WORDS: CATHERINE SHIPUSHU AND SUPPLIED IMAGES: SUPPLIED
New World Wealth’s Africa Wealth Report 2023 says Namibia is expected to be one of Africa’s fastest growing markets, forecasting high-net-worth growth of 60%+ for the next decade (to 2032). We look at what makes investing in Namibia so attractive
Located on the southern western coast of Africa, Namibia is a land of endless horizons. With a population of 2.5 million people inhabiting 825,615 km2, the country is known for its vast spaces, offering airy experiences away from the hustle and bustle of the fast life.
For the discerning traveller, Namibia offers a plethora of exquisite sights and exhilarating activities, from sand dunes plunging down to the Atlantic Ocean at Sandwich Harbour, to the world’s second largest canyon – Fish River Canyon, to unforgettable stargazing experiences in the NamibRand Nature Reserve, the first African location to obtain International Dark Sky certification.
PRECIOUS RESERVES
Namibia is a lucrative investment destination with abundant natural resources including diamonds, uranium, copper, and gold. It has one of the largest uranium reserves in the world and is currently attracting global attention with recent oil and gas discoveries of oil reserves off the coast. “With bold ambitions of becoming the sustainable energy capital of Africa, Namibia is well on its way to becoming a major player in the global oil and energy market.
The country offers a conducive business environment anchored by advanced financial systems and a sophisticated banking sector, a strong macro economic framework, globally competitive infrastructure, and good governance, as well as a young, educated, and trainable workforce.
Namibia’s strategic location and world-class port make it an ideal gateway to over 300 million people in other African markets. Furthermore, it boasts a strong legal system that protects the rights of investors in that disputes can be settled through the courts or international arbitration. Among the significant value propositions that set Namibia apart are its safety, security and political stability, which have been maintained since the country attained independence just over three decades ago.
Catherine Shipushu is the senior manager: Marketing, Branding & Communications at the Namibia Investment Promotion and Development Board (nipdb.com).
MORE REASONS TO CONSIDER NAMIBIA
Low population density advantage
- Namibia has one of the lowest population densities in the world, with only three people per square kilometer. This is a major advantage for the following reasons:
- Water and river systems are usually cleaner and less polluted in countries with low population densities.
- Less dependence on other countries for trade and resources, as well as less competition for land within the country.
- Low population density countries tend to be wealthier (on a wealth per capita basis). Australia and Canada are good examples.
- It allows for more wild open spaces, giving wildlife the opportunity to thrive, which improves the quality of life for locals and boosts eco- tourism opportunities.
An attractive tax system
- Tax rates are relatively low in Namibia when compared to most other African markets. The top rate of income tax in the country is a relatively modest 37%, and perhaps most notably there is no estate duty or capital gains tax* in the country.
A resilient, well-run banking system
- According to the IMF, Namibia has one of the most sophisticated and highly developed financial systems in Africa.
- Both the banking system and wealth management sector in the country are closely linked to neighbouring South Africa, with South African banks dominating the local market.
- The Namibian dollar is pegged to the South African rand, which means that the country is relatively stable economically, as the South African rand is the most heavily traded currency in Africa and one of the world’s leading emerging market currencies.
A thriving eco-tourism industry
- Namibia is home to an array of wildlife, including the world’s largest remaining populations of cheetah and desert elephants.
- The eco-tourism industry, which generates around 15% of the country’s GDP, is centered in the Caprivi Strip, Damaraland, Etosha, Fish River Canyon, the Skeleton Coast, and the Sossusvlei.
- Popular top-end lodges for high-net-worth individuals include & Beyond Sossusvlei Desert Lodge in Sossusvlei, Chobe Water Villas on the Caprivi Strip, Shipwreck Lodge on the Skeleton Coast and Wilderness Damaraland Camp in Damaraland.
- Several luxury hotel groups have entered the country over the past couple of years. Perhaps most notably, Sanctuary Retreats extended its portfolio to Namibia in 2022.
- According to Birdlife International, Namibia is home to 599 bird species, which is impressively high when considering its dry climate.
- Almost 20% of Namibia is protected by national parks ó one of the highest percentages in the world.
Estate living on the rise
Estate living is gaining in popularity in Namibia, especially among wealthy expats and retirees. Possible reasons for its growing appeal include:
- Safety and security.
- A sense of community, enhanced by green spaces and childrenís playgrounds.
- Top-end facilities and activities, such as gyms, jogging paths, golf courses, tennis courts, shops and restaurants.
- The combination of safety and shared facilities make estate living particularly convenient for affluent expats who travel frequently and have homes in several countries around the world.
*Other than profits on the sale of mining and petroleum licences/rights, and the transfer of any share/interest in a company owning a mineral/petroleum licence or right, capital gains are not taxed in Namibia.
RESIDENCE BY INVESTMENT IN NAMIBIA
Considered among the safest nations in Africa (2nd after Mauritius), the democratic country of Namibia offers an impressive infrastructure and an excellent quality of life.
The Namibian government is actively seeking foreign investment to boost the country’s economic growth and diversify the economy. It provides many opportunities for international investors seeking a foothold and growth on the African continent, including tax incentives, financing and a one-stop bureau service for international companies. Namibia offers an attractive territorial tax system, which means that residents will not generally be taxed on income generated outside the country.
To gain a work permit and residence rights in Namibia, investors can acquire real estate with a minimum value of $300,000 through a company in the modern and sophisticated President’s Links Estate in Walvis Bay.
- Eco-friendly
The estate is an eco-friendly residential and golf estate, located at the edge of the Dorob National Park in Walvis Bay and offering modern and sophisticated houses and villas. The Bay of Whales in Walvis Bay is home to a pristine coastal area with high-quality fish, oysters, rock lobsters, and salt fields.
- World-class amenities
President’s Links Estate has a limited offering, with under 600 units available to investors younger than 60 years old (not recognised as retirees in Namibia) to qualify for the work permit. The estate features world-class lifestyle amenities and an environment that celebrates Namibia’s rich nature.
- Good air links
There are regular flights between Namibia and Germany, as well as many sub-Saharan cities such as Cape Town and Johannesburg, Gaborone, Harare, Luanda, and Lusaka. Several private charter companies offer regional flights.
- Excellent connectivity
Namibia is one of the first countries in sub-Saharan Africa to achieve full internet connectivity. 4G is available across 85% of the country, and the regulator issued spectrum for 5G in February 2023.
- Close to nature
Namibia is beautiful, home to the world’s oldest desert – the Namib – and Africa’s largest canyon – Fish River Canyon. The country also has abundant wildlife, such as black rhinos, cheetahs, cape fur seals, elephants and more, making Namibia a paradise for those looking to connect with nature.
