Hertta-Maria Amutenja
MINISTER of Industrialisation and Trade, Lucia Iipumbu says Namibia’s Foreign Investment Act is out of date and does not accommodate modern investment dynamics such as innovation and sustainable investment.
Iipumbu made these statements during the Namibia Investment Promotion and Facilitation Bill Stakeholders Consultation in Windhoek on Monday.
She highlighted that the current legislation does not support realistic efforts that encourage the adoption of 4th Industrial Revolution-driven investments, nor will it sufficiently support future policy developments centered on Special Economic Zones, which aim to safeguard Namibia’s ability to attract investments.
“The new investment policy regime will thus improve a conducive business environment in Namibia to fully leverage on new investment strategies pertaining to renewable energies, resuscitate the economy within a comprehensively updated investment legislative and policy framework. This will allow for a robust institutional framework to promote policy aspirations through the Ministry’s policy desk and the Namibia Investment Promotion and Development Board (NIPDB), while also developing the necessary investor-friendly infrastructures,” she explained.
Namibia’s Policy and Legal Framework for Investment, according to Iipumbu, confines itself within the prevailing global policy space while maintaining adherence to the national objectives incorporated in numerous policies and development frameworks.
Furthermore, she said the NIPFB was developed through a consultation process to ensure that it is fit for purpose for the national developmental trajectory.
“Ultimately, the goal is to ensure that it is aligned with our national objectives of stimulating industrialisation, structural transformation of the economy, and the attraction of both sustainable and domestic direct investment,” Iipumbu added.
Speaking at the same event, Michael Humavindu, the ministry’s Deputy Executive Director, stated that the outdated law has increased investor uncertainty, a scenario that Namibia cannot afford to continue.
“Investor uncertainty is reflected in the country’s very low investment during the last four years. As a result, the old legislation does not support any viable initiatives that foster the adoption of 4th Industrial Revolution-driven investments, nor will it adequately enhance new policy developments centered on Special Economic Zones, which aim to ensure that Namibia can attract investments for trading in through the African Continental Free Trade Agreement (ACFTA) and the rest of the world,” Humavindu said.
“Foreign investment screening has become the dominant issue in terms of investment law and policy since 2011. Investment screening is a procedure that allows the government to examine, investigate, authorise, condition, prohibit, or unwind foreign direct investments based on a variety of security and public order concerns. The primary focus is on sensitive and/or strategic sectors, as described in the relevant policy, and essential asset infrastructure.
“The rise of China (using SOE investments, the Covid-19 pandemic, which exposed weaknesses in supply chains, and now the Russian invasion of Ukraine, which triggered unprecedented sanctions with an impact on rules for inbound investment once again deepens investment screening,” Humavindu added.
He added that as result, more than 60 percent of Organisation for Economic Cooperation and Development member countries have adopted investment screening rules, and up to 80 countries have introduced or amended legislation, rules, regulations, or policy in the last five years to update investment screening and sector classification.
