Windhoek: The Ministry of Trade and Industry is promising to this year deliver on the long-awaited legislation governing foreign investment, an Act expected to bring relief to local businesspeople complaining of overcrowding by so-called foreign investors. At the same time, the ministry is also promising to put the investment promotion drive into high gear, with special focus on value addition in the mining, tourism and energy sectors, the three sectors identified as having the potential to make significant impact on economic growth.
This came out during a welcoming session where Trade and Industry Minister Dr Hage Geingob, Deputy Minister Tjekero Tweya, Permanent Secretary Dr Malan Lindeque, along with executive managers in the ministry, provided the ministry’s staff with the year’s working calendar.
The ministry says it wants the amended legislation on investment to reach the hands of legal drafters as soon as possible, so that it can head to the National Assembly for debate and final approval.
Namibia has the Foreign Investment Act but this legislation is found wanting on the issues related to addressing domestic investments. The new legislation would redefine investment laws, to go as far as demarcating between domestic and foreign investors and giving sectors or industries in which foreign investors may invest or may be required to enter joint ventures with Namibians.
The new legislation would define “who is an investor, the requirement to qualify [for such categorisation], and give definition of foreign investment,” the ministry said. In addition, the law would introduce penalties for investors who fail to adhere to conditions on which their business enters the country.
This is set to calm the growing contention by local businesspeople of being crowded out of specific industries such as retail by foreign investors who do not bring in any expertise or value addition to the sector.
The legislation is expected to give strength to the decision taken earlier by Cabinet that declared uranium, gold, copper, coal, diamonds and other rare earth metals strategic minerals in the interest of national development towards achieving Vision 2030.
Trade and industry’s other focus would be on re-evaluation of incentives; to include non-manufacturing sectors as is currently enjoying the benefits. Going forward the scheme would look specifically at those in sectors that are not necessarily attractive or resource seeking investors. The discussion would go to the public for input on what kind or type of incentives and areas on which to give.
Efforts would also be made to take the Industrial Policy Document to Cabinet’s Economic Committee as soon as possible.
