization and the transfer of skills  and technology.  EPZ investment is subject to the 
Export Processing Zones Act (No. 9 of 1995) and the Export Processing Zones Amendment Act (No. 6 of 1996).  Initially, zones were located at Walvis Bay and Oshikango but EPZ status is no 
longer confined to any specific location and can be  granted to an enterprise located anywhere in 
Namibia provided it exports all of its production outside the SACU area.
50  Any manufacturing 
industry that meets the export criteria can qualify for EPZ status, except for mining, agriculture, and fishing.  However, enterprises that  add value to the extracted product,  such as mineral processing, can 
be considered for EPZ status, provided there is a clear distinction between any extraction of the 
commodity and its processing.  Similarly, agriculture  processors can also be considered for EPZ status 
but not general farming activities. 
103. As of June 2009, 21 enterprises have EPZ status ;  production value in 2008 was N$4.2 billion, 
and exports N$5 billion (Table III.2).  The Custom s and Excise Department of the Ministry of 
Finance monitors the movements of inputs and out puts from EPZ-status enterprises to ensure export 
obligations are met. 
                                                     
 
49 The Ministry of Trade and Industry also runs the Trade Information Centre to promote exports.  It 
helps Namibian companies to research existing and potential export markets by providing a range of information, such as on products and markets, comp anies, business news, business opportunities, and foreign 
trade regulations and barriers.  The Centre maintains a trade information database that is provided free of 
charge. 
50 Re-export operations, such as re-packagi ng and break-bulk activities, are allowed. WT/TPR/S/222/NAM Trade Policy Review 
Page 232 
 
 
Table III.2 
Investment, employment, and exports in EPZs, 2009 
Sector No. of 
enterprises Investment value 
(N$ million) Employment Export value 
(N$ million) Expenditure on local 
goods and services 
(N$ million) 
General manufacturing 5 51.4 168 62 15.0 
Mineral processing 15 4,290.0 1,903 4,807 2,840.0 
Assembly operations 1 2.8 38 26 1.1 
Total 21 4,344 2,109 4,895 2,856 
Source:   Offshore Development Company (2008), Report on the Performance of the Export Processing Zones (EPZ), 
 Programme:  1997-2008 . 
104. While EPZ status normally requires an enterpri se to export all production, in some cases 
domestic sales are permitted.  In such cases, the EPZ company must have been in operation for at 
least 12 months and has to apply to the Minister  of Trade and Industry for approval.  Nine EPZ 
enterprises have been granted permission to sell up to 30% of production to the local market;  these 
sales are treated as imports into the SACU. 
105. EPZ status confers a number of tax, grant, and legal privileges, such as exemption from 
corporation tax, import duties, and VAT on machiner y, equipment, and raw materials imported into 
Namibia for manufacturing.  In addition, the enterprises can hold foreign currency accounts and 
repatriate capital and profits.  Strikes and lockouts were not permitted in enterprises with EPZ status 
but the Labour Act (No. 11 of 2007) now applies and strikes and lockout s are permitted, subject to the 
provisions of the Act.   
(4) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives 
106. The Small Business Credit Guarantee Trust (SBCGT) was established in 1999 with a 
contribution of just over €1 million from the Germ an Government and capitalization of N$10 million 
secured by the Government of Namibia.  In July 2000, the EC contributed an additional €735,300 to 
the credit guarantee fund and in April 2002 the It alian Government contributed N$500,000.  Six 
financial institutions51 participate in the scheme by providing  loans;  these are guaranteed by the 
SBCGT for up to 80% of their value, to a maximum of N$250,000.  The loans can be used to finance 
fixed assets and/or working capital and the repa yment terms are normally 36 months with the 
possibility of extension up to 60 months if required.  
107. The Ministry of Trade and Industry also funds the Feasibility Studies and Business Plan 
Support Programme for SMEs.  Funding is capped at N$150,000 per study, and any Namibian 
business is eligible, including joint ventures, provided the majority ownership is Namibian. 
108. The Development Bank of Namibia Act (No. 8 of 2002) created the Development Bank of 
Namibia which was launched in April 2004.  The Bank provides start-up capital and finance for the 
public and private sectors through a number of fi nancial facilities delivered to borrowers by the 
commercial banks:  the Public Sector Facility, whic h includes finance for in frastructure projects by 
local authorities and state-owned enterprises;  the Private Sector Facility, for new ventures or 
expansion to enterprises in all economic sectors;   the Enterprise Development Facility, which 
provides:  (i) bridging finance to majority Namibi an-owned enterprises that have secured contracts 
with the public sector or well established private-sect or companies;  (ii) financing to disadvantaged 
                                                      
51 Bank Windhoek, Commercial Bank, First National Bank, Standard Bank, Swabou Bank, and the 
Namibia Development Corporation. SACU-Namibia  WT/TPR/S/222/NAM 
 Page 233 
 
 
groups to start up or expand businesses;  and (iii) trade finance to provide pre- and post-shipment 
working capital to majority Namibian-owned enterprises for the export of goods and services, 
including tourism, and imports of capital goods;  and the Special Development Fund, which provides 
breeding finance and medium-term finance for SMEs for Namibian citizens and permanent residents, 
particularly previously disadvantaged persons.52 
109. Between 14 July 2005, when DBN's first loans were announced, and 31 December 2007, 
loans to the value of N$481 million were approved.53 
110. Exporting and manufacturing enterprises that do not qualify for EPZ status can still avail 
themselves of a number of incentives.  Apart from those listed above, these incentives are mostly tax 
allowances (see Chapter IV(5) for details);  in addition, the Ministry for Trade and Industry can 
provide funding, up to the value of 50% of direct costs associated with export promotion. 
111. In the past, farmers benefited from emergency drought relief schemes administered by the 
Meat Board of Namibia.  The relief schemes took th e form of payments to farmers for each animal 
brought to an abattoir for slaughter or export;  the objective was to reduce stocking levels.  Namibia 
has not made any notifications to the Committee on Agriculture on domestic support since June 2001, 
so official figures are hard to find.54 
112. The state-owned Agribank of Namibia was established in December 1991, under the 
Agricultural Act (No. 27 of 1991) and the Agricultural Bank of Namibia Act (No. 5 of 2003), to provide finance to disadvantaged farmers for ag riculture development.  The Agribank operates a 
number of schemes:  the Affirmative Action Loan  Scheme, which supports the resettlement of 
communal farmers to the commercial area.  From its creation in 1992, to October 2004, 
3.47 million hectares were distributed to 625 families at  a cost to the Government of N$160.6 million;  
the National Agricultural Credit Programme, which pr ovides finance to communal farmers;  and the 
North-South Incentive Scheme to allow farmers north  of the Veterinary Cordon Fence to sell their 
livestock, move south of the Fence and start farming in their new location.   
113. In 2007, the Agribank went through a substantia l restructuring of personnel and services.  As 
a result, it now offers communal farmers the option of consolidating existing loans and extending the 
repayment period from 10 to 25 years.
55 
114. Direct support to agriculture production is pr ovided through a number of schemes, such as 
those operated by the Karakul Board in conjunctio n with the Ministry of Agriculture, Water and 
Forestry, which provided N$800 per ram or N$200 pe r ewe.  In May 2009, the scheme was put on 
hold until further notice.  In addition, the Kunene  South Project sought to reintroduce Karakul sheep 
to the Kunene region by providing a subsidy of 33 % of the total cost of sheep purchased as well as 
training in farming and processing.  In April 2008, this scheme was suspended until further notice.  
The Meat Board of Namibia also operated a bull and ram scheme for three years whereby bulls and 
rams were provided at a subsidized  rate to beneficiary emerging producers.  In total, approximately 
180 bulls and rams were provided.  This scheme is now being implemented by the Ministry of 
Agriculture, Water, and Forestry. 
                                                      
52 Development Bank of Namibia online information.  Viewed at:  http://www.dbn.com.na/index.php 
[March 2009]. 
53 Development Bank of Namibia (2007). 
54 WTO document G/AG/N/NAM/14, 27 June 2001. 
55 Namibia Trade Directory online information, " Agricultural Bank of Namibia:  Promoting pro-poor 
growth in agriculture and related activities".  Viewed  at:  http://www.tradedirectory.com.na/full_entry_ 
pg.php?company=AGRICULTURAL%20BANK%20OF%20NAMIBIA [March 2009]. WT/TPR/S/222/NAM Trade Policy Review 
Page 234 
 
 
115. Ministry of Agriculture, Water and Forestry implements a Dry-Land Crop Production Project. 
The project is divided into agricultural input suppl y and service delivery to farmers, and is concerned 
with optimizing soil management and increasing yiel ds in Namibia through the provision of improved 
seed and fertilizers as well as tractor and weeding services.  Furthermore, the Ministry is also 
implementing the Green Scheme Project with vari ous benefits accruing to farmers and investors 
according to the different models under the Project. 
(ii) State trading and state-owned enterprises 
116. There are 52 parastatals operating in Namibia covering a wide variety of sectors (Table III.3).  
They include monopolies in key utilities, for exampl e, electricity and telecommunications, and in air 
transport.  However, they employed only about 2% of the workforce in 1997.  As noted in the 2003 
TPR, parastatals potentially undermine the private sector and can lead to inefficiency, especially 
where competition is weakened as a result of, for example, de facto  or statutory monopolies. 
Table III.3 
State-owned enterprises, 2009  
Enterprise Establishment Act 
Accreditation Board of Namibia  Accreditation Bo ard of Namibia Act, 2006 (Act No. 8 of 2006) 
Agricultural Bank of Namibia  Agricultural Bank of Namibia Act, 2003 (Act No. 5 of 2003) 
Air Namibia (Proprietary) Ltd. .. 
August 26 Holdings Company (Proprietary) Ltd. .. 
Development Bank of Namibia  Development Ba nk of Namibia Act, 2002 (Act No. 8 of 2002) 
Diamond Board of Namibia Diamond Act, 1999 (Act No. 13 of 1999) 
Electricity Control Board  Electricity Act, 2000 (Act No. 2 of 2000) 
Environmental Investment Fund of Nami bia Environmental Investment Fund of Namibia Act, 2001 (Act No. 13 of 2001) 
Fisheries Observer Agency  Marine Resources Act, 2000 (Act No. 27 of 2000) 
Games Products Trust Fund Games Products Trust Fund Act, 1997 (Act No. 7 of 1997) 
Karakul Board of South West Africa Karakul Pelts and Wool Act, 1982 (Act No. 14 of 1982) 
Meat Board of Namibia Meat Indus try Act, 1981 (Act No. 12 of 1981) 
Meat Corporation of Namibia  Meat Corpora tion of Namibia Act, 2001 (Act No. 1 of 2001) 
Minerals Development Fund of Namibi a Minerals Development Fund of Na mibia Act, 1996 (Act No. 19 of 1996) 
Motor Vehicle Accident Fund  Motor Vehicle Accident Fund Act, 2001 (Act No.4 of 2001) 
Namibia Airports Company Airports Company Act, 1998 (Act No. 25 of 1998) 
Namibia Bricks Enterprise (Proprietary) Ltd. .. 
Namibia Financial Institutions Supervisory 
Authority  Namibia Financial Institutions Supervisory Authority Act, 2001 (Act No. 3 of 2001) 
Namibia Institute of Pathology  Namibia Institu te of Pathology Act, 1999 (Act No. 15 of 1999) 
Namibia National Reinsurance Corporati on Namibia National Reinsurance Corpor ation Act, 1998 (Act No. 22 of 1998) 
Namibia Post and Telecom Holdings Ltd. Posts and Telecomm unications Companies Establishment Act, 1992 (Act No. 17 of 
1992) 
Namibia Power Corporation (Proprietary) Ltd. .. 
Namibia Press Agency Namibia Press Agency Act, 1992 (Act No. 3 of 1992) 
Namibia Qualifications Authority Namibia Qualifications Authority Act, 1996 (Act No. 29 of 1996) 
Namibia Tourism Board  Namibia Tourism Board Act, 2000 (Act No. 21 of 2000) 
Namibia Water Corporation Ltd. Namibia Wate r Corporation Act, 1997 (Act No. 12 of 1997) 
Namibia Wildlife Resorts Company Namibia Wildlife Resorts Company Act, 1998 (Act No. 3 of 1998) 
Namibian Agronomic Board Agronomic Industry Act, 1992 (Act No. 20 of 1992) 
Namibian Broadcasting Corporation  Namibian  Broadcasting Act, 1991 (Act No. 9 of 1991) 
Namibian College of Open Learni ng Namibian College of Open Learning Act, 1997 (Act No. 1 of 1997) 
Namibian Competition Commission  Competition Act, 2003 (Act No. 2 of 2003) 
Table III.4 (cont'd) SACU-Namibia  WT/TPR/S/222/NAM 
 Page 235 
 
 
Enterprise Establishment Act 
Namibian Ports Authority Namibian Port s Authority Act, 1994 (Act No. 2 of 1994) 
National Art Gallery of Namibia  National Art Ga llery of Namibia Act, 2000 (Act No. 14 of 2000) 
National Commission on Research, Science, and 
Technology  Research Science and Technology Act, 2004 (Act No. 23 of 2004) 
National Disability Council  National Disab ility Council Act, 2004 (Act No. 26 of 2004) 
National Fishing Corporation of Namibia Lt d. National Fishing Corporation of Namibi a Limited Act, 1991 (Act No. 28 of 1991) 
National Heritage Council  National Herita ge Council Act, 2004 (Act No. 27 of 2004) 
National Housing Enterprise National Housing Enterprise Act, 1993 (Act No. 5 of 1993) 
National Petroleum Corporation of Namibia 
(Proprietary) Ltd. .. 
National Special Risks Association (Nasria)  Second Finance Act, 1987 (Act No. 27 of 1987)  
National Theatre of Namibia (Association not for 
gain) .. 
New Era Publication Corporation  New Era Publica tion Corporation Act, 1992 (Act No.1 of 1992)  
Road Fund Administration  Road Fund Administration Act, 1999 (Act No. 18 of 1999) 
Roads Authority  Roads Authority Act, 1999 (Act No. 17 of 1999) 
Roads Contractor Company  Roads Contract or Company Act, 1999 (Act No. 14 of 1999) 
Security Enterprises and Security Officers 
Regulation Board Security Enterprises and Security Officers Act, 1998 (Act No. 19 of 1998) 
Social Security Commission Social Securi ty Commission Act, 1994 (Act No. 34 of 1994) 
Star Protection Services (Proprietary) Ltd. .. 
Transnamib Holdings Limited National Transport Serv ices Holding Company Act, 1998 (Act No. 28 of 1998) 
Trust Fund for Regional Development and 
Equity Provisions Trust Fund for Regional Development and E quity Provisions Act, 2000 (Act No. 22 
of 2000) 
War Veterans Trust Fund  War Veterans Subvention Act, 1999 (Act No. 16 of 1999) 
Windhoek Machinen Fabrik (1998) (Proprietary) 
Ltd. .. 
.. Not available.  
Source:    State-Owned Enterprises Act, 2006 (Act No. 2 of 2006).   
117. As of June 2009, Namibia's most recent notif ication concerning state-trading enterprises was 
made in July 2000.56  That notification listed the Karakul Board, the Meat Board of Namibia, and the 
Namibian Agronomic Board as state-trading enterpri ses within the meaning of Article XVII:4(a) of 
the GATT 1994.  The Karakul Board oversees, but is not directly involved in marketing karakul pelts.  
The Namibian Agronomic Board, is involved in ma rketing (but is no longer involved in purchasing) 
wheat, maize, flour, meal, and fresh horticulture pr oducts.  The Agronomic Board also issues import 
permits for some cereals (wheat, maize, flour, a nd meal) while the Meat Board of Namibia issues 
import permits for meat (of cattle, sheep, goats, and pigs) and live animals.  These Boards are not involved in trading but do provide marketing prom otion services for the products under their control. 
118. The Cabinet Committee on Economic Developm ent and Parastatals (CCEDP) reviewed 
government policies in October 2001, and adopted a governance policy frame work for state-owned 
enterprises.
57  In 2006, this policy resulted in the promulgation of the State-owned Enterprises 
Governance Act (No. 2 of 2006), which created th e State-owned Enterprises Governance Council to 
oversee parastatals and to enforce financial and ope rational reporting.  The Council is chaired by the 
Prime Minister.  The Minister for Finance, the Mini ster for Trade and Industr y, the Attorney-General 
and the Director-General of Planning are perman ent members.  The relevant Minister for any 
parastatal being considered at a meeting is a member  for that meeting.  The creation of the Council is 
                                                      
56 WTO document G/STR/N/6/NAM, 24 July 2000. 
57 Deloitte and Touche (2001). WT/TPR/S/222/NAM Trade Policy Review 
Page 236 
 
 
meant to address concerns about the financial situa tion of some state-owned enterprises and about the 
poor compliance with reporting requirements in some of them.58 
(iii) Competition policy and price controls 
119. The 2002 SACU Agreement states that each memb er state of SACU shall have a competition 
policy and requires that they cooperate with each other with respect to enforcement of laws and 
regulations.59  To comply with the requirement, Namibia passed the Competition Act (No. 2 of 2003), 
under which an independent Competition Commission was established.  Under the responsibility of 
the Minister for Trade and Industry, the Commission is to undertake research, oversee enforcement of 
the Act, and set up procedures and rules for inve stigations.  The Government has appointed the 
members of the Commission and staff have been r ecruited;  it is expected to commence operations 
very shortly. 
120. In principle, the Competition Act applies to  all economic sectors and entities except:  
collective bargaining in terms of the Labour Ac t 1992 (No. 6 of 1992);  and activities related to 
non-commercial socio-economic objectives, and goods or services activities by the Minister for Trade 
and Industry, with the concurrence of the Co mpetition Commission.  The Commission may also 
provide for additional exemptions in some cases, such as for prof essional associations insofar as the 
exemption is needed to maintain professional standa rds, and in respect of agreements relating to the 
exercise of intellectual property rights.  
121. The Competition Act is comprehensive and prohibits restrictive business practices, including 
agreements between undertakings to fix prices, en gage in collusive tendering, set minimum resale 
prices or limit production.  It covers both hori zontal agreements between businesses that would 
normally compete for trade, and vertical ag reements between busin esses suppliers and their 
customers.  The Act also prohibits abuse of dominant position by an entity or group of entities.  However, the Minister of Trade and Industry has ye t to set the threshold for turnover or asset value 
below which the provisions on abuse of dominan t position would not apply, and the Competition 
Commission has yet to establish the criteria to de termine dominant position of an undertaking or 
group of undertakings. 
122. Under the Act, the Competition Commission ma y conduct an investigation, on its own 
initiative or on receipt of a complaint.  The inv estigation may include searches of business premises, 
without a court warrant in certain cases.  The Commi ssion is obliged to publish the results of its 
investigation and, if it has found an infringement of  the Act, apply to the courts to restrain the 
business undertaking from engaging in the pr ohibited activity and apply a penalty. 
123. The Competition Act also covers mergers between business undertakings.  The Minister for 
Trade and Industry may exclude some mergers from the provisions of the Act based on criteria such 
as the value of assets, value of turnover, specific industries or categories of undertakings or the number of parties involved.  In considering whether to permit a merger between business 
undertakings, the Competition Commission may consider any relevant criteria including the extent to 
which the merger:  would reduce competition or endanger the continuity of supply;  could result in an undertaking acquiring a dominant position;  could result in a benefit to the public that would outweigh 
negative effects;  might affect the ability of sma ll undertakings to gain access to, or be competitive in 
the market;  and would be likely to affect the abilit y of national industries to compete in international 
markets. 
                                                     
 
58 Institute for Public Policy Research (2004). 
59 2002 Southern African Customs Union (SACU) Agreement, Part 8, Article 40. SACU-Namibia  WT/TPR/S/222/NAM 
 Page 237 
 
 
124. The Government sets prices of petrol, diesel, and paraffin (Petroleum Products and Energy 
Act, 1999).  The Namibian Agronomic Board has legisl ative authority to set pr oducer prices for wheat 
and maize but it has not done so since 2001 (section (2)(ii)).  The Electricity Control Board is responsible for electricity tariff structures, which must be approved by the Minister for Mines and 
Energy.     
(iv) Protection of intellectual property rights 
125. For some years now, Namibia has been prepari ng new legislation on intellectual property.  
The final version of the Industrial Property Bill has been approved by the Government and should go 
to Parliament in the near future – some ei ght years after its intended entry into force.
60  T h e  
legislation, when passed, will provide for the estab lishment of an Industrial Property Office and an 
Industrial Property Tribunal, and the appointment of a Registrar of Industrial Property.   
126. Until now, industrial property in Namibia has been regulated and protected under various 
pieces of legislation, some of which are obsolete.  Patents and designs are currently protected under the Patents and Designs Act (No. 37 of 1952), Pa tents and Designs Act (N o. 9 of 1916), and the 
Patents, Designs, Trade Marks, and Copyright Pr oclamation (No. 17 of 1923).  The system of 
protection is currently based on registration on  account of formalities as opposed to substantive 
examinations.  Trade marks are protected under the Tr ademarks in South West Africa Act (No. 48 of 
1973).  The provisions of these laws cover a substa ntial amount of protection, but in some respects 
fall short of compliance with certain provisions of  the TRIPS Agreement.  Copyrights are protected 
under the Copyright and Neighbouring Rights Pr otection Act (No. 6 1994 and subsequent 
amendments).  
127. Namibia is a member of the WIPO Conventi on, the Paris Convention on industrial property 
the Berne Convention on literary and artistic works (since 1990), the Patent C ooperation Treaty (since 
2004), the Madrid Agreement and Protocol on intern ational registrations of marks (since 2004), and 
the Hague Agreement and Protocol on international deposits of industrial designs (since 2004).  It is 
also a member of the African Regional Intellect ual Property Organization (ARIPO) and its Banjul 
Protocol governing trade marks and the Harare Protoc ol on patents.  Namibia has notified to the WTO 
its contact points under the TRIPS Agreement:  the Ministry of Trade and Industry for trade marks and industrial designs; the Ministry of Foreign A ffairs, Information and Broadcasting for copyright 
and related rights; and the Ministry of Agricultu re, Water, and Forestry for plant and animal 
varieties.
61 
(a) Copyright and neighbouring rights 
128. The Copyright and Neighbouring Rights Protecti on Act (No. 6, 1994, as amended) is 
administered by the Directorate of Copyright Services of the Ministry of Information and 
Broadcasting.  It protects intellectual property of literary, artistic, and musical works embodied in such mediums as films, sound recordings, broad casts, and published editions, by providing owners 
exclusive rights as required by the Berne Conventio n.  Computer programs are protected as literary 
works, but databases and compilations of data ar e not;  the authorities are considering whether to 
extend protection to cover these.  Performers also ha ve exclusive rights to broadcast or communicate 
to the public, and to make fixations and reproductions.  Copyright protection is for the life of the author plus 50 years.  Performers receive the same protection, in principle.  Rental rights are recognized, but are not specified by the type of  work, e.g. phonograms, computer programs or 
cinematographic works.  Rental rights applied in Namibia are mostly for audiovisual works, musical 
                                                     
 
60 WTO document IP/Q/NAM/1, 1 May 2003. 
61 WTO document IP/N/3/Rev.6, 1 March 2002. WT/TPR/S/222/NAM Trade Policy Review 
Page 238 
 
 
works, and books.  General exemptions or limita tions to exclusive rights are restricted to 
cinematographic films, sound recordings, and broadcastings. 
129. The right holder (including licensees and the aut hor or performer) can take civil proceedings 
against infringements through Namibia's standard cour ts.  Relief may be in the form of damages, 
interdicts restraining the illegal activity, or destru ction of illegal works.  The right holder may request 
Customs to prohibit imported copies of works but must give a security to cover Customs for any liability or expenses incurred.  Imports of unlawfu l reproductions of any works relating to copyright 
are also prohibited under the customs legislati on (Section 123 of the Customs and Excise Act).  
Copyright legislation also makes infringement a crim inal offence carrying imprisonment and/or a fine, 
of three years and N$12,000 for first offence, and five years and N$20,000 for a second conviction.  
With effect from 2001, copyright protection was extended to foreign works by a Government 
Notice.
62 
(b) Industrial property rights 
130. The new Industrial Property Act will cover all forms of industrial property protection and 
replace current legislation.  The Registration of  Companies, Patents, Trademarks, and Designs 
Division, of the Ministry of Trade and Industry, administers industrial property legislation.  
Patents 
131. The proposed legislation will broaden the scope  of patented works to specifically cover 
inventions, whether products or pro cesses, provided they are new, involve an inventive step, and have 
an industrial application.  Unlike the current legisl ation, which allows for no patent exclusions, the 
proposed legislation excludes scientific discoveries; artistic works; computer programs;  
presentations; diagnostic, therapeutic, and surgical methods for treatment of humans or animals;  
plants and animals (other than micro-organism s) and essentially biological processes for their 
production; whole or part of natural living beings and biological materials;  and inventions contrary to 
public order or morality.  The legislation does not pr ovide for specific limited exceptions to exclusive 
rights.  Patent holders will be protected under the new legislation through the extension of exclusive 
rights against selling and importing illegal products, whic h are enforceable in the courts.  Remedies to 
the right holder include damages, injunctions restra ining the illegal activity, and destruction of illegal 
works.  Infringement of a licence holder's rights can lead the Tribunal to applying an interdict, delivery of any infringing product or process to the licence holder or damages (or royalty in lieu).  
Patent protection remains at 20 years.  
132. Under the new legislation, the Tribunal may gran t a request for a compulsory licence to use a 
patent if, four years after filing of the patent appli cation, it can be shown that the patent had not been 
exploited in Namibia by the licensee.  In addition, th e Government may authorize compulsory        
non-exclusive licences, predominantly for domestic  supply, without the holder's consent, with 
"adequate remuneration therefore".
63  Public interest covers nationa l security, nutrition, health or the 
development of other vital sectors.   
                                                      
62 Government Notice, Minister of Foreign Affairs, Information and Broadcasting, 13 June 2000.  This 
notice, applied retrospectively from 15 March 1996, extended the provisions of the Copyright Act to all member 
countries of the Berne Convention. 
63 Under existing legislation, compulsory licensing is possible for patents relating to food, medicine, 
and plants, and dependent patents;  and abuse or insufficient use of patent rights. SACU-Namibia  WT/TPR/S/222/NAM 
 Page 239 
 
 
Industrial designs and utility models 
133. The proposed legislation will extend protection by broadening the definition of industrial 
designs in line with the Locarno Agreement Establis hing an International Classification for Industrial 
Designs.  Textile designs will be covered.  The re gistered owner of the design will have exclusive 
right of use, including importation, and may take  court proceedings against illegal use.  Neither 
existing nor the proposed legislation allows for compulsory licensing.  The protection period for industrial designs will remain at 15 years (five y ears initially, renewable twice).  Where a claim of 
infringement of a registered industrial design is upheld  by a court, the court may grant the registered 
owner an interdict, an order for any infringing produc t to be delivered to the owner, and damages or a 
reasonable royalty in lieu of damages.  
Trade marks and other distinctive signs 
134. Although legislation currently protects trade marks for goods and services, the new Act will 
expand the coverage, in particular , of service marks and include protection of trade names and sound 
marks, in line with TRIPS and the Paris Convention.   A mark will cover any visible sign capable of 
distinguishing goods and services of an enterprise.  Proposed legislation retains the registration period 
of trade marks at ten years, renewable indefinitely  every ten years, and a period of non-continuous use 
of five years.  The registered trade mark owne r may take court proceedings against illegal use, 
penalties comprise fines and imprisonment of up to  one year.  The new Act will protect well-known 
marks by preventing registration of identical or confusingly similar marks.  In 2000, 2,100 trade mark applications were lodged. 
Geographical indications  
135. While current law does not cover geographical indications, the new legislation will protect 
wines and spirits consistent with WTO requirements.  The legislation is being drafted separately and, 
if ready in time, will be added to the proposed in dustrial law when approved by Cabinet;  otherwise 
the industrial legislation will be amended to incorporate geographical indications.  
Layout designs (topographies) of integrated circuits 
136. Current legislation protects layout designs as copyright.  The proposed law will provide 
protection against unlawful importation, sale or distribution (for commercial purposes) of topographies, including integrated circuits, and the i ndustrial articles that incorporate them.  However, 
neither law provides for derogations where a purchaser  of an integrated circuit had no knowledge that 
it contained an unlawful topography.  The term of protection for topographies will remain at 15 years 
(five years initially, renewable twice).  Penalties for infringement are the same as for industrial 
designs. 
Undisclosed information 
137. Existing and proposed legislation makes no specifi c provision for undisclosed information.   
Protection of intellectual rights in biodiversity 
138. Namibia is developing a sui generis  system to protect new plant varieties, micro-organisms 
and non-biological and microbiological processes, as part of the National Bio-diversity Programme 
run by the Ministry of Environment and Tourism.   WT/TPR/S/222/NAM Trade Policy Review 
Page 240 
 
 
(c) Enforcement of intellectual property rights 
139. Imports of pirated products are prohibited under the copyright and customs legislation, while 
those infringing trade marks or patents may be suspe nded pending legal action.  Such action occurs in 
Namibia's ordinary civil courts, and may involve cr iminal prosecution and damages, injunctions, and 
destruction of illegal works.  Courts may order in terlocutory or temporary injunctions pending final 
judgement.  In order to obtain evidence, the High Court may instruct legal officers to enter the premises of the alleged infringer to  seize offending material and equipment (the Anton Piller Order).  
Only the police have ex officio powers under the copyright and proposed industrial property legislation. 
 SACU-Namibia  WT/TPR/S/222/NAM 
 Page 241 
 
 
IV. TRADE POLICIES BY SECTOR 
(1) INTRODUCTION  
140. Namibia has a stable economy, good infrastructure,  plentiful mineral resources, and several 
well developed economic sectors, but, for the majority of its people, it remains a largely agrarian 
economy as nearly two thirds of the population depend  on farming.  The Government continues to put 
strong emphasis on agriculture policy but is also encouraging diversification through the manufacturing and services (particularly tourism) sectors.   
141. The agriculture sector is divided between a small number of large commercial farms on 
freehold land and a large number of subsistence fa rms on communal lands.  Wh ile land reform is a 
major objective it is not a simple matter as many re lated issues need to be addressed.  While pursuing 
the objective of land reform, government policy is  based on the principle of "willing-buyer, 
willing-seller".  Expansion of the fi shing industry is restricted by the need to conserve stocks to 
ensure a sustainable industry.  The Total Allowabl e Catch system, which applies to seven species of 
fish, is seen as having allowed stocks to recover from severe depletion in the early nineties.  Allocation of fishing rights and quota fees c ontinues to favour Namibian involvement.  
142. Mining of diamonds and minerals remains the backbone of the Namibian economy.  Although 
it may contribute only 2% to employment, its c ontribution to the economy, exports, and foreign 
exchange earnings is much higher.  In addition, a higher company tax rate of 55% applies to profits 
from diamond mining, which must also pay a 10%  export tax.  Declining prices for minerals, 
particularly copper and zinc, are already affecting the industry.  On the other hand, uranium mining 
looks likely to expand in the future.  
143. Manufacturing mainly comprises food processing, including fish and meat.  The main policy 
measure to expand manufacturing exports is th e Export Processing Zone Development programme 
and other tax advantages for othe r exporters of manufactured goods. 
144. Namibia has a services trade surplus.  Tourism is an important source of employment and 
foreign exchange earnings and is based on Namibia's spectacular deserts, landscape, and wildlife, 
supported by efficient and well maintained infr astructures.  Namibia has a good and extensive 
telephone coverage with most of the country covere d by mobile networks.  The state-owned Telecom 
Namibia has a monopoly on land-line communicati ons while two operators, one of which is 
majority-owned by the state, provide mobile comm unications.  Public policy is now the responsibility 
of the Ministry for Information, Communication an d Technology, which has prepared legislation to 
create a regulatory authority for the communications subsector.  NamPost, a state-owned company, 
has a monopoly over postal services although, under the Communications Bill, the communications 
regulatory authority woul d be able to issue licences to other entities. 
145. There are four commercial banks operating in Namibia as well as another four state-owned 
financial institutions.  The commercial banks offer a wide range of banking services while each of the 
state-owned institutions offers a narrow range of services, usually targeting at specific sectors or 
policy objectives, such as the Agribank or the Devel opment Bank of Namibia.  Banks in the private 
sector are regulated by the Central Bank (the Ba nk of Namibia), and non-bank  financial institutions 
are regulated by the Namibia Financial Institutio ns Supervisory Authority.  The four banking 
institutions in the public sector are audited by external  auditors appointed by their Boards of Directors 
or by the Ministry of Finance.  All insurance comp anies are required to reinsure with the state-owned 
NamibRe.  Namibia is an important link to the sea for the landlocked southern African countries.  The 
road infrastructure is generally good and is bein g steadily upgraded, particularly along transport WT/TPR/S/222/NAM Trade Policy Review 
Page 242 
 
 
corridors such as the Trans-Caprivi Highway or the Trans-Kalahari Highway.  The state-owned 
TransNamib Carriers is the largest transport company in Namibia and has a monopoly over rail 
passenger and freight services.  Another state-owned company, NamPort, administers the major ports of Walvis Bay and Lüderitz, both of which have seen increasing traffic and corresponding investment 
to meet demand.  GATS scheduled commitments are minimal, and Namibia did not participate in the 
WTO basic telecommunications and financial services negotiations.   
(2) A
GRICULTURE AND RELATED ACTIVITIES  
(i) Main features 
146. In constant terms, the agriculture sector (without  fishing) grew at an average annual rate of 
5% between 2004 and 2008 (up from 0.02% between 1999 and 2003).64  Agriculture in Namibia is 
divided between commercial farmi ng on freehold land and subsisten ce farming on communal land.  
There are about 8,600 commercial farms, which contribute almost 70% of agricultural GDP and occupy 34 million ha of freehold title deed land, i.e. 41% of Namibia's total land area.
65  The number 
of commercial farms can be misleading, because it does not take account of the numbers working on 
the farms or those in the transport, processing, and agriculture inputs sectors that depend on 
commercial farms.  However, even allowing for these factors, many more people depend on 
subsistence farming than on the commercial sect or.  About 65% of Namibia's population live in 
subsistence farming areas, which is  responsible for about 30% of agriculture's total GDP.  Most 
households practice subsistence agripastoralis m on communal land, which is state-owned and 
constitutes approximately 41% of the total land area.66  In general, scarce productive land and fragile 
soils, coupled with limited water resources and an erratic rainfall are the principal challenge for 
Namibia's agriculture.67  
147. Namibia is a net exporter of red meat but it im ports about half of its  cereal requirements, 
especially maize and wheat. Cereals provide about 50%  of the total calorie intake of Namibians.  
Pearl millet (mahangu), the staple food, is the ma jor cereal grown in the communal areas.  Small 
quantities of sorghum are also grown by subsistence farmers in these areas.  Only some 10% to 15% 
of millet production is traded in the formal sector ;  also, a certain quantity is informally traded 
between Namibia and Angola for household consum ption of communities living along the border.  
South Africa is an important trading partner in  terms of the import and export of foodstuffs 
148. Crop production has increased in importance over the past decade.  In 1995 it accounted for 
8% of the agriculture sector's total output;  by 2006 it had increased to 17% of total output. 
Communal farming produces 30% of grain consumption requirements, and consis ts of rain-fed crops, 
notably millet, sorghum, and maize.  Commercial crop farming focuses mainly on maize and wheat.  
Horticulture crops are mainly grapes, followed  by tomatoes, cabbages, onions, and potatoes. 
149. Livestock production accounted for 59% of total agriculture output in 2006 (down from 70% 
in 1995).  Communal farming produces some 60% of Na mibia's cattle population.   More than 50% of 
Namibia's cattle are found in the Northern Comm unal Areas.  In addition, about 40% of small 
                                                      
64 WTO estimates, based on Bank of Namibia (2004), (2008a), and (2009).  
65 During 2001-06, the annual average growth rate of commercial agriculture was 2.6% (4.4% over 
1995-00) (Ministry of Agriculture, Water, and Forestry, 2007). 
66 During 2001-06, the annual average growth rate of subsistence agricultur e was 0.7% (7.7% over 
1995-00) (Namibia Chamber of Commerce and Industry, 2008).  The Communal Land Reform Act, passed in 
August 2002 (Act No. 5), provides for the allocatio n of communal land rights by Chiefs and Traditional 
Authorities, under the control of Communal Land Boards. 
67 Namibia's arable land accounts for only 1% of total land. SACU-Namibia  WT/TPR/S/222/NAM 
 Page 243 
 
 
livestock are kept in communal areas.  Commercial livestock farming focuses on meat and meat 
products for international markets.  
150. Namibia had a forest area of around 7.7 million ha in 2005 (down from 8 million ha in 2000), 
i.e. 9.3% of its total land area;  it has about 8.5 million ha of other wooded land (8.7 million ha in 
2000).  Namibia is home to at least 3,174 species of vascular plants, of which 21.6% are endemic.68  
The two main problems in the subsector are forest fires and uncontrolled cutting of trees (a common source of energy).
69  In addition, lower and more erratic ra infall, conversion of forest land to other 
uses, and overgrazing by livestock, particularly in  the communal farming areas, have contributed to 
the decline in forests and wooded land.  Namibia imports almost all sawn wood and other industrial 
forest products and there are no significant exports of forest products.  
(ii) Policy developments 
151. The Ministry of Agriculture, Water, and Forestry (MAWF) is responsible for policy 
formulation, extension and advisory services, res earch, credit, and facilitating private marketing of 
commodities.  The Ministry does not supply any farm inputs itself, these are provided by the private sector;  but it does implement a programme for th e provision of improved seed and fertilizers.   
152. Agriculture policy has been evolving since th e last White Paper on agriculture policy was 
presented to Parliament in October 1995.
70  The evolution is evident in the first National Development 
Plan (NDP1 – which covered the period 1995-00) through NDP2, then Vision 2030, and NDP3 as 
well as the draft National Agricultural Policy paper,  which should be finalized soon and presented to 
the Government once it has been approved by the Mi nister for Agriculture, Water, and Forestry.   
Under the draft National Agricultural Policy, the main  goals for the sector are to:  raise productivity 
and improve livelihood opportunities from communal farming, mainly through regional extension 
services71;  provide an enabling environment for comme rcial farming on the basis of free market 
policies72;  expand production through intensification, i nnovation, and marketing;  and sustain the 
natural resource base.73  Agricultural development and diversif ication into higher-value-added crops 
(e.g. cotton, grapes, and indigenous fruits) are also high government priorities.   
153. All farmers in the communal areas are eligib le to receive loans through the National 
Agricultural Credit Programme (NACP) implemented by Agribank of Namibia.  The NACP interest 
rates are 1-2 percentage points lower than co mmercial bank rates.  During 2004-08, the NACP 
granted small farmers loans of approximate ly N$45.6 million for annual crop and livestock 
                                                      
68 Mongabay online information,  "Namibia". Viewed at:  http://rainforests.mongabay.com/ 
deforestation/2000/Namibia.htm#8-protected. 
69 Some 4 million ha of forests are burned each year, mostly due to fires started deliberately to improve 
grazing and to clean hunting grounds (Namibia Nature Foundation, 2004). 
70 Minister for Agriculture, Water, and Rural Development (1995). 
71 Farmers would be able to select the extension expertise they need and pay for it through vouchers 
provided by regional extension services on a selective basis.  To tackle household food insecurity, the extension 
service will aim to assist as many households engaged in agriculture as possible.  The MAWF is also aimed at 
improving the food security position of the majority of communal farmers by increasing the efficiency of food 
supply and commodity markets.  It will assist local  communities and private enterprises to develop rural 
infrastructure and marketing support services by creating a favourable investment environment. 
72 The authorities do not fix or guarantee prices or apply price controls.  However, import restrictions 
on controlled crops (e.g. wheat and maize) result in higher staple food prices.  The prices for controlled products are set by agreement between millers and pr oducers without government intervention. 
73 Agriculture could develop further through, inter alia , expansion of livestock production on 
5 million ha of unused communal land, intensified crop production via irrigation, and exploitation of indigenous plants (Ministry of Agriculture, Water, and Forestry, 2007). WT/TPR/S/222/NAM Trade Policy Review 
Page 244 
 
 
production, infrastructure, and procurement equipmen t.  The number of loans disbursed increased 
from 522 during 2002-03 to 875 over 2004-08;  a total of  4,515 loans have been granted since the 
inception of the programme in 1999.  As a result of  high default rates on NACP loans, Agribank now 
requires collateral to secure its loans to small farmers74;  it has also restructur ed its services (in 2007), 
consolidated loans, and extended th e repayment period (Chapter III(4)(i)). 
154. Land reform is a high government priority.75 Under the land redistribution programme, 
implemented by the Ministry of Lands, Resettlement,  and Rehabilitation, a land tax was introduced in 
April 2003 to finance resettlement programmes and release undeveloped or under-utilized land.  The 
tax rate is 0.75% of the value of undeveloped Na mibian-owned land, rising to 1% on all developed 
land or land held by absentee owners.  The ta x raises about N$18 million annually.  Under the 
Communal Land Reform Act, by the end of 2009, all fa rm-households in communal areas occupying 
residential plots and having access to cropping land mu st apply for registration of that land up to a 
maximum of 20 ha.76  Farmers requiring more than 20 ha of  crop land will be able to apply for a 
leasehold tenure of up to 50 ha.77  In addition, to encourage the use of under-utilized land, allocation 
of leasehold tenure up to 2,500 ha may be granted for agricultural purposes.    
155. The Government has approved the Green Sc heme programme for the enhancement of 
agricultural production under irrigation, and the Ho rticulture Infrastructure Development programme 
to ensure marketability of agronomic products.  Im plementation of the Green Scheme Programme is 
to be in the form of joint public-private partnershi p to encourage private-sector investment in remote 
and underdeveloped areas.  The Programme is de signed to attract commercial irrigation-farming 
enterprises to establish entities in communal fa rming areas suited for intensive agricultural 
development.  The Green Scheme Programme provid es for various public-private partnership models, 
with different obligations to the investor, including a model that imposes two social development obligations on the participating commercial farms:  (i) to facilitate the capacity building and skills 
transfer to small-scale irrigation farmers occupying an  adjacent area of land equal in size to the arable 
land of the commercial enterprise;  and (ii) to pr ovide certain agricultural support services to those 
farmers on a cost-recovery basis.  
156. The Green Scheme is expected to increase the contribution of agriculture to GDP to nearly 
15%, and to meet 33% of domestic consump tion of horticultural products by 2022.  
157. To improve efficiency of water use across users, the Government is working on new 
legislation to replace the Water Act (No. 54 of 1956).  The new legislation will provide for the 
formation and periodic review of a National Water Master Plan.  The Namibia Water Corporation Act 
(No. 12 of 1997) created the parastatal compa ny NamWater to handle bulk water supplies.  
NamWater has legislative authority to set tariffs on  a full cost-recovery basis.  As a result, usage 
tariffs are being raised to phase out water subsidies.   Water shortages have limited irrigation to about 
8,600 ha of land.  Considering water accessibility an d soil suitability, it is estimated that a maximum 
of 43,500 ha hold potential for future irrigation. 
                                                     
 
74 The Communal Land Reform Act, which will result in all crop land being registered, and in land for 
commercial purposes being held on long-term leases, is ex pected to overcome  the collateral problem.  It would 
also enable more communal farmers to access credit from th e bank of their choice on normal commercial terms. 
75 Since independence, the Government has purchased around 4 million ha of land in the freehold 
subsector for nearly 1,00 0 communal farmers.   
76 A certificate of registration, allocated by the Trib al Authority and ratified by the Land Board, will 
provide exclusive tenure rights to all natural resources on the land.  Land not allocated for exclusive tenure will 
be available for communal use by households living w ithin the area determined by the Tribal Authority. 
77 Leasehold tenure will be allocated by the La nd Board and ratified by the Tribal Authority. SACU-Namibia  WT/TPR/S/222/NAM 
 Page 245 
 
 
158. The Namibian Agronomic Board is the offi cial marketing board of the "controlled" 
agricultural products (white maize, wheat and pear l millet and their milled products, as well as fresh 
horticultural products).  The Board is funded throug h producer/processor levies  implemented for the 
controlled products.  Its objectives are to promote agriculture by facilitating production, processing, 
and marketing of the controlled products.78  Prices for controlled products are determined through 
negotiations between millers and producers without G overnment intervention.  The prices are based 
on the SAFEX adjusted to import parity prices ma inly from South Africa.  The Board has not set 
prices since 1996 and now only monitors annual pr ices for cereals as information to farmers and 
millers.  All producers and processors of controlled products (over 5 tonnes annually) must register 
with the Board.   
159. The Mahangu Marketing Intelligence Unit (MMIU) , established in 1999, was dissolved in 
2006 (in anticipation of mahangu becoming a controlle d product).  The unit disseminated pearl millet 
prices and other key information to growers and processors.  The aim of the MMIU was to commercialize small-scale mahangu farming in the North Central and Kavango regions, as well as to 
regulate and promote the marketing of this commodity.  The Government declared mahangu as a 
controlled product on the 15 May 2008 in order to encourage domestic production.  The floor price 
for mahangu is now negotiated between producers a nd processors in a similar manner to that for 
maize and wheat.    
160. The Government provides support to commerc ial grain producers by imposing a seasonal 
import prohibition on imports of wheat, maize, a nd mahangu grains from all sources (including other 
SACU members).  The prohibition applies from harvest time until all domestic production is sold to 
millers.  According to the authorities, domestically produced grains are generally sold quickly because 
domestic demand for these commodities exceeds domestic supply.  
161. Under the Meat Industry Act (No. 12 of 1981), as amended, the Meat Board of Namibia 
regulates livestock and related products, issues opera ting licences to abattoirs, and import and export 
permits for livestock and livestock products.  The Board is funded by various levies on the import and 
export of livestock and livestock products.  A small share of its income is from investments.  The 
Board also collects an animal health levy on ca ttle, sheep, and goats, for provision of veterinary 
services in case of a national epidemic, as well as classi fication, inspection, and administration fees.  
Slaughter prices are market-determined based on returns on export to, for example, the EC and 
South Africa.  Livestock producers must register with the Board.
79  Under the Stock Brands Act 
(No. 24 of 1995), which is administered by the Meat  Board, all cattle must be  branded, and movement 
permits are issued by the Directorate of Veterinary  Services (cattle exports to South Africa must be 
branded).  The Board also assisted the Mini stry in paying drought relief subsidies.80   
162. Until 2005, the Meat Board provided short-term (less than one year) commercial loans to 
meat processors to promote and develop the industry.   Meatco, a parastatal corporation established as 
                                                      
78 According to the Agronomic Industry Act (No. 20 of 1992), any person who wishes to sell, import or 
export a controlled product must be registered with the Namibian Agronomic Board.  Imports require a fumigation certificate, a phytosanitary certificate, and an a dditional declaration by the country of origin that the 
import does not contain genetically modified organisms (GMOs). 
79 A traceability and quality assurance scheme, require d by the EC for export, was launched in 1999 
(the Farm Assured Namibian Meat Scheme).  It helps in certifying that beef complies with health and hygiene 
standards by enabling stock to be traced back to the farm. 
80 The Board runs a Government Drought Relief Fund, to which the Government contributes 
financially. WT/TPR/S/222/NAM Trade Policy Review 
Page 246 
 
 
the Swameat Corporation in 1986 (Ordnance 2 of 1986)81, remains the main exporter of beef (about 
95% of exports) but it is no longer the sole expor ter to the EC.  Since 2002, abattoirs owned by 
private enterprises have received export licences for meat and meat products.  There are no restrictions on establishing an abattoir in Namibia,  as long as to it meets municipal requirements and 
health regulations. 
163. Since 1 January 2008, under the provisional app lication of the interi m Economic Partnership 
Agreement between the EC and the SADC count ries, Namibia may export unlimited quantities of 
meat duty-free (and other products, except for rice and sugar).
82  However, under the previous quota 
limits, Namibia's quota-utilization rates fell from 90% in 2002 to 73% in 200 7.  Among the reasons 
for not being able to fill the beef quotas to the EC, the authorities cited the strict SPS measures that 
have to be met and the narrow produc t definition used in the EC's quota. 
164. The Karakul Board of Namibia, formed in  1982 under the Karakul Pelts and Wool Act 
(No. 14 of 1982), oversees the processing and marketing of karakul pelts internat ionally, under a joint 
venture with a producer co-operative that does the trading.  Namibia used to produce about 
4.5 million karakul pelts each year but, following th e world-wide collapse of the karakul industry 
between 1982 and 1999, production fell to less than 100,000 pelts, and farmers shifted to sheep, cattle, 
and goat farming.  Since then, annual production has recovered somewhat to about 250,000 pelts per 
year.  Production is unlikely to regain the levels of  the 1970s but it has been noted that, in some cases, 
the industry can be more viable fo r communal farmers than sheep meat.83 
165. The SACU Common External Tariff  on agricultural and hunting (ISIC Rev.2 category) 
average 4.3%, and are predominantly ad valorem , ranging from zero to 44% ).  Tariffs on forestry and 
logging average 3%, and are all ad valorem , ranging from zero to 25%.  (Main Report, Table AIII.2).   
(3) FISHERIES  
166. Fisheries remains an important, though declini ng, contributor to Namibia's economy.  Its 
contribution to real GDP fell from 7.2% in 2003 to 5.1% in 2007 mainly due to poor catches and higher fuel and labour costs during the period.  However, despite the decline in landings from 
631,119 tonnes in 2003 to about 304, 591 tonnes in 2008, Namibia still exports almost all the annual 
catch (Table IV.1).
84  Exports of fish and fish products  are worth about US$410 million, making 
revenue from fisheries the second most important ear ner of foreign exchange in Namibia, after 
mining.  
167. Namibia's main export markets for fish are th e EC and South Africa for hake, monk, and tuna, 
and D.R. Congo, Mozambique, Zambia, and Zimbabwe  for horse mackerel.  About 87% of hake, 97% 
of monk, and 90% of tuna are exported to the EC, while 13% of hake is e xported to South Africa.  
According to the Namibian authorities, a combination of tariff escalation in regional markets and high 
processing costs means that there is little processing of horse mackerel in Namibia for export to 
regional markets.  Only a small portion of horse mackerel is dried and smoked while some is 
processed into powdered fish soup for local market.  In terms of crustaceans (crab and lobster), 95% 
are exported to Japan.  Pilchards are exported to South Africa and the United Kingdom in canned 
form, while fish meal, and fish oil are exported to South Africa. 
                                                      
81 A study has recently been complete d on the ownership and st ructure of Meatco;  this will define the 
ownership and provide for a new structure. 
82 European Commission (2009). 
83 FAO (2004). 
84 With a population of 2.1 million, per capita fish consumption of 10 kg per year and a total catch of 
412,671 tonnes in 2007, clearly Namibia only consumes a small portion of the total catch.  The rest is exported. SACU-Namibia  WT/TPR/S/222/NAM 
 Page 247 
 
 
Table IV.1 
Fish landings (main commercial species), 2001-08 
(Tonnes) 
Fish species 2001 2002 2003 2004 2005 2006 2007 2008a 
Crab 2,343 2,471 2,092 2,400 2,480 2,228 2,854 953 
Hake 173,277 154,588 189,305 173,902 158,060 135,771 129,542 109,229 
Horse mackerel 315,245 359,183 360,447 310,405 327,700 309,980 198,694 151,482 
Kingklip 6,607 7,210 6,603 7,067 5,567 4,193 3,928 3,127 
Monk 12,390 15,174 13,135 8,961 10,466 9,816 8,656 6,415 
Pilchards 10,763 4,160 22,255 28,605 25,128 2,314 23,522 17,550 
Rock lobster 365 361 269 214 248 285 117 1,715 
Tuna 3,198 2,837 3,371 3,581 3,654 2,903 6,818 3,498 
Other fish species 30,810 77,407 33,644 31,997 18,934 36,891 38,540 10,622 
Total 554,998 623,391 631,119 567,133 552,164 504,382 412,671 304,591 
a Provisional data. 
Source:  Ministry of Fisheries and Marine Resources. 
168. The decline in the annual catch is a result of the reduction in the total allowable catch (TAC).  
The reductions in the TAC are deemed essentia l for rebuilding stocks through sustainable 
management.  Rebuilding of stocks was nece ssary because of over-fishing in the late 1980s, 
particularly of pilchards.  Low world prices for fish meal, oil, and canned fish have added to the 
industry's problems.  Since independence, the Minist ry of Fisheries and Marine Resources has sought 
to allow fish stocks to recover from over-exploitati on, mainly through the TAC.  The TAC is set each 
year for the main species (Table IV.2).  Fisheries scientists in the Ministry make suggestions for the 
TAC to a working group composed of economists and scientists.  The working group then makes 
recommendations to an advisory council that includes the various stakeholders.  The proposal is then 
passed to the Minister for approval and to the Cabinet for authorization.   
Table IV.2 
Total allowable catch, 2001-08  
(Tonnes) 
Fish species 2001 2002 2003 2004 2005 2006 2007 2008 
Hake 200,000 195,000 180,000 195,000 180,000 130,000 130,000 130,000 
Horse mackerel 410,000 350,000 350,000 350,000 350,000 360,000 360,000 230,00 
Monk 13,000 12,000 12,500 12,000 11,500 9,500 9,500 9,500 
Orange Roughy 1,875 2,400 2,650 2,600 2,050 1,100 900 900 
Pilchards 10,000 0 20,000 25,000 25,000 25,000 15,000 15,000 
Red crab 2,100 2,200 2,000 2,200 2,300 2,400 2,500 2,500 
Rock lobster 400 400 400 420 420 420 350 350 
Source:  Ministry of Fisheries and Marine Resources.  
169. The Ministry of Fisheries and Marine Resources is also concerned with the Namibianization 
policy.  The right to fish must be acquired, and a quota allocation from the TAC must be obtained.  
Quota fees are structured to encourage Namibian registration and ownership of fishing vessels, and to promote onshore processing.  Apart from higher fees and shorter duration of fi shing rights, no other 
restrictions are placed on non-Namibians entering the fishing industry.  Income and corporation tax 
rates are the same and no subsidies are used to pursue the Namibianization policy. 
170. In addition to the extent of Namibian involvemen t, the duration of a fishing right also depends 
on the extent to which catches are processed dom estically.  An enterprise with less than 50% 
Namibian ownership of a vessel or of an onshore processing plant is entitled to four-year rights.  WT/TPR/S/222/NAM Trade Policy Review 
Page 248 
 
 
Where vessel or plant ownership is 50% to 90% Namibian, seven-year rights are granted.  An 
enterprise that is at least 90% Na mibian-owned is entitled to ten-year  rights.  Majority foreign-owned 
enterprises are granted rights depending on their onshore processing activities:  four years if they have no onshore processing plant;  seven years with invest ment in processing facilities;  and ten years if 
they make a major contribution to Namibia's devel opment, such as employing over 500 Namibians in 
processing facilities. To encourage investment, th e Government extended the duration of fishing 
rights from four to seven years; seven to ten year s; and from ten to fifteen years.  An additional 
fishing right of twenty years was introduced for companies permanently employing at least 
5,000 Namibians in processing facilities.  Between 1993 and 2007, 158 fishing ri ghts were granted, of 
which 3 expired automatically;  about 90% of fish ing rights are in the hands of Namibians.   
171. As a result of these policies, 60% of the fishing fleet and 80% of processing plants are 
Namibian owned.  Fisheries employ abou t 13,500 workers (60% in the factories). 
172. Quota fees are also structured to encourag e Namibian involvement and are lowest for 
Namibian vessels, i.e. registered in Namibia with at least 51% beneficial ownership and at least 90% Namibian crew (recently been increased from 80%).
85  The fees are higher for Namibian-based 
vessels86, and highest for foreign-based vessels.  For ex ample, on "wet hake fish", the quota fees for 
foreign vessels are triple those for Namibian vessel s and double the level for Namibian-based vessels.  
Quota fees amounted to N$74.437 million in 2003 and increased to N$107.218 million in 2007.  The 
rebates are fixed amounts;  therefore, as a percen tage of the quota fee, they vary for Namibian, 
Namibian-based, and foreign vessels.    
173. By-catch fees are calculated to discourage excessive  by-catch in fishing operations, while at 
the same time avoiding dumping of by-catch at sea.  It is acknowledged that by-catch is unavoidable in several types of fishing operations;  by-catch fees are payable on non-targeted species, and range 
from N$1,200 to N$6,500 per tonne.   
174. Fund levies are collected from the fishery comme nsurate with actual landings of particular 
species, and their processing into tradeable forms.   The levies are about ten times lower than quota 
fees.  The purpose of the fund is to defray research activities and training for ministries staff members.  
Fund levies range from N$2.50 to N$375 per tonne.  
175. Under the Marine Resource Act (No. 27 of 2000), right holders must submit licence 
applications together with applicable fees befo re vessel are allowed to conduct fishing activities. 
License fees apply to all fishing vessels; the f ees range from N$20 to N$500, depending on gross 
tonnage.  Fees and levies increased from N $100 million in 2003 to N$129 million in 2007 
(Table IV.3).  
176. The fishery observer levy, payable by right holder s engaging in fishing activities, benefits the 
Fisheries Observer Agency, which is responsible for monitoring fishing activ ities while fleets are at 
sea.  According to the Marine Fisheries Act, fish eries observers must accompany fishing vessels, to 
observe fishing operations, record bi ological data on fishery, collect samples of harvested species, and 
report to the agency.  From 2003 to 2006, the agency  charged all fishing vessels (with or without an 
observer) N$23.87 per hour.  The current levy differe ntiates categories of observer and charges are as 
follows:  N$34.14 per hour for FDA/trainee/ without observer onboard;  N$34.14 per hour for 
                                                     
 
85 Quota fees, by-catch, fund levies, licence and conver sion factors for landed processed fish to live fish 
equivalents are on the website for the Ministry of Fisheries and Marine Resources (http://www.mfmr.ogv.na/ 
[July 2009]) 
86 Namibian-based vessels are Namibian registered bu t are not domestically ma jority-owned and have a 
crew of less than 90% Namibians. SACU-Namibia  WT/TPR/S/222/NAM 
 Page 249 
 
 
Grade One observer;  N$35.69 per hour for Grade Two observer;  and N$37.24 per hour for Grade 
Three observer. 
Table IV.3 
Revenue from the marine  fishing industry, 2001-08 
(N$ million) 
Fee 2001 2002 2003 2004 2005 2006 2007 2008 
Quota fees 69,900 100,011 74,437 84,629 81,363 68,299 107,218 59,255 
Marine Resources Fund levy 9,211 15,794 12,042 17,663 17,358 12,446 12,561 12,075 
By-catch fees 12,800 15,788 13,561 16,294 7,699 11,199 9,639 10,360 
Licence fees 172 286 187 110 111 93 91 86 
Total revenue 82,083 131,879 100,227 120,292 106,531 92,037 129,509 81,776 
Note:   The fisheries sector contributes far more to the economy and to revenue than fees alone.  Corporation and income taxes of those 
 directly employed in the fishing fleet and fisheries industry and those providing goods and services to the industry are not 
 included nor are the economic and social de velopment contributions  of these activities. 
Source:  Ministry of Fisheries and Marine Resources. 
177. Fisheries legislation includes:  Territorial S ea and Exclusive Economic Zone of Namibia Act 
(No. 3 of 1990);  Marine Resources Act (No. 27)  of 2000 and the Regulations Relating to the 
Exploitation of Marine Resources (No.  241) of 2001;  Inland Fisheries Resources Act (No. 1) of 2003;  
Aquaculture Act (No. 18) of 2002;  and the Aquaculture Licensing Regulations.  The Ministry is in 
the process of reviewing and updating the Ma rine Resources Act and its Regulations.  
178. Namibia is a member of various regional fish eries management organizations (RFMOs) such 
as the South East Atlantic Fisheries Organisation (SEAFO), the International Commission For the Conservation and Atlantic Tunas (ICCAT), and th e Commission for the Conservation of Antarctic 
Marine Living Resources (CCAMLR) as well as the Convention on International Trade in 
Endangered Species of Wild Fauna and Flora (CITES). 
(4) M
INING AND ENERGY  
(i) Mining 
179. Namibia is endowed with abundant mineral res ources, and the full potential of the sector is 
largely untapped in a landmass that requires more  extensive exploration.  Mining accounts for around 
45% of foreign-exchange earnings, between 30% and 50% of government revenue, and about one 
third of fixed capital formation.  The sector is also the largest provider of regular private-sector employment, although it provides jobs to less than 2% of the total labour force.  Historically, diamonds have been Namibia's main export earner, c ontributing more than half of the total value of 
mineral exports.  However, base and precious metals  and uranium have made important contributions 
recently.  Namibia produces significant quantities of ur anium, gold, silver, copper, lead, and zinc 
(Table IV.4).  Tariffs on imports of mining and quarrying (ISIC Rev.2 definition) average 0.8%, and 
are all ad valorem , ranging from zero to 10% (Main Report, Chapter III(3)(i)).  
180. The Ministry of Mines and Energy (MME), as the custodian of Namibia's mineral and energy 
resources, is responsible for the overall running of the sector.  Namibia's minerals policy, launched in 
2003, aims, inter alia , to attract investment and enable the private sector to take the lead in 
exploration, mining, mineral beneficiation, and marketing, while ensuring the responsible 
development and sustainable utilization of mineral resources.
87  All mineral rights are vested in the 
State and are regulated under the Minerals (Pro specting and Mining) Act (No. 33 of 1992), which 
                                                      
87 Ministry of Mines and Energy (undated).  WT/TPR/S/222/NAM Trade Policy Review 
Page 250 
 
 
provides for the reconnaissance, prospecting, mining,  disposal, and exercise of control over minerals 
in Namibia.  Licences and permits are authorized by the Minister.  Namibia's mining industry is also 
regulated by the Minerals Development Fund of Na mibia Act (No. 19 of 1996);  and the Diamond Act 
(No. 13 of 1999).  In addition, Mine Health and Safety  Regulations are in draft form to be finalized in 
the near future. 
Table IV.4 
Output of selected minerals, 2003-07 
Mineral 2003 2004 2005 2006 2007 
Copper blister (tonnes) 26,306 24,704 21,699 21,918 20,389 
Copper concentrate (tonnes) 64,882 58,792 40,542 27,626 32,450 
Diamonds ('000 carats) 1,455 2,004 1,903 2,356 2,349 
Gold blister (kg) 210 137 142 99 672 
Gold bullion (kg) 2,298 2,068 2,507 2,691 2,496 
Lead concentrate (tonnes) 30,770 27,738 24,689 21,402 21,875 
Lead metal content (tonnes) 16,112 14,338 14,320 11,830 10,543 
Silver blister (kg) 29,367 27,153 34,102 31,307 7,902 
Uranium (tonnes) 3,582 2,401 3,711 3,617 3,680 
Zinc concentrate (tonnes) 107,175 123,373 126,123 100,845 94,323 
Zinc metal content (tonnes) 58,052 66,028 69,368 55,455 46,335 
Source:  Ministry of Mi nes and Energy. 
181. Under the Constitution and the Minerals Act, 1992, mineral rights are vested in the State, and 
the Minister of Mines and Energy has the mandate to allocate the different rights to companies or 
individuals.  All applicants must be Namibian c itizens or companies regist ered in Namibia.  The 
Minister may grant (or refuse) an application for mineral rights after assessment and on the recommendation of the Mining Commissioner.  Although not currently required by law the participation of Namibians is encouraged prior to a licence being granted. 
182. The Mineral Rights and Resources Development Di vision in the Directorate of Mines of the 
MME handles applications for, and allocation of mine ral rights in Namibia.  Several types of mining 
and prospecting licences are required depending on the activity being undertaken:  (i) Non-Exclusive 
Prospecting License (NEPL), valid for 12 months, permits non-exclusive prospecting in open ground 
not restricted by other mineral rights.  Prospectors must furnish details to the Mining Commissioner on all samples removed from the NEPL area;  (ii) Reconnaissance License (RL) allows regional 
remote sensing techniques, is valid for six mont hs (renewable under special circumstances), and may 
be made exclusive in some instances.  A geological  evaluation and work plan must be submitted to 
the Mining Commissioner;  (iii) Exclusive Pros pecting License (EPL) can cover an area not 
exceeding 1,000 km
2, and is valid for three years, with two renewals of two years each.  Two or more 
EPLs can be issued for more than one mineral in the same area.  A geological evaluation and work 
plan (including estimated expenditure commitments) are required prior to issuing of the licence;  
(iv) Mineral Deposit Retention License (MDRL) allo ws prospectors to retain rights to mineral 
deposits that are uneconomical to exploit immediatel y.  An MDRL is valid for up to five years and 
can be renewed subject to limited work and expe nditure obligations;  and (v) Mining License (ML) 
may be granted to a Namibian citizen or a company re gistered in Namibia.  An ML is valid for the life 
of mine or an initial 25 years, renewable for up to  15 years at a time.  Applicants must have the 
financial and technical resources to mine effectively and safely.88  
                                                      
88 Before licences are issued (except the NEPL and RL ), all applicants must complete an environmental 
contract with the Ministry of Environment and Tourism. Environmental impact assessments must be made with respect to air pollution, dust generation, water supply, drainage/waste water disposal, land disturbance, and SACU-Namibia  WT/TPR/S/222/NAM 
 Page 251 
 
 
183. Unlike the global financial and economic cri ses in 2008, mining operations in Namibia 
achieved high levels of explora tion, production, and export earnings.  Total mineral exports were 
nearly N$16.5 billion in 2008, the subsector's contribution to GDP was nearly 16% and its contribution to export earnings 58%.   
184. Diamonds remain the largest mining activity.  The main producer is the Namibia Diamond 
Corporation (Pty) (Namdeb), which produces about 85% of Namibia's diamonds;  it is an equal joint 
venture between the Government and De Beers.  An agreement signed in January 2007 between the 
Government and De Beers led to the formation of the Namibia Diamond Trading Company (NDTC), 
also a 50:50 joint venture.  To promote value added processing within Namibia, the NDTC also runs 
the Beneficiation Programme which ensures a supply of diamonds in Namibia for sorting, valuing, 
cutting, and polishing.
89  Through the NDTC, up to N$2 billion worth of diamonds will be made 
available by 2009 for sorting valuing and sale in Namibia.90  In addition, 16% of Namdeb's production 
of cuttable diamonds are to be sold to local diamond-cutting and polishing factories.  
185. Other diamond producers include Samicor, Diam ond Fields Namibia, Forth Mining, and other 
smaller operators and contractors.  In Nove mber 2001, De Beers imposed export quotas on diamond 
purchases from its Namibian affiliates (Namded and DBM Namibia) to control over-supply of 
diamonds at a time of weak international demand.   These export quotas ended in 2002.  In 2001, 
diamonds accounted for over 80% of exploration and prospecting expenditure but interest has been 
switching to base and energy minerals, particul arly uranium.  Diamonds are increasingly found 
offshore:  DBM Namibia is contracted by Namdeb  to provide prospecting, sampling, and mining 
services for its offshore leases.  Ag ainst the backdrop of the global financial crises, total diamond 
production dropped by 5% to 2.2 million carats during 2008. 
186. Exploration of uranium in Namibia has increas ed significantly over the last few years, and 
accounts for a major share of FDI inflows into th e mining sector.  Currently, uranium output comes 
mainly from the Rössing mine, 69% owned by Rio Tinto and 3% by the State.91  The Langer Heinrich 
uranium mine opened in 2007, and others are expected to be in operation in the next few years.  An 
expansion programme to increase annual pr oduction at the Langer Heinrich mine to 
2.6 million pounds of uranium oxide (U 3O8) was completed in 2008.  Uranium mining licences for 
Trekoppje (Uramin Namibia)92, and Valencia Uranium (Forsys Metals) were approved for the 
development of the two deposits.  At full cap acity, these two deposits will make Namibia the 
third-largest uranium producer in the world after Australia and Canada. 
                                                                                                                                                                     
protection of fauna and flora.  See also MBendi Info rmation Services, "Mining in Namibia:  Overview".  
Viewed at:  http://www.mbendi.com/indy/ming/af/na/p0005.htm [June 2009]. 
89 Before the Beneficiation Programme,  most Namibian diamonds were sent to London to be mixed 
with stones produced at De Beers mines worldwide (Ministry of Mines and Energy, 2008). 
90 De Beers online information, "Namibia Diamond Trading Company (NDTC)".  Viewed at: 
http://www.debeersgr oup.com/en/Sales-and-distribution/Diam ond-Trading-Company/Namibia-Diamond-
Trading-Company-NDTC/  [March 2009].  
91 Rio Tinto owns the majority of shares (69%) in Rössing Uranium Limited.  The Namibian 
Government has a 3% shareholding, but it has the majority (51%) of voting rights.  The Iranian Foreign Investment Company owns 15%, acquired during the set-up of the company in the early 1970s.  The Industrial 
Development Corporation (IDC) of South Africa owns 10%, and local individual shareholders own a combined 
3%.  The shareholders have no uranium product off-take rights (Rössing Uranium Ltd. online information, "Rössing's business at a glance 2008".  Viewed at:  http://www.rossing.com/rossingmine.htm [July 2009]). 
92 The Trekkopje project, 100% owned by UraMin, is on track to become Namibia's third uranium 
mine by the end of 2008.  It is expected to become one of the world's ten largest uranium mines when it achieves full production (Namibia Chamber of Commerce and Industry, 2008).  WT/TPR/S/222/NAM Trade Policy Review 
Page 252 
 
 
187. Before the financial crises emerged in 2008, th e mining and smelting of copper were expected 
to increase.  However, in December 2008, in  response to falling copper prices, Weatherly 
International plc placed its four copper mines on car e and maintenance.  The Tsumeb copper smelter, 
however, continues to operate using concentr ate from Bulgaria, Peru, Greece, Zambia, and 
South Africa and Weatherly intends to upgrade the smelter.93   
188. In 2008, the Skorpion zinc mine and refinery, owned by Anglo Base Metals (a division of 
Anglo American), produced 145,396 tonnes (3% down on 2007) – but its export earnings declined by 38% as a result of the fall in zinc prices fro m US$3,236 in 2007 to US$1,900 in 2008.   
189. Following the 2008 amendment of the Minerals Ac t, royalties levied on gross sales were set 
at 3% on precious metals;  3% on base and rare me tals;  3% on nuclear fuel minerals (Rössing 
Uranium at 6%);  2% on industrial minerals; 2% on non-nuclear fuel minerals;  and 2% on 
semi-precious stones.
94  Royalties on diamond production are 10% on rough and uncut stones and 5% 
on unprocessed "dimension" stones.  There is no manda tory requirement for the Government to take 
equity participation in mining ventures;  apart fro m Namdeb, the only government equity in mining is 
the 3% stake in the Rössing uranium mine.  
190. The Diamond Act (No. 13 of 1999), which became effective in April 2000, covers rough and 
polished diamonds.  It controls the possession, purchase and sale, processing and import and export of diamonds.  The Diamond Board advises the Minister on matters relating to the diamond industry;  the Board is funded by percentage levies paid by producers on annual gross sales.  The legislation 
specifies four types of diamond licence:  a dealer 's licence to buy, sell, and export unpolished 
diamonds;  a cutting licence to polish diamonds;  a tool-making licence to set unpolished stones in 
tools; and a research licence.  Under the Diamond Act, holders of unpolished diamonds must be 
licensed or have a permit, while producers/contract ors of diamonds are permitted to hold unpolished 
diamonds under the Minerals (Prospecting and Mining ) Act (No. 33 of 1992).  Licence holders are to 
give preference to employing Namibians, with "due  regard to efficiency, economy and practicability", 
unless the qualifications, expertise, and experience are not obtainable locally.  They are also to extend 
preferences to procurement of local products and ser vices and to train Namibian citizens.  Imports and 
exports of unpolished diamonds require permits in accordance with the Kimberly Process Certification Scheme (see Chapter III(3)(ii)). 
191. The Diamond Act (section 62) imposed an e xport tax of 10% on all unpolished diamonds not 
subject to the 10% royalty.  Exports  of polished diamonds mu st be inspected by the Minister to ensure 
that they are actually cut and polished.  A higher company tax rate of 55% also applies to diamond 
mining.
95  
(ii) Energy 
192. Namibia has reserves of natural gas but no oil h as been discovered.  About three quarters of 
Namibia's total energy consumption in 2005 was from imports (electricity and oil).96  In rural areas, 
the main energy source is fuel wood used for cooking.  The 1998 White Paper on Energy Policy by 
the Ministry of Mines and Energy, tabled in Par liament in 2002, remains the main statement outlining 
energy policy.  The Ministry of Mines and Energy's Directorate of Energy has a broad range of 
                                                      
93 Weatherly International Plc (2009).  
94 EIU (2009). 
95 The tax rate for non-diamond mining companies is 35%. 
96 U.S. Energy Information Administration, "Namibia Energy Profile".  Viewed at:  
http://tonto.eia.doe.gov/country/c ountry_energy_data.cfm?fips=WA. SACU-Namibia  WT/TPR/S/222/NAM 
 Page 253 
 
 
responsibilities, including issuing licences for ex ploration, safety in the energy sector, setting 
maximum fuel prices, rural electrification, etc.  Electricity, coal, and oil imports are duty free.   
(a) Petroleum and gas  
193. In Namibia, all oil and gas exploration is done  by the private sector, with licences from the 
Ministry of Mines and Energy.  Exploration licences may be applied for at any time.  Namcor, the 
state-owned oil and gas firm, normally restricts its activities to promotion, gathering data, and 
providing technical management. 
194. Tullow Oil, with its minority partner Namc or, continues to explore possibilities for 
developing the offshore Kudu gas field.  The Kudu Power Project includes piping natural gas to a 
power plant to be constructed at Oranjemund.  Ho wever, results in 2007 from the first of two test 
wells were disappointing, and no date has been set for on the second test well;  the wells were 
designed to assess the potential for additional reserves within the Greater Kudu field area.97  
195. Government policy is to develop a downstream gas subsector.  A Gas Bill released in 
June 2001 has not yet been enacted.98  The Bill would require licences for the sale, transportation, 
storage, and distribution of gas, which would be granted by the Minister on the recommendation of 
the Gas Regulatory Authority to be established by th e Act.  The Authority would also be responsible 
for recommending tariffs and charges for purchase, sale,  and distribution of gas.  The future of the 
policy depends on bringing the Kudu gas field into production.  
196. Namibia does not have an oil refinery and a ll oil products are imported, mostly from 
South Africa, through Walvis Bay where the national strategic oil stock of 165,000 tonnes is kept.  In 
February 2008 it was announced that Namcor had co mpleted market and site feasibility studies for 
Namibia's first bulk storage facility to  be constructed in Walvis Bay. 
197. Under the Petroleum Laws Amendment Act (No.  24 of 1998), royalties on new operations are 
5% of the oil's f.o.b. market value, and the income tax rate on income from petroleum exploration, development or production operations is 35%.  Thes e royalty and tax rates, along with other rules 
related to petroleum and gas expl oration and production, have not been changed since the 2003 Trade 
Policy Review. 
198. Under the Petroleum Products and Energy Act (N o. 13 of 1990) and subsequent amendments, 
the Minister of Mines and Energy fixes the pr ice of petrol and diesel based on a basket of 
international posted refinery prices.  Price fixing is  justified because the large size of the country and 
the small size of local markets represent significant ba rriers to entry and a lack of alternative suppliers 
in many rural areas.  The formulae used to fix pr ices for petrol and diesel are based on posted and spot 
prices, which change regularly to follow movement s in the international market.  For example, in 
2007 they were changed six times for petrol and seven times for diesel.  Each change is notified in the 
Government Gazette .   
199. Although imports of petrol and diesel are duty free, various taxes are applied to these and 
other petroleum products, including:  a fuel tax of N$0.12 per litre of petrol and N$0.10 per litre of 
diesel; and an excise duty of N$0.04 per litre.  Road user charges (the RFA levy) of N$0.73 per litre 
of diesel also apply;  and to ensure that fixed prices can apply throughout the country, a price 
                                                     
 
97 Ministry of Mines and Energy (2008);  and Oil and Gas online information, "Tullow provides 
Kudu-8 appraisal well update".  Vi ewed at:  http://www.gulfoilandgas. com/webpro1/MAIN/Mainnews.asp?id= 
4759. 
98 The Draft Gas Bill, Draft No.2 b, 29 June 2001. WT/TPR/S/222/NAM Trade Policy Review 
Page 254 
 
 
equalization scheme is financed by the National Ener gy Fund levy of N$0.10 per litre of petrol and 
diesel.  The proceeds of the levy are used to subsid ize freight costs from Walvis Bay to ensure that 
retail prices in remote areas are not higher than elsewhere.  Subsidies normally cover about one 
quarter of sales.  
(b) Electricity 
200. Nampower, the state-owned utility company, has a monopoly on generation, transmission, 
and imports and exports of electric ity.  Namibia relies on imports for much of its electricity needs as 
peak demand is about 350 MW while total domes tic production capacity is only slightly more.  
Domestic production is highly seasonal because most of it comes from the Ruacana hydroelectric 
station on the river Cunene.  Eskom of South Africa supplies most of the electricity imported into 
Namibia via two lines of a total capacity of 700 MW.  In addition, in January 2008, the first 40 MW 
from the Hwange thermal plant in Zimbabwe we re delivered as part of a US$40 million power-
purchase arrangement in April 2007 between Nam power and the Zimbabwe Electricity Supply 
Authority.99  
201. Demand for electricity among consumers is he avily weighted to a few large users.  
Households make up 91% of cons umers and 45% of consumption wh ile mines and industry make up 
1% of consumers and 26% of c onsumption (the balance going to other commercial users).  This 
pattern of consumption is likely to become further skewed in the future as electricity consumption is 
projected to triple to 1,400 MW by 2030 due  to new mines and related developments.100  At the same 
time, the Rural Electricity Distribution Master Pl an of 2000 is seeking to increase the provision of 
electricity to rural areas so that 25% of rural hou seholds have access to electricity by 2012 (from 10% 
in 2000 and 17% in 2008).101   
202. In addition to the Ruacan a hydroelectric station102, domestic production of electricity is 
provided through Van Eck coal-powered thermal station in Windhoek (120 MW), and Paratus, a 
diesel thermal station near Walvis Bay.   Nampower  is also a member of the Southern African Power 
Pool (SAPP).  It is examining the feasibility of establishing additional inter-connections with Angola, 
Botswana, and Zambia to improve electricity tr ade under SAPP and bilatera lly, including exports.  
The Government plans to source all peak demand a nd at least 75% of electricity domestically by 
2010.  There are plans for new capacity and constr uction could start in 2009;  projects include the 
Caprivi Link Interconnector, a fourth unit to the Ru acana hydro plant;  the Kudu Gas Project Power 
station;  a coal thermal plant in Walvis Bay;  and the Lüderitz Wind Farm project.  The Ministry for 
Mines and Energy has also succeeded in reducing demand by distributing low energy light bulbs and 
through a new tariff structure for large power cons umers, which makes electricity more expensive 
during periods of peak demand.   
203. Until the reform of the electricity sector in 2002, electricity distribution in Namibia was 
through the Ministry of Regional and Local Governme nt and Housing;  the reform handed control to 
four regional electricity distributors (REDs), which became operational in 2004.  Nampower  also acts 
as a direct supplier to larger consumers such as th e mines and some commercial farms.  The reform 
envisaged private-sector participation in the dist ribution system but, since Northern Electricity's 
contract was not extended in 2002, this has only been achieved through outsourcing by the REDs 
                                                      
99 EIU (2008). 
100 EIU (2008). 
101 Ministry of Mines and Energy (2008). 
102 Although power output varies depending upon wate r supply, the Cunene River may offer substantial 
hydro-power potential.  F easibility studies are looking at additional pr ojects, in cooperation with the Angolan 
Government. SACU-Namibia  WT/TPR/S/222/NAM 
 Page 255 
 
 
rather than by equity.  Namibia operates a single-buy er market structure with Nampower as the sole 
buyer: it has the sole right to buy all electricity pr oduction and to sell it to the distributors for sale to 
final consumers.  Nampower is also the only electric ity producer in Namibia.  The Electricity Control 
Board, established in July 2000, is responsible fo r regulations covering distribution, licences, tariff 
structures, etc., although its recommendations must be approved by the Minister for Mines and 
Energy.103  
(5) MANUFACTURING  
204. Manufacturing's contribution to GDP decreased from 14.0% in 2003 to 12.5% in 2008, 
reflecting the strong growth in mining and construc tion during the period.  Meat and fish processing 
both continued to decline in relative terms.  In constant 2004 prices, meat processing increased 
slightly from N$146 million to N$155 million while fish processing fell from N$852 to 
N$525 million.  The manufacture of other food prod ucts and beverages changed little over the same 
period (Table IV.5).  The "other" manufacturing category covers a large range of goods, including 
wood and wood products, metal fabrication, chemi cals, paints, plastics, leather and textiles.104  Strong 
growth in manufacturing in 2007 resulted primarily from high prices for, and increased processing of, 
zinc and copper.  
Table IV.5 
Contribution to GDP by manufacturing, 2003-08 
(N$ million, constant 2004 prices) 
 2003 2004 2005 2006 2007 2008 
Meat processing 146 146 178 162 169 155 
Fish processing on shore 852 763 723 494 640 525 
Other food products and bevera ges 2,246 2,140 2,230 2,297 2,407 2,443 
Other manufacturing 2,076 2,290 2,611 2,944 3,178 3,104 
Total 5,320 5,339 5,742 5,897 6,394 6,227 
Source:  Bank of Namibia (2009), Quarterly Bulletin , June. 
205. Namibian manufacturing faces a number of challenges due to the relatively small size of the 
local market, high transport costs, high energy prices, and limited access to skilled labour.  On the 
other hand, Namibia has much to offer to manufac turing enterprises, such as access to the SACU 
market, good communications (air and road), good in frastructure, and modern and efficient financial 
services.  The SADC Free-Trade Area should also create opportunities within the southern African region.  Namibia also has pref erential access to the European Communities under the interim EPA, 
which has been applied provisionally since Dece mber 2007, and to the United States under the 
African Growth and Opportunities Act (AGOA). 
206. Government policy for manufacturing is focu ssed on exports.  The Export Processing Zones 
Act (No. 9 of 1995) was designed for EPZs to "ser ve as a tax haven for export-oriented manufacturing 
enterprises".
105  Manufacturing, assembly, re-packaging or br eak-bulk enterprises that export all, or 
nearly all, their production are eligible for EPZ stat us, which entitles them to several tax incentives 
such as non-payment of corporation tax, import tax, and stamp duties.  EPZ status is not confined to 
any specific area or region and can be conferred on an y enterprise that meets the criteria, regardless of 
location.   
                                                      
103 Clark et al. (2005). 
104 Bank of Namibia (2009). 
105 Ministry of Trade and Industry online information, "Industrial Development:  Incentives".  Viewed 
at:  http://www.mti.gov.na/subpage.p hp?linkNo=22 [March 2009].  WT/TPR/S/222/NAM Trade Policy Review 
Page 256 
 
 
207. Namibia made a comprehensive notificati on to the WTO Committee on Subsidies and 
Countervailing Measures in July 1999, which set out  the different types of incentives and to whom 
they apply.106 
208. Manufacturing enterprises and exporters of ma nufactured goods that do not have EPZ status 
can still benefit from a package of tax incentives (Tab le IV.6), including ta x exemption for dividend 
payments and accelerated capital allowances.  Non-ta x incentives also include grants that can cover 
up to 50% of the direct costs of training, and export promotion funding (Chapter III(3)(iii)).107  Some 
of these incentives have been in place for some time and are set out in the Income Tax Act (No. 24 of 
1981).  The incentives currently include:  an a dditional 25% allowance on manufacturing wages, 
training costs and, for ten years, for land-based tr ansport of materials used in manufacturing;  an 
additional deduction for export promotion activities of:  (i) 25% if current export turnover has 
increased by 10% or less compared to the average tur nover for the previous three years,  (ii) 50% if 
the current export turnover has increased by more than 10% and less than 25% compared to the 
previous three years, or (iii) 75% if the current  export turnover has increased by 25% or more 
compared to the previous three years;  accelerated  capital allowances:  for machinery and equipment, 
which can be fully written off over three years; for buildings used for manufacturing purposes (20% 
in the first year and 8% per year for the next ten years), and for other buildings (20% in the first year and 4% per year for the next 20 years);  and a rate  of tax of 18% on taxable income for the first ten 
years and the standard rate of 35% for manufacturing enterprises thereafter.
108 
Table IV.6 
Summary of special incentives for manufacturers and exporters, 2009 
 Registered manufacturers Exporters of manufactured 
goods Export processing zone 
enterprises 
Cash grants 50% of direct cost of approved 
export promotion activities Not eligible Not eligible 
Corporate tax Set at 18% for ten years 
whereafter it reverts to the general rate of 35% 80% allowance on income 
derived from exporting manufacturing goods Exempt 
Eligibility and registration Enterprises engaged in 
manufacturing;  application to the Ministry of Trade and Industry and approval by the 
Ministry of Finance Enterprises that export 
manufactured goods whether produced in Namibia or not;  application and approval by the 
Ministry of Finance Enterprises engaged in 
manufacturing, assembly, packaging or break-bulk and exporting mainly outside of the 
SACU markets;  application to 
the EPZ Committee through the ODC or EPZMC 
Establishment tax package Negotiable rates and terms by 
special tax package   
Export promotion 
allowance Additional deduction from 
taxable income of 25% Not eligible Not eligible 
Incentive for training Additional deduction from 
taxable income of between 25% 
and 75% Not eligible Substantial, issued by 
government on implementation 
of approved training programme 
Industrial studies Available at 50% of  cost Not eligible Not eligible 
Table IV.6 (cont'd) 
                                                      
106 WTO documents G/SCM/N/3/NAM, G/SCM/N/16/NAM, G/SCM/N/25/NAM, 
G/SCM/N/38/NAM, G/SCM/ N/48/NAM, 6 July 1999. 
107 Ministry of Trade and Industry online information, "Industrial Development:  Incentives".  Viewed 
at:  http://www.mti.gov.na/subpage.p hp?linkNo=22 [March 2009]. 
108 The corporation tax rate is 37.5% for mining activities and 55% for diamond mining activities.  See 
also Ministry of Trade and Industry online information,  "Special Incentives for Manu facturers and Exporters".  
Viewed at:  http://www.mti.gov.na/su bpage.php?linkNo=22 [July 2009]. SACU-Namibia  WT/TPR/S/222/NAM 
 Page 257 
 
 
 Registered manufacturers Exporters of manufactured 
goods Export processing zone 
enterprises 
Special building allowance Fact ory buildings written off at 
20% in the first year and 8% for 
ten years Not eligible Not eligible 
Stamp and transfer duty Normal treatment Normal treatment Exempt 
Transportation allowance A llowance for land-based 
transportation by road or rail of 
25% deduction from total cost Not eligible Not eligible 
VAT Exemption on purchase and 
import of manufacturing 
machinery and equipment Normal treatment Exempt 
Source:    Ministry of Trade and Industry, Special Incentives for Manufacturers and Exporters . 
209. The Special Industrialization Programme encour ages certain manufacturing activities, such as 
food processing, leather products, textiles and cl othing, wood products, pa per products, and motor 
vehicle components.  Assistance may be through equity participation, provision of industrial 
infrastructure, support for joint ventures or  preferences for local manufacturers.  
(6) SERVICES  
210. Despite the strong growth in mining and manuf acturing and their increased contribution to 
GDP, services remained almost constant in its re lative importance as it increased marginally from 
57.9% of GDP in 2003 to 58.1% in  2008.  Wholesale and retail trade are the main services sub-sectors 
at 11.9% of GDP in 2008 (more or less unchange d from 2003), followed by real estate and business 
services (9.7%), administration and defence (8 .7%), education (7.0%), and transport and 
communications (6.6%) (Table IV.7).  
Table IV.7 
Contribution to GDP by services, 2003-08  
(N$ million, constant 2004 prices) 
 2003 2004 2005 2006 2007 2008 
Wholesale and retain trade, repairs 4,284 4,638 5,087 5,473 5,904 6,072
Hotels and restaurants 710 770 788 846 936 945
Transport and communication 1,910 2,403 2,627 2,999 3,157 3,341
Transport and storage 630 906 931 1,253 1,328 1,461
Posts and telecommunications 1,280 1,498 1,696 1,746 1,829 1,880
Financial intermediation 1,490 1,686 1,941 2,024 2,264 2,492
Real estate and business serv ices 3,657 3,921 4,188 4,339 4,711 4,914
Real estate activities 2,815 2,902 3,060 3,221 3,449 3,612
Other business activities 842 1,019 1,128 1, 118 1,262 1,302
Community, social, and personal servi ce activities 1,382 1,549 1,656 1,703 1,721 1,705
Public administration and defe nce 3,710 3,857 3,673 3,816 4,108 4,431
Education 2,780 3,331 3,066 3,175 3,370 3,551
Health 1,778 1,806 1,446 1,461 1,545 1,718
Private households with employed persons 335 343 350 358 370 389
Total 22,036 24,304 24,822 26,195 28,087 29,559
Source:  Bank of Namibia (2009), Quarterly Bulletin , June. 
211. Namibia made minimal commitments on services under the WTO General Agreement on 
Trade in Services (GATS).  The commitments cover tourism, more specifically hotels and restaurants, as well as travel agencies and tour operators, and scientific and consulting services relating to offshore 
oil and gas exploration.  Namibia committed to having no limitations on market access and national WT/TPR/S/222/NAM Trade Policy Review 
Page 258 
 
 
treatment for these services for all four modes of s upply.  It did not participate in the extended GATS 
negotiations on basic telecommunications (Fourth Prot ocol) or financial services (Fifth Protocol). 
(i) Telecommunications and post 
212. In 2007, there were some 138,100 landline phones in Namibia and 800,300 mobile phones;  
about 86% of Namibia's land area was covered by the mobile networks.  All connections are now 
digital, with core fibre-optic links between most centr es.  In addition, there is a fibre-optic cable to all 
neighbouring countries.  Namibia is connected to the South Africa Telecommunications Cable 
(SAT-3) submarine cable, through South Africa, and w ill be connected directly to the planned West 
Africa Cable System (WACS);  Telecom Namibia and MTC of Namibia will participate.   
213. At present, the state-owned Telecom Namibia,  which was set up in 1992, has a monopoly on 
land-line communications.  Telecom Namibia also pr ovides mobile services using wireless CDMA.  
There are two dedicated mobile telecommunications companies in operation.  Mobile Telecommunications Limited (MTC) was established in 1995 as a joint venture between the Government (51% holding) and two Swedish companies (Telia  Overseas AB and Swedfund 
International AB).  In May 2004, the Swedish companies disposed of their holdings and the  
Government became the sole owner.  In Sept ember 2006 it sold 34% of MTC shares and ceded the 
management contract to Portugal Telecom.
109  In March 2007, the second mobile operator, Cell One, 
launched its operations.  Cell One is wholly owne d by Telecel Globe, which is wholly owned by 
Orascom Telecom, a telecommunications company based in Egypt.110  
214. The Namibian Government's basic policy outline for the sector was set out in Namibia Vision 
2030, and further elaborated in the draft Te lecommunications Policy for Namibia and the 
Communications Bill.111  In general terms the Government's policy is to increase competition and to 
change the direction of regulation.  The Minist ry of Information, Communication, and Technology 
will be responsible for public policy and establishi ng the legal framework for the sector, which will be 
developed in consultation with other stakeholders.112  The proposed legislation would create a 
regulatory authority responsible for issuing operating licences, promoting competition between 
service providers and operators, and ensuring complian ce with the legal framework.  As  the customer 
base is relatively small and popul ation density is low, the national policy emphasises the need to:  
ensure competition;  make investment sufficiently attractive;  and encourage provision of services at 
reasonable cost in remote areas.  The envisaged licensing regime would be technically neutral and 
move away from the former division between fixed versus mobile communications.  It foresees 
licences for electronic commercial services (telecommunications and broadcasting) and electronic 
commercial network services (networks and facilities).  
215. The state-owned NamPost has a monopoly over pos tal, but not courier, services.  There are 
over 100 post offices in Namibia, and NamPost has a bout 700 employees.  Under the current draft of 
the Information Communications Bill 2008, the comm unications Regulatory Authority would be able 
                                                      
109 MTC online information, "About MTC".  Vi ewed at: http://www.mtc.com.na/about_mtc.php. 
110 Cell One online information, "The Company Ownership Structure".  Viewed at:  
http://www.cellone.com.na/corporate/structure.htm;  a nd Orascom Telecom online information, "Welcome to 
Orascom Telecom".  Viewed at:  http://www.oras comtelecom.com/about/Contents/default.aspx?ID=765. 
111 Office of the President (2004), pp 77-82;  Namibian Communications Commission (2008);  and 
Information Communications Bill 2008.  Viewed at:  http://www.ncc.org.na/admin/data/Publications/ICT% 
20Communication%20Bill%202008.pdf [June 2009]. 
112 The Ministry of Information, Communication, and Technology was created in April 2008 and took 
over responsibilities for telecommunications, broadcasting, and information technology from the former Ministry of Information and Broadcasting. SACU-Namibia  WT/TPR/S/222/NAM 
 Page 259 
 
 
to issue new licences for postal services provided by  other entities.  Currently, courier services may be 
provided by any company registered with  the Ministry for Trade and Industry. 
(ii) Financial services 
216. Namibia has a well developed financial system;  the Bank of Namibia (the country's central 
bank) regulates the commercial banks, and the Nami bia Financial Institutions Supervisory Authority 
(NamFISA) regulates the non-banking financial indus try, including the Stock Exchange.  There are 
four commercial banks;  three are subsidiaries of South African banks113 and 73% of the fourth114 is 
held by Capricorn Investment Holdings of Namibia.115  All four offer a broad range of financial 
services to both corporate and private clients alt hough mortgages are the largest single part of the 
banks' loan portfolios.  
217. There are four state-owned specialized financial institutions, which are not supervised by the 
Bank of Namibia and are audited by external auditors appointed by their Boards of Directors or by the 
Ministry of Finance:  Postoffice Savings Bank, which offers deposit but not loan services, has 120 outlets around the country.  It is entitled to ex empt deposit interest income from tax, which gives 
it some advantage over the commercial banks;  Agribank, which supports agriculture through 
short- and medium-term loans.  Agribank does not take deposits from th e general public;  the 
Development Bank of Namibia (DBN), establishe d by the Development Bank of Namibia Act 
(No. 8 of 2002), offers businesses start-up capital and finance for expansi on;  and the National 
Housing Enterprise (NHE), established by the Na tional Housing Enterprise Act (No. 5 of 1993), 
works with the Ministry of Regional and Local Government and Housing and the local authorities to 
provide loans for purchase of housing and to build low-cost housing for sale.   
218. The Bank of Namibia licenses all banks.  Banking licence applications must meet statutory 
requirements, such as a minimum capital requirement  of N$10 million or an equivalent amount in 
terms of risk-weighted assets determined by the Bank of Namibia;  be from f it and proper persons;  be 
financially viable;  set out the structure and shar eholding of the applicant;  and have permission from 
the home country's prudential supervisor.  Ther e are no restrictions on the number of banking 
licences, nor state involvement in the licensing process.  Under the banking law, foreign branches are 
not allowed;  however, amendments  currently under way would allow foreign branches to operate in 
Namibia.  The Namibian banking sector has high gro ss margins and, while the banks still have largely 
unexploited economies of scale, it is more pr ofitable than in neighbouring countries. 
219. The Bank of Namibia Banking Supervision Divisi on is responsible fo r prudential regulation 
of the banking system.  The legislative bases for the Bank and its role and responsibilities are 
contained in, inter alia :  Currency and Exchanges Act (No. 9 of 1933);  Prevention of Counterfeiting 
and Currency Act (No. 16 of 1965) ;  Banking Institutions Act (No. 2 of 1998);  Payment Systems 
Management Act (No. 18 of 2003);  and Fi nancial Intelligence Act (No. 3 of 2007). 
220. The legislation helps the Bank of Namibia to oversee its responsibilities in four key areas: 
financial stability; banking supervision; payment systems oversight; and the financial intelligence 
system.  The stability of Namibia's financial system has not been as severely tested by the global financial crises as those of other, sometimes much  wealthier, countries.  Reports by the Bank of 
Namibia and the IMF, conducted in 2006 and 2007, concluded that the financial system did not 
                                                     
 
113 Standard Bank of Namibia, NedBank Namibia, and First National Bank of Namibia. 
114 Bank Windhoek. 
115 Capricorn Investment Holdings online inform ation.  Viewed at http://www.cih.com.na/ 
index.php?id=14 [July 2009]. WT/TPR/S/222/NAM Trade Policy Review 
Page 260 
 
 
appear to be under any serious threats although more  needed to be done in terms of assessing the 
non-banking financial sector.116 
221. The Bank of Namibia intends to complete implementation of Basel II standardized 
approaches in 2009.  As from 1 July 2009, the banks  in Namibia begin with a transition period of 
parallel-run for six months intended to give the ba nks and the regulator the confidence that all banks 
will be able to use the Basel II capital adequacy cal culations before going live on 1 January 2010.   
222. The Bank of Namibia introduced its real-time gr oss settlement (RTGS) system, the Namibian 
Interbank Settlement System (NISS), in June 2002 .  On 10 November 2003, the Bankers Association 
of Namibia (BAN) in conjunction with the Bank of Namibia established an Automated Clearing 
House, Namclear Pty Ltd.  Namclear went live with Electronic Funds Transfer (EFT) System in 
June 2004.  During September 2005, the BAN togeth er with the Bank of Namibia implemented a 
multi-bank electronic Cheque Processing  System (CPS) enabling electronic code-line-clearing of cheques.  The Cheque Processing System provide cheque processing, imaging, reporting and fine 
sorting of paper functionalities, replacing the manual cheque clearing system.  
223. The Namibian banking industry implemented NAM SWITCH during 2008:  implementation  
was phased because of the nature of payments, faci lities, and the complexity of systems involved.  
The automated teller machine (ATM) system went  live on 21 April 2008, and the point-of-sale (POS) 
system on 16 November 2008.  Through the implementation of an EFT system in 2004 and NAMSWITCH in 2008, the Namibian banking industry achieved the objective of removing the Namibian inter-bank domestic EFT and card transactions from the South African payment system, so 
that they are cleared locally and settled in the Na mibia Inter-bank Settlement System (NISS), in order 
to manage and control domest ic exposures and risks.   
224. On 28 March 2008, the Bank of Namibia issued a Directive requesting all banking institutions 
to implement the necessary operational and infrastruct ure changes to reduce the cheque-clearing cycle 
to five days nationally.  Under the previous system the cycle could take  more than ten days in some of 
the more remote areas. 
225. Non-bank financial intermediari es are supervised by NamFISA, created in 2001.  They 
includes pension funds, insurance companies, assets managers, capital markets, and microlenders.  
Although the IMF stated that current legislation is a ppropriate in the short-term, it also suggested that 
changes are needed, particularly in areas covering asset managers, money market unit trusts, and  
unit-linked insurance policies and products.
117     
226. There were about 500 pension funds in 2006, most  run by external fund administrators.  In 
2004, the largest administrator was Alex Forbes,  with 60% market share and the Government 
Institutions Pension Fund (GIPF) was the largest f und, with about 73% of total pension fund assets.  
There are a number of insurance companies operating in both the long- and short-term sectors but the 
top three insurers account for over 80% of total gr oss premiums in each sector.  Reinsurance services 
are provided through the state-owned NamibRe. 
227. Pension funds and insurance companies are obliged to invest at least 35% of the total value of 
their investments in Namibia, although this incl udes investment in companies that are dual listed on 
                                                      
116 Bank of Namibia (2008b);  and IMF (2007). 
117 IMF (2007). SACU-Namibia  WT/TPR/S/222/NAM 
 Page 261 
 
 
the Namibian Stock Exchange (NSX).  It has also b een reported that they are obliged to invest 5% of 
the total value of investments in unlisted companies (starting at 2% in 2008 rising to 5% by 2010).118  
228. Although increasing, there is little interbank trad ing in Namibia as this is done mostly in 
South Africa between the parent ba nks.  However, with the developm ent of the domestic payment and 
clearing systems, interbank transactions are increasing .  On the other hand, th ere is a well developed 
market in government securities, which the Govern ment and the Bank of Namibia encourage through 
issuing longer term bonds and consolidati ng small issues through switch auctions.  
229. The Namibian Stock Exchange (NSX) started tradin g in late 1992.  It lists about eleven local 
companies and several dual listed, mostly South Afri can, companies with operations in Namibia.  The 
NSX uses the same trading and information syst ems as the Johannesburg Stock Exchange.  Most 
capitalization is for finance and mining companies.  Given the relatively small size of the Exchange, it 
operates with minimum non-negotiable commissions, which are slightly higher than the commissions 
charged by brokers on the Johannesburg Securities Exchange. 
(iii) Transport 
230. The transport subsector is dominated by the state-owned TransNamib Ltd.  It has a monopoly 
in rail transport services through its subsidiary, Tran sNamib Rail;  it also operated the national airline, 
Air Namibia, until 1 April 1999.  Transnamib is a major supplier of road transport freight and 
passenger services through TransNamib Carriers.  An other state-owned enterprise, NamPort, operates 
the two main ports, Walvis Bay and Lüderitz.  The De partment of Transport of the Ministry of Works, 
Transport and Communication is responsible for fo rmulating and implementing transport policies.  
(a) Road 
231. Namibia has an extensive and well maintained road network.  Unpaved roads predominate 
while paved roads link all major towns.  In 2009, out of a total of 44,425 km of road, 6,199 km are paved, 24,994 km are gravel road, and 10,637 are ear th road;  the remainder are proclaimed road, and 
salt road along the coast.
119  
232. Public policy and legislation relating to th e road network and road charges are the 
responsibility of the Ministry of Works and Transport.   The development of plans for the construction, 
improvement, and maintenance of roads is the respon sibility of the Roads Authority, which contracts 
private-sector entities to carry out the work.  Wh ile tenders are open to all applicants, local 
partnerships are encouraged.  Funding for roads is provided through the Road Fund Administration, which is responsible for the collection and distribu tion of various road-user charges, including:  the 
annual vehicle registration and licence fee on Namibian  registered vehicles; fuel levies on petrol and 
diesel used for driving on public roads;  cros s-border charges on vehicles entering Namibia;  
mass-distance charges on heavy vehicles, based on the weight of the vehicle and the distance it is to 
travel; and fines for breaches of laws.   
233. Namibia is an important outlet to the sea for th e landlocked countries of the interior and, to 
some extent, this is reflected in road developmen t.  The Transcaprivi highway, which opened in 1999, 
runs from Rundu in north eastern Namibia, through th e Caprivi Strip to the Zambezi River at Katima 
Mulilo.  There, a major road bridge, completed in 2004, links the Transcaprivi Highway to Zambia's 
road network.  The Highway is a section of the Walvis Bay-Ndola-Lubumbashi corridor linking 
                                                     
 
118 Mwinga, M (2008). 
119 Roads Authority online information, "Road Length Statistics".  Viewed at:  http://www.ra.org.na/ 
RoadNetwork.html [12 February 2009] and updated by the national authorities. WT/TPR/S/222/NAM Trade Policy Review 
Page 262 
 
 
Zambia and eastern Democratic Republic of the Congo  to the deep water port of Walvis Bay.  The 
Trans-Kalahari highway from Walvis Bay, via Windhoek, to Francistown in Namibia provides an 
important route between Walvis Bay and Botswa na.  To accelerate customs formalities at the 
Botswana border, authorities have agreed to impl ement fast-track customs procedures for registered 
haulage operators on a trial basis.  Following a su ccessful pilot scheme in the Trans-Kalahari route, 
harmonized customs procedures and a Single Administrative Document (SAD 500) have been implemented between all SACU members and are being adopted by other countries in the region 
(Chapter III(2)(i)).
120  
234. Road transport consists of bus , taxi, and road haulage opera tors.  About 200 road haulage 
operators use some 1,700 trucks and a freight cap acity of around 31,000 tonnes.  The state-owned 
TransNamib Carriers, the largest operator, operates without direct state support.  All other operators 
are private; four are relatively large.  Operator s must be registered with the Namibian Traffic 
Information System and have an operator's card.  Commercial road carriers no longer require permits 
to carry certain goods, although permits are needed for cross-border transport.  Freight rates are set 
privately.  
235. Bus operators service inter-urban and long-di stance routes, including with South Africa.  
There are currently about 15 operators using some 100 buses.  Four operators, including TransNamib 
Carriers, run scheduled bus services between Windhoek, Keetmanshoop, and Swakopmund.  Fares are 
market determined, and there are no restrictions on new operators, apart from technical requirements.  
Private operators are not subsidized.  Some bus ope rators provide tour services, including the state-
owned Transnamib Tours.  There are about 5,000 taxi s in Namibia, mainly owner-driven;  about half 
operate in Windhoek.  There is no restriction on th e number of taxis, provided they meet safety and 
other technical requirements. 
236. The Namibia Traffic Information System (NaTIS) is responsible for licensing vehicles for 
road worthiness as well as driver testing while the Road Transport Board considers applications for 
licences for goods haulage and passenger transport. 
(b) Rail 
237. The bulky nature of much of Namibia's expor ts and the long distances between centres of 
population mean that rail remains the major mode of  transport for bulk goods.  There are 2,628 km of 
narrow gauge lines in Namibia.  The state-owned hol ding company TransNamib is responsible for the 
rail network as well as for rail and road passenger and freight services.  It is the only rail service 
provider in Namibia and owns the locomotives and ca rriages while the State owns the rail network.  
The Namibian railway network is linked only with S outh Africa, although there are plans to link with 
Angola, which has the same railwa y gauge.  The Namibian authorities also state that there are plans 
for a rail link by the Transkalahari corridor, which would require about 800 km of rail to be built and 
could include a spur to Lüderitz.  The World Bank has given approval for a feasibility study under the 
Public-Private Infrastructure Advisory Facility (PPIAF). 
(c) Sea 
238. Namibia has two major ports:  the main one is at  Walvis Bay and the other at Lüderitz.  Both 
are administered by the parastatal Namibian Ports Authority (NamPort).  Car go levels have continued 
to increase substantially, with Lüderitz handling about 200,000 tonnes annually  and Walvis Bay some 
4.7 million tonnes.  There are plans to upgrade Walv is Bay by deepening the harbour to increase its 
                                                      
120 USAID Southern Africa Global Competitiveness Hub online information, "Speeding up Customs 
Clearances".  Viewed at:  http://www.satradehu b.org/index.php?id=1448 [12 February 2009]. SACU-Namibia  WT/TPR/S/222/NAM 
 Page 263 
 
 
capacity to handle Panamax ships.  Lüderitz was traditionally a fishing port but now also caters for the 
offshore diamond mining industry. 
239. Walvis Bay handles imports and exports into Namibia and the land-locked countries of the 
interior.  Imports of mining equi pment and consumer goods and expor ts of minerals are the main 
activities.  The Walvis Bay Corridor Group, a public -private partnership, was established to promote 
the the use of the different transport corridors linki ng Walvis Bay with inland centres and other ports 
in the region.  
240. A number of private companies provide liner servi ces.  There are about five private freight 
forwarders.  There are no controls on entry into sh ipping, or cabotage restrictions.  Foreign vessels 
may operate domestic services between Walvis Bay and Lüderitz without a permit, provided they 
meet sea worthiness requirements;  inspections are the responsibility of the Directorate of Maritime 
Affairs.  According to the authorities, Nami bia does not subsidize shipping services.   
(d) Air 
241. Air Namibia provides scheduled domestic and re gional services and international flights to 
Germany, and South Africa.  A number of intern ational airlines provide regular services to Windhoek 
under various agreements.  Most foreign carriers have  third and fourth freedom rights.  Namibia is a 
signatory of the Yamoussoukro Decision relating to  the liberalization of access to air transport 
markets in Africa.  In line with the Decision, it h as signed reciprocal agreements with South Africa, 
Zambia, Republic of Congo, Zimbabwe, and the United Kingdom.   
242. Namibia acceded to the Convention on Intern ational Civil Aviation with effect from 
30 May 1991.  The primary aviation legislation in  Namibia is the Aviation Act (No. 74 of 1962), 
which has been amended several times.  The Air ports Company Act (No. 25 of 1998) amended the 
1962 Act by providing for the commercialization of  the eight major airports.  These airports are 
owned and operated by the state- owned Namibia Airports Company.   There are two international 
airports: Hosea Kutako near Windhoek;  and Walvis Bay. 
243. Plans to privatize Air Namibia, following substantial financial losses and Government 
recapitalization (of N$346 million in 2001/02 and N $250 million in 2002/03) fell through after the 
National Union of Namibian Workers withdrew its support.  The airline continues to operate as a 
national entity and continues to lo se money (N$200 million in 2004/05). 
(iv) Tourism 
244. Tourism makes a considerable contribution to  Namibia's GDP and employment.  In 2008, 
tourism and travel are thought to have directly c ontributed 3.1% to GDP and employed 18,995 people 
(4.5% of total employment).  Including the indirect effects of travel and tourism brings the total contribution to 13.6% to GDP and 74,461 people (17.6% of total employment).
121   
245. In Namibia's Schedule of Specific Commitments under the GATS there were no restrictions 
on any mode of supply related to market access or  national treatment for hotels and restaurants or 
travel agencies and tour operators' services.   
                                                      
121 World Travel and Tourism Council online information, "Tourism Research:  Tourism Impact Data 
Forecasting Tool:  Database".  Viewed at:  http:// www.wttc.org/eng/Tourism_Res earch/Tourism_Impact_Data_ 
and_Forecast_Tool/index. php [July 2009].  WT/TPR/S/222/NAM Trade Policy Review 
Page 264 
 
 
246. Government policy is based on the White Pa per on Tourism, approved in 1994, and the 
National Tourism Policy, approved by the Cabinet in December 2008.  The Ministry of Environment 
and Tourism is responsible for tourism policies.  In 1999, under the Wildlife Resorts Company Act 
(No. 3 of 1998), the parastatal Namibia Wildlife Resorts took over from the Ministry the management 
of the 22 tourist resorts in protected areas.  A lthough these are fully owned by the Government, they 
are managed commercially.  Other tourism facilitie s are privately owned.  The Namibian Tourism 
Board was established in 2000 under the Namibia Tour ism Board Act (No. 21 of  2000) to regulate the 
industry, promote Namibia as a tourist destination, and to assist in formulating tourism policies.  The Board regulates the industry by setting a nd enforcing minimum standards.   
247. The Government does not regulate prices; these are market determined.  Taxation of tourist 
providers follows the normal provisions for taxation, i.e. companies or closed corporations pay 34% 
tax on profits while sole proprieto rs and partnerships pay income  tax at the standard rates. 
248. Tourist arrivals have increased over the y ears and reached 928,912 in 2007, up from 780,000 
in 2004.  Most visitors are from neighbouring A frican countries, particularly Angola (36%) and 
South Africa (30%).  The rest are mainly from Eu rope, especially Germany (8%) (Table IV.8).  
Table IV.8 
Tourism indicators, 2003-07 
 2003 2004 2005 2006 2007 
Direct employment 16,940 18,094 18,475 18,840 18,851 
Number of tourists by nationality      
South Africa 222,009 .. 230,949 239,886 250,038 
Angola 222,752 .. 281,365 278,058 336,045 
Germany 58,036 .. 61,222 68,214 80,418 
United Kingdom 19,291 .. 20,978 24,736 28,214 
United States 11,775 .. 11,979 16,325 19,342 
Total 695,221 .. 777,890 833,345 928,912 
Mode of travel      
Air .. .. 185,348 217,151 245,568 
Road .. .. 586,846 608,404 677,057 
Rail .. .. 2,009 2,170 64 
Sea and river .. .. 3,446 3,116 6,190 
Other .. .. 242 2,505 33 
.. Not available. 
Source:  World Travel and Tourism Council online information, "Tourism Research:  Tourism Impact Data Forecasting 
 Tool: Database".  Viewed at http://www.wttc.org /eng/Tourism_Research/Touris m_Impact_Data_and_Forecast_ 
 Tool/index.php [July 2009];  and Namibia Tourism Board on line information, "Trade St atistics".  Viewed at: 
 http://www.namibiatourism.com.na/trad e_cat_sub.php?sub_cat_id=32 [June 2009]. SACU-Namibia  WT/TPR/S/222/NAM 
 Page 265 
 
 
REFERENCES 
Bank of Namibia (2004), Annual Report , Windhoek.   
Bank of Namibia (2008a), Annual Report , Windhoek. 
Bank of Namibia (2008b), Quarterly Bulletin , September, Windhoek. 
Bank of Namibia (2009), Quarterly Bulletin , June, Windhoek. 
Basu, A. and Srinivasan, K. (2002), Foreign Direct Investment in Africa:  Some case Studies , IMF 
Working Paper WP/02/61.  Viewed at:  http ://www.imf.org/external/pubs/ft/wp/2002/wp0261.pdf. 
Central Bureau of Statistics/National Planning Commission (2008), National Accounts 2000-2007, 
October, Windhoek.  
Clark A., Davis M., Eberhard A., Gratwick K., and Wamukonya N. (2005), Power sector reform in 
Africa:  assessing the impact on poor people,  A study managed by the Graduate School of Business, 
University of Cape Town for ESMAP/World Bank,  March.  Viewed at:  http://www.gsb.uct.ac.za/ 
gsbwebb/mir/documents/ESMAP%20Pow er%20Sector%20Reform%20Africa.pdf. 
Deloitte and Touche (2001), Report On a Governance Policy Framework for State-Owned 
Enterprises in Namibia , Submitted to Cabinet, 25 October, New York. 
Development Bank of Namibia (2007), Annual Report 2007:  Enabling Sustainable Progress .  
Viewed at:  http://www.dbn.com.na/index.php?opti on=com_content&view=article&id=27&Itemid=6  
[June 2009]. 
EIU (2008), Country Report:  Namibia , July, London. 
EIU (2009), Country Report:  Namibia , June, London. 
European Commission (2009), Fact sheet on the interim Economic  Partnership Agreements, SADC 
Group , January, Brussels. 
FAO (2004), Draft Country Report:  Namibia:  State of Farm Animal Genetic Resources , compiled by 
J.F. Els, Section 2.3.  Viewed at:  ftp://ftp .fao.org/docrep/fao/011/a 1250f/annexes/CountryReports/ 
Namibia.pdf. 
Hansohm D., Motinga D., Schade K., Werner W., and Wiig A. (1999), Policy, poverty, and inequality 
in Namibia:  the cases of trade policy and land policy , NEPRU Research Report No. 18, September, 
Windhoek. 
IMF (2007), Namibia:  Financial System Stability Assessm ent, including Report on the Observance of 
Standards and Codes of Banking Supervision , Country Report No. 07/83, February, Washington D.C.  
IMF (2008a), Namibia:  Selected Issues and Statistical Appendix , Washington D.C. 
IMF (2008b), Namibia:  Staff Report for the 2007 Article IV Consultation , Washington D.C. 
IMF (2008c), World Economic Outlook , April, Washington D.C. WT/TPR/S/222/NAM Trade Policy Review 
Page 266 
 
 
Institute for Public Policy Research (2004), More Openness Plus Accountability:  The Missing 
Calculus of Financial Sustainability Within Namibian Parastatals , Windhoek. 
Ministry of Agriculture, Water, and Forestry (2007), National Agricultural Policy, Partnerships and 
Programmes:  Delivering growth with equity for Vision 2030, Final Draft, August, Windhoek. 
Ministry of Agriculture, Water, and Forestry (undated), Import Quotas and Permits for Rebated 
Commodities within the Southern Afric an Customs Union's Common Custom Area .  Viewed at: 
http://www.mawf.gov.na/Documents/importquotas.pdf [May 2009]. 
Ministry for Agriculture, Water, and Rural Development (1995), National Agricultural Policy , 
Presented as a White Paper to Parliament, Octo ber.  Viewed at:  http://www.mawf.gov.na/ 
Documents/National%20Agricultural%20P olicy_NAMIBIA_1995.pdf [June 2009]. 
Ministry of Agriculture, Water, and Rural Development (2004), Re:  Importation of Animals and 
Animal Products into Namibia , Ref V13/1/3/2/1/2, Windhoek. 
Ministry of Mines and Energy (2008), Annual Report 2007/8 , Windhoek. 
Ministry of Mines and Energy (undated), Minerals Policy in Namibia , Windhoek . 
Mwinga, M. (2008), Namibia:  Global Financial Crises and the Future of the Economy:  New Era , 
December, Windhoek.  Viewed at:  http//:allafrican.com/stories/200812120452.html. 
Namibia Chamber of Commerce and Industry (2008), NCCI 2007 Macroeconomic Review , 
Windhoek.  
Namibia Nature Foundation (2004), The National Forest Facility Programme , Windhoek. 
Namibian Agronomic Board (2007a), Annual Report:  1 April 2006 to 31 March 2007 .  Viewed at:  
http://www.nab.com.na/docs/ annual_report_06_07.doc. 
Namibian Agronomic Board (2007b), Import Procedures , August, Windhoek.  
Namibian Communications Commission (2008), Telecommunications Policy for the Republic of 
Namibia 2008 , Final Draft, 18 September Viewed at:  http://www.ncc.org.na/admin/data/Publications/ 
Telecommunications%20Policy%20Final%20draft.pdf. 
National Planning Commission (2007), First Draft of the  Third National Development Plan (NDP3) 
2007/08-2011/12 , 15 October .  Viewed at:  http://www.npc .gov.na/docs/ndp3info.htm 
[February 2009]. 
National Planning Commission (2008), Third National Development Plan (NDP3)              
2007/2008- 2011/12 , Volume I Executive Summary, 15 Octobe r.  Viewed at:  http://www.npc.gov.na/ 
docs/NDP3_Executive_Summary.pdf [June 2009]. 
Office of the President (2004), Namibia Vision 2030: Policy Framework for Long-term National 
Development Main Document , Windhoek. 
UNCTAD (2008), World Investment Report 2008 , Geneva. SACU-Namibia  WT/TPR/S/222/NAM 
 Page 267 
 
 
Weatherly International Plc (2009), Quarterly Update for the Period Ended 30 March 2009 , London. 
World Bank (2008), Namibia at a glance , September.  Viewed at:  http://devdata,worldbank.org/ 
AAG/nam_aag.pdf. 
WTO (2003), Trade Policy Review:  SACU , Geneva.   
 APPENDIX TABLES 
 SACU-Namibia  WT/TPR/S/222/NAM 
 Page 271 
 
 
Table AI.1 
Structure of exports, 2001-07 
(US$ million and per cent) 
  2001 2002 2003 2004 2005 2006 2007 
Total (US$ million) 1,404.5 1,282.9 1,303.7 2,441. 7 2,503.6 3, 374.6 4,040.3 
                
  (per cent) 
                
Total primary products 46.9 49.3 57.5 49.5 43.9 52.3 59.0 
   Agriculture 37.1 38.0 49.3 28.7 32.1 26.2 24.1 
      Food 36.1 37.0 48.0 28.0 31.4 25.6 23.6 
         0342  Fish, frozen (excluding fillets and 
 minced fish) 15.3 13.5 16.4 5.2 7.4 9.7 7.9 
         1123  Beer made from malt (including ale, 
 stout, and porter) 3.1 3.2 4.2 2.4 3.1 2.5 2.7 
         0011  Bovine animals, live 0.8 0.7 1.5 1.5 2.7 2.0 1.7 
         0344  Fish fillets, frozen 3.9 4.4 5. 0 3.3 3.0 1.4 1.5 
         0121  Meat of sheep or goats 0.4 0.4 0.6 0.8 1.7 1.1 1.2 
         0112  Bovine meat, frozen 1.3 0.9 1.4 1.3 1.5 1.2 1.0 
         0111  Bovine meat, fres h, chilled 0.6 0.4 1. 3 1.5 1.7 1.1 1.0 
         0575  Grapes, fresh or dried 0.3 0.5 0.6 0.8 1.0 0.9 0.9 
      Agricultural raw material 0.9 1.0 1.3 0.7 0.7 0.6 0.5 
   Mining 9.9 11.3 8.2 20.8 11.8 26.1 34.9 
      Ores and other minerals 8.5 10.4 5.1 12.9 4.0 9.3 15.5 
         2861  Uranium ores and concentrates 7.3 9.0 2.2 0.8 0.0 4.8 8.7 
         2771  Industrial diamonds, sorted, whether or 
 not worked 0.0 0.0 0.0 0.4 1.8 2.3 2.5 
      Non-ferrous metals 0.7 0.2 2.1 7.3 7.4 16.4 19.0 
         6861  Zinc and zinc allo y, unwrought 0.0 0.0 0.0 0.0 2.1 11.8 15.3 
         6821  Copper anodes;  allo ys;  unwrought 0.6 0.0 0.0 2.9 3.5 4.4 3.5 
      Fuels 0.7 0.7 1.0 0.5 0.4 0.5 0.4 
Manufactures 50.8 48.1 40.0 48.5 54.0 45.9 39.1 
   Iron and steel 0.1 0.2 0.6 0.2 0.2 0.1 0.1 
   Chemicals 0.5 0.8 0.9 3.1 6.4 3.1 2.2 
         5251  Radio-active chemicals/compounds, 
 etc. 0.0 0.0 0.0 2.2 5.8 2.6 1.7 
   Other semi-manufactures 33.6 36.0 14.4 30.4 30.3 28.2 19.2 
         6672  Diamonds (excl. industrial, sorted) not 
 mounted/set 31.9 33.1 10.8 28.0 28.3 26.7 17.4 
   Machinery and transport equipment 3.9 5.8 8.6 5.5 5.4 3.6 6.9 
      Power generating machines 0.2 0.3 0.3 0.2 0.1 0.1 0.1 
      Other non-electrical machinery 0.8 1.5 1.5 1.0 1.4 0.9 0.8 
         Agricultural machinery and tractors 0.0 0.1 0.1 0.0 0.1 0.0 0.1 
      Office machines and telecommunication 
equipment 0.4 0.7 2.2 0.7 0.6 0.5 0.5 
      Other electrical machines 0.4 0.7 1.0 0.5 0.4 0.3 0.3 
      Automotive products 1.2 1.9 2.6 2.4 1.7 1.3 1.9 
         7812  Motor vehicles for the transport of 
 persons, n.e.s. 0.6 1.0 1.4 1.2 0.8 0.8 1.2 
      Other transport equipment 0.8 0.6 1.0 0.6 1.2 0.6 3.4 
         7935  Special purpose vessels;  floating 
 docks 0.0 0.0 0.0 0.0 0.0 0.0 2.0 
         7937  Tugs and pusher craft 0.0 0.0 0.0 0.0 0.0 0.0 0.9 
   Textiles 0.2 0.3 0.5 0.3 0. 3 0.3 0.2 
   Clothing 0.5 0.1 0.2 2.8 1.1 0.7 0.3 
   Other consumer goods 12.0 4.9 14.8 6.3 10.2 10.0 10.1 
         8928  Printed matter, n.e.s. 11.0 2.4 11.3 4.4 8.6 8.7 8.8 
Other 2.3 2.6 2.4 2.0 2.1 1.8 1.9 
   Gold 1.8 2.0 1.9 1.1 1.4 1.4 1.4 
Source:   WTO Secretariat calculations, based on UNS D, Comtrade database (SITC Rev.3 data). 
 WT/TPR/S/222/NAM Trade Policy Review 
Page 272 
 
 
Table AI.2 
Destination of exports, 2001-07 
(US$ million and per cent) 
  2001 2002 2003 2004 2005 2006 2007 
Total (US$ million) 1,404.5 1,282.9 1,303.7 2,441. 7 2,503.6 3, 374.6 4,040.3 
                
  (per cent) 
                
  America 3.2 4.0 4.0 10.4 12.7 6.3 7.5 
    United States 3.0 3.2 2.7 8.0 9.2 2.4 2.5 
    Other America 0.2 0.8 1.3 2.4 3.5 3.9 5.0 
      Canada 0.0 0.3 1.0 2.2 3.2 3.8 4.9 
                
  Europe 55.7 50.2 31.1 43.8 37.1 46.3 45.6 
    EC(25) 55.5 48.5 29.9 43.3 36.7 45.5 44.7 
      United Kingdom 35.3 24.6 10.4 21.7 20.5 25.6 16.9 
      Italy 1.7 1.8 1.8 1.7 2.5 7.2 14.1 
      Spain 13.1 12.1 12.8 6.8 7.2 6.0 6.0 
      France 1.8 6.4 1.8 10.2 0.6 1.6 2.6 
      Germany 0.9 1.1 1.1 1.5 3.7 3.2 2.5 
      Netherlands 1.4 1.3 1.1 0.9 1.4 1.1 1.9 
      Belgium 0.5 0.6 0.5 0.3 0.4 0.4 0.3 
      Portugal 0.3 0.3 0.2 0.2 0.2 0.2 0.3 
    EFTA 0.2 1.7 1.2 0.4 0.4 0.7 0.8 
      Switzerland 0.0 0.3 0.5 0.2 0.3 0.7 0.7 
    Other Europe 0.0 0.1 0.0 0.0 0.0 0.1 0.1 
                
  Commonwealth of Independent States  (CIS) 0.1 0.2 0.5 1.1 0.1 0.1 0.1 
                
  Africa 38.8 42.4 61.4 38.0 41.5 33.5 38.2 
      South Africa 30.9 25.4 31.5 25.8 30.5 24.6 29.0 
      Angola 5.8 14.5 24.9 9.7 7.2 5.7 6.5 
      D.R. Congo 0.3 0.0 0.0 0.4 0.5 1.3 1.1 
      Botswana 0.5 0.5 0.7 0.5 0.5 0.4 0.5 
      Mozambique 0.1 0.1 0.1 0.4 0.7 0.6 0.4 
      Zambia 0.1 0.0 0.0 0.4 0.5 0.2 0.3 
                
  Middle East 0.2 0.3 0.2 0.2 2.2 3.3 2.7 
      Israel 0.1 0.0 0.0 0.2 1.5 1.8 2.1 
      United Arab Emirates 0.0 0.0 0.0 0.0 0.6 1.2 0.6 
                
  Asia 1.7 2.6 2.0 3.7 6.4 10.4 5.7 
    China 0.5 0.3 0.4 1.3 1.8 1.5 3.0 
    Japan 0.7 1.3 0.6 0.7 1.1 1.2 0.4 
    Six East Asian traders 0.1 0.5 0.5 1.2 3.0 5.8 2.0 
      Korea, Rep. of 0.0 0.0 0.0 0.4 1.2 2.0 1.7 
    Other Asia 0.4 0.5 0.5 0.5 0.5 1.9 0.3 
      Australia 0.2 0.4 0.4 0.2 0.4 0.2 0.2 
                
  Other 0.3 0.3 0.7 0.0 0.1 0.1 0.1 
Source:   WTO Secretariat calculations, based on UNS D, Comtrade database (SITC Rev.3 data). SACU-Namibia  WT/TPR/S/222/NAM 
 Page 273 
 
 
Table AI.3  
Structure of imports, 2001-07  
(US$ million and per cent)  
  2001 2002 2003 2004 2005 2006 2007 
Total (US$ million) 1,552.9 1,310.1 1,427.9 2,424. 9 2,515.7 2, 797.0 4,026.0 
                
  (per cent) 
                
Total primary products 25.9 28.3 29.6 24.1 21.5 20.9 27.1 
   Agriculture 13.7 13.9 15.7 19.2 18.4 16.8 16.0 
      Food 13.1 12.6 15.0 18.6 17.7 16.2 15.4 
         0619  Other sugars 0.7 1.0 0.7 0.5 0.4 0.7 2.4 
         0819  Food waste, animal feeds n.e.s. 0.6 0.6 0.8 0.7 0.7 0.6 0.7 
      Agricultural raw material 0.6 1.3 0.7 0.6 0.7 0.6 0.6 
   Mining 12.1 14.4 13.9 4.9 3.0 4.0 11.1 
      Ores and other minerals 1.4 1.9 3.0 0.9 0.4 0.4 0.4 
      Non-ferrous metals 0.4 0.4 0.6 0.5 0.6 0.6 0.4 
      Fuels 10.3 12.1 10.3 3.6 2.0 3.1 10.3 
Manufactures 73.8 71.3 69.4 75.1 77.9 78.2 72.3 
   Iron and steel 1.9 2.0 2.0 2.6 2.1 2.1 1.6 
   Chemicals 10.7 8.9 8.0 11.3 10.7 10.5 9.1 
         5429  Medicaments, n.e.s. 1.2 1.2 0.9 2.7 2.2 1.8 1.4 
         5223  Inorganic acid and oxides 0.0 0.0 0.1 0.3 0.6 0.4 0.7 
   Other semi-manufactures 13.5 12.8 12.8 12.2 13.1 12.6 13.3 
         6996  Articles iron or steel, n.e.s. 0.7 0.7 0.4 0.6 0.9 1.0 2.5 
         6612  Portland cement and similar hydraulic cements 0.9 0.8 0.9 0.9 1.2 0.9 0.9 
         6924  Reservoirs, tanks, vats of iron, steel or 
 aluminium, <= 300 litres 1.1 0.9 1.1 0.8 0.8 0.8 0.7 
   Machinery and transport equipment 34.4 34.2 32.2 35.3 37.5 38.7 34.4 
      Power generating machines 0.3 0.6 0.4 0.6 0.8 0.5 0.5 
      Other non-electrical machinery 9.3 10.0 8.3 8.4 7.4 8.9 7.4 
         7232  Mechanical shovels, etc., self-propelled 0.9 0.3 0.4 0.4 0.3 0.9 0.9 
         7283  Other mineral working machines 0.7 1.1 1.0 1.1 0.9 1.0 0.8 
         Agricultural machinery and tractors 0.2 0.3 0.2 0.2 0.3 0.3 0.2 
      Office machines and telecommuni cation equipment 5.0 4.4 5.6 5.7 5.0 6.4 4.8 
         7643  Radio or television tran smission apparatus 0.8 0.5 0.7 1.1 0.7 1.0 0.9 
      Other electrical machines 4.2 4.3 4.5 3.7 3.7 3.8 3.3 
      Automotive products 11.2 9.6 10.9 13.6 14.5 13.9 11.3 
         7812  Motor vehicles for the transport of persons, 
 n.e.s. 7.7 6.4 7.2 7.7 8.6 8.7 7.1 
         7821 Goods vehicles 1.2 1.2 1.5 2.9 2.3 2.2 1.9 
         7843 Other motor vehicle parts and accessories of 
722, 781 to 783 1.6 1.3 1.3 1.9 2.0 1.8 1.5 
      Other transport equipment 4.2 5.3 2.5 3.3 6.0 5.2 7.0 
         7935  Special purpose vessels; floating docks 0.0 0.0 0.0 0.0 1.6 0.2 1.9 
         7139  Parts, n.e.s., for piston engines of 713.2, 
 713.3, 713.8 0.5 0.5 0.5 0.6 1.3 0.6 1.7 
   Textiles 1.4 2.0 3.4 1.5 1. 6 1.6 1.3 
   Clothing 3.0 2.8 2.5 3.4 3.5 3.1 3.2 
   Other consumer goods 8.9 8.7 8.6 8.9 9.4 9.6 9.3 
         8928  Printed matter, n.e.s. 1.0 1.7 1.2 0.6 0.8 0.9 1.2 
         8215  Furniture, n.e.s., of wood 0.6 0.6 0.8 0.9 0.8 0.8 0.9 
         8722  Instruments and appliances used in medical, 
 surgical or veterinary sciences (including sight 
 testing instruments, but excluding electro- diagnostic and radiological instruments and 
 apparatus) 0.3 0.2 0.2 0.3 0.4 0.4 0.7 
Other 0.4 0.4 1.0 0.7 0.6 1.0 0.6 
         9310  Special transactions and commodities not 
 classified by type 0.2 0.2 0.2 0.6 0.5 0.5 10.9 
Source:   WTO Secretariat calculations, based on UNS D, Comtrade database (SITC Rev.3 data). WT/TPR/S/222/NAM Trade Policy Review 
Page 274 
 
 
Table AI.4 
Origin of imports, 2001-07 
(US$ million and per cent) 
  2001 2002 2003 2004 2005 2006 2007 
Total (US$ million) 1,552.9 1,310.1 1,427.9 2,424. 9 2,515.7 2, 797.0 4,026.0 
                
  (per cent) 
                
  America 1.8 3.3 1.8 1.5 1.6 2.4 2.1 
    United States 0.9 2.0 1.0 0.7 0.8 1.5 1.4 
    Other America 0.9 1.3 0.8 0.8 0.8 0.9 0.7 
      Brazil 0.0 0.2 0.5 0.6 0.5 0.4 0.4 
                
  Europe 7.0 11.7 8.7 7.7 9.2 6.9 11.8 
    EC(25) 6.1 10.1 7.6 7.1 8.2 5.9 10.4 
      France 0.6 1.1 0.6 0.2 0.2 0.3 2.8 
      Spain 0.8 1.2 1.4 0.7 1.4 0.7 2.3 
      Germany 2.0 3.1 2.3 1.8 1.9 2.2 2.1 
      United Kingdom 1.2 2.6 1.2 2.6 1.1 0.8 1.1 
      Finland 0.1 0.1 0.1 0.1 0.0 0.1 0.5 
      Netherlands 0.4 0.3 0.2 0.2 0.5 0.3 0.3 
      Belgium 0.3 0.6 0.6 0.4 0.6 0.4 0.3 
      Italy 0.2 0.3 0.2 0.8 0.4 0.2 0.3 
      Sweden 0.0 0.0 0.1 0.1 0.1 0.2 0.3 
    EFTA 0.9 1.4 1.0 0.6 0.9 1.0 1.3 
      Switzerland 0.8 0.5 0.7 0.4 0.8 0.8 1.2 
    Other Europe 0.0 0.1 0.1 0.1 0.0 0.0 0.1 
                
  Commonwealth of Independent States  (CIS) 0.2 0.2 0.1 0.1 0.1 0.2 0.1 
                
  Africa 86.8 80.3 82.4 87.0 84.6 83.8 79.5 
      South Africa 86.0 77.3 80.5 85.0 83.2 82.4 78.1 
      Zimbabwe 0.4 0.2 0.5 0.8 0.8 0.7 0.5 
      Botswana 0.1 0.1 0.1 0.2 0.2 0.2 0.2 
      Swaziland 0.0 0.0 0.0 0.3 0.1 0.2 0.2 
                
  Middle East 0.3 0.4 0.8 0.4 0.4 0.6 0.9 
      United Arab Emirates 0.1 0.1 0.3 0.3 0.3 0.5 0.8 
                
  Asia 2.8 3.3 4.2 3.2 3.9 6.1 5.4 
    China 1.1 0.9 1.3 1.2 1.6 3.5 2.5 
    Japan 0.2 0.3 0.6 0.4 0.2 0.2 0.2 
    Six East Asian traders 1.2 1.5 1.7 0.6 1.0 1.2 1.7 
      Singapore 0.0 1.0 0.6 0.3 0.2 0.3 1.2 
      Hong Kong, China 0.2 0.0 0.1 0.1 0.2 0.5 0.2 
    Other Asia 0.3 0.6 0.7 1.0 1.1 1.2 1.1 
      India 0.2 0.4 0.5 0.9 0.5 0.7 0.8 
                
  Other 1.0 0.8 2.1 0.1 0.2 0.1 0.2 
      Areas n.e.s 1.0 0.8 1.1 0.0 0.2 0.1 0.2 
Source:   WTO Secretariat calculations, based on UNS D, Comtrade database (SITC Rev.3 data).