1 September 2016 Namibia Investment Promotion Act Published The objects of the act are: (a) to provide a clear and transparent framework for investment in Namibia; (b) to provide for an efficient dispute resolution mechanism involving investment; (c) to provide for a mechanism for inter-ministerial coordination on regulatory provisions and incentives and support mechanisms for investments; (d) to promote sustainable economic development and growth through the mobilization and attraction of domestic and foreign investments that - (i) enhance the economic development objectives of Namibia to build a prosperous, industrialised society with adequate direct investment to, among other things, encourage the creation of employment, wealth, technology transfer, capacity building, value addition to natural resources and foreign currency generation; (ii) reduce unemployment, poverty and economic inequality in Namibia; (iii) accelerate the growth and diversification of the Namibian economy; (iv) facilitate domestic investments, particularly in priority economic sectors; and (v) provide for other matters on investment promotion, admission, treatment and management.
HOWEVER, the Act empowers the Minister to reserve certain categories of economic sectors and business activities for certain categories of investors. These reserved economic sectors or business activities are those - (a) reserved for the State; (b) reserved for Namibians and entities whose majority shareholdings are owned by Namibians; (c) reserved for joint venture partnership between Namibian investors and foreign investors; and (d) reserved for investors that meet the requirements of section 4 and the prescribed specific conditions.
The act further states that a foreign investor must meet the applicable requirements for categories of investors in order to invest in the reserved economic sectors or business activities. The limitations also apply where there is a proposed change of ownership or control of an investment to a foreign investor. The Act clearly states that a foreign investor may not invest in Namibia; or acquire any licence, permit, authorisation or concession in Namibia, through any form of merger, acquisition, direct or indirect sale or transfer without the approval of the Minister, the ambit of which is much wider than merely reserved business or economic sectors.
The criteria for the approval of investments are: (a) the contribution of the investment to the national development, economic growth, public policy and national security objectives of Namibia; (b) the contribution of the investment to the advancement of persons who have been socially, economically or educationally disadvantaged by past discriminatory laws and practices; (c) the contribution of the investment to the implementation of programmes and policies aimed at redressing social and economic imbalances in Namibia, including gender-based imbalances; (d) the contribution of the investment towards increasing employment creation in Namibia; (e) the contribution of the investment to the advancement of the development of a geographical area of a low social and economic development; (f) the contribution of the investment to the transfer of technological and managerial skills, knowledge and innovation; (g) the contribution of the investment to value addition to the natural resources and manufacturing sector of Namibia; (h) the extent to which the investment will procure goods and services from the SME sector and Namibian suppliers in general; and (i) the impact on the environment and contribution to environmental benefits and any other factors the Minister may prescribe.
Furthermore, a substantial number of the following requirements, as each case may require, must be fulfilled or likely to be fulfilled in a specified period - (i) the joint venture with Namibians; (ii) the employment creation for Namibians; (iii) the contribution of the investment to the advancement of persons who have been socially, economically or educationally disadvantaged by past discriminatory laws and practices; (iv) the contribution of the investment to the implementation of programmes and policies aimed at redressing social and economic imbalances in Namibia, including gender-based imbalances; (v) the transfer of technology and technological skills; (vi) the development of managerial skills; (vii) the promotion of research, development and innovation; (viii) the value addition to the natural resources and manufacturing sector and procurement of goods and services; (ix) the environmental impact and contribution to environmental benefits; and (x) other matters relating to the improvement of the economy and development benefits in the public interest as the Minister may prescribe.
The Minister may, on behalf of the State, enter into a legally binding performance agreement with any foreign investor seeking approval under this Act to agree on matters related to the contributions of the investment to the development objectives of Namibia. Furthermore, an investor or investment existing at the commencement of this Act and which qualifies for registration as investor or investment under this Act has 12 months from the date of the commencement to register. The act also grants wide powers of expropriation to the State, where it (a) is taken in the public interest; (b) is taken in accordance with applicable requirements and procedures; and (c) is accompanied by the payment of just compensation.
The transfer of funds from Namibia may also be limited by the State: (a) to protect the rights of the creditors in the event of actual or anticipated bankruptcy; (b) to ensure the compliance with judgments concerning criminal offences; (c) to ensure the compliance with tax obligations; (d) to comply with lawful administrative decisions and facilitate execution of judicial judgments; (e) in response to serious or exceptional balance of payments or external financial difficulties, or the anticipated financial risk; or (f) in exceptional circumstances, to prevent movements of capital that causes or threaten to cause serious difficulties for macroeconomic management, including monetary or exchange rate policies.
This Act proposes a very real threat to the current economic order in Namibia. 1 September 2016 The Namibian Companies Act regulations are amended 1. Issue share capital; 2. Share Premuim Account; 3. Full particulars and contact details of each director; 4. Full particulars and contact details of certain officers; 5. Full particulars of each shareholder and of each nominee shareholder. Previously this information could only be obtained form the office share the company register was held. The amendment will allow for more transparency in relation to the shareholding of companies. 1 September 2016 Namibia Publishes regulations under the Biosafety Act. modified organisms. 1 September 2016 Regulations on criteria to be used for expropriation of agricultural land are published 10 April 2016 Namibian Competition Commission issues a directive against Namcars To download a copy of the Notice by the Competition Commission, click on the following link 20 February 2016 Regulation published under the Electricity Act In terms of the provisions of the Namibian Electricity Act, the Electricity Control Board has published Economic Rules and Technical Rules. The rules will be of great value to potential renewable electricity suppliers as it provides certainty relating to the regulatory framework relating to the private generation of electricity. Copies of the Economic Rules and Technical Rules are available from the links. 12 January 2016 New thresholds for notice to the Namibian Competition Commission 12 January 2016 Namibia Reduces Corporate Tax Rate Namibia has reduced its corporate tax rate to 32%. 11 January 2016 New Namibian Deeds Registries Act The new Namibian Deeds Registries Act has been published. In order to download a copy of the Namibian Deeds Registries Act, Click on the following link: NAMIBIAN DEEDS REGISTRIES ACT 15 September 2015 Employment Services Act The Employment Services Act has now become fully operational. It appears as if the act is a further attempt by the Namibian Ministry of Labour and Social Welfare to convince the private sector not to employ new employees. The Act creates an employment services bureau which is intended to function as a national recruitment agency. The Act broadly regulates two groups: designated employers and private employment agencies.
With regards to Designated Employers the following is relevant to note:
a. Notify the bureau that it is a designated employer. This must be done as soon as possible after 25 September 2015 or when the enterprise employs its 25th employee. The notice is done on a prescribed form and must be submitted at least 30 days before the employment of persons b. Report all vacancies and new positions that are created to the bureau. This notice must include details of; the date when the position intends to be filled, the minimum qualifications required the number of persons to be appointed. The notice must be given at least 14 days before the intended vacancy is advertised. c. In terms of the regulations the bureau must refer employees to the designated employer within 14 days of receipt of the vacancy notice. The employer must report to the bureau within 30 days of receipt of the refers from the bureau with regards to the employment decision that has been taken.
With regards to Private Employment Agencies the following is important to note:
15 December 2014 New Sectional Titles Act Comes Into Operation
You are invited to contact our offices should you require further information regarding the establishment of a Namibian Sectional Title Development. To download a copy of the Namibian Sectional Titles Act, The Rules of the Namibian Sectional Tiles Act or the Rules under which Namibian Sectional Titles are managed, click on the following links: Namibian Sectional Titles Regulations Rules For Sectional Titles in Namibia 16 December 2014 Domestic Worker Regulations
Download a copy of the regulations containing the template employment agreement at the following link. 14 November 2014 Regulations were issued under the Agricultural (Commercial) Land Reform Act The Namibian Minister for Land and Resettlement issued regulations under the Agricultural (Commercial) Land Reform Act in order to attempt to rectify the problems that were created by the amendment to the Act that became effective in March 2014. The regulation provides that:
We are of the opinion that the Regulation is a half baked attempt to rectify a badly worded and ill conceived amendment to the Agricultural (Commercial) Land Reform Act. 8 October 2014 Namibian Pension Funds Act Amended
8 October 2014 New Namibian Electoral Act Promulgated 29 August 2014 Standards for Basic Bank Account Announced Credit Bureau's in Namibia are now regulated. The Bank of Namibia have set out regulations supervising the operation of Credit Bureau's in Namibia. The regulations were published under the authority of the Bank of Namibia Act. Previously Credit Bureau's in Namibia were unregulated. The objective of the regulations appear to be a desire to create a clear framework whereunder Credit Bureau's in Namibia operate. Follow the link to download a copy of these regulations: Namibian Credit Bureau Regulations 16 April 2014 New Rules for High Court of Namibia become effective The new Rules of the High Court of Namibia further allow for the electronic filing of court documents.
27 March 2014 Herewith a copy of the relevant notices:
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