1 / 13

Policy Environment for Finance and Investment in Namibia

Policy Environment for Finance and Investment in Namibia. Mr. Calle Schlettwein Permanent Secretary Ministry of Finance, Namibia International Investors’ Conference Windhoek, 31 October – 1 November 2007. Fiscal Indicators. Fitch Credit Rating 2007. Long-term Foreign Currency Risk: BBB-

aneko
Download Presentation

Policy Environment for Finance and Investment in Namibia

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Policy Environment for Finance and Investment in Namibia Mr. CalleSchlettwein Permanent Secretary Ministry of Finance, Namibia International Investors’ Conference Windhoek, 31 October – 1 November 2007

  2. Fiscal Indicators

  3. Fitch Credit Rating 2007 Long-term Foreign Currency Risk: BBB- Outlook: Stable Country Ceiling: A Rating Strengths: • Strong Fiscal Consolidation • Large positive net foreign Assets Position • Good growth outlook Rating Weaknesses: • Challenging structural reform agenda to curb capital outflows • Weak human resources base • Social and developmental challenges

  4. Investment environment in Namibia: Catalysts and Obstacles Catalysts for investment: • Macroeconomic Stability • Provision of Complements, i.e. infrastructure and skills Obstacles to investment: • Small Market Size • High Transport Cost • Limited Capital Market

  5. Regional Integration • Addresses small market size and macroeconomic stability Different layers: • CMA • SACU • SADC

  6. Relaxation of Exchange Controls • Facilitates Trade and Regional Integration Relaxation measures include: • Special exemptions and wider permissible use of Foreign Currency Accounts • Threshold for “Cash with Order” Payments increased to N$500,000 • Investment of Namibian companies outside CMA only need to obtain a 25% shareholding on foreign entities/projects

  7. Human Capital and Infrastructure • Human capital shortage: • Response: - Funding priority - ETSIP • Need for Physical Infrastructure: • Response: - Development Budget Increased - Donor Funding - Road and Rail Network Expansion - Energy Sector Investment

  8. Infrastructure: Energy • Supply shortages all over Southern Africa • Response:- Increase in production and access for foreign suppliers - N$ 1bn for NamPower over three years, plus capital market financing

  9. Capital Market Development • Lack of depth and breadth in local money and capital markets  Capital Outflows • Response: - Roll-over of Govt debt - Bond issues of SOEs - Domestic Asset Requirements - Encourage NSX listing

  10. Public Private Partnerships • Allow private investment in areas currently run by public sector • Examples of cooperation: Green Scheme, Energy Sector • New approach in Namibia, but PPP Policy Framework will expand its use

  11. Taxation and Government Regulation • Shall be simple, fair and predictable, e.g. flat corporate tax • Property rights are safeguarded • Minimise ‘Red Tape’: Private Sector Development Policy (PSDP)

  12. Conclusion • Government is committed to removing obstacles and providing catalysts for investment • A glance into the (desired) future: a stable, fully integrated regional economy, abundant skilled labour and extensive infrastructure even in remote areas, deep and broad capital markets, and no bureaucracy… • …welcome to (the future of) Namibia!

  13. Thank you!

More Related