Investing in Business: Set Up Business in Namibia
You are fortunate if you are employed in a good company with a satisfactory salary. It is good to have a constant and stable flow of income to provide for your needs and wants. But as the common saying goes: no one becomes rich by working 40 hours a week as an employee. It is always a good idea to invest your money on channels that will help it grow.
Becoming your own boss is one way to make your money work. Investing in a business, although it takes a lot of effort, pays off well. If you put in a good business plan and strategies, you’ll earn double to 10 times your salary as an employee.
Are you looking at reasons why you should set up business in Namibia? Look no further. This article discusses the advantages of investing your money in a business in Namibia.
Factors to Consider When You Set Up Business in Namibia
Namibia is geographically one of the biggest countries in Africa. It’s open to the west, facing the Atlantic Ocean, which is favourable for foreign trading. Additionally, it is considered by the World Bank as an upper-middle-income country. This means that Namibia offers many opportunities for business owners to invest in their economy and market.
Here are what you should consider when you set up a business in Namibia.
Geography and Climate
Namibia is located in the southwestern part of Africa. It is opening towards the Atlantic Ocean which allows the country to be more accessible for exchange within Africa, and outside the continent.
Moreover, its location gives Namibia its subtropical desert climate. This climate is favourable in the extraction of minerals for export. On a good year, their diamond mining activity alone contributes to the country’s foreign exchange earnings by more than 50%.
Namibia is a democratic country. Their government advocates for equality among its constituents, including businesses. Their labour and investment laws are fairly flexible. The Foreign Investment Act provides equal investing grounds for both foreign and local firms. This law supports and encourages free enterprise and foreign investment in its economy.
Furthermore, it is important to note that their government charges very high taxes, on both individual and corporate earners, at 37% and 34% respectively.
Namibia’s main sources of income are mineral extraction, agriculture, and fishing. Namibia is one of the largest at exporting diamonds and uranium in the world. It’s biggest trading partners are China and South Africa. Further, infrastructure, manufacturing, and tourism are also growing sectors in their economy.
Namibia provides many opportunities for investors looking to ground and grow in Africa. Here are a few developing sectors you can penetrate if you plan to set up business in Namibia.
Namibia’s goal to participate globally and connect with other African regions is paving the way for their infrastructure and logistics industry to boom. For example, their telecommunications infrastructure is already 97% digital that allows direct dialling to 242 countries.
Namibia government provides incentives to manufacturing companies. Additionally, they give preference to those businesses that work with local Namibian commodities. This is a good industry to tap to take advantage of cost and tax savings.
Namibia is a popular destination for travelers. One way to set up business in Namibia is by building accommodations for tourists and local travelers. Further, Namibia offers opportunities and incentives for businesses in this sector.
Namibia is very competitive in the agriculture industry because of its terrain and weather. Their primary product is livestock, meat products, and crops. The sparse population of Namibia provides large areas to work on agriculture. This is a good industry to work in, as Namibia’s environment is conducive to agriculture.
Taking Advantage of Opportunities
Namibia offers many different incentives for new businesses to grow and prosper. From policies to tax incentives, Namibia is opening their country to both foreign and local entrepreneurs to set bases on their soil. Do you need assistance and advice on how to plan for your business?
3E Accounting is here to solve your issues. Whether you are a starting entrepreneur or an established business owner already doing business in Namibia, we offer company services to help you achieve your goals. Contact 3E Accounting today to contract our services.