ANNEX 3
NAMIBIASACU-Namibia WT/TPR/S/114/NAM
Page A3-153
CONTENTS
Page
I. THE ECONOMIC ENVIRONMENT 155
(1) M AIN FEATURES 155
(2) R ECENT ECONOMIC DEVELOPMENTS 155
(i) Fiscal policies and public sector reforms 156(ii) Monetary and exchange rate policies 158
(3) T
RADE PERFORMANCE 159
(i) Trade in goods 159
(ii) Trade in services 160
(4) I NVESTMENT PATTERNS 160
(5) O UTLOOK 161
II. TRADE AND INVESTMENT REGIMES 162
(1) P OLICY FORMULATION AND IMPLEMENTATION 162
(2) T RADE AGREEMENTS 164
(i) Common Market for Eastern and Southern Africa (COMESA) 166(ii) Regional Integration Facilitation Forum (RIFF) 167(iii) Other trade agreements 168
(3) I
NVESTMENT FRAMEWORK 169
(4) T ECHNICAL ASSISTANCE 170
(i) Implementation of WTO Agreements and training of officials 172(ii) Supply-side constraints 173
III. TRADE POLICIES AND PRACTICES BY MEASURE 173
(1) O
VERVIEW 173
(2) M EASURES DIRECTLY AFFECTING IMPORTS 173
(i) Registration, and import duties and related measures 173
(ii) Import prohibitions and licensing 175(iii) Standards and other technical requirements 176(iv) Government procurement 177(v) Local-content requirements 177(vi) Other measures 177
(3) M
EASURES DIRECTLY AFFECTING EXPORTS 177
(i) Registration and taxes 177(ii) Export prohibitions, controls, and licensing 178(iii) Export subsidies, assistance, and processing zones 178
(4) M
EASURES AFFECTING PRODUCTION AND TRADE 179
(i) Incentives 179
(ii) State-owned enterprises and privatization 181
(iii) Competition policy and price controls 183(iv) Protection of intellectual property rights 183
IV. TRADE POLICIES BY SECTOR 186
(1) O
VERVIEW 186WT/TPR/S/114/NAM Trade Policy Review
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Page
(2) P RIMARY SECTOR AND ENERGY 187
(i) Fisheries 188
(ii) Agriculture, livestock, and forestry 192(iii) Mining 196
(iv) Energy 198
(3) M
ANUFACTURING 201
(4) S ERVICES 202
(i) Post and telecommunications 202(ii) Financial services 203(iii) Transport 204
(iv) Tourism 206
REFERENCES 209
CHARTS
IV. TRADE POLICIES BY SECTOR
IV.1 Sectoral composition of GDP, 1996 and 2001 187
TABLES
I. THE ECONOMIC ENVIRONMENT
I.1 Main economic and social indicators 155
I.2 Main macroeconomic trends, 1997-2001 156I.3 Exports by major commodity and destination, 1997 and 2001 159I.4 Imports by commodity and source, 1997 and 2001 160
II. TRADE AND INVESTMENT REGIMES
II.1 Main trade-related legislation in Namibia, January 2003 162
II.2 Selected Namibian notifications to WTO, as of September 2002 164
III. TRADE POLICIES AND PRACTICES BY MEASURE
III.1 Classification of state-owned enterprises 181
IV. TRADE POLICIES BY SECTOR
IV.1 Fish landings of main commercial species, 1997-01 188
IV.2 Total allowable catch (TACs), 1998-02 189
IV.3 Quota fish fees, 2001 190
IV.4 Output of selected minerals, 1997-01 198SACU-Namibia WT/TPR/S/114/NAM
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I. THE ECONOMIC ENVIRONMENT
(1) MAIN FEATURES
1. The Republic of Namibia is on the west coast of sub-Saharan Africa, and borders Angola,
Botswana, South Africa, Zambia, and Zimbabwe.  About one third of its 1.82 million population
(2000) live in urban centres.
2. Namibia was a middle-ranking "medium human development" country in 2000.1  GDP was
about US$1,750 per capita in 2001(Table I.1).  It is a lower middle-income country;  its living
standards are on average higher than other those of sub-Saharan countries.  Export growth in the
traditional primary sector, mainly mining, agriculture, and fisheries, as well as manufactured products,
especially processed fish and meat, has promoted development.  Namibia has a relatively well
developed basic infrastructure, such as transportation and telecommunication networks, and socialservices, such as education and health.
Table I.1
Main economic and social indicators
Land area 824,268 km2Urban share of population (2000) 30.9%
Population (2000) 1.82 million Nominal GDP at current market prices (2001) US$3.2 billion
Population growth (2001) 1.1% GDP per capita (2001) US$1,750
UN human development index
(2000):GDP per capita annual growth rate (1997-01) 12.0%
- Overall ranking 122 Nominal GDP at constant 1995 prices (2001) N$15.4 billion
- Category Medium human
developmentGDP shares (2001):
     Primary
     Secondary
     Tertiary (incl. electricity, water & construct.)24.2%
10.8%
65.0%
- Ranking within category 69 Enrolment ratio (net) in education (1998):
Life expectancy at birth (2000) 44.7 years primary 86
Infant mortality rate o/oo(2000) 56 secondary 31
Adult literacy (2000) 18%
Source : UNDP (2002), Human Development Report ; Bank of Namibia (2002), Quarterly Bulletin, December, Vol. 12,
No. 4; Central Bureau of Statistics and National Planning Commission (2002), National Accounts 1993-2001 ,
October.
3. The HIV/AIDS pandemic is threatening Namibia’s economic and social progress.  It has
among the highest incidence rate (22.5% in 2001); and this is expected to rise to 23.3% in 2007.2  Its
UN human development index ranking slipped from 91st in 1995 to 122nd in 2000, due to deteriorating
key social indicators; life expectancy dropped from 58.8 years in 1998 to 44.7 years in 2000.  In
September 1999, the Guidelines of the National Code on HIV/AIDS were implemented to have
infected employees covered by health schemes.  The Government’s National AIDS Control
Programme includes the pilot provision of anti-retroviral drugs.  A national programme to supply suchdrugs to prevent "mother to baby" transmission started in February 2002, and will be expanded over
the next five years.  Combating HIV/AIDS will have long-term budgetary and other economic
repercussions; the total cost of supplying anti-retroviral drugs to the affected population alone is
estimated at N$7 billion.
(2) R
ECENT ECONOMIC DEVELOPMENTS
4. Real GDP growth slowed from 3.4% in 1999 to  2.4% in 2001 (Table I.2).  Although mining is
important, especially diamonds, due mainly to the depressed global diamond market and technicalfactors affecting output by major miners.  Consequently, most growth has been from non-mining
                                                     
1 UNDP (2002).
2 Hopolang (2002), p. 5.WT/TPR/S/114/NAM Trade Policy Review
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activities, such as manufacturing and services, including tourism, transport, and communications.  The
fish sector’s performance has been affected by rest rictive catch limits set to re-build depleted fish
stocks.  Formal unemployment is high, at 20.1% in 2000 (up from 19.5% in 1997).3
Table I.2
Main macroeconomic trends, 1997-2001a
1997 1998 1999 2000 2001b
Real GDP growth (%) 4.2 3.3 3.4 3.3 2.4
   Non-mining 4.2 3.8 2.9 3.8 3.1
Unemployment (% of formal workforce) 19.5 .. .. 20.1 ..
Inflation (consumer prices, period average) 8.8 6.2 8.6 9.3 9.3
Money supply (M2) growth  (%) 7.6 10.7 20.4 12.7 6.8
Bank credit growth (%) -0.6 9.8 9.6 15.2 14.2
   Private sector cedit growth (%) 13.4 10.0 5.5 16.9 16.9
Bank interest rate (%) 16.00 18.75 11.50 11.25 9.25
   Prime lending interest rate (%) 20.0 23.55 16.7 15.9 14.0
Government fiscal balance (% of GDP, before grants)c-2.9 (-2.5) -4.1 (-3.9) -3.5 (-3.2) -1.7 (-1.5) -5.0(-4.4)
   Expenditure (% of GDP) 35.5 36.0 37.0 34.9 37.3
      Growth (%) 10.1 13.2 14.6 8.8 19.1
   Revenue (% of GDP) 33.0 32.1 33.8 33.4 33.0
      Growth (%) 21.7 8.7 17.5 13.9 9.8
Balance of payments
   Trade balance (% of GDP) -7.7 -8.4 -5.5 -4.8 -4.5
   Current account (% of GDP) 2.3 2.4 1.9 2.8 -2.9
   External reserves (months of imports, end-of-year) 1.6 1.8 2.1 2.6 2.0
   Real effective exchange rate (annual change %)d1.4 -5.5 0.8 3.0 1.1
Public debt (% share of GDP) 18.5 22.8 22.2 21.8 26.1
   External debt (% of GDP) 2.0 2.9 3.6 3.9 5.6
        Share of total debt (%) 11.0 16.6 12.3 17.9 21.6
        Debt service ratio (% of merchandise exports) 5.6 8.2 9.3 11.3 16.6
.. Not available.
a Some data are for fiscal year i.e. 1 April to 31 March.
bP r e l i m i n a r y .
c Figures in brackets are after grants.d Period average; a positive figure indicates a real effective appreciation of the N$.  The figure for 2001 is the average 
change until October.
Source: Bank of Namibia (2002), Quarterly Bulletin, December; Central Bureau of Statistics and National Planning 
Commission (2002), National Accounts 1993-2001 , October; and Namibian authorities.
(i) Fiscal policies and public sector reforms
5. Fiscal policy, aimed primarily at stimulating employment and investment, plays a crucial role
in stabilizing the macro-economy because monetary policy is heavily constrained by Namibia’smembership of the Common Monetary Area (CMA).  Fiscal deficits (before grants) declined from
4.1% of GDP in 1998 to 1.7% in 2000, but rose sharply in 2001 to 5.0% (4.4% after grants).
Expenditure growth of 19.1% in 2001, which s ubstantially exceeded revenue growth of 9.8%,
reflected mainly increased public service salaries, including introduction of an early retirement
scheme; bailout of parastatals; and re-capitalization of Air Namibia.  Total government debt, which ismainly domestic and is met from treasury bills and bonds, rose by 33% in 2001 to 26.1% of GDP,
above the 25% benchmark set in the National Development Plan 2 (2002/02 to 2005/06).  The 2001
budget deficit was also well above the Plan's target of around 3% of GDP (subsequently changed to
3.2% in the medium term) and needed to be reversed as a matter of urgency.
4
                                                     
3 Broadly defined, including informal unemployment the figure is much higher, but has fallen from
34.5% in 1997 to 32% in 2000.
4 Bank of Namibia (2002a), p. 59.SACU-Namibia WT/TPR/S/114/NAM
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6. Fiscal debt and deficit targets were reinforced in the Government’s Medium Term
Expenditure Framework (MTEF) for 2001/02 to 2003/04, introduced in the 2001/02 Budget.  MTEFs
are three-year rolling budgetary plans designed to ma intain fiscal discipline through strict expenditure
ceilings for ministries, strategic prioritization of expenditure between and within sectors, and
improved allocative or technical efficiency in using limited government resources.5  The second
MTEF (2002/03 to 2004/05) adopted another fiscal target to reduce government expenditure to"around" 30% of GDP i.e. 34.5% in fiscal year 2002, 31% in 2003 and 29% in 2004.
6  This will
require substantial cuts in real expenditure, wh ich was 37.3% of GDP in 2001 and running at 36.5%
in 2002; it will not be achieved in the medium term.  The fiscal deficit (after grants) was also expected
to fall to 2.9% in fiscal year 2003 and 2.5% in 2004.  Fiscal slippage has occurred in the MTEF; the
sharp deficit increase in 2001 to 4.4% of GDP (after grants), although substantially better than firstbudgeted, exceeded the first MTEF projection of 3.6%, and the forecast for 2002 of 3.8% was above
the MTEF level of 2.9% (and the 3.2% government benchmark).
7  The Government’s total debt was
projected to also rise further above the 25% target over the current MTEF to around 28-29% of GDP;
the revised estimate for 2002 was 28.2%.8  Such a continuing upward trend in public debt is not
sustainable and will threaten economic stability.9  Non-adherence to new targets may also undermine
public confidence in fiscal stabilization policies, especially if not credible.10
7. The Government announced in 2002 that civil servant salaries would not be adjusted for
inflation; instead wage negotiations are to occur ev ery three years.  Government is considering the
results of a comprehensive review of the tax system, including the VAT (introduced in
November 2000).  The 30% VAT rate on luxury goods was replaced with the standard 15% rate from
October 2002.11  A land tax is being introduced.
8. Public sector reforms to improve efficiency and contain costs are a government priority.  It is
implementing a performance management system for civil servants.  A new State Finance Act was
reformulated in 2001 to strengthen the legal framework for expenditure management.  The State-
Owned Enterprise Council was established to oversee implementation of government policy on
parastatals and to monitor performance, as well as a Divestiture Sub-Committee and the Central
Governance Agency for privatization.  While th e Government supports privatizing state-owned
enterprises, it has not specified any timeframe or list of priority entities for privatization.  Parastatals
                                                     
5 The budgetary cycle consists of two budgets; the main budget is released in April at the beginning of
the fiscal year and an additional (revised) budget is presented usually in October or November.   Additionalbudgets have normally contained substantial upward revisions in revenue and expenditure.  See IPPR (2002b).
6 Projections under the MTEF are based on GDP growth forecasts of 17% in 2002, 13% in 2003, and
12% in 2004.  Nominal GDP growth in 2001 was 13.5%.
7 The improved fiscal deficits in 2001 and it seems for 2002 reflected mainly better revenue collection
and under-spending on capital projects.  According to Bank of Namibia, these outcomes "did not come fromprudent fiscal management, but rather by chance" (2002c, p. 29).
8 Public debt levels will rise considerably to around 32.5% of GDP if the Government takes over Air
Namibia’s debt (estimated at N$1.4 billion) as planned under its partial privatization, which has been delayed
until 2003.
9 Bank of Namibia (2002b), p.9. The Institute for Public Policy Research (IPPR) has also questioned
whether the current fiscal policies are sustainable given that GDP share of domestic public debt has more than
doubled since 1992 (IPPR, 2002a).
10 Setting independent targets simultaneously for public debt and budget deficit to GDP shares may
lead to inconsistent and unsustainable fiscal policies (IPPR, 2002a).
11 The main products affected were wine, tobacco, leather goods, televisions, videos, audio equipment,
motor cycles, watches, jewellery, firearms, and passenger cars above N$200,000.  Eliminating the 30% VATrate and replacing it with the standard uniform rate of 15% should benefit consumers and producers, improvetax efficiency by simplifying administration and reducing tax evasion, and may raise tax revenue (NEPRU,2002), p. 2.WT/TPR/S/114/NAM Trade Policy Review
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or ministries that do not meet their expenditure ceilings are no longer to be bailed out.12  S o m e
financially distressed parastatals, such as Air Namibia and TransNamib, still receive substantial
government funding;  in 2002, estimated spending on re-capitalizing and subsidizing parastatals was
N$192 million.  The five-year start-up subsidy for Namwater ended in 2002, at a total cost of
N$125 million.  The Government is trying to curtail widespread loan guarantees, especially to state-
owned companies and on foreign borrowings, by endeavouring to wind back existing guarantees andproviding no new ones.  Contingent liabilities, in creasingly to foreign institutions, from such non-
transparent loan guarantees, have some thirteen -fold since 1996, to N$3.5 billion at end-August 2002,
equivalent to 11.3% of GDP.
13  In 2002, the Government paid N$100.1 million to honour loan
guarantees, such as for the Windhoek Country Club and Hotels and the Development Brigade
Corporation.
(ii) Monetary and exchange rate policies
9. Namibia’s CMA membership prevents it from pursuing an independent monetary policy;
policy is set by the South African Reserve Bank (SARB).  Namibian interest rates, the only monetary
policy instrument, closely track South African levels.  The Bank of Namibia’s core aim is to control
inflation and align interest rates at South African levels to support the fixed exchange rate parity ofthe Namibian dollar with the rand.
14  Although both currencies depreciated sharply during 2001, the
CMA monetary authorities, including the Bank of Namibia, eased monetary conditions in line with
South Africa to boost investor confidence and promote growth.15  Namibian interest rates followed
cuts by the SARB; the SARB ra te fell in three steps from 11.25% in January 2001 to 9.25% in
September.  Commercial bank lending rates fell to 14.0% in 2001 (15.9% in 2000).  While growth of
bank credit and money supply (M2) fell (to 14.2% and 6.8% respectively) in 2001, inflation remained
unchanged at 9.3%.
10. Eased monetary and expansionary fiscal policies in 2001 contributed to sharp increases in
money supply and bank credit growth in 2002, raising inflation to 12%.  The Bank of Namibia raised
interest rates in line with South Africa.  The Bank rate rose to 11% in early 2002, to 12% in the June
quarter, and again to 12.75% in September 2002, to dampen inflation. However, the Bank rate was
kept below the new SARB repo rate of 13.5% to mitigate the effects of high interest rates on theeconomy.  Tighter monetary conditions currently app ear to be slowing private-sector credit growth,
especially to individuals, and dampening the economy.
11. The substantial nominal depreciation of the Namibian dollar against major currencies,
especially the U.S. dollar, in 2001, followed that of the rand.  However, due to Namibia’s relatively
high inflation, the Namibian dollar has appreciated in real terms against all currencies by about 5%since 1998, when it depreciated by almost 6%.  Its real appreciation continued in 2002. This is likely
to have helped undermine the competitiveness of Namibian products against imports and in export
markets, thereby placing greater pressure for sound fiscal policies and structural reforms to boost
productivity.  However, Namibia’s merchandise trade deficit to GDP declined (8.4% in 1998 to 4.5%
in 2001).  Foreign reserves dipped to 2 months of import cover in 2001 (2.6 in 2000).
                                                     
12 Budget Speech 2002/03, p. 13.
13 The growth in guarantees tapered off sharply since 2000.  About three quarters of current loan
guarantees are issued to foreign entities, up from about half in 1996; only parastatals have foreign guarantees.Some guaranteed loans have high default risks that expose government to contingent liabilities and financial
losses.  Stringent steps were needed to review the proced ures and guidelines used to issue guarantees to avert a
potential financial crisis (Bank of Namibia, 2002c, pp. 22-23).
14 The rand can circulate freely in Namibia but this is not the case for the Namibian dollar in South
Africa.
15 Bank of Namibia (2002a), p. 50.SACU-Namibia WT/TPR/S/114/NAM
Page A3-159
12. Namibia adopted IMF Article VIII obligations in 1996, and has, according to the authorities,
no current account exchange restrictions.  CMA members in principle do not restrict capital flows
between each other, unless needed to mobilize domestic resources for development.16  Namibia's
external debt service ratio rose sharply, to 16.6%, in 2001 (11.3% in 2000) as external debt increased
(5.6% of GDP), largely due to its depreciating currency.  Foreign debt as a share of total debt has
increased sharply (21.6% in 2001, up from 11.0% in  1997).  Borrowings from outside the CMA have
increased; most foreign debt is currently held in major world currencies (US$ and euro).17
(3) TRADE PERFORMANCE
(i) Trade in goods
13. Mining, especially diamonds, dominates export s; they accounted for 55% and 41% in 2001
respectively, about the same as 1997 levels (Table I.3).  Other exports include mainly fish, liveanimals, and meat, beverages and other foodstuffs. Exports are also heavily concentrated
geographically towards South Africa and Europe, the destinations for most diamond exports.
Table I.3
Exports by major commodity and destination, 1997 and 2001US$ million and per cent
Commodity/destination 1997 2001
Value Share Value Share
Commodity
Mining 760.4 55.5 552.8 55.3
   Diamonds 554.4 40.4 413.5 41.4
   Metal ores, including uranium 201.1 14.7 133.0 13.3
   Other 4.9 0.4 6.3 0.6
Live animals and animal products 69.3 5.1 40.0 4.0
Fish and fish products 2.9 0.2 5.3 0.5
Manufactured products 537.5 39.2 401.3 40.2
   Meat, meat preparations, hides & skins 91.1 6.6 44.3 4.4
   Prepared and preserved fish 308.2 22.5 245.0 24.5
   Beverages and other food products 70.9 5.2 68.3 6.8
   Copper 43.1 3.1 19.9 2.0
   Other 24.2 1.8 23.8 2.4
Total 1,370.1 100.0 999.4 100.0
Destination
SACU 561.3 41.0 313.4 31.4
   South Africa 520.3 38.0 308.5 30.9
Other Africa 84.7 6.2 71.7 7.1
   Angola 67.7 4.9 58.5 5.9
   Zimbabwe 8.0 0.6 3.1 0.3
Europe 559.0 40.8 550.9 55.1
   United Kingdom 221.1 16.1 352.5 35.3
   Switzerland 134.3 9.9 0.3 -
   Spain 103.7 .. 131.2 13.1
USA 61.1 4.5 29.5 3.0
Other 104.0 7.5 33.9 3.4
Total 1,370.1 100.0 999.4 100.0
.. Not available.
- Negligible.
Source: Central Bureau of Statistics and National Planning Commission (2002) , National Accounts 1993-2001 , October, 
p.27; and the Namibian authorities.
14. Imports consist primarily of machinery, including electrical equipment, transport equipment,
including vehicles, chemicals, fuels, food and beverages, and metals. Imports are  mainly (90%) fromSouth Africa (Table I.4). Namibia’s trade (expor ts and imports) with SACU members, other than
South Africa, is relatively minor.
                                                     
16 Pension and insurance funds must invest at least 35% of their investments in Namibia.
17 IPPR (2002a), p. 4.WT/TPR/S/114/NAM Trade Policy Review
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Table I.4
Imports by commodity and source, 1997 and 2001
US$ million and per cent
Commodity/source 1997 2001
Value (c.i.f.) Share Value (c.i.f.) Share
Commodity
Ores and minerals 40.0 2.2 26.2 2.0
Food, live animals, beverages and tobacco 363.6 20.3 170.0 12.9
Wool, paper and paper products, furniture 158.7 8.8 97.6 7.4
Textiles, clothing and footwear 134.4 7.5 71.5 5.4
Chemicals, plastics, medical and rubber 222.9 12.4 203.0 15.4
Fuels and lubricants 146.9 8.2 173.2 13.1
Metal and metal products 136.0 7.6 97.5 7.4
Non-metallic mineral products 48.9 2.7 36.1 2.7
Machinery and electrical equipment 295.8 16.5 247.0 18.7
Vehicles and transport equipment 239.7 13.4 195.1 14.8
Other 8.0 0.4 2.9 0.2
Total 1,794.9 100.0 1,320.1 100.0
Source
SACU 1,435.9 80.0 1,140.3 86.4
   South Africa 1,433.4 79.9 1,138.3 86.2
Other Africa 22.4 1.2 7.9 0.6
   Zimbabwe 12.5 0.7 4.7 0.4
Europe 107.6 6.0 90.6 6.9
   Germany 37.9 2.1 26.1 2.0
USA 22.2 1.2 11.9 0.9
China 5.7 0.3 14.4 1.1
Russian Federation 15.1 0.8 2.2 0.2
Japan 3.4 0.2 2.4 0.2
Chile 21.3 1.2 - -
Other 161.3 9.1 50.4 3.7
Total 1,794.9 100.0 1,320.1 100.0
- Negligible.
Source: Central Bureau of Statistics and National Planning Commission (2002), National Accounts 1993-2001 , October, 
p. 29; and the Namibian authorities.
(ii) Trade in services
15. Namibia is a net importer of services, especially of transportation and "other private services".
In 2001, trade in services (invisibles) recorded  a deficit of N$407.2 million (US$47.9 million).18  A
significant surplus was recorded on tourism (N$1,116.9 million or US$131.5 million in 2001).
(4) INVESTMENT PATTERNS
16. The stock of foreign direct investment (FDI) was US$1,906 million in 2001, up from
US$1,807 million in 2000.19
17. Inward FDI more than doubled in 2001, from N$1,064.3 million (US$155.9 million) to
N$2,758.8 million (US$324.7 million).20  Unlike earlier years, most was foreign equity capital instead
of reinvested earnings by domestic foreign companies.   The main factors facilitating Namibia’s
inward FDI have been political stability, favourable macroeconomic environment, independent
judicial system, protection of property and contract ual rights, good quality of infrastructure, and easy
access to South Africa.21  Namibia seems to have substantially improved its FDI performance over the
                                                     
18 Bank of Namibia (2002b), p. 84.
19 UNCTAD (2002).
20 Bank of Namibia (2002a), p. 140 and (2002c), p. 85.
21 Basu and Srinivasan (2002), p. 22.SACU-Namibia WT/TPR/S/114/NAM
Page A3-161
past decade, progressing from an "under-performer with low FDI potential" in 1998-90 to a "front-
runner FDI performer with high FDI potential" in 1998-00.22
(5) OUTLOOK
18. NDP2 projects average real GDP growth of 4.3%  from fiscal years 2001 to 2005.  Namibia’s
short-term economic performance relies heavily on the mining sector, especially diamonds, which in
turn depends on global economic conditions and prices.  While such developments are volatile,diamond exports appear to be rebounding, suggesting that future stockpiling of diamonds is unlikely.
Several projects coming on-stream, such as the Skorpion zinc mining and refinery operations, and
garment manufacturing by Ramatex, including for export, will also boost growth.  Real GDP growth
was revised upwards for both 2000 and 2001 to 3.3% and 2.4%, respectively (from 2.9% and 1.6%);
growth is forecast at 3% in 2002 and 4.5% in 2003.
23
19. Most growth is expected to come from non-diamond mining.  Restrictive monetary policy and
rising interest rates could control inflation, partly fuelled by the depreciated Namibian dollar, to
around 10.5% in 2002 and 9.5% in 2003.  However, escalating interest rates risk weakening domestic
demand and growth.  Other factors that could weaken Namibia’s economic recovery are the stability
of world oil prices, unfavourable weather conditions, and imprudent fiscal policy.24
                                                     
22 UNCTAD (2002) .  The analysis uses two indices.  The Inward FDI Performance Index -  the ratio of
a country’s share in global FDI flows to its share in global GDP - indicates how a country has performed in
attracting FDI relative to its economic size.  A value below unity means it has attracted less FDI than expected
by its size.  The Inward FDI Potential Index measures a country’s potential for attracting FDI given its structuralfactors.  It is derived from the unweighted normalized values of eight variables: GDP growth; GDP per capita;export share of GDP; telephone lines per 1,000 inhabitants; commercial energy use per capita; R&D share ingross national income; share of tertiary students of population; and country risk.  Despite obvious limitations,
comparing these two indices may give a rough guide to whether countries are performing adequately given their
(restricted set of) structural assets.  Namibia jumped in world ranking from 94
th in 1988-90 to 63rd in 1998-00 on
FDI Performance and from 98th to 68th on the FDI Potential Index.
23 Bank of Namibia (2002b).
24 Bank of Namibia (2002b), p.10.WT/TPR/S/114/NAM Trade Policy Review
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II. TRADE AND INVESTMENT REGIMES
(1) POLICY FORMULATION AND IMPLEMENTATION
1. As a member of the Southern African Cu stoms Union (SACU), Namibia's trade policy
instruments are mostly set at the regional level (Main Report, Chapter II(2)).  The Ministry of Trade
and Industry retains primary responsibility for formulating and implementing trade and industry
policies, especially in areas not covered by the SA CU Agreement.  Within the Ministry, foreign trade
policy, including multilateral, regional, and bilateral trade relations, is handled by the Directorate of
International Trade.  The Directorate organizes export promotion activities and provides information
to traders through the Trade Information Centre.  The Research Subdivision was dissolved in 2001
and the research function transferred to the Trade Policy and External Trade Relations Division.  The
Import and Export Management Subdivision issues import and export permits and initiates strategiesfor streamlining import procedures.  As from January 2003, standardized forms and permits were to
be processed electronically and linked to customs. Other institutions that have important inputs into
trade-related policies include the Ministries of Finance (budget, expenditure/revenue measures,
including tariff policy);  Mines and Energy;  Fisheries and Marine Resources;  Agriculture, Water and
Rural Development; Environment and Tourism; Works, Transport and Communication; and ForeignAffairs, Information and Broadcasting; as well as  the National Planning Commission of the Office of
the President (development plans), and the Bank of Namibia (the Central Bank).
2. As a participant in the Regional Integration Facilitation Forum (previously called the
Cross-Border Initiative), Namibia established a Technical Working Group of public and private
representatives to provide policy advice through the Policy Implementation Committee, chaired by the
Minister of Trade and Industry.  The Government intends to institutionalize this Group.  Furthermore,
the 2002 SACU Agreement, provides for a National B ody to be established in each member country;
the Body will be in charge of SACU issues (incl uding tariff changes) at the national level and will
make recommendations to the Customs Union Commission (Main Report, Chapter II(2)(ii)(a)).
3. Trade-related policies are formulated by the sponsoring ministry, which undertakes detailed
policy work, including research, national consultations, and considers submissions from interested
stakeholders.  The policy proposal is submitted to Cabinet as a memorandum and becomesgovernment policy on approval.  The Presidential Economic Advisory Council is coordinated by the
Office of the President, and comprises senior officials and representatives from the private sector,
academia, non-government organizations, employer s’ associations and trade unions.  The WTO
National Committee, comprising senior officials from various ministries and agencies and chaired by
the Ministry of Trade and Industry, meets regularly.  Sector-specific technical sub-committees such ason agriculture, intellectual property and, services, report to the Committee.
4. The Government established the independent Namibian Economic Policy Research Unit
(NEPRU) to conduct economic research and advise on  economic policies, including trade policies.  It
also trains Namibian economists in policy research and provides valuable public commentary on
topical economic policy issues.  An independent Institute for Public Policy Research (IPPR) wasestablished in April 2001 to provide analytical research into social, political and economic, including
trade, issues.  An Industrial Development Committee comprising officials from the Ministries of
Trade and Industry, and Finance, as well as the Bank of Namibia, was established to fast-track the
development of key industrial projects and to stimulate manufacturing.
5. There is significant consultation or interaction between the public and private sectors on trade
policy formulation and implementation.  Private-sector representatives are usually  members ofSACU-Namibia WT/TPR/S/114/NAM
Page A3-163
committees for coordinating government activities.  The National Chamber of Commerce and
Industry is the main body representing the private sector’s views to government.
6. Trade liberalization and investment promotion remain key elements of Namibia’s trade policy
and development strategy.25  The Government’s main objectives are further trade liberalization and
export expansion, including diversification of produc ts and markets.  Export promotion, through such
measures as tax-based incentives and export-processing zones, remains a high priority for theGovernment to increase value added and non-traditional goods.  Broadening Namibia’s industrial base
and promoting growth in small and medium-sized enterprises (SMEs) are key objectives of industrial
policies.  The Government aims to create a more enabling business environment to facilitate private
sector development.  To this end, entry barriers are being removed, and regulatory and administrative
requirements (e.g. licences, permits, and registration procedures) are being simplified.  Severalprogrammes administered by the Ministry of Trade and Industry provide financial and institutional
support.  Furthermore, several trade-related laws have been enacted, revised or amended since 1998
(Table II.1).
Table II.1
Main trade-related legislation in Namibia, January 2003
Area Legislation
Exports and imports Customs and Excise Act, 1998; Value-Added Tax Amendment Act, 2002
Government procurement Tender Board of Namibia Act, 1996
Agriculture Agronomic Industry Act of 1992, and 1993 regulations; Meat I ndustry Act, 1981; Swameat Corporation
Ordinance, 1986; Karakul Pelts and Wool Act, 1982; Agricultural (Commercial) Land Reform Act, 1995;
Stock Brands Act
Fisheries Marine Resources Act, 2000; Regulations Relating to the Exploitation of Marine Resources, 2001
Mining Minerals (Process and Mining) Act, 1990; Diamond Act, 1999; Petroleum Products and Energy Act,
1990; Petroleum Exploration and Production Act, 1991
Services The Electricity Act (No. 2), 2000; Electricity Regulations: Administrative Electricity Act, 2000; Bank of
Namibia Act, 1997; Banking Institutions Act, 1998; Air Services Act, 1949 and 1998 amendments;
Aviation Act, 1962 and 1998 amendments
Competition Trade Practices Act, 1976; Merchandise Act, 1941
Intellectual property rights Copyright and Neighbouring Rights Protection Act, 1994; Patents and Design Act, 1952; Patents Act,
1978; Proclamation No. 17 of 1923; Trade Marks in South West Africa Act, 1973
Price control Petroleum Products and Energy Act, 1999
Economic zones Export Processing Zones Act, 1995
Foreign investment Foreign Investment Act, 1990 and 1993 amendments
Source: Information provided by the Namibian authorities.
7. The Second National Development Plan 2001/ 02-2005/06, prepared in close consultation with
major stakeholders, was released in May 2001.  The Plan sets ambitious targets for economic growth
and poverty alleviation.  It incorporates the National Poverty Reduction Action Programme.26
Strategic measures identified to reduce poverty and unequal income distribution include moreequitable and efficient delivery of public services; equitable and sustainable agricultural expansion;
development of options for generating non-agricultural income; and provision of a safety net forvulnerable groups.  The Government views rural development, including infrastructure and public
services, employment, agricultural development, la nd tenure reforms and private-sector investment, as
essential for alleviating poverty.  Namibia's Vision 2030, which started in January 2000 and is due to
                                                     
25 A research report by NEPRU found that trade lib eralization would contribute to economic growth
and poverty alleviation (Hansohm et al., 1999).
26 The Government produced a Poverty Reduction Strategy in 1998 and established a National
Advisory Committee on Poverty Reduction.WT/TPR/S/114/NAM Trade Policy Review
Page A3-164
be completed by early 2003, is being managed by the National Planning Commission;  it involves
wide consultations and input from the broad community.
(2) TRADE AGREEMENTS
8. Namibia’s trade policy is heavily influenced by its WTO membership, to which it attaches
great importance.  It is committed to a liberal trade regime and it is in favour of the liberalization of
world trade, including in agricultural products.27  It would like small developing countries to gain
from this process.  Table II.2 shows selected recent  notifications by Namibia to the WTO.
Table II.2
Selected Namibian notifications to WTO, as of September 2002
WTO AgreementDescription of
requirementPeriodicityMost recent
notificationComment
Agreement on Agriculture
(Article 18.2)Domestic support Annual G/AG/N/NAM/14
27 June 2001Domestic support commitments for
1999/2000
Agreement on Agriculture
(Articles 10 and 18.2)Export subsidies Annual G/AG/N/NAM/12
27 June 2001No export subsidies during 1999
Agreement on Agriculture
(Article 5.7)Special safeguard
provisionsAnnual G/AG/N/NAM/13
27 June 2001No special agricultural safeguards
were invoked in 1999
Agreement on
Implementation of Article
VI of the GATT 1994(Article 16.4)Anti-dumping
actions takenSemi-annual G/ADP/N/78/Add.1
12 October 2001No anti-dumping actions taken during
1 January-30 June 2001
Agreement onImplementation of Article
VI of the GATT 1994
(Article 18.5)Laws and
regulationsOnce, then
changesG/ADP/N/1/NAM/1
28 February 1997No laws and regulations on anti-
dumping practices
Agreement on
Implementation of ArticleVI of the GATT 1994
(Article 16.5)Competent
authoritiesOnce, then
changesG/ADP/N/14/Add.12
17 April 2001South African Board on Tariffs and
Trade notified as competent authority
GATT 1994 (Article VII -22.2) Customs ValuationLaws and
regulationsOnce, then
changesG/VAL/N/1/NAM/1
28 July 1999Laws and regulations relevant to
customs valuation
Agreement on Import
Licensing Procedures
(Article.7.3)Questionnaire on
import licensing
proceduresAnnual G/LIC/N/3/NAM/3
6 April 2002Replies on import licensing
procedures
TRIPS (Article 63.2) Laws and
regulationsOnce, then
changesIP/N/1/NAM/I/2
2 April 2001Copy of the Unified Bill on
Intellectual Property Rights
TRIPS (Articles 41 to 61) Enforcement of
intellectual property
rightsNot specified IP/N/6/NAM/1
30 March 2001Checklist of issues on enforcement
TRIPS (Article 69) Contact points Once, then
changesIP/N/3/Rev.6
1 March 2002Contact points notified for patents,
trade marks and industrial designs;copyright; and for plant and animal
varieties
Agreement on Pre-Shipment Inspection
(Article 5)Laws and
regulationsOnce, then
changesG/PSI/N/1/Add.6
6 June 1997No laws or regulations on pre-
shipment inspection
Agreement on Safeguards(Article 12.6)Laws and
regulationsOnce, then
changesG/SG/N/1/NAM/2
19 June 2001No laws or regulations on safeguards
other than SACU provisions
Table II.2 (cont'd)
                                                     
27 WTO document G/AG/NG/W/143, 23 March 2001.SACU-Namibia WT/TPR/S/114/NAM
Page A3-165
WTO AgreementDescription of
requirementPeriodicityMost recent
notificationComment
GATT 1994
(Article XVII:4(a) and
Understanding on the
interpretation of
Article XVII:1State-trading
activitiesAnnual G/STR/N/6/NAM
24 July 2000State-trading enterprises
Agreement on Subsidies
and Countervailing
Measures (Article 25.11)Countervailing
actions takenSemi-annual G/SCM/N/75/Add.1/R
ev.1
23 April 2002No countervailing duty actions taken
during 1 January-30 June 2001
Agreement on Subsidies
and Countervailing
Measures (Article 25.12)Competent
authoritiesOnce, then
changesG/SCM/18/Add.12
17 April 2001Ministry of Trade and Industry and
Ministry of Finance notified as
competent authorities
Agreement on Technical
Barriers to Trade (Annex
3, Paragraph C of Code of
Good Practice forPreparation, Adoption and
Application of Standards)Acceptance or
withdrawal from the
Code of Good
PracticeOnce, then
changesG/TBT/CS/N/121
7 August 2000Acceptance of Code of Good Practice
Agreement on Technical
Barriers to Trade
(Article 15.2)Measures in
existence to ensure
implementationOnce, then
changesG/TBT/2/Add.42
9 December 1997All standardization and quality
assurance performed by South African
Bureau of Standards
TRIMs (Article 6.2) Publications about
TRIMsNot specified Government gazette
Source: WTO documents.
9. Namibia is a member of the Southern African Development Community (SADC), and the
African Union/African Economic Community, of which all SACU countries are also members
(Chapter II, Common Report). 28  However, Namibia and Swaziland are the only SACU members that
participate in the Common Market for Eastern a nd Southern Africa (COMESA), from which Lesotho
has withdrawn (section (i) below). Namibia has concer ns that its SACU membership may constrain its
ability to further liberalize regional trade with non-SACU neighbours. It believes that the structure of
SACU’s Common External Tariff, so far set by Sout h Africa (SA), is inappropriate for Namibia as it
reflects South Africa’s industrial patterns and imposes an anti-export bias on Namibian industries.
Namibia's capacity to negotiate preferential trade agreements is further limited by the 2002 SACU
Agreement (Main Report, Chapter II(2)(ii)).
10. Namibia is also concerned about the adverse economic impact of the EU-SA Trade,
Development and Cooperation Agreement (TDC A), although the SACU  members (Botswana,
Lesotho, Namibia, and Swaziland (BLNS)) have ag reed to its formation.  Although the major
products of interest to Namibia, such as beef, have been excluded from the TDCA, Namibia (and
other SACU members) is de facto obliged to implement the reciprocal tariff preferences negotiated by
South Africa on EU exports, without receiving corresponding improved market access to the EU.
This situation is to be aggravated by the establishment of the EU/South Africa Free Trade Area in
2012, well ahead of 2020 as for other ACP states.29  Of further concern are the revenue losses for
Namibia from reduced tariffs on imports from the EU.30  To address these concerns, the EU agreed to
establish an appropriate institutional mechanism in consultation with Namibia (and Botswana,
                                                     
28 Namibia adopted the SADC Protocol of Trade on 7 August 2000 (ratified on 22 December 1998) and
ratified the SADC Amendment Protocol on 4 July 2001 (signed 4 April 2001).
29 Parliamentary Standing Committee on Economics (2001).
30 The potential revenue loss for Namibia was estimated at almost 9% of total government revenue,
BIDPA (1998).  The revenue loss from the SACU pool was estimated at N$2.1 billion over 12 years, equivalentto a 35% reduction in 1997 tariff collections or 14% of the total SACU common revenue pool, and the loss toNamibia was estimated at N$549 million, or 35% of its SACU 1997 receipts.  See Bank of Namibia (2002a),
p. 43.WT/TPR/S/114/NAM Trade Policy Review
Page A3-166
Lesotho, and Swaziland) to consolidate its existing trade preferences to BLNS beyond 2007, to
improve immediate access, and to assist BLNS in  fiscal restructuring commensurate with revenue
losses from the TDCA.31
(i) Common Market for Eastern and Southern Africa (COMESA)
11. Namibia is a member of the COMESA, but has yet to ratify the Treaty.32  The COMESA
agenda is to deepen and broaden the integration process among member states through:  the completeelimination of tariffs and non-tariff barriers to regional trade, and the adoption of a common external
tariff (CET);  the free movement of capital, la bour, goods, and the right of establishment within
COMESA;  the adoption of a common set of standa rds and technical regulations, quality control
procedures, certification schemes, and sanitary and phytosanitary regulations;  the standardization of
internal taxation (including value-added tax and excise duties), and conditions regarding industrialcooperation, particularly on company laws, intellectual property rights, and investment laws;
application of harmonized competition policies;  and the establishment of a Monetary Union.
33
COMESA was notified to the WTO under the Enabling Clause in 1995.
12. COMESA is thus to be a customs and monetary union.  Its Free Trade Area (FTA) was
launched on 1 November 2000; nine members met the deadline for implementation.34  The status of
the participation of several other members, including Namibia, varies considerably.35  The customs
union is to be implemented by 1 November 2004 with a common external tariff (CET) comprising
four tariff bands:  zero, 5%, 15%, and 30% (on capital goods, raw materials, intermediate goods, andfinal goods, respectively).  However, since most COMESA members have maximum tariff bands
below 30%, discussions are under way on the possibility of reducing the agreed CET rate on final
goods.
13. Tariff preferences are subject to rules of origin requirements.  COMESA provides four
alternative criteria for determining origin on whic h an exporter may claim eligibility for preferential
treatment:  that goods are wholly produced in the region using no outside materials;  that imported
content of goods is no more than 60% of the c.i.f. value of the total cost of materials used in
production;  that goods contain not less than 35% ex-factory value added 
36, reduced to 25% if the
                                                     
31 Resolution adopted by the ACP-EU Joint Parliamentary Assembly on 1 November 2001 (ACP-EU
3296/01/fin).
32 Other members are Angola, Burundi, Comoros,  Djibouti, Egypt, Eritrea, Ethiopia, Kenya,
Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Uganda, the Democratic Republic ofthe Congo, and Zimbabwe.  Tanzania, Lesotho and Mozambique have withdrawn.
33 See COMESA online information.  Available at:  http://www.comesa.org/obj.htm.
34 The nine members are Djibouti, Egypt, Kenya, Madagascar, Malawi, Mauritius, Sudan, Zambia, and
Zimbabwe.  Merchandise trade between the FTA COMESA members is duty free, without exception.
35 The status of implementation of the tariff reduction programme varies substantially among the
members yet to join the FTA.  Rwanda's published legislation provides for a tariff reduction of 80% from1 January 2002, 90% from 1 January 2003 and 100% from 1 January 2004.  Burundi has decided to introduce a
further tariff reduction of 80% from the current le vel of 60% as from January 2003, and will effect a 100%
reduction in January 2004 (on COMESA originating products).  Consultations are continuing with theDemocratic Republic of the Congo, Seychelles, Como ros, and Uganda.  Eritrea and Ethiopia are still studying
the implications of membership.  Namibia and Swaziland (both SACU members) are under a derogation until 31July 2003.  This is intended to allow time for consultations between the COMESA Secretariat and the twocountries, and to enable them to seek the concurrence of the other SACU member states.  The COMESA Treaty
therefore provides for a multi-speed integration programme.
36 Value added is defined as the difference between the ex-factory cost of the finished product and the
c.i.f. value of material inputs imported from outside the COMESA sub-region.  The minimum level of valueadded was reduced from 45% to 35% in 2000.  Egypt and Uganda maintain the 45% ex-factory value-addedlevel.SACU-Namibia WT/TPR/S/114/NAM
Page A3-167
final product is considered to be of "particular importance" to the economic development of a member
state37;  or that there is a change of tariff classification heading following transformation.
14. Namibia’s trade within COMESA is relatively small.  Its main COMESA trading partner is
Angola, especially for exports.
15. The Monetary Harmonisation Programme is to be implemented in four phases, from 1992
to 2025.  The final phase should culminate in full monetary union, with the use of irrevocable fixedexchange rates, a single currency or parallel currencies; full harmonization of economic, fiscal, and
monetary policies of member states; full integration of the financial structure;  pooling of foreign
reserves;  and the establishment of a common monetary authority.  A coordinating body, comprising
regional experts from central banks and finance ministries, was formed to oversee implementation of
policy measures and to advance the process of monetary harmonization towards monetary union.
16. Several institutions have been established to assist COMESA members in their development.
The Eastern and Southern African Trade and Development Bank (PTA Bank) provides trade and
project financing to public and private investors domiciled in a bank member state.
38  The COMESA
Clearing House has diminished in importance following liberalization of most members' foreign
exchange regimes.  Its role is being re-directed towards improving the efficiency of clearingoperations to complement the services offered by  commercial banks;  providing traders with some
form of political insurance on intra-regional trade;  and facilitating monetary and fiscal policy
harmonization within the region.  Namibia is not a member of the PTA Re-Insurance Company (ZEP-
RE), which assists the development of the insu rance and re-insurance industry in the COMESA
region. The Africa Trade Insurance Agency (ATIA), launched in August 2001, is aimed at creating
investor confidence by providing cover against political risk.  Althoug h promoted by COMESA,
membership of ATIA is open to all the member states of the African Union, formerly called theOrganization of African Unity  (OAU).
39  The COMESA Court of Justice became operational in 1998.
Its general jurisdiction is to adjudicate upon all matters that may be referred to it under the Treaty.
Namibia has not been involved in any formal disputes within this framework.
17. The protocol on free movement of persons is to be implemented in several stages; the first
stage of removing visa requirements was adopted in 2000.  While Namibia is not a signatory, it has
bilaterally removed visa requirements for certai n COMESA countries, including Angola, Tanzania,
Zambia, and Zimbabwe.
(ii) Regional Integration Facilitation Forum (RIFF)
18. The Regional Integration Facilitation Forum (RIFF), formerly known as the Cross-Border
Initiative (CBI), aims to move member countries (including Namibia) towards increased economic
integration by facilitating private investment, trade, and payments between them, as well as
cross-border mobility of labour and capital. Member  states are countries in eastern and southern
Africa and the Indian Ocean.  The RIFF was developed in close collaboration with the economicintegration organizations in the region. As a forum, the RIFF is to reinforce and complement efforts
                                                     
37 A wide list of approved products is specified in the COMESA Treaty as being of particular
importance to the economic development of the members.
38 Not all COMESA members are members of th e PTA Bank:  Angola, Namibia, Seychelles,
Swaziland, Uganda, and the Democratic Republic of the Congo are not members.  Egypt joined the Bank
in 2000.  Since 1994, non-COMESA members are permitted become PTA Bank members;  Somalia, Tanzania,and, since 2001, China are such members.
39 Founding members of the ATIA are Burundi, Kenya, Malawi, Rwanda, Tanzania, Uganda, and
Zambia. Only Tanzania is a non-COMESA country.WT/TPR/S/114/NAM Trade Policy Review
Page A3-168
undertaken by these organizations. Launched in 1992, the RIFF is co-sponsored by the European
Commission, the International Monetary Fund, the World Bank, and the African Development Bank.
It has no Secretariat at the regional level and works on a voluntary basis.
(iii) Other trade agreements
19. Namibia's only bilateral preferential trade agreement was signed with Zimbabwe in 1992.
This provides for reciprocal duty-free entry of each other’s goods, subject to rules of origin requiringat least 25% local content for manufactured goods, and Namibia or Zimbabwe (as exporter) should be
the last place of substantial manufacturing.  Other eligible products include mineral products,
vegetable products, live animals and their products, forest products, and seafood, provided they are
wholly produced or obtained in either country.  Namibian exporters must be registered with the
Ministry of Finance and issued with a certificate of origin to receive preferential access.  There isminimal trade between Namibia and Zimbabwe.
20. Due to Namibia’s SACU membership, negotiations for a bilateral agreement with Zambia
have formally ended and Zambia is inst ead negotiating with all SACU members.
21. Namibia maintains non-preferential or MFN agreements with China, Cuba, the People’s
Democratic Republic of Korea, Democratic Republic  of the Congo, India, Ghana, Malaysia, Romania,
and the Russian Federation.  Many of these agreements pre-date WTO membership of trading
partners.  They generally contain provisions covering greater cooperation, such as on trade fairs and
exhibitions as well as products in transit.  No such arrangements have been signed since Namibia's
last Trade Policy Review.   
22. Namibia is eligible for GSP treatment from most industrialized countries.  These provide
preferential access at zero or reduced tariffs on eligible products, subject to rules of origin.  Product
coverage and rules of origin vary between countr ies, but generally require the goods to be wholly
obtained or sufficiently processed in Namibia, as evidenced by certificates of origin from the Ministry
of Finance. Namibia receives GSP treatment from Australia, Bulgaria, Canada, Czech Republic, the
EU, Hungary, Japan, New Zealand, Norway, Poland, Russia, Slovak Republic, Switzerland, and the
United States.  According to authorities, GSP schemes are of limited importance to Namibia and
benefit only a few industries because most are either dormant and unused by the business communityor have been made obsolete by other preferential schemes, such as the AGOA with the United States
and the Cotonou Agreement with the EU.
23. Namibia also receives preferential access to the EU market under the Cotonou Agreement,
subject to meeting certain rules of origin (Main Report, Chapter II(6)(i)).
40  Exports of canned and
fresh fish as well as other goods such as hides, skins and leather products, are quota and duty free.Beef exports are subject to an annual quota of 13,000 tonnes, dutiable at a reduced tariff equal to 8%
of the specific element of the EU’s composite duty.  Namibia also exports seedless grapes and utilizes
the full annual preferential quota for ACP countries of 900 tonnes.   It is ineligible for the "Everything
But Arms" (EBA) Initiative of the EU, which is available only to least developed countries.
24. While a beneficiary under the U.S. African Growth and Opportunity Act (AGOA) (Main
Report, Chapter II(6)(ii)), Namibia was ineligible until recently for the enhanced access afforded to
"lesser developed beneficiary sub-Saharan African countries", which extends duty free and quota-free
preferential access to the U.S. market for apparel exports made of fabrics from any source until
                                                     
40 The Agreement permits cumulation of origin between ACP countries and the EU.  Cumulation with
South Africa will be permitted from 2003.SACU-Namibia WT/TPR/S/114/NAM
Page A3-169
end September 2004, subject to a specific aggregate cap.41  This limited preferential access - for
Namibia's apparel exports to garments using U.S.-made fabric, or for some clothing items using
sub-Saharan African-made fabrics, U.S.-made fabrics or sub-Saharan African yarn – is subject also to
the specific aggregate cap on U.S. imports.  However, the United States extended from 6 August 2002
"lesser developed country status" to Namibia, despite its relatively high GNP, thereby allowing
producers to use third-country fabric in qualifyin g clothing exports (so-called AGOA II).  According
to authorities, AGOA has generated substantial investment in Namibian textiles and clothing
industries, and exports to the United States have increased steadily.  Other industries potentially
benefiting from AGOA are ostrich meat, grapes, dates, fish, and handicrafts.
(3) INVESTMENT FRAMEWORK
25. Namibia’s investment framework has underg one no significant changes since 1998.  The
1990 Foreign Investment Act and its 1993 amendments remain the cornerstone of its foreign
investment policy.  Tax incentives are available to domestic and foreign investors, and include a 50%
income tax rebate for the first five years, which is phased out uniformly over ten years.  Special tax
incentives are also available to exporters, including more generous provisions for those with Export
Processing Zone (EPZ) status.  Exporters of manuf actured goods, other than meat and fish products,
whether or not Namibian made, receive an 80% tax allowance on such income.  A special tax package
may also be negotiated through the Ministry of Trade and Industry for investors establishing new
manufacturing operations in Namibia.42  However, investment incentives have not been a major factor
in attracting investment.   The main factors have been political stability; favourable macroeconomic
stability; an independent judicial system and protection of property and contractual rights; good
quality infrastructure; and easy trade access to South Africa.43 By end-1998, Namibia had fully
liberalized its investment approval procedures and published its investment code.
26. The Namibian Investment Centre under the Minist ry of Trade and Industry serves as a "one-
stop" shop to help investors with information and assist with customs, incentives, and other approval
procedures.  All activities are open to foreign investors.44  No foreign equity limits or joint-venture
requirements exist, except in fishing where cert ain local-participation requirements may apply under
"Namibianization" policies.  Otherwise, foreign investors receive national treatment.  Foreigninvestment approval is only required where the investor is applying for a Certificate of Status
Investment (CSI).  This requires minimum investment of N$2 million (or acquisition of not less than
10% of the share capital of a Namibian company) and the project to be assessed as contributing to
Namibia’s development, employment, workforce training, using local goods or generating foreign
exchange.  No performance requirements exist.  CSI status is free of fees and provides additionalbenefits to foreign investors, like exemption from any future decisions to reserve activities to
                                                     
41 Namibia’s per capita gross national product in 1998 exceeded the threshold of US$1,500 set under
AGOA for "lesser developed beneficiary sub-Saharan Afri can countries".  Namibia was declared eligible for
AGOA benefits by the United States on 2 October 2000, and eligible for the apparel provisions on 3 December
2001.  Also covered are non-clothing products grown or produced in sub-Saharan African beneficiary countries,subject to rules of origin requiring local materials and direct processing costs to be at least 35% of the productsappraised value when it enters the United States (t he transaction value or adjusted f.o.b. price).
42 These negotiations cover the tax rate and related terms, and approval by the Minister of Finance is
based on recommendations of the Minister of Trade and Industry.  Terms and conditions are published in the
Official Gazette .  To obtain such special tax packages investors must show that no existing industry will be
"unfairly disadvantaged" and that the project will contribute to Namibia’s long-term economic growth.
43 Basu and Srinivasan (2002).
44 Although the legislation enables the Minister of Tr ade and Industry to specify that certain activities
are reserved for Namibians, this has not been used.WT/TPR/S/114/NAM Trade Policy Review
Page A3-170
Namibians, and the right to international arbitration in case of governmental disputes.  Foreign
ownership restrictions apply to agricultural land.
27. Namibia is a member of the Multilateral Investment Guarantee Agency (MIGA).  It has
ratified bilateral reciprocal investment promotion and protection treaties with Germany, Malaysia, and
Switzerland, and is in the process of ratifying agreements with Cuba, Finland, France, the United
Kingdom, and Northern Ireland.  Treaties are also be ing signed with Austria, Italy, the Netherlands,
and Spain, and negotiations are continuing with several other countries, including Belgium,
Luxemburg, Romania, Zimbabwe, and South Africa .  Namibia has signed double taxation agreements
with South Africa, France, Sweden, Germany, India, Mauritius, The United Kingdom, Russia,
Malaysia, and Portugal, and an agreement with Mali is to be ratified.  It is ready to ratify accession to
the Convention on the Settlement of Investment Di sputes Between States and Nationals of Other
States.
(4) T ECHNICAL ASSISTANCE
28. In the development of its trade policy, Namibia faces constraints related to the
implementation of WTO Agreements and the training of  officials,  as well as supply-side constraints.
In addition, with no diplomatic representation in Geneva, it is difficult for Namibia to engage in theday-to-day activities of the WTO.
45  These constraints can be addressed through a focused, targeted
programme of technical assistance and capacity building, as well as through greater coordination
amongst the providers of such trade-related technical assistance.
(i) Implementation of WTO Agreements and training of officials
29. Namibia is having some difficulties implementing the WTO Agreements.  Namibia is in the
process of institutional and legislative reforms. The Government has been enacting new legislation,
such as the Companies Law, Competition Law, and an Intellectual Property Law, in an effort to repealold laws.  The Ministry of Trade and Industry, responsible for the formulation and implementation of
trade policy, has no legal experts to assist in the drafting of trade-related legislation.  Namibia
recognizes that legal drafting is a national problem and is seeking ways to address the issue including
the possibility of collaborating with local law schools.  It has expressed the need for assistance
(training in particular) in this area.
30. Namibia has no legislation on anti-dumping, safegu ards or countervailing measures.  It would
therefore benefit from a technical workshop on trade remedies. Namibia's laws on intellectual
property rights were reviewed by the TRIPS Counc il in 2001;  Namibia now faces the challenge of
enforcement.   It has expressed the need to enforce/strengthen customs procedures (including customs
valuation, rules of origin, inspection/investigations) as well as for intensive training of customs andpolice officers.  This would also assist in identifying and impounding counterfeit goods. More
infrastructural development and trained officials are required for Namibia to be able to comply with
SPS requirements.
31. Namibia has expressed the need to train officials and to sensitize the public and private
sectors on trade policy matters.  Namibia recognizes the important role of Members of Parliament andof the media, and has requested the WTO to organize seminars for the two groups.  The sensitization
                                                     
45 As a non-resident member, Namibia has participated in the several Geneva Weeks, organized by the
WTO Secretariat.  Geneva Week is where officials from non-resident countries are briefed, in Geneva, on thestate of play in the work of the WTO, including briefings on the ongoing negotiations.  Namibia also makes useof the assistance provided to non-residents by the Agency for International Trade Information and Cooperation(AITIC).SACU-Namibia WT/TPR/S/114/NAM
Page A3-171
of all stake holders, the civil society, the media, and academia, would increase public awareness of the
multilateral trading system.
32. Namibia has no institutional experience on the past negotiations because South Africa
negotiated on its behalf during the Uruguay Round.  Training on negotiating skills would enhance
Namibia's participation in the current negotiations under the Doha Development Agenda.  In its
technical assistance needs, in pursuance of the Doha Development agenda, Namibia has highlightedthe need for a national seminar on negotiations on market access for non-agricultural products, with
particular emphasis on negotiating modalities; revenue implications; and special and differential
treatment.  In addition, Namibia has requested national workshops and seminars in the following
areas: Agriculture; TRIPS and the Doha aftermath; integrated data base, notifications and tariff
negotiations; Singapore issues (investment, competition, government procurement, and tradefacilitation); and scheduling of services commitments.  Training in this area would not only assist
Namibia in the Doha negotiations, but also in the negotiations in COMESA, SADC, ACP-EU, and
SACU.
33. Since 1995, seven national seminars/workshops have been organized in Namibia by the WTO
Secretariat.
46  In addition, Namibia has participated in numerous regional activities.47 From 1995 to
2002, four Namibian officials benefited from the three-month regular trade policy courses held at the
WTO Secretariat. Namibia has also recently sent one official to each of the trade policy courses held
in Kenya and Geneva. These courses have been of great benefit to Namibia and further participation
would enhance the trade capacity of officials.
34. Namibia's trade capacity could be further enhanced through the "Trade and Poverty
Programme" being implemented by the UK Department for International Development (DFID).  The
objective of the programme is to enhance the capacity of some sub-Saharan African countries toformulate, negotiate, and integrate trade policy into  national development plans.  However, it should
be noted that in Namibia, trade is recognized as an important element in improving the standard of
living.  In this regard, trade is featured in the country's National Development Plan, as a contributing
factor to development.
35. There is also extensive coordination on trade matters.  Namibia has a National WTO
Committee, which is an inter-ministerial committee dealing with WTO matters . In its technical
assistance request for 2002/03, Namibia has indicated a need for a five-day briefing/technical mission
to the WTO Secretariat by members of the Committee.  Coordination of donors, at the bilateral and
multilateral levels, should improve efficiency in the provision of technical assistance.
                                                     
46 National Workshop on Specific WTO Agreements (1998); National Seminar on Trade negotiations
(1998); Establishment of a WTO Reference Centre (1998); Legal Advisory mission (1999); National Seminar
on WTO Agreements (1999); National Seminar on Agriculture (2001); and Trade Policy Review TechnicalMission (2002).
47 Regional Seminar on SPS for Southern African Developing Countries (Namibia, 1999); Conference
on TRIPS Agreement and Implementation Requirements (Botswana, 1999); Regional Seminar on Trade andEnvironment (South Africa, 2000); Rules Implementation Seminar (South Africa, 2000); Regional Workshop on
Competition Policy (South Africa, 2001); Seminar for SADC countries on Agriculture and the WTO (Botswana,
2001); WTO/ISO Workshop on International Standard Settings for Sub-Saharan Africa (Kenya, 2002); IntensiveTraining Course on Trade and Investment for Anglophone Africa (South Africa, 2002); First WTO-ECA-AfDBTrade Policy Course for African Countries (Ethiopia, 2002); SACU Trade Policy Review Seminar (Lesotho,2002); and Trade and Environment Seminar (Namibia, 2002).WT/TPR/S/114/NAM Trade Policy Review
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(ii) Supply-side constraints
36. The Government of Namibia has taken a number of initiatives to address supply-side
constraints.  Namibia has an enabling infrastructure for trade promotion.  It has good road
infrastructure linking it to its neighbours, Angola, Botswana, South Africa, Zambia, and Zimbabwe.
The Trans-Kalahari and the Trans-Caprivi Highways provide a good link to Namibia's main port of
Walvis Bay.  This is a key corridor for commercial traffic to and from Namibia and other landlockedcountries.  In addition to transport development, the Government has invested heavily in upgrading
telecommunications, including mobile services.
37. Namibia's economy is small and export dependent.  It needs to produce more for external
markets for growth.  The government has taken initiatives to facilitate and promote exports, as well as
investment into the country.  The Ministry of Trade and Industry provides an information servicethrough its Trade Information Centre. The Centre enables Namibian companies to research existing
and potential export markets. The information provided includes product and market information,
trade regulatory information, and business opportunities.
38. The Namibian Investment Centre was create d under the Foreign Investment Act of 1990 to
attract, encourage and facilitate investment into the country.  The Centre assists investors withregulatory issues such as resident and work permits.  Namibia's benefit from the African Growth and
Opportunity Act (AGOA) may further boost its ability to attract investors in its growing textile and
garment industry. Namibia's most significant success in attracting foreign investment is the
establishment of the Ramatex Namibia Textile Plant in Windhoek.
39. The Government is aware of the need to di versify the economy and is encouraging the
development of manufacturing and mining activities . Namibia's most recent diamond mine,  Daberas
mine, opened in May 2002.  It is capable of processing nearly 4 million tons of diamond-bearinggravel annually.
48  Agricultural production is also expanding beyond the traditional livestock and
subsistence farming to include grapes and cotton, as well as leather processing.
                                                     
48 INVEST-DEVELOP :  Namibia's Investment Newsletter , Issue 2, 21 June 2002.SACU-Namibia WT/TPR/S/114/NAM
Page A3-173
III. TRADE POLICIES AND PRACTICES BY MEASURE
(1) OVERVIEW
1. Namibia has streamlined customs procedures, based on the Automated System for Customs
Data and Management (ASYCUDA).  Few significant changes have occurred in import-licensing
since 1998.  All imports are licensed; licensing of certain products is non-automatic (e.g. fish, meat,
and seemingly second-hand goods), and requires a permit from the relevant ministry.  Seasonal importbans on white maize, maize meal, wheat, and wheat flour ensure the domestic crop is used first.  The
Namibian Agronomic Board regulates the trade of controlled cereals, including exports.  The Meat
Board controls the trade of live animals and meat.  Tariff quotas apply to wheat and certain dairy
products.  Imports of some products are prohibited for health, phytosanitary, safety, and
environmental reasons.
2. The Government intends to strengthen its standards and conformity testing procedures.  The
planned Namibian Standards Board will reduce Namibia’s reliance on the South African Standards
Board.  Namibian standards are to be based on South African and international norms.  The Tender
Board lets all government procurement contracts above N$10,000 by public tender.  Namibian
suppliers receive price preferences based on local content.  Namibia is neither a member nor anobserver of the WTO Government Procurement Agreement.
3. In November 2000, a VAT replaced the sales taxes.  The only export tax is levied at 1% on
diamonds).  Exports are subject to licences; some are non-automatic.  Exporters, especially those with
EPZ status, benefit from a range of incentives, including income tax concessions and tariff
exemptions on imported inputs. Manufacturers also receive income tax concessions, and new
investors in manufacturing may negotiate special tax packages.
4. Namibia has several parastatals some of which hold monopolies or exclusive rights, e.g. over
supply of utilities.  Many have performed poorly, and the Government is taking steps to improve their
performance, including possible privatization.  Draft competition legislation is to be implemented in
2003.  Namibia has taken important steps to strength en intellectual property protection; copyright
legislation was amended in 2000, and new legislation is to be passed on industrial property in early
2003.
(2) M
EASURES DIRECTLY AFFECTING IMPORTS
(i) Registration, and import duties and related measures
5. Under the SACU Agreement, BLNS countries, including Namibia, apply import duties and
related measures in line with South Africa.  However, applied customs tariffs, excise duties, valuation
methods, origin rules, and contingency trade remedies are, so far, the only trade policy measuresharmonized throughout SACU.  These common policy measures are covered under the Main Report.
For import duties and related measures, there are differences among SACU members in customs
procedures, import duties (other than customs tariffs and excise duties), and duty and tax concessions.
6. Importers must have an import permit from the Ministry of Trade and Industry and be a
Namibian citizen or resident.  Use of customs clearing agents is optional.  Agents are licensed by theDirectorate of Customs and Excise in the Ministry of Finance.
7. Namibia has streamlined its customs procedures.  It uses a single administrative document
(NAMSAD 500) for customs declaration, and ha s adopted the ASYCUDA system.  According to
authorities, this system works well, and covers some 90% of entry points.  Namibia intends to  upgradeWT/TPR/S/114/NAM Trade Policy Review
Page A3-174
to ASYCUDA ++ during 2003.  It introduced its own Customs and Excise Act (Act No. 20) in 1998
to replace the South African legislation.  Customs maintains a consolidated monthly import entry
procedure to enable regular importers of SACU products to enter them on a monthly customs
declaration.  It also has a direct trader input System (DTI) linked to the ASYCUDA system.  The DTI
is for use by cargo carriers and freight forwarders and enables entry documentation to be processed
electronically.  According to the authorities, it takes on average two to four hours to clear commercialimports, provided that all documents are in order.  A bond guarantee system operates.
8. Namibia has invoked the SACU provisions available to BLNS countries to protect infant
industries on three occasions.  The industries concerned are: UHT milk production (implemented in
2001), pasta (implemented in 2002), and broilers (granted in 2002 but yet to be implemented);  a new
pasta factory has been established.  The arrangements allow additional tariffs on all imports, includingfrom SACU countries, to be phased out over eight years. These additional tariffs were set at: 10% for
three years, 7% for three years, and 4% for two years for UHT milk; 40% for four years, 30% for two
years, and 20% for two years for pasta; and 46% a dditional tariffs for four years, 30% for two years,
and 20% for two years for broiler production, which received the highest infant industry protection.
9. The SACU agreement contains no criteria on how these provisions are to be applied; the
industry must simply be an infant industry, i.e. young er than eight years.  Namibia also has no specific
guidelines or public procedures for determining whether to grant such protection and at what levels.
The relevant ministry consults all stakeholders, including importers, producers, and consumers.
Criteria used to assess a request for infant industry protection include employment, foreign exchange
earnings, and other benefits to the economy.  The applicant must provide precise details of planned
activities, including production and prices.  Prices are monitored after protection is imposed to ensure
that they remain competitive.
10. Namibia’s three statutory marketing boards collect various producer and processor levies to
finance their operations, including promotional and research activities.  For example, the Namibian
Agronomic Board sets a producer levy of 2.6% on maize and wheat production; a processor levy of
0.65% on local and imported milled maize and wheat;  and, from 8 August 2002, a horticultural levy
of 1.2% on all such products produced and imported (Agronomic Industry Act No. 20 of 1992).
49  All
levies apply equally to imports.  A fuel levy also applies to all petroleum products sold in Namibia.
11. In November 2000, the general sales tax (GST) and the additional sales duty (ASD) were
replaced with a value added-tax (VAT) on goods and services at a general rate of 15%;  some
products, such as exports, are zero-rated, while a number of basic household commodities and
services, such as medical, education, and certain financial services, are exempt.50  Certain luxury
goods were taxed at a higher VAT rate of 30%; however, these products became subject to the
standard rate of 15% from October 2002 when the 30% rate was abolished (Value-Added Tax
Amendment Act, No. 6 of 2002).  The VAT is applied uniformly to domestic and imported goods,
including from other SACU members.  The base fo r levying VAT on imports varied slightly between
                                                     
49 The levies are applied to prices set periodically  by the Board, and cannot exceed the producer price
or the "landed cost" price of imports (purchase price, including any taxes and duties, and transport costs to the
final destination in Namibia).  Horticultural products co vered by the levy are specifically listed, and cover a
wide range of fruit and vegetables (Government Notices No. 145, 146 and 147, Government Gazette of
30 August 2002).
50 Suppliers of zero-rated products (e.g. exporters), can claim tax credits for VAT paid on inputs, while
those of exempt products cannot.SACU-Namibia WT/TPR/S/114/NAM
Page A3-175
SACU and non-SACU countries until 1 October 2002.51  Since then, VAT is levied on all imports
based on the f.o.b. price plus 10% or, if greater, the "open market value" of the product (Value-Added
Tax Amendment Act, No. 6 of 2002).  This change effectively extended the base applied to SACU
imports, (landed duty free) to non-SACU imports which were previously taxed on their landed
duty-paid price.  For administrative reasons, this usually means that imports are levied VAT on the
f.o.b. price plus 10%, thereby avoiding the difficul ties of determining an open market value.  This
implies that, tariff-dutiable imports may be treated favourably over domestic goods since VAT is not
levied on the import parity (the landed duty-paid) price.
(ii) Import prohibitions and licensing
12. Few significant changes have occurred in Namibia’s import licensing regime since 1998.  All
imports, including agricultural commodities, must be licensed by the Ministry of Trade and Industry.In general, the licences are for statistical purpos es (automatic licences).  However, non-automatic
licensing applies to imports of medicines; chemicals; frozen, chilled, fish and meat; live animals and
genetic materials; controlled petroleum products; firearms and explosives; diamonds, gold and other
minerals; and seemingly all second-hand goods such as clothing and motor vehicles.  The issuance of
a non-automatic licence is generally subject to a pe rmit from the relevant ministry, for example, the
Health Ministry for medicines, the Ministry of Mines and Energy for minerals, and the Ministry of
Environment and Tourism for endangered species covered by the Convention on International Trade
in Endangered Species of Wild fauna and flora (CITES).
13. Imports of meat for re-export are banned, according to authorities, to help satisfy EU food
safety requirements for beef exports, including tracing of animals.  Namibia also prohibits imports of
cigarettes with a mass above 2 kg. per 1,000 cigarettes.  Whole-grain (white) maize, maize meal,
wheat and wheat flour are subject to seasonal import bans;  import licences are not issued until alllocally-produced maize and wheat is milled.  The authorities indicated that these arrangements do not
restrict imports in practice because locally grown grains tend to be sold quickly, after which import
licences are issued automatically. Prices are determined by the market between millers and farmers
and, according to authorities, reflect import parity  prices, mainly from South Africa.  The Namibian
Agronomic Board controls trade (imports and expo rts) of controlled products (Agronomic Industry
Act of 1992, and 1993 regulations) through permits required for import/export licensing.
52  F o r
imports, the permits are non-transferable and are issued daily following take-up of the domestic crop;
they are valid for three months.  However, permit restrictions have been applied periodically; for
example, for three months during the period April 1997 to April 2000.53  The Meat Board of Namibia
monitors imports of live animals (cattle, sheep, goats, and pigs) and their meat thought its permitswhich are required for their licensing.
54  The permits are valid for three months and are non-
transferable.  Permit refusals may be appealed to the agricultural ministry.
14. Non-automatic licences seemingly apply to imported second-hand goods, such as clothing,
leather products, and motor vehicles.  In practice, it seems that only registered welfare agencies can
import used clothing and leather products and, apparently, licences are not issued to import used cars.
                                                     
51 Previously, VAT on imports from non-SACU countries was levied on the duty-paid price (f.o.b.
price and tariff duties) plus the value of any services relating to the good, such as commission, packaging,transportation, short-term warranty insurance, and warranty expenses, to bring it to a landed-duty equivalent.
52 Controlled agricultural commodities are defined in Government Notice No. 293, 1996.  Horticultural
products were declared as agronomic crops subject to the Agronomic Industry Act, 1992 in August 2002(Government Notice No. 146, Government gazette, 30 August 2002).
53 WTO document G/LIC/N/3/NAM/3, 6 April 2000.
54 WTO document G/LIC/N/3/NAM/3, 6 April 2000.WT/TPR/S/114/NAM Trade Policy Review
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15. The SACU tariff-quota arrangements on certain agricultural imports apply different levels to
each BLNS country.  They allow Namibian imports below an annual quota to be duty free.  While
such direct imports into Namibia pay no duty, those entering through other SACU countries are
subject to the relevant tariff rates; this is rebated after the goods are imported by Namibia.  Tariff
quotas apply to wheat (quota of 50,000 tonnes with an in-quota tariff rate of 0%), cheese (300 tonnes
at N$5 per kg.), butter (400 tonnes at N$5 per kg.), and skimmed and whole milk powder (700 and
400 tonnes respectively, at N$4.50 per kg.).
16. Import prohibitions are also applied on goods such as obscene material and environmentally
hazardous products, including toxic or radio-active waste, to protect health, safety, and morality.
Namibia is a signatory to the Montreal Conventi on on the Emission of Ozone Depleting Substances,
and the Vienna Convention and the London Amendment; the International Atomic Energy Agency;and the Basel Convention on Trade in Toxic or Hazardous Waste.  Namibia signed the Cartagena
Protocol on Biosafety in 2001.
(iii) Standards and other technical requirements
17. Since 1991, the South African Bureau of Standards has undertaken Namibia’s standardization
and quality assurance functions.
55  However, Namibia is in the process of strengthening its own
standardization and certification requirements under the Government’s National Quality Policy
announced in June 1999.  It plans to create the Namibian Standards Board to reduce its heavy reliance
on South African standards, especially on labelling requirements and on manufactured products.
Legislation is being debated in Parliament and passage is expected in 2003.  The Namibia Standards
Information and Quality Office in the Ministry of Trade and Industry has been the official body for
these activities, representing Namibia’s membership in the International Organization for
Standardization (ISO) and making available South African and international standards in Namibia.56
Imported and domestically produced goods are covered mainly by South African and ISO standards,
on which Namibian standards are to be based.
18. Sanitary and phytosanitary provisions apply, on a consignment basis, to agricultural imports,
such as livestock, meats, and cereals. All imports of plants and plant products, including controlled
agricultural commodities of wheat and maize, require an import permit (Agricultural Pest Act, 1973).The permit is issued by the Ministry of Agriculture, Water and Rural Development;  it requires the
importer to submit a phytosanitary certificate and country of origin certificate from the exporting
country.  The Ministry also imposes strict veterinary controls; to obtain an import permit an importer
of live animals and meat must have a veterinary permit issued by the Ministry (Veterinary Services),
or by the Livestock Improvement Board for stud an imals (Animal Diseases and Parasites Act, 1956).
Obtaining an import permit requires the original health  certificate issued by the veterinary authority in
the exporting country.  The O.I.E. Animal health Code is used as a guide for setting import
requirements relating to SPS and quarantine.  These do not generally discriminate between countries;
veterinary permits are needed for imports from all countries.
57  As parts of Namibia are free of foot-
and-mouth disesase to protect its herd and to safeguard its exports to the EU animal imports fromcountries without this free status are prohibited.  Namibia sets additional SPS and quarantine
measures where necessary to meet international market requirements.
19. Most testing is still performed in South Africa, largely because of a lack of facilities in
Namibia.  Export certification is also usually c onducted in South Africa, when required, such as for
                                                     
55 WTO document G/TBT/2/Add.42, 9 December 1997.
56 It has been notified to the WTO as accepting the TBT Code of Good Practice.  WTO document
G/TBT/CS/N/21, 7 August 2000.
57 WTO document G/LIC/N/3/NAM/3, 6 April 2000.SACU-Namibia WT/TPR/S/114/NAM
Page A3-177
fish exports to the EU, although this is expected to change following the approval of facilities at
Walvis Bay.
(iv) Government procurement
20. Government procurement of goods and services  must be made through the Tender Board of
Namibia (Act No. 16 of 1996), except for statutory bodies, local authorities or regional councils
approved by the Minister of Finance.  The Minist er of Finance appoints Board members from various
ministries.  The Board awards the procurement co ntracts.  Contracts above N$10,000 must be let by
public tender.58  Such tenders are advertised widely in the press and are open to foreign suppliers.
The Board operates a two-envelope tendering system, and suppliers must have the necessary technical
expertise.
21. Namibian-registered (including foreign) domestic suppliers receive price preferences based
on local content.  For Namibian-made goods, price preferences range from 6% for local content (in
production) of 10% to 25%, up to 20% for local content exceeding 90%.  For goods assembled in
Namibia, price preferences range from 3% for local content of 10% to 25%, up to 10% if local content
exceeds 90%.  In the case of services, domestic suppliers and CSI (Certificate of Status Investment)
foreign investors receive price preferences of 5%, while the preferences for small-scale domesticindustries range from 2% to 5%, depending on employment levels.  Price preferences of 2% to 5%
apply for suppliers located in communal or underdeveloped areas, and of 2% for a fully domestically
owned Namibian public company.  Preferences are cumulative, and are applied to tender prices.  In
rare cases where tenders are equal after allowing for all adjustments, including price preferences and
socio-economic factors, contracts are awarded based on local content levels.  Tender decisions may be
appealed to the Board, the Ombudsman’s Office, and to the courts.
22. Namibia is not a member of, nor observer to, the WTO plurilateral Agreement on
Government Procurement.
(v) Local-content requirements
23. Preferences granted to Nambian-registered supplies, under the government procurement
regime, are based on local content.  "Namibianization" policies in fisheries favour local content
(Chapter IV(2)(i)).
(vi) Other measures
24. Namibia has no official countertrade or offset arrangements, or agreements designed to
influence the quantity or value of goods and services exported to Namibia.  Namibia imposes no trade
sanctions.
(3) M
EASURES DIRECTLY AFFECTING EXPORTS
(i) Registration and taxes
25. There are no registration requirements specific to exporters.  Meat exporters must be
registered with the Meat Board.
                                                     
58 Treasury instructions and public rules operate on tenders below N$10,000;  for example, at least
three quotations are required.WT/TPR/S/114/NAM Trade Policy Review
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26. The only export tax is a recently introduced 10% tax on unprocessed diamond exports
(Chapter IV(2)(iii)).  Royalties and levies are imposed on mineral and fish exports.  
(ii) Export prohibitions, controls, and licensing
27. Exports, except to SACU members, are subjec t to automatic licencing, except for some
products that require a non-automatic permit.  These include medicines; live animals and genetic
materials; all ostrich breeding materials; meat and game products; protected species under CITES;plants; firearms and explosives; and minerals, in cluding diamonds and gold.  The Meat Board issues
free of charge automatic export licences for meat and live animal (cattle, sheep, goats and pigs),
including to SACU members, mainly for monitoring and statistical purposes.  Veterinary certificates
must also accompany meat exports certifying that they are free of disease.
28. Export quotas applied by the Meat Board were terminated in 1996, along with quotas on
exports of sunflower products.  Seasonal quotas on whole-grain maize and wheat were permanently
lifted in June 1998.  The Diamond Trading Company (an international cartel operated by De Beers)
markets all Namibia’s diamonds and periodically sets commercial export quotas to limit over-supply
of diamonds. The Government does not sanction these quotas;  it has 50% equity with De Beers in
Namded Diamond Corporation .
(iii) Export subsidies, assistance, and processing zones
29. The Ministry of Trade and Industry (Export Promotion Subdivision) funds limited export
promotional activities, such as participation of companies in overseas trade fairs and exhibitions,
including meeting costs of travel, accommodation, and production of promotional brochures.
30. Namibia operates a number of schemes providing tariff exemptions and concessions on
imported inputs that benefit exporters to non-SACU markets.  These include duty drawback on capital
equipment and manufactured inputs used in exports, and remissions on imported goods used in themanufacture, processing, equipping or packing of  goods exclusively for export.  A duty credit
certificate scheme also provides full duty credits on imports of inputs used in manufacturing and
clothing and accessories for export.  SACU members are yet to further harmonize their tariff and tax
concessions (rebates, refunds, and drawbacks of customs duties on imports).
31. An 80% tax deduction exists on income derived from manufactured exports, other than meat
or fish.  Eligible manufacturers must be registered with the Ministry of Trade and Industry and the
Ministry of Finance.  Additional income tax deductions of 25% to 75% of eligible export promotion
expenditure apply, depending upon the firm’s export growth over the previous three-year average.
59
Eligible expenditure includes overseas market research; overseas advertising and promotionalexpenditure, such as attending exhibitions; bringing foreign buyers to Namibia; submitting quotes forforeign orders; finalizing contracts; and appointing overseas agents under a programme approved by
the Ministry of Trade and Industry.
60  Advance grants of up to 50% of eligible expenditure on the
direct costs of securing new export markets are also available for activities approved by the Namibian
Investment Centre.
                                                     
59 The additional tax deduction is 25% of eligible expenditure if export growth is 10% or less; 50% if it
is between 11% and 24%; and 75% for growth of more than 24%.
60 The Ministry of Trade and Industry also runs the Trade Information Centre to promote exports.  It
assists Namibian companies to research existing and potential export markets by providing a range ofinformation, such as on products and markets, companies, business news, business opportunities, and foreigntrade regulations and barriers.  The Centre maintains a Trade Information Database that is provided free ofcharge.SACU-Namibia WT/TPR/S/114/NAM
Page A3-179
32. The minority-state-owned Offshore Devel opment Company (ODC), supported by the
Ministries of Finance, and Trade and Industry, provides lines of credit (loans) to promote
manufactured value added.  It manages two lines of credit totalling N$66 million (US$11 million).
One line, of N$36 million (US$6 million), is from  the Eximbank of China for on-lending to the
Northern Tannery Project.  The other, from the Exim bank of India, is for concessional on-lending to
wholly Namibian-owned manufacturing companies and joint ventures interested in sourcing Indiantechnology, including industrial machinery and eq uipment.  The loan covers 90% of the contract
price, and repayments are to be completed in seven equal instalments after a grace period of 20
months; the interest rate is 14% annually.  The ODC is also establishing an Offshore Financial
Services Centre.
33. The ODC (in collaboration with the Namibian Investment Centre) also administers export
processing zones (EPZ) to encourage export-led industrialization and the transfer of skills and
technology.  EPZ investment is subject to the 1995 Export Processing Zones Act (not the Foreign
Investment Act).  Zones have been expanded at Walvis Bay and Oshikango, and another site is being
considered at Katima Mulilo in the Caprivi area.  Enterprises outside such zones may also have EPZ
status, provided such "free-points" also export at least 70% of their production outside SACU.
61  All
EPZ enterprises are subject to the same regulatio ns, and according to the authorities, there is
minimum leakage of unaccounted sales onto the domestic market.  Traditional meat and fish
processing are excluded from EPZ status.  There are 107 EPZ companies including both foreign and
domestic firms; 21 are operational, 56 are working on implementation plans, and 30 have closed.
Total investment planned from approved EPZ firms is currently around N$11 billion; so far N$4.2
billion has been invested and almost 10,000 jobs created.  Manufacturing activities covered include
acrylic bathroom products, car components, rebuilding of motor vehicles, polished diamonds,clothing, and refined zinc and copper.
34. EPZ firms are eligible for cash subsidies for the costs of training Namibian workers in
approved programmes.  EPZ firms can hold foreign currency accounts in local banks.  Foreign
incorporation is acceptable, but EPZ status is needed before commencing operations.  Applications
must be submitted via the ODC to the EPZ Committee, which is chaired by the Minister of Trade andIndustry; they are generally processed in one to fo ur weeks.  EPZ enterprises/free points are granted
unlimited exemption from income tax, and from tariffs and other input taxes.
62  The income tax rebate
applies to all income, not just from exports; this raises the value of the concession to beneficiaries and
increases the incentive for manufacturers to raise export shares to 70% of production.  At this level,
the incentive for additional exports disappears.  Such generous arrangements suffer the sameeconomic shortfalls as any government assistance, i.e. developing inefficient activities that are
dependent on government support.  They can also be costly in revenue forgone.  This erodes the tax
base, compounding budgetary pressures and transferring the tax burden to other taxpayers, including
consumers and the many producers that are not major exporters.  They are also of questionable
effectiveness in attracting foreign investment.
(4) M
EASURES AFFECTING PRODUCTION AND TRADE
(i) Incentives
35. The Small Business Credit Guarantee Trust, launched in 1999, provides credit to small and
medium enterprises (SMEs).  It operates as a join t venture between the Government, five commercial
banks, and the Namibia Development Corporation;  it receives no direct government funding. The
                                                     
61 Re-export operations, such as re-packaging and break-bulk activities, are allowed.
62 Since the VAT replaced the sales taxes, all producers receive relief for domestic taxes paid on inputs
used to produce exports through tax credits for VAT paid on inputs.WT/TPR/S/114/NAM Trade Policy Review
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Trust guarantees up to 80% of individual loans from participating financial institutions, subject to a
ceiling of N$250,000.  The Ministry of Trade and Industry also funds the Feasibility Studies and
Business Plan Support Programme for SMEs.  Funding is capped at N$150,000 per study, and any
Namibian business is eligible, including majority domestic-owned joint ventures.
36. The Namibian Development Corporation also assists industrial development.  The
Government is in the process of establishing the Namibian Development Bank.
37. Tax incentives assist manufactured exports (section 3(iii)).  Manufacturing enterprises receive
a corporate tax abatement of 50% for five years, which is then phased out uniformly over ten years.  It
applies to all manufacturing operations approved and registered by the Ministry of Finance in
consultation with the Ministry of Trade and Industry.  Manufacturers can also claim income tax
deductions of 25% of wages paid to Namibian production-line employees to encourage labour-intensive processes, and of expenditure on pre-approved training activities.  Those investing in new
manufacturing operations may also negotiate a special tax package with the Ministry of Trade and
Industry (Chapter II(3)).
38. The Special Industrialization Programme encourages certain manufacturing activities, such as
food processing, leather products, textiles and clothing, wood products, paper products, and motorvehicle components.  Assistance may be though equity participation, provision of industrial
infrastructure, support for joint ventures or preferences for local manufacturers.
39. Farmers benefit periodically from emergency drought relief.  In 2002/03, for example,
N$1.5 million was given to livestock farmers north of the veterinary Cordon Fence in the form of a
subsidy of N$150 per head for cattle delivered to the abattoirs.  The Meat Board administered the
scheme on behalf of the Government.  Drought relief costing N$36.4 million was provided from April
1996 to November 1998,
63 and again in 1998-99 at a cost of N$2.1 million.64  Marketing incentives
(subsidies) were paid to farmers at N$15 or N$100 per animal sold, depending upon size, to
encourage farmers to reduce stock levels.  A restocking scheme to replace breeding animals sold
during the drought also paid N$13 or N$70 per head.  Transport subsidies of N$3.77 per kilometre
were paid to contractors transporting animals to markets.
40. The state-owned Agribank of Namibia accounts for about 60% of rural credit.  It provides
interest rate subsidies on farm credit schemes run by the Ministry of Agriculture, Water and Rural
Development, such as the Affirmative Action Loan Scheme, and the National Agricultural Credit
Programme.  The Affirmative Action Scheme provides concessional interest rates on loans to
subsistence farmers to purchase commercial farmland; it cost N$12.0 million in 1999-00.65  The
National Agricultural Credit Programme provides concessional seasonal loans to subsistence farmersfor crop production, and longer-term loans for the purchase of animals and breeding stock as well as
for essential farm development; it cost N$6.5 million in 1999-00.
66  The North/South Incentive
Scheme supports communal farmers who purchased land under the Affirmative Action Loan Scheme
to buy non-diseased cattle from south of the Veterinary Control Zone.  This scheme cost
N$1.6 million in 1999-00.67
41. Subsistence farmers also benefit from subsidized inputs.  These cost the Government almost
N$1 million in 1999-00, and covered fertilizers, seeds (millet and maize), and ploughing services
                                                     
63 WTO document G/AG/N/NAM/7, 12 July 1999.
64 WTO document G/AG/N/NAM/11, 12 May 2000.
65 WTO document G/AG/N/NAM/14, 27 June 2001.
66 WTO document G/AG/N/NAM/14, 27 June 2001.
67 WTO document G/AG/N/NAM/14, 27 June 2001.SACU-Namibia WT/TPR/S/114/NAM
Page A3-181
provided by private contractors.  Veterinary services  provided by the agricultural ministry to control
pests and livestock diseases and to operate quarantine facilities to safeguard meat exports cost
N$29.5 million in 1999-00.68
42. The Government assists farmers, in particular those located in the communal areas, with
research and extension services provided by the Ministry of Agriculture.   In 1999-00, the Ministry
spent some N $35.2 million on these services.69  The Ministry also funds agricultural research on crop
and livestock suitability, productivity, and conservation; N$18.6 million was spent in 1999-00.70
(ii) State-owned enterprises and privatization
43. A number of parastatals operate in Namibia (Table III.1).  They include monopolies in key
utilities, for example, electricity and telecommunications, and in air transport.  However, they
employed only about 2% of the workforce in 1997.  Parastatals may also potentially undermine theprivate sector and can lead to inefficiency, especially where competition is weakened as a result of,
for example, de facto or statutory monopolies.
Table III.1
Classification of state-owned enterprises
REGULATORY TYPE
Karakul Board; Meat Board; Diamond Board; Law Reform & Development Commission; Legal Practitioners Disciplinary Committee;
Board of Legal Education; Namibian Agronomic Board; Trust for Maritime Fisheries; Financial Institutions Supervisory Authority
SERVICE RENDERING
Natural monopoly
Nampower; TransNamib (rail); Namibia Water Corporation; Namibia Airports Company; Nampost
Competition restricted by regulation
Few potential investors:
National Petroleum Corporation; Namibia Broadcasting Corporation; TransNamib (Road); Namibian Ports Authority; Telecom
Namibia; Roads Authority
Many potential investors
National Housing Enterprise; Windhoek Machine en Fabrik; August 26 Holdings Co.; Roads Contractor Co.
Competitive environment
National Fishing Corporation; Seaflower Whitefish Corporation; Seaflower Lobster Corporation; Meat Corporation; Namibian Press
Agency; New Era Publication Co.; Namibia Wildlife resorts; Namibia National Re-Insurance Corporation; Premier Electric; Namibia n
Bricks Enterprise; Star Protection Services; Patriot Construction Co.; Amalgamated Commercial Holdings; Namibia Institute for
pathology
Not/partially self-funding
Social Security Commission; Agribank; Namibia Development Corporation; Development Fund of Namibia; Development Brigade
Corporation; Namibia Schools Sport Union; Motor Vehicle Accidents Fund; Guardian’s Fund; Road Fund Administrator; National
Monuments Council; National Theatre of Namibiaa; Polytechnic of Namibiaa; University of Namibiaa; Namibian College of Open
Learninga; Rundu Collegea; Windhoek College of Educationa; Ongwediwa College of Educationa; Caprivi College of Educationa
a State-owned enterprises that provide services/products with external benefits, i.e. products that would be under-supplied in a  
competitive market and that warrant government intervention.
Source : "Report on a Governance Framework for State-Owned Enterprises in Namibia", Submitted to Cabinet, 
25 October 2001, Annexure A, p. 1 of 1.
44. Namibia has notified to the WTO the Karakul Board, the Meat Board of Namibia, and the
Namibian Agronomic Board as state-trading enterprises within the meaning of Article XVII:4(a) of
the GATT 1994.71 The Karakul Board oversees the purchase, processing and export of karakul pelts
                                                     
68 WTO document G/AG/N/NAM/14, 27 June 2001.
69 WTO document G/AG/N/NAM/14, 27 June 2001.
70 WTO document G/AG/N/NAM/14, 27 June 2001.
71 WTO document G/STR/N/6/NAM, 24 July 2000.WT/TPR/S/114/NAM Trade Policy Review
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by the producers’ cooperative, but does not engage in trade.  The Meat and the Agronomic Boards
have no direct export activities.  The Namibian Agronomic Board, which "markets" (but is no longer
involved in purchasing) major cereals of wheat, maize, flour, and meal, and the Meat Board of
Namibia do not import directly, but they control imports as they are responsible for issuing import
permits for cereals (wheat, maize, flour, and meal) and meat (of cattle, sheep, goats, and pigs) as well
as for live animals. The Meat Board also issues abattoir and meat processing licences based onproduction capacities.  There are no restrictions on licensing abattoirs. Although MEATCO, a
privately run parastatal, has no meat export monopoly, it had until recently the only abattoirs
approved for sales to the EU under the Cotonou Agreement.
45. The Cabinet Committee on Economic Development and Parastatals (CCEDP) reviewed
government policies in October 2001, and adopted a governance policy framework for state-ownedenterprises.
72  Many parastatals, supported by substantial government loan guarantees, expenditure
and other commercial advantages, were found to be financially distressed with high debt levels and
declining capital productivity.  The State Finance Bill of 2001 also gave the State’s Treasury greater
control over parastatals, including enhanced accountability through improved accounting and
financial reporting systems and disclosure of information; limited borrowing powers; and greaterpowers for the Minister of Finance to inspect thei r financial affairs.  The 2002/03 Budget renewed
efforts to improve parastatal management and accountability, including their commercialization in
preparation for eventual privatization.  The St ate-owned Enterprise Go vernance Council (SOECG)
was formed to oversee implementation of government policy on parastatals and to monitor their
performance.  It is to report to cabinet throug h the CCEDP.  The Divestiture Sub-Committee (DSC) of
four ministers, chaired by the Minister of Agriculture, Water and Rural Development, was also
established to identify insolvent state-owned ente rprises (SOEs) for closure; monopolistic SOEs for
restructuring to improve performance; and to part ially privatize profitable SOEs and to use the
proceeds to extinguish debt of bankrupt SOEs and for infrastructure and social public investment.
73
The new Central Governance Agency (CGA) within the Ministry of Finance will, as the Secretariat of
the DSC and SOECG, monitor compliance of SOE management with the new requirements.  These
include promoting better corporate governance by SOEs through improved disclosure requirementsand management practices.  The CGA is to also facilitate regulation of SOE prices by identifying
monopolistic sectors where this is needed to ensure that prices realistically reflect costs.
46. The partial liberalization of the debt-laden Air Namibia has slipped from July 2002 to 2003;
the Government still intends to take over its outstanding debt of N$1.4 billion.  Other possible
candidates for privatization are Nampower and Telecom Namibia, both profitable entities. Currentgovernment guidelines are to consider divestment on a case-by-case basis and to avoid concentrating
economic power and foreign control of assets.  The Government is preparing its divestiture policy
framework.  Privatization efforts largely reflect the need for privatization receipts and lower subsidies
for loss-making parastatals to ease budgetary pressures.  During early 2002, the Government invited
expression of interests from merchant banks, including the Bank of Namibia’s Offshore Banking Unitin Mauritius, wishing to assist in the divestiture of parastatals.  However, no privatization timetable
has been announced, and considerable public opposition exists.
                                                     
72 "Report On a Governance Policy Framework for State-Owned Enterprises in Namibia", Submitted to
Cabinet, 25 October 2001.
73 The Government also intends to create a fund from  privatization receipts to redistribute assets of
SOEs to disadvantaged employees and organizations.  Other members of the DSC are the Ministers of Finance,
and of Works, Transport and Communication, and the Attorney-General.  The Minister of Fisheries and MarineAffairs chairs SOECG.  Other members are the Minister of Foreign Affairs, Information and Broadcasting, and
the Minister of Higher Education, Training and Employ ment, and the Director-General of the National Planning
Commission.SACU-Namibia WT/TPR/S/114/NAM
Page A3-183
(iii) Competition policy and price controls
47. A draft Competition Act has been released for comment and is expected to become operative
during 2003.  Currently, competition and fair trading practices fall under the Trade Practices Act,
1976 and the Merchandise Act, 1941.  SACU members are to develop common policies on unfair
trade practices and to adopt policies on competition, and to cooperate in their enforcement (SACU
Agreement).
48. The Government sets prices of petrol, diesel, and paraffin (Petroleum Products and Energy
Act, 1999).   Although the Namibian Agronomic Board has legislative authority to set producer prices
for wheat and maize, these have been based on market prices (import parity) since 1994-95.
(iv) Protection of intellectual property rights
49. Namibia has taken important steps to comply with the TRIPS requirements.  Copyright
legislation was amended in 2000.  The TRIPS Council reviewed Namibia’s intellectual property
legislation during 2001 and 2002.74  The Government plans to replace old laws on trade marks,
patents and designs with consolidated WTO-compliant legislation, the Intellectual Property Act, due
to be enacted in early 2003.  Namibia is a member of the Berne Convention, the Hague Agreement,
the Madrid Agreement and the Patent Cooperation Treaty, and has joined the Paris Convention on theProtection of Patent Rights.  It has been an ob server of the African Regional Industrial Property
Organization (ARIPO) since independence; Parliame nt approved membership in 2002 and ratification
is expected in 2003.   Namibia notified to the WTO its contact points under the TRIPS Agreement in
the Ministry of Trade and Industry for trade marks and industrial designs; the Ministry of Foreign
Affairs, Information and Broadcasting for copyright and related rights; and the Ministry of
Agriculture, Water and Rural Development for plant and animal varieties.
75
(a) Copyright and neighbouring rights
50. Copyright law (Copyright and Neighbouring Ri ghts Protection Act No. 6, 1994, as amended)
is administered by the Directorate of Copyright Services of the Ministry of Foreign Affairs,
Information and Broadcasting.  It protects intellectua l property of literary, artistic, and musical works
embodied in such mediums as films, sound recordings, broadcasts, and published editions, by
providing owners exclusive rights as required by the Berne Convention.  Computer programs areprotected as "literary works", but not databases or compilations of data; authorities are considering
whether to extend protection to cover these.  Performers also have exclusive rights to broadcast or
communicate to the public, and to make fixations and reproductions.  Copyright protection is for the
life of the author plus 50 years.  Performers receive the same protection, in principle.  Rental rights
are recognized, but are not specified by the type of work, such as for phonograms, computer programsand cinematographic works.  Rental rights applied in Namibia are mostly for audiovisual works,
musical works, and books.  General exemptions or limitations to exclusive rights are restricted to
cinematographic films, sound recordings, and broadcastings.
51. The right holder (including licensees and the author or performer) can take civil proceedings
against infringements through Namibia’s standard courts.  Relief may be by damages, interdictsrestraining the illegal activity, or destruction of illegal works.  The holder can request Customs to
prohibit imported copies of works provided the owner gives security to cover Customs for any
liability or expenses incurred.  Imports of unlawful reproductions of any works relating to copyright
                                                     
74 For Namibia’s responses to questions raised by members during the review, see WTO documents
IP/C/W/248/Add.1, 11 April 2001; IP/N/6/NAM/1, 30 March 2001; and IP/C/W/248, 29 March 2001.
75 WTO document IP/N/3/Rev. 6, 1 March 2002.WT/TPR/S/114/NAM Trade Policy Review
Page A3-184
are also prohibited under the customs legislation (Section 123 of the Customs and Excise Act).
Copyright legislation also makes infringements criminal offences carrying imprisonment and/or fines,
of three years and N$12,000 for first offence, and five years and N$20,000 for a second conviction.
The Minister removed ambiguity on copyright protection of foreign works by a Government Notice,
in 2001, which extended such protection, as the legislation required (Section 63).76
(b) Industrial property rights
52. The current patent, trade mark, and design laws, the Patents and Design Act No. 37 of 1952,
Patents Act No. 57 of 1978 and Proclamation No. 17 of 1923, as well as the Trade Marks in South
West Africa Act No. 48 of 1973, are to be replaced with the new Industrial Property Act, which will
cover all forms of industrial property protection.  The Registration of Companies, Patents,
Trademarks and Designs Division, of the Ministry of Trade and Industry, administers industrialproperty legislation.
Patents
53. The proposed legislation will broaden the scope of patented works to specifically cover
inventions, whether products or processes, provided they are new, involve an inventive step and have
an industrial application.  Unlike the current legislation, which allows for no patent exclusions, theproposed legislation excludes from patents mainly scientific discoveries, diagnostic, therapeutic and
surgical methods for treatment of humans or animals, plants and animals and essentially biological
processes for their production, and inventions contrary to public order or morality.  Neither legislation
provides for specific limited exceptions to exclusive rights.  Patent holders will be protected under the
new legislation though extending exclusive rights against selling and importing illegal products,
which are enforceable in the courts.  Remedies to the right holder include damages, injunctions
restraining the illegal activity, and destruction of illegal works.  Criminal penalties will apply finesand/or imprisonment of up to one year.  Patent protection be remain for 20 years.
54. Under the new legislation, when it is in the public interest, the Government may authorize
compulsory non-exclusive licences, predominantly for domestic supply, without the holder’s consent,
with "equitable remuneration" to be paid, and for non-voluntary licences.
77  Public interest covers
national security, nutrition, health or the development of other vital sectors.  Non-voluntary licencescan be issued if the patent has been insufficiently used in Namibia, and the party has unsuccessfully
attempted to acquire a licence on "reasonable terms and conditions" within a "reasonable time",
defined as four years from the date of filing of the patent application or three years from when the
patent was granted, whichever period expired last.  The proposed legislation has transitional
arrangements to protect existing patents.  It does not allow for reversal of burden of proof in civilproceedings on infringements of process patents.
Industrial designs and utility models
55. The proposed legislation will extend protection by broadening the definition of industrial
designs in line with the Locarno Agreement Establishing an International Classification for Industrial
Designs.  Textile designs will be covered.  The registered owner of the design will have exclusiveright of use, including importation, and may take court proceedings against illegal use.  Neither
                                                     
76 Government Notice, Minister of Foreign Affairs, Information and Broadcasting, 13 June 2000.  This
notice, applied retrospectively from 15 March 1996, extended the provisions of the Copyright Act to all membercountries of the Berne Convention.
77 Under existing legislation, compulsory licensing is possible for patents relating to food, medicine,
and plants, dependent patents; and abuse or insufficient use of patent rights.SACU-Namibia WT/TPR/S/114/NAM
Page A3-185
existing nor the proposed legislation allows for issuance of compulsory licences.  The protection
period for industrial designs will remain at 15 years (five years initially, renewable twice).
Trade marks and other distinctive signs
56. Although legislation currently protects trade marks for goods and services, the new Act will
expand the coverage, in particular, of service marks and include protection of trade names and sound
marks, in line with TRIPS and the Paris Convention.  A mark will cover any visible sign capable ofdistinguishing goods and services of an enterprise.  Proposed legislation retains the registration period
of trade marks at ten years, renewable indefinitely every ten years, and a period of non-continuous use
of five years.  The registered trade mark owner may take court proceedings against illegal use, and
criminal penalties of fines and imprisonment of up to one year will apply.  The new Act will protect
well-known marks by preventing registration of identical or confusingly similar marks.  In 2000,2,100 trade mark applications were lodged.
Geographical indications
57. While current law does not cover geographical indications, the new legislation will protect
wines and spirits consistent with WTO requirements.  The legislation is being drafted separately and,
if ready in time, will be added to the proposed industrial law when approved by Cabinet; otherwisethe industrial legislation will be amended to incorporate geographical indications.
Lay-out designs (topographies) of integrated circuits
58. Current legislation protects lay-out designs as  copyright.  The proposed law will provide
protection against unlawful importation, sale or distribution (for commercial purposes) of
topographies, including integrated circuits, and the industrial articles that incorporate them.  However,
neither law provides for derogations where a purchaser of an integrated circuit had no knowledge that
it contained an unlawful topography.  The term of protection for topographies will remain at 15 years(five years initially, renewable twice).
Undisclosed information
59.  Existing and proposed legislation makes no specific provision for undisclosed information.
Protection of intellectual rights in biodiversity
60. Namibian is developing a sui generis  system to protect new plant varieties, micro-organisms
and non-biological and microbiological processes, as part of the National Bio-diversity Programme
run by the Ministry of Environment and Tourism.
(c) Enforcement of intellectual property rights
61. Imports of pirated products are prohibited under the copyright and customs legislation, while
those infringing trade marks or patents may be suspended pending legal action.  Such action occurs inNamibia’s ordinary civil courts, and may involve criminal prosecution and damages, injunctions, and
destruction of illegal works.  Courts may order interlocutory or temporary injunctions pending final
judgement.   In order to obtain evidence, the High Court may instruct legal officers to enter the
premises of the alleged infringer to seize offending material and equipment (the Anton Piller Order).
Only the police have ex officio powers under the copyright and proposed industrial propertylegislation.WT/TPR/S/114/NAM Trade Policy Review
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IV. TRADE POLICIES BY SECTOR
(1) OVERVIEW
1. Namibia is a small agrarian economy rich in minerals, especially diamonds, and fish.  Some
three-quarters of the population depend on farming for their livelihood, and, along with diamonds,
processed food, especially fish and meat, are major sources of foreign exchange and government
revenue.  Insecure private land tenure of communal farms and the lack of a well functioning landmarket impair agricultural productivity and investment.  Land reforms, agricultural development and
resettlement programmes to promote citizenship land ownership are high government priorities; the
latter to be financed by a new land tax.  The Namibian Agronomic Board controls trade in wheat,
maize and flours; import quotas (or threat of) to ensure domestic production is used before imports are
allowed.  The Meat Board of Namibia regulates livestock, especially beef and live animals, andcontrols trade.  Namibia’s annual EU quota of 13,000 tonnes under the Cotonou Agreement is
unfilled.
2. The fishing industry also relies heavily on preferential (duty-free) EU access.  Depleted fish
stocks hamper development; restrictive catch quotas are aimed at rebuilding stocks and achieving
sustainability.  No new long-term fishing rights (except for horse mackerel) will be awarded for sixyears; a moratorium may also be set on catching the scarcest species e.g. pilchards.  Revised fisheries
legislation has strengthened management and "Namibianiziation" policies.  Government priority is to
encourage fishing joint ventures between established foreign firms and Namibian entrants.  Allocation
of fishing rights and quota fees favour Namibian involvement and domestic processing by foreign-
owned operators.  These policies may reduce the industry’s efficiency (e.g. through allocation of
uneconomically small catch quotas to Namibians and encouraging inefficient processing).  The
industry’s domestication may also be overstated if foreign firms simply adopt "Namibianizationimages" so as to receive special treatment, su ch as reduced quota fees.  The Government may
therefore be forgoing substantial revenue from fish resources for questionable gain.
3. Namibia is currently reviewing its minerals policy.  Diamonds are mined mainly by the
jointly state-owned Namded Diamond Corporation a nd exported through the De Beers’ international
cartel.  Trade in diamonds is controlled.  Mineral royalties of 5% and 10% (precious stones) apply;the 10% royalty on unprocessed diamonds has been replaced recently by an export tax.  A higher
company tax rate of 55% applies to diamond income.  Namibia has gas but no oil reserves.  To
encourage oil exploration, royalties were reduced from 12.5% to 5%, company tax rates lowered to
35%, and the additional profits tax amended.  The duration of exploration licences was also increased,
and arrangements were introduced compelling operators to meet decommissioning costs at projectcompletion.  Petrol and diesel prices are controlled based on import-parity.  The Government requires
private oil companies to hold strategic stocks of petroleum products.  Draft gas legislation was
introduced in June 2001 to develop a downstream gas subsector; it also created an independent Gas
Regulatory Authority.
4. Manufacturing comprises mainly food processing, including fish and meat, which account for
over 60% of manufactured exports.  The main policy measure to expand manufacturing exports is the
Export Processing Zone Development programme.  The garment industry is expected to be boosted by
the U.S. AGOA initiatives, albeit restrictive.  Tariffs are the main trade policy instrument protecting
manufacturing; rates average 11.8%.
5. Services have an important bearing on the economy’s performance.  GATS scheduled
commitments are minimal, and Namibia did not participate in the WTO basic telecommunications and
financial services negotiations.  The 51% state-owned joint venture, Namibia Telecom, has aSACU-Namibia WT/TPR/S/114/NAM
Page A3-187
monopoly on basic services; deregulation has been postponed from 2000 to 2004 at the latest.  The
Government’s recently adopted telecommunications policy and regulatory framework follows SADC
principles.  The state-owned Nampost has a monopoly over postal services.  Private foreign
institutions dominate the supply of financial services.  Prudential regulation of banks has been
strengthened, and the Namibian Financial Institutions Supervisory Authority established.  Insurance
companies must re-insure at least 20% (reduced from 25%) of assets with the parastatal NamibRe.The parastatal TransNamib dominates land transport.  Air Namibia’s partial privatization has slipped
until 2003.   The Namibian Tourist Board was formed in 2000, and a draft revised tourism policy for
2001-10 was released.  Government-owned tourism facilities in protected areas are managed
commercially; other facilities are privately owned.
(2) P
RIMARY SECTOR AND ENERGY
6. The main primary activities in Namibia are mining, agriculture, and fishing.  These accounted
for about 24% of GDP in 2001 (Chart IV.1).  Over half of primary output in 2001 was minerals, and
agriculture and fishing each accounted for about one fifth.  Since 1996, the relative importance in
GDP of mining in particular, and of fishing has increased while that of agriculture has declined.
Primary exports (including processed fish, meat, and foodstuffs) accounted for about 95% ofmerchandise exports in 2001; minerals accounted for almost 60% of these primary exports.  Some
three-quarters of the population depend on agriculture for their livelihood.
Chart IV.1
Sectoral composition of GDP, 1996 and 2001
Per cent
Source : Central Bureau of Statistics and National Planning Commission (2002), National Accounts 1993-2001.Mining 
11.5
Manufacturing
10.0
Water and 
electricity
2.3Government 
services
25.4
Real estate 
and business 
services
11.4Transport and 
storage
5.3
Construction
3.4Other
6.8Agriculture
7.2
Total GDP: US$3.5 billion Total GDP:US$3.2 billion1996 2001
Services
66.6Services
65.0Fishing
4.7
Wholesale and 
retail trade, 
repair
9.7Financial 
intermediation 
2.3Mining 
14.3
Manufacturing
10.8
Water and 
electricity
2.7Government 
services
23.2
Real estate 
and business 
services
10.3Transport and 
storage
4.0
Construction
3.1Other
6.8Agriculture
4.9
Fishing
5.0
Wholesale and 
retail trade, 
repair
12.3Financial 
intermediation 
2.6Primary 
sector
23.4Primary 
sector
24.2WT/TPR/S/114/NAM Trade Policy Review
Page A3-188
(i) Fisheries
7. Fisheries continues to be one of the main drivers of Namibia’s economic growth.  Some 95%
of fish caught is exported, mainly as processed fi sh to SACU and EU markets.  Fisheries employs
about 14,000 workers; about 60% work in some 16 processing plants.  Fish quota levies are an
important source of government revenue.  The industry’s development has been hampered by scarcity
of key fish resources, and the authorities are trying to rebuild stocks through sustainable management.There have been serious financial difficulties in pelagic fishing, due to over-fishing and depleted
pilchard stocks, and low world prices for fish meal, oil, and canned fish.  Total fish landings increased
from 511,400 tonnes in 1997 to 588,400 tonnes in 2000 (Table IV.1), i.e. from N$1.25 billion to
N$2.0 billion.  The total landed catch fell in 2001 to 545,800 tonnes, but rose in value to N$2.3
billion.
8. The Ministry of Fisheries and Marine Resources sets Total Allowable Catch (TAC) limits for
seven species based on scientific assessment of fish stocks.  They are allocated to licensed fisheries
with "exploitation rights" as non-transferable quotas. Total TACs were cut in 1997 from
592,750 tonnes to 519,260 tonnes, but increased to 638,300 tonnes in 1999 (Table IV.2). TACs rose
to 637,400 tonnes in 2001 before being cut substantially in 2002 to 562,000 tonnes.  In 2002, the TACwas set at zero for pilchards and was reduced considerably for horse mackerel.  The Government
announced that, to conserve fish stocks, no new l ong-term fishing rights, apart from horse mackerel,
would be awarded for six years.  TACs are distri buted among right holders in each fishery as non-
transferable quotas. In line with the Government ’s goals of "Namibianization’ and empowerment
within the sector. Fishing rights are not freely transferable.
78
Table IV.1
Fish landings of main commercial species, 1997-01
('000 tonnes)
Fish species 1997 1998 1999 2000 2001
Pilchards 27.7 68.6 44.7 25.4 7.8
Hake 117.6 150.7 164.3 162.8 173.7
Horse mackerel 301.8 312.4 320.4 344.3 314.8
Monk 10.3 16.4 14.8 14.4 12.4
Kingklip 2.3 2.2 3.7 3.9 ..
Tuna 1.3 1.4 1.2 2.4 ..
Rock lobster 0.2 0.35 0.3 0.36 0.36
Other fish species 50.2 53.6 28.6 34.9 ..
Total 511.4 605.7 577.8 588.4 545.8
.. Not available.
Source: Ministry of Fisheries and Marine Resources, Annual Report 2001 , p. 25; and Namibian authorities.
9. The Marine Resources Act (No. 27) of 2000 and the subsequent Regulations Relating to the
Exploitation of Marine Resources (No. 241) of 2001 replaced the 1992 Sea Fisheries Act, and came
into force on 1 August 2001.  This strengthened fisheries management and continues previous
policies, including "Namibianization" of the fisher ies industry to empower formerly disadvantaged
groups.  Criteria for granting fish exploitation rights include whether the applicant is a Namibian
citizen or, if a company, whether Namibians have beneficial control; ownership of the fishing vessels;
the advancement of Namibians; the contribution of marine resources to food security; and cooperation
with other, especially SADC, countries.  The dura tion of the fishing right also depends on the extent
of Namibian involvement and domestic processing.  Majority-owned Namibian enterprises are given
                                                     
78 Nichols (2003).SACU-Namibia WT/TPR/S/114/NAM
Page A3-189
preferences in awarding fishing rights. Enterprises with less than 50% ownership of a vessel or of an
onshore processing plant in the relevant fishery are entitled to four-year rights.  Where such vessel or
plant ownership is 50% to 90%, Namibian enterprises are granted seven-year rights, enterprises that
are at least 90% Namibian owned are entitled to ten-year rights.79  Majority foreign-owned enterprises
are granted rights depending on their onshore processing activities.  Such rights are limited to four
years if they have no onshore processing plant; to seven years with investment in processing facilities;and to ten years if they make a major contribution to Namibia’s development, such as employing over
500 Namibians in processing facilities.  To encourage investment, the Government recently extended
the duration of fishing rights from four to seven years; seven to ten years; and from ten to fifteen
years.  An additional fishing right of twenty  years was introduced for companies permanently
employing at least 5,000 Namibians in processing facilities.
Table IV.2
Total allowable catch (TACs), 1998-02('000 tonnes)
Fish species 1998 1999 2000 2001 2002
Pilchards 65.0 45.0 25.0 10.0 0
Hake 165.0 210.0 194.0 200.0 195.0
Horse mackerel 375.0 375.0 410.0 410.0 350.0
Crab 2.0 2.0 2.0 2.1 2.2
Rock lobster 0.3 0.35 0.35 0.4 0.4
Orange roughy 12.0 6.0 2.4 1.875 2.4
Monk .. .. .. 13.0 12.0
Total 619.3 638.3 633.8 637.4 562.0
.. Not available.
Source: Ministry of Fisheries and Marine Resources.
10. Quota fees are structured to encourage Namibian registration and ownership of fishing
vessels, and to promote onshore processing (Table IV .3).  Quota fees are lowest for Namibian vessels,
those registered in Namibia with at least 51% beneficial ownership and with at least 80% Namibian
crew.  Namibian-based vessels pay higher fees.80  Foreign vessels are levied the highest fees.  For
example, on "wet hake fish’, the quota fees paid by  foreign vessels are triple those paid by Namibian
vessels and double the level for Namibian-based vessels.  Fees are rebated (fully for horse mackerel)
if the catch is processed on-shore, including pilchards processed into fish-meal.  The rebates are fixed
amounts; their percentage of the quota fee therefore varies between foreign and Namibian vessels.
Quota fees were increased for the first time in May 1999, by 10%, and again substantially in 2001.By-catch fees are payable also on 19 fish species caught by licensed vessels to stop them from
targeting species in which they have no quota.  Fees range from N$1,200 per tonne on hake, to
N$6,500 per tonne on orange roughy.  Levies, ranging mainly from N$10 per tonne on horse mackerel
to N$150 per tonne on orange roughy, also fund fisheries research.  Licence fees apply to all fishing
vessels;  the fees range from N$20 to N$200 annually, depending on tonnage and whether the vesselsare used as processing plants.  In 1998, total fees paid amounted to N$88.9 million.
                                                     
79 Less ownership in vessels or processing plants will be considered for large ventures.
80 Namibian-based vessels are Namibian registered bu t are not domestically majority-owned and have a
crew of less than 80% Namibians.WT/TPR/S/114/NAM Trade Policy Review
Page A3-190
Table IV.3
Quota fish fees, 2001
(N$ per tonne)
Fish species Foreign vessel Namibian-based
vesselsNamibian vessel Rebate for onshore processing
Hake 220.00
   - wetfish 1,200 600 300
   - frozen 1,450 850 550
Horse mackerel Full quota fee
   - processed at sea 180 120 80
   - processed on land 100 60 40
Pilchard 165 110 27.50 if for processing fish meal
Craba1100 650 400 165.00
Rock lobster 1,4000 8,500 5,000b
Tuna 950 550 350
Monk
   - wetfish 1,600 800 400
   - frozen 1,950 1,150 750
Orange roughy 2,900 1,500 1,000
a Other than spider crab or red crab.
b A rebate equal to the full quota fee per tonne applies to Namibian vessels for the first 8 tonnes of rock lobster.
Source: Ministry of Fisheries and Marine Resources.
11. Such policies seemingly have increased the degree of domestic fish processing; currently
some 60%, on average, of the total catch is processed onshore.  The Namibians' share of quotas has
also increased from 16.5% in 1989  to 72% in 1999.81  Moreover, over 80% of the almost 300 licensed
vessels are either Namibian-owned or Namibian-based, and the share of Namibian crew has increased
steadily from an average of 47% in 1995 to 66%.82  This level is expected to increase to 90%.
Government priority remains the allocation of quota to Namibian entrants.  It announced in 2001 that
"new comers and the established companies will have to  form joint ventures if they are to qualify for
fishing rights and quotas."83  The Government has granted some 42 fishing rights to some 89
Namibian companies.84  However, one view is that such policies have resulted in uneconomic quotas
being allocated to Namibian entrants and has not promoted economic growth or social welfare.85   In
the case of the hake quota, for example, about 25% of the TAC has been allocated to 16 new
Namibian entrants since 1994, corresponding to a quota of some 3,000 tonnes each.  These policies
have encouraged foreign companies to present a "Namibianized" image in order to meet the
Government’s requirements for special treatment, including reduced quota fees.86  Nominee
shareholders and other methods have been used to achieve majority domestic ownership whileretaining overseas control.
12. Any benefits from Namibianization policies must also take account of their financial cost to
the government through revenue forgone.  Quota receipts have fallen, both absolutely, from
N$108.6 million in 1994 to N$75.2 million in 1998, and as a share of landed fish values, from 12.3%
                                                     
81 Erastus (2002), p.12.
82 On-shore workers are at least 95% Namibian.
83 People’s Business (2002), p. 4.
84 People’s Business (2002), p. 5.
85 Erastus (2002).
86 Manning (2000).SACU-Namibia WT/TPR/S/114/NAM
Page A3-191
to 4.7%.87  Substantial fish resource rents are therefore being fore gone, and the economic merit of
these policies has been disputed.88  Namibia may be better off economically to fore go the uncertain
benefits from "Namibianization" measures, and instead focus on maximizing resource rents to provide
additional government funding for areas such as health, education, housing, and vital infrastructure.89
Making quotas tradeable between companies may also be more efficient, and would remove thecurrent incentives for transferring quota rights under various non-transparent and undesirable guises.
90
Policies to promote domestic fish processing may also be questioned.  They encourage resources into
processing which, if inefficient, dissipates the economic rents from fishing and may penalize efficient
producers competing for resources, especially capital.  Continued over-reliance on domestic
protection, with SACU tariffs on fish imports of up to 30%, and on substantial tariff preferences in
foreign markets that shelter exports from international competition, can be both an indicator and acontributing cause of inefficiency.
91
13. Despite the economic uncertainties associated with localization or "Namibianization" policies,
Namibia’s rights-based fishing system and associated quota fees have re-generated Namibia’s fishing
industry which, at independence, suffered badly from over-fishing by foreign fleets.  Employment and
investment have increased substantially, and the number of whitefish processing plants has grownfrom zero in 1991 to over 20 in 2002.
92  The fishing industry is not subsidized; Namibia strongly
opposes subsidies believing that they cause over-capitalization, distort trade unfairly, ultimately lead
to over-fishing, and encourage illegal, unreported, and unregulated fishing practices.93  Namibia has
implemented an integrated programme of inspection and patrols to ensure compliance with its
fisheries laws.  This includes comprehensive coverage of larger vessels by on-board observers;
systematic sea patrols to detect unlicensed vessels and to monitor the licensed fleet; and surveillance
of all landings at the two commercial fishing ports, Walvis Bay and Luderitz.  It is also well advancedin implementing a national satellite-based vessel monitoring system.
14. The Marine Resources Fund, for financing fisheries research, replaced the Sea Fisheries Fund.
The Fisheries Observer Fund was also established to finance the Fisheries Observer Agency from an
additional fish levy on processors, thereby strengthening current inspection capabilities by on-board
observers.  The new legislation also created the Marine Resources Advisory Council, comprising bothpublic and private fishing representatives, to advise the Minister on wide-ranging matters affecting the
industry.
15. Namibia belongs to the Convention on the Conservation and Management of Fisheries
Resources in the South East Atlantic Ocean, to be administered by the South East Atlantic Fisheries
Organization (SEAFO).  Signed in April 2001, it provides for the long-term sustainable management
                                                     
87 Another reason is that quota fees had not been adjusted since their inception, until May 1999.  See
Ministry of Fisheries and Marine Resources online information.  Available at: www.mfmr.gov.na.
88 Erastus (2002), p. 19.
89 Manning (1998).
90 These include the widespread practice of charteri ng vessels whereby the quota holder signs over the
use of the seasons’ quota for a tonnage fee, and the lessee assumes responsibility for the quota fees and allarrangements regarding catching, processing, and marketin g.  Another method is to obtain a controlling interest
in or form a joint venture with a company that has a quota.  See Manning (2000), p. 31.
91 For example, tariff preferences of up to 24% apply in the EU under the Cotonou Agreement, and
trade between SACU members is duty free.  Horse mackerel can be exported duty free to Zimbabwe under theNamibia-Zimbabwe Preferential Trade Agreement.
92 Nichols (2003),  p. 4.
93 Nichols (2003), p. 2.WT/TPR/S/114/NAM Trade Policy Review
Page A3-192
of fish in the high seas of the south east Atlantic Ocean.94  Namibia ratified the Convention in
November 2001.  Fish species covered are alfonsino, orange roughy, armour head, wreck fish,
deepwater hake and red crab.  SEAFO’s headquarters are in Namibia, and the Ministry of Fisheries
and Marine Resources provides the interim secretariat. Members are to ensure that their flag vessels
use sound fishing practices and are appropriately monitored.
(ii) Agriculture, livestock, and forestry
(a) Main features
16. Agriculture production varies depending on climatic conditions, but has generally averaged
(with forestry and livestock) some 6% of GDP in recent years (excluding meat processing).  The
dualistic agriculture sector consists of commercial and subsistence subsectors.  Commercial farming
has shown little growth until recently, and subsis tence farming now produces about the same value of
output.  Subsistence agriculture consists of rain-fed crops, mainly millet, sorghum, and maize, and
extensive livestock grazing on communal land, predominantly in the Northern Communal Areas.  A
few horticulture crops are also grown, especially beans, pumpkins, melons, groundnuts, and spinach.
Commercial farming occurs on freehold farms averaging some 5,000 hectares; it focuses mainly on
maize, wheat, and cotton as well as beef production for export to the EU under preferentialarrangements, and mainly live cattle, sheep, and goats to South Africa.  Beef production accounts for
about 80% of meat production, and for 40% of agricu ltural output;  ostrich breeding has increased.
Commercial farming has recently diversified into irrigated grapes.  Communal farming supports 95%
of the nation’s farmers, but covers about half of total agricultural land.  The Government is
encouraging increased production and processing of millet, and the introduction of cotton on the
larger communal farms of up to 20 hectares.
17. Namibia is self-sufficient in red meat, but imports about half of its cereal requirements,
especially maize and wheat.  Cereals provide about 50% of the total calorie intake of Namibians.
Pearl millet (commonly called mahangu), the staple food, and sorghum are the major cereals grown,
mainly by subsistence farmers.  Only some 10% to 15% of millet production is traded;  however, a
certain quantity is informally imported duty-free from Angola for border use.  Imports of sugar and
dairy products, such as concentrated milk, cream, cheese, and butter, are important.  Most foodstuffsare imported from South Africa.
18. Agricultural development, and diversification into higher-value-added crops, such as cotton,
grapes and indigenous fruits, are high government priorities.  Current strategies remain those of the
National Agricultural Policy released in 1995.  The main goals are to raise agricultural productivity,
real farm incomes, and food security through opening the agriculture sector to the benefits of regionaltrade integration.  Government policy has been to phase out distorting agricultural subsidies that
discourage the private sector, unless they meet clearly defined social goals.  Measures to support
agricultural prices ceased some time ago.  The Government sees its main role as creating a favourable
macroeconomic policy environment, and providing certain services, such as extension advisory
services, research, and credit, and facilitating private marketing of commodities.  Farmers are assistedby input subsidies on fertilizers, seeds, and plou ghing;  vaccines are no longer subsidized.  For
example, the level of subsidy on mahangu seed was  N$1.50 per kg., which lowered the farm price to
N$3.50 per kg.
95  However, the Government does not supply any farm inputs; these are provided by
the private sector.   The Government also funds emergency drought relief schemes, which generally
                                                     
94 Signed between Namibia, Angola, South Africa and the United Kingdom (for St. Helena and its
dependencies of Tristan da Cuhna and Ascension Island) and the EU, Iceland, Norway, Republic of Korea, andthe USA.
95 Hansohm et al. (1999).SACU-Namibia WT/TPR/S/114/NAM
Page A3-193
take the form of per head subsidies to assist drought-stricken farmers to sell or re-stock livestock
(Chapter III(4)(i)).
19. Land reforms are a high government priority.  The Government intends to establish
small-scale farming on acquired commercial farms.96  The White Paper on Resettlement Policy of
1997 and the National Land Policy announced in 1998 involves alleviating poverty by allocating
purchased land to the poor.  The Agricultural (Commercial) Land Reform Act of 1995 supports thesubdivision of commercial agricultural land subject to maintaining economically sized viable units.
The Government has purchased some 90 farms at a cost of over N$70 million; other funds have been
used to provide food handouts to farmers.  A study by the Legal Assistance Centre found that no
resettlement project had yet become autonomous.  It recommended that the Government adopt a more
transparent land reform programme based on a coherent development strategy.  The Communal LandReform Act, passed in August 2002 (Act No. 5), provides for the allocation of communal land rights
by Chiefs and Traditional Authorities, under the control of newly established Communal Land
Boards.
20. A land tax, to be introduced from April 2003, will finance resettlement programmes and
release undeveloped or under-utilized land.  Over 12,000 commercial agricultural farms have beenidentified for taxation, and their valuation was completed in April 2002.  Draft legislation has been
prepared.  The tax rate is to be 0.75% of the value of undeveloped Namibian-owned land, rising to 1%
on all developed land or land held by absentee owners.  The tax is expected to raise N$18 million
annually.
21. To improve efficiency of water use across various users, the Government is conducting the
Namibian Water Resources Management Review.  NamWater, a parastatal formed in 1998 to handle
bulk water supplies, has legislative authority to set tariffs on a full cost-recovery basis, and usagetariffs are being raised to phase out water subsidies.  According to the Ministry of Agriculture, Water
and Rural Development, cost recovery increased from 51% in 1995-96 to 93% in 1999-00.
97
However, subsidies still apply for many uses, especially irrigation.  A recent  White Paper on Water
Policy proposed increasing fees to N$0.13 per litre on water to improve efficiency.  A new Water Act
is to replace the 1956 legislation.
22. Tariffs on unprocessed agricultural commodities average 5.5%, and are predominantly ad
valorem , ranging from zero to 35% (Main Report, Chapter III(3)(ii)).  However, since unprocessed
agricultural commodities are largely not traded internationally, farmers in practice appropriate a share
of tariff protection afforded for processed foodstuffs, through higher domestic prices for non-traded
farm outputs.  Tariffs on forestry and logging average 3%, and are all ad valorem , ranging from zero
to 25% (Main Report, Chapter III(3)).
(b) Policy by product category
Cereals
23. Import quotas apply on wheat and maize and their products, from all sources (including other
SACU members), until domestic production is sold to millers.  According to authorities, domestic
grains are generally sold quickly so that unrestricted imports can occur early.  Although, in the case of
maize, the quotas have rarely operated, these arrangements and the threat of such restrictions, along
                                                     
96 Hansohm et al. (1999), p. 71.
97 Ministry online information. Available at: www.op.gov.na/Decade_peace/agri/htm.WT/TPR/S/114/NAM Trade Policy Review
Page A3-194
with protection in the milling industry, may still rais e local cereal prices, even if authorities believe
this is not the case.98
24. The Namibian Agronomic Board is the official marketing board of controlled agricultural
products:  wheat, maize, and flours.99  Its objectives are to promote agriculture by facilitating the
production, processing and marketing of such products.100  Prices are determined by negotiations
between millers and producers without government intervention.  The Board does not set prices (since1996);  it provides only annual import parity prices to farmers and millers as information on cereals
(e.g. from South Africa, Europe, Argentina and United States).  All producers and processors of
controlled products (over five tonnes annually) must register with the Board.  Its Mahangu Marketing
Intelligence Unit, established in 1999, disseminates millet prices and other key information to growers
and processors.  The Board chairs a Millers Forum and licenses millers.  While the incumbent millerdominates the milling industry, the Board has recent ly licensed additional mills.  One new miller, a
South African firm, imports his grain requirements.  According to the authorities, the Board no longer
restricts milling licences.  The Board is privately funded through producer/processor levies
(Chapter III(2((i)).
Other crops25. Following the report of the Government’s Cotton Task Team in 1997, the Namibian
Agronomic Board compiled a Cotton Development Plan  to promote cotton, in conjunction with the
Ministry of Agriculture, Water and Rural Development.  It envisages increasing seed cotton
production threefold over five years to at least 15,000 tonnes annually.  The private sector is being
encouraged to develop a cotton ginning plant; latest expectations are that a private plant will be
established with no government funding.  Cotton is currently exported to South Africa for processing.
Namibia’s expanding textile and clothing industry is expected to provide an increasing domesticmarket.
26. Grape production is expected to increase to some 14,000 tonnes in 2002, especially in the
Aussenrehr district.  Grapes are mainly irrigated from the Orange River, which borders South Africa.
Namibia has negotiated a basic annual water entitlement of 50 million m
3 at a fee of N$0.04 per m3,
along with a provisional water entitlement of 20 million m3 annually until 2007.101  Producers prefer
to establish their own water supply rather than sourcing at subsidized prices from the bulk water
supplier NAMWATER, a parastatal established in 1998.102
27. Over 80% of grapes are exported to the EU for table consumption.  Namibia can export up to
900 tonnes annually of seedless grapes duty free to the EU market (Cotonou Agreement) under
preferential quota.103  This quota applies from 15 November to 20 December.  According to
authorities, the size of the EU quota and its coverage of only seedless grapes are major limitations on
                                                     
98 For example, it has been estimated that removing  these import controls would benefit consumers by
lowering the domestic white maize price by 20% and pri ce of wheat by between 10% and 23%.  Hansolm et al.,
p. 53.
99 According to authorities, the sunflower industr y has collapsed since it was deregulated in 1996,
processors of, for example, margarine and cooking oil, have closed.
100 The producer of a controlled product cannot sell, import or export it unless the Board issues a
permit.  Imports require a fumigation certificate, a phytosa nitary certificate, and an additional declaration by the
county of origin that it has no genetically modified organisms (GMOs).
101 The agreed fee has not been collected by South Africa.
102 Kalili (2000), p. 4.
103 Since Namibia is the only ACP country that grows seedless grapes, it has the full EU quota, which
was increased by 100 tonnes in 1997.SACU-Namibia WT/TPR/S/114/NAM
Page A3-195
the industry’s growth.  Some grapes are used to produce raisins for export to South Africa.  Producers
prefer to use South African export points because of inefficient storage facilities and practices in
Namibia, such as having to share cold storage with fish and beef, and mishandling by customs
officials.104   
28. No recognized grading system exists for grapes.  Exporters use the Perishable Products
Export Commodities Board Standards.  These are adopted by the EU and are stricter than thoseadopted by the South African Bureau of Standards.  Overseas inspectors visit Namibian farms during
harvest to certify that grapes are exported a ccording to the standards of importing countries.
Government policy is to adopt Codex Alimentarius standards on imported foodstuffs and for export
certification.
Livestock29. The Meat Board of Namibia regulates livestock and related products (Meat Industry Act,
1981).  It issues operating licences to abattoirs, and controls imports and exports through permits
related to public health standards.  Slaughter prices are market determined based on export returns, to,
for example, the EU and South Africa.  Livestoc k producers must register with the Board.  A
traceability and quality assurance scheme, required by the EU for export, was launched in 1999 (theFarm Assured Namibian Meat Scheme).  It helps in certifying that beef complies with health and
hygiene standards by enabling stock to be traced back to the farm.  Under the Stock Brands Act,
administered by the Meat Board, all cattle must be branded, and movement permits are issued by the
Directorate of Veterinary Services.  Cattle exports to South Africa must also be branded.  The Board
also assists the Ministry in paying drought relief subsidies.
105  A meat AB classification scheme was
introduced in December 1998 based on EU and South African standards.
30. The Meat Board periodically provides short-term (less than one year) commercial loans to
meat processors to promote and develop the industry.  In 1999, loans totalling N$6 million were made
to two major producers to encourage processing.106  A Committee for the Restructuring of the Meat
Industry was formed in 1998 to investigate restructuring possibilities, especially of the Livestock
Improvement Board and the Meat Board, but it is not very active.  The Meat Board stopped issuing
slaughter quotas from 1 January 1999; these are commercially set and issued by Meatco and otherabattoirs.  The Board is privately funded:  export or slaughter levies of N$4.6 million accounted for
about one-third of total income in 1999.  A substantial share of its income is from investments.  It also
collects an animal health levy on cattle, sheep, and goats for providing veterinary services, as well as
classification, inspection, and administration fees.  The Board operates a Cattle Stabilization Fund and
a Small Stock Stabilization Fund, but these perform no price support or stabilization roles.
31. Meatco, a parastatal corporation established in 1986, remains the main exporter of beef (about
95% of exports).  It is no longer the sole expo rter to the EU under the Cotonou Agreement; the EU
approved other abattoirs in 2002 to export beef, small stock and game, and ostrich.  There are no
restrictions on establishing abattoirs in Namibia, subject to them meeting municipal requirements and
health regulations.  Namibia’s annual duty-free meat quota to the EU is set at 13,000 tonnes.  Thequota is generally unfilled: it has met twice in the last ten years (1993 and 2000); usage fell to 46% in
1997.  Quota utilization rates fell from 88% in 2001 to 85% in 2002.  The main reasons are that there
is insufficient cattle for slaughtering, and that only meat from Namibia’s foot-and-mouth disease-free
                                                     
104 Kalili (2000), p. 19.
105 The Board runs a Government Drought Relief Fund, in which the Government contributes
financially.  In 1999, the Government contributed N$4 million.
106 In 1998, Meatco repaid the last instalment of a N$3 million interest-free loan made in 1990 to
develop a sheep abattoir.WT/TPR/S/114/NAM Trade Policy Review
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zones can be exported; this accounts for only about half of the national herd.  The quota also covers
only de-boned meat of certain high-value cuts.
32. The Karakul Board of Namibia, formed in 1982 (Karakul Pelts and Wool Act), oversees the
processing and marketing of karakul pelts internationally under a joint venture with a producer
co-operative that does the trading.  The industry is small; most farmers have shifted into sheep or
cattle grazing.
(iii) Mining
33. Namibia’s mineral deposits are extensive, and mining contributed about 14% to GDP in 2001,
up from 12% in 1996.  Diamonds account for about 90% of the total value of mineral exports.
Namibia also produces uranium, copper, gold, silver, lead, and zinc (Table IV.4).  Mineral products,
especially diamonds, are Namibia’s main export earner.
Table IV.4
Output of selected minerals, 1997-01
Mineral 1997 1998 1999 2000 2001
Diamonds ('000 carats) 1,416.3 1,465.9 1,632.9 1,546.7 1,487.3
Uranium (tonnes) 3,415.3 3,278.0 3,171.0 3,201.0 2,640.0
Copper ('000 tonnes) 16.0 7.0 0 13.0 15.0
Lead ('000 tonnes) 14.0 13.0 10.0 10.0 13.0
Zinc ('000 tonnes) 40.5 42.1 37.4 32.9 37.0
Gold (kg.) 2,302.0 1,855.0 2,008.0 2,399.0 2,694.0
Source: Ministry of Mines and Energy.
34. Tariffs on imports of minerals average 0.7%, and are all ad valorem , ranging from zero to
10% (Main Report, Chapter III(3)(ii)).
35. The main diamond producer is Namded Diamond Corporation, an equal joint venture between
the Government and De Beers.  It produces about 85% of Namibia’s diamonds.  Under a renewed
sales agreement between the two parties in 1999, all diamonds are sold through the international cartel
operated by De Beers, the Diamond Trading Company.   De Beers Marine Namibia (DBM Namibia) is
contracted by Namded to provide prospecting, sampling, and mining services for its offshore leases.
Other major producers include Namibian Mine rals Corporation (Namco) and Diamond Fields
Namibia.  Namco is expanding operations followin g restructuring;  LL Mining Corporation, with
Israeli interests, has 53% equity and has invested US$25 million.  De Beers imposed export quotas on
diamond purchases from its Namibian affiliates  (Namded and DBM Namibia) in November 2001 to
control over-supply of diamonds at a time of weak international demand.  These were to have ended
in 2002.  Diamonds accounted for over 80% of exploration and prospecting expenditure, totallingN$249 million in 2001 (up from N$167 million in 2000).  Diamonds are increasingly found offshore.
36. Copper production ceased following the liquid ation of Tsumeb Corporation, owned by Gold
Fields of South Africa, in 1998.  However, copper mining and smelting was re-commenced in 2000
by Ongopolo Mining and Processing Limited.  Ur anium output at the Rossing Mine, 31% owned by
Rio Tinto and 3.5% by the State, declined in 2001 from 3,201 tonnes to 2,640 tonnes.  The Skorpionzinc mine and refinery, owned by Anglo Base Metals, are expected to come on stream in 2003 at a
cost of over N$3 billion; planned annual product ion of 150,000 tonnes of pure zinc metal will put it in
the world’s top ten largest zinc mines, and is expected to add up to 4 percentage points to mining
GDP.  The refinery (but not the mine) has Export Processing Zone status and is exempt from all taxes.SACU-Namibia WT/TPR/S/114/NAM
Page A3-197
37. Royalties are levied on production at 10% on rough and uncut precious stones and 5% on
unprocessed "dimension" stones.  The Minister may determine royalties of up to 5% on other
minerals; however, this has not been used according to officials.  There is no mandatory requirement
for the Government to take equity participation in mining ventures; apart from Namded, the only
government equity in mining is a 3.5% stake in the Rossing uranium mine.  In 2001, 583 non-
exclusive (and 160 exclusive) prospecting licences were awarded, up from 510 (and 155) in 2000.Five mining licences were awarded in 2001 (also 5 in 2000) and 73 (37 in 2000) licence applications
(new and renewal) were pending.
38. While mineral policies and legislation have changed little since the last Trade Policy Review
of Namibia, both have been reviewed and changes are pending.  The Ministry of Mines and Energy
has drafted a new minerals policy through an extensive consultation process involving allstakeholders.  The process started in 2001; background studies were completed and discussion
documents released for consideration by stakeholders at public workshops in 2001 and 2002.
107  The
new minerals policy aims to attract foreign investment in mineral exploration and development, and is
due to be presented shortly to Cabinet.  It covers several themes, including policy statements on value
addition, promotion, human resources, and government integration.  When approved, the Ministrywill develop a policy implementation strategy, expected mid 2003, to ensure that the policy is
implemented within a specific timeframe.  Future amendments to the Minerals (Process and Mining)
Act, No. 33 of 1992 are designed mainly to empower  the Minister to issue regulations to further
address environmental protection and mine rehabilitation, especially following abrupt mine closures.
39. The new Diamond Act, No. 13 of 1999 (effective April 2000), controls illegal mining,
exploration, and trade.  It covers all rough but not polished diamonds.  The Diamond Board advises
the Minister on matters relating to the diamond industry, and is privately funded by percentage leviespaid by producers on annual gross sales.  The legislation specifies four types of diamond licence: a
dealer’s licence to buy, sell, and export unpolished diamonds; a cutting licence to polish diamonds; a
tool-making licence to set unpolished stones in tools; and a research licence.  Holders of unpolished
diamonds must be licensed or have a permit, or  be a producer/contractor of diamonds under the
Minerals (Prospecting and Mining) Act.  Licence holders are to give preferences to employingNamibians, with "due regard to efficiency, economy and practicability", unless the qualifications,
expertise, and experience are not obtainable locally.  They are also to extend preferences to
procurement of local products and services, and to train Namibian citizens.  The import and export of
unpolished diamonds require a permit.
40. Special ministerial powers ensure that there are sufficient regular supplies of unpolished
diamonds domestically for cutting, tooling, and research, to help promote downstream processing.
The Minister sets the terms and conditions of such sales according to current market prices.  These
provisions require the Minister to be satisfied that the domestic processor or researcher has been
unable to acquire an adequate supply of unprocessed diamonds on reasonable terms and conditions.
Exporters of unpolished diamonds may also be required to sell for a specified period, of up to sixmonths, on normal terms where considered necessary to measure international prices to "test the
market" to ensure that Namibia’s diamond returns are on par with other international suppliers.
108  The
Diamond Act (section 62) also imposed an export tax of 10% on all unpolished diamonds not subject
to the 10% royalty.  Since the royalty applies to all licensed diamond producers, the export tax has
effectively replaced the royalty.  Exports of polished diamonds must be inspected by the Minister to
                                                     
107 Background papers included An Overview of the Namibian National Economy, An Overview of the
International Minerals Industry, and a Review of the Mineral Sector of Namibia.
108 These arrangements may only be invoked when the Minister is satisfied that the net proceeds
received by the producer will not be less than the proceeds received otherwise, and cannot exceed 10% of thenet proceeds.WT/TPR/S/114/NAM Trade Policy Review
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ensure that they are actually cut and polished.  A higher company tax rate of 55% applies to diamond
mining.109
(iv) Energy
41. Namibia has gas reserves, but no oil.  About two thirds of Namibia’s energy consumption is
from petroleum products, and about one third from electricity.  In rural areas, the main energy source
is fuel wood used for cooking.  A White Paper on Energy Policy released in 1998 by the Ministry ofMines and Energy was tabled in Parliament in May 2002.  The Ministry’s Energy Policy Committee,
established in 1996, also ran a public energy policy dialogue to obtain input from stakeholders.
Energy policy covers access to affordable energy; investment and growth, including "black
empowerment"; economic competitiveness and efficiency; and sustainability.  Electricity, coal, and
oil imports are duty free.
(a) Petroleum and gas
42. Private operators are exploring regional possibilities for developing the offshore Kudu gas
field.  The private sector conducts all exploration and production;  off-shore/on-shore exploration
licences may be applied for at any time.
110  Namcor, the state-owned oil and gas firm, restricts its
activities to promotion, gathering data, and providing technical management, although it has extensivepowers over exploration, production, refining, and marketing.
43. Government policy is to develop a downstream gas subsector.  A draft Gas Act was released
in June 2001.  It aims to establish a natural gas transportation and distribution network for domestic
gas supply and for export, including a mandatory li censing system and an independent national gas
regulator.  Investment in pipeline infrastructure is to be facilitated, and a competitive gas market
promoted in the long term, including regional trade.  The Gas Regulatory Authority will control gas
transport, storage, distribution, and marketing;  it will issue licences and monitor arrangements toensure non-discrimination.  Tariffs to gas distribu tors and consumers will require approval where
competition is considered insufficient.  The prop osed legislation requires incumbent transporters of
gas to provide inter-connection to other licensed transporters on terms agreed by the parties (or by the
Minister in case of non-agreement).  Licences for gas distribution are to be issued on a zonal basis for
exclusive 12-year periods.  Gas prices should reflect cost methodologies determined by the Authorityand will be controlled.  Cross-subsidies may be authorized.  The Authority will set prices to protect
customers against monopolistic practices.  Exports and imports of gas require a licence.
44. Amendments to the Petroleum Exploration and Production Act (1991) in 1998 reduced the
royalty on new operations from 12.5% to 5% of the oil’s f.o.b. market value.  The rate of income tax
on petroleum was also changed from 42%, on average, to 35%, and certain changes were introducedconcerning deductibility for exploration expenditure.
111  The additional profits tax was also
amended.112  Alternatively, production-sharing arrangements may be negotiated with the parastatal
National Petroleum Corporation of Namibia.
                                                     
109 The tax rate for non-diamond mining companies is 35%.
110 Offshore licences were previously awarded in fixed licensing rounds, in 1991, 1994, and 1998.
These resulted in total committed offshore exploration expenditure of over N$520 million.
111 The previous income tax rate was calculated by a formula, but set at a minimum of 30%.  The
formula was y=65-480/x, where y=income tax rate and x=the percentage of taxable income of total incomederived.
112 Previously, there were three tiers of additional profits tax; 25% and the remaining two were
negotiated.SACU-Namibia WT/TPR/S/114/NAM
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45. The duration of exploration licences may be extended and the obligations of licence holders
further regulated.  Oil producers must submit plans on decommissioning facilities (after production)
for ministerial approval one year before half of the estimated recoverable reserves have been
extracted.  The producer must create a trust fund and make annual deposits to meet the estimated
decommissioning costs.113  These amounts are set by the Board of Trustees in accordance with a
formula based on levels of production, the expected environmental impact, and the size of theholding.
114  The Ministry of Mines and Energy administers, regulates and licenses petroleum
exploration activities.
46. The Ministry of Mines and Energy amended the model petroleum agreement in 1998.  Annual
exploration and production licensing fees apply.  Petroleum explorers and producers are required to
train Namibians and agree on a minimum level of training expenditure.  Explorers contribute to thePetrofund to train and educate Namibians.  They are to employ Namibians to the extent possible,
subject to qualifications, unless the necessary skills are unavailable domestically.  Operators are also
to use as much local content as possible, provided it is internationally competitive.
47. Petrol and diesel prices, along with selling margins, are controlled.  LPG and paraffin prices
are not regulated.  Namibia imports all petroleum products, mainly from South Africa, and fiveprivate oil companies dominate the sector. Products are imported mainly at Walvis Bay, railed to
inland depots and distributed to outlets by road.  Prices are set on the basis of an import parity formula
based on in-bond landed cost (IBLC), determined as a basket of international posted refinery prices.
Margins are fixed for oil companies according to return on assets, and for retailers based on an annual
survey of dealers’ margins.  New government regulations are being implemented to control the
wholesale and retail markets, while retaining the prohibition on self-service outlets for employment
reasons.   The National Energy Council, chaired by the Minister of Mines and Energy, established the
National Deregulation Task Force to examine fuel price deregulation.   The basis of the IBLC import
price was changed to 80% posted and 20% spot prices, instead of 100% posted prices, in 1997 as a
closer proxy for import costs.   The formula is currently being reviewed under SACU arrangements
and a revised version is due to be implemented in April 2003.  While government policy is for a more
deregulated market, price deregulation will depend upon conditions regarding market size, entrybarriers, and the balance of market power.  All storage and transport infrastructure is privately owned,
and the Government can require owners to provide non-discriminatory access at a fair price to other
companies so as to facilitate access by additional players into the petroleum market.
48. Fuel prices have risen substantially in recent years;  current prices (2003) are about N$4.00
per litre for petrol and N$3.80 per litre for diesel.  Various taxes apply to petroleum products,including a fuel tax of N$0.12 per litre of petrol and N$0.10 per litre of diesel, as well as an excise
duty of N$0.04 per litre.  Road user charges (the  RFA levy) of N$0.73 per litre of petrol and N$0.73
per litre of diesel also apply.  A price equalization scheme is financed by the National Energy Fund
levy of N$0.10 per litre of petrol and diesel.  It subsidizes the freight costs from Walvis Bay to ensure
that retail prices in remote areas are the same as at the nearest railhead.  Subsidies normally coverabout one quarter of sales.  The Petroleum Produ cts and Energy Act of 1990 controls the National
Energy Fund, and the legislation is presently being reviewed to include all energy forms in the Fund.
49. Amendments to the Petroleum Products and Energy Act in 2000 granted the Minister of
Mines and Energy more comprehensive regulatory powers, especially over imports, supply, storage,
possession, and sales of petroleum products.  Agreements between wholesalers (importers,
                                                     
113 The Board of Trustees comprises equal numbers of officials and licence-holder representatives, with
officials filling the chairperson and vice-chairperson positions.
114 Trust fund deficits in meeting decommissioning costs are to be met by the producer, while any
surpluses will be returned.WT/TPR/S/114/NAM Trade Policy Review
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distributors or exporters) and operators (selling outlets) restricting competition or using unfair
contractual procedures and practices are prohibited.  Licences are issued by the Ministry of Mines and
Energy to control this strategic commodity (since 2000).
50. The Government requires strategic stocks of petroleum products of 165,000 tonnes in Walras
Bay, which is kept as commercial storage by private oil companies.  The stock reserves are set at three
months of supplies for petrol and four months for diesel.
(b) Electricity
51. The state-owned national utility company, Nampower, has a monopoly over generation and
transmission.  Electricity  is mainly imported from Eskom in South Africa (some 70%).  Hydro-
electricity is supplied from the Ruacana plant on the Cunene River.115  The Van Eck thermal station in
Windhoek generates electricity from imported coal.  Power is distributed by distribution agencies,mainly 46 local authorities, each with a de facto monopoly within its geographic area.  Rural
electricity supply is the responsibility of the Ministry of Regional and Local Government and
Housing, and this has been contracted out in the north to a private firm, NORED.  Large mining and
industrial users as well as commercial farmers can negotiate direct power supply from Nampower.
Several competitive pressures are emerging, such as the prospect of new independent powerproducers, like the planned Kudu gas-fired plant, and the demand by new mining companies for
power at import-competitive prices.  Nampower is also a member of the Southern African Power Pool
(SAPP).  Namibia is examining the feasibility of  establishing additional inter-connections with
Angola, Botswana, and Zambia to improve electricity trade under SAPP and bilaterally, including
exports.  The Government plans to source all peak demand and at least 75% of electricity
domestically by 2010.
52. The Government is taking steps to deregulate the electricity market.  The Electricity Act
(No. 2) of 2000, effective 12 July, established the Electricity Control Board as the independent
regulator of the generation, transmission, distribution, import, and export of electricity.
116  The Board
must license all such activities, and approve electricity tariffs.117  Interconnection to the transmission
system is covered; a transmission operator must provide access to a licensed supplier at a price
approved by the Board.  The Government has adopted a "single buyer" deregulatory model.Generation is to be deregulated to encourage independent power production and imports are to be sold
to a single monopoly buyer, Nampower, for transm ission.  Geographic distribution monopolies will
continue, but large users may still purchase directly from Nampower.  Independent power producers
wishing to export will be able to access the transmission system at competitive prices.  Third-party
access to the distribution system, such as by large users wishing to obtain electricity directly fromNampower or to use embedded generation by other suppliers, will also be allowed.  A national
electricity pricing policy is to be adopted to remove subsidies, including between different consumers,
and allow for cost recovery.
118  Although privatization is the Government’s general policy, there are
no current plans to privatize Nampower.   Its operations are now subject to government performance
contracts.  Nampower has also been restructured into regulated business units, such as generation,
transmission, and distribution.
                                                     
115 Although power output varies enormously depending upon water supply, the Cunene River may
offer substantial hydro-power potential.  Feasibility st udies are looking at additional projects, in cooperation
with the Angolan Government.
116 Previously, electricity was governed by South African legislation.
117The Board’s administrative arrangements are contained in the Electricity Regulations:
Administrative Electricity Act, 2000.
118 For example, Nampower is subsidizing electrici ty used by cotton farmers in the Maize Triangle.SACU-Namibia WT/TPR/S/114/NAM
Page A3-201
53. The Ministry of Mines and Energy and Nampower finalized a Rural Electrification Master
Plan in 2000.  About 10% of rural households had electricity in 2000, up from 8% in 1997 (5% in
1991), and 75% of urban households.  Overall, some 30% of households have electricity.  The
Government plans to increase rural electricity access to 25% by 2010.  Import capacity is to be
enhanced by constructing a 400kW system from South Africa to Windhoek, estimated to cost
N$950 million.  Government priority is for rural us ers to have access to commercial fuels, such as
paraffin, LPG, and diesel, at affordable prices to replace wood fuel.  Measures include extending
credit to purchase such appliances, and improving liquid fuel distribution.
(3) MANUFACTURING
54. Manufacturing accounted for about 11% of GDP in 2000.  Food and beverages almost
doubled over the period 1996-00 and accounted for half of manufactured output in 2001.  Fishprocessing, which had expanded fourfold to reach almost one quarter of manufactured output in 2000,
fell by over 40% in 2002.  Other manufacturing includes mainly meat processing, metal fabrication,
fish cans, wood products including furniture, chemical s, paints, plastic packaging, textile and leather
products.  Fish products account for some 60% of total manufactured exports, followed by meat
processing (20%).  Manufacturing accounts for about 7% of employment.
55. The main policy measure to expand manufacturing is the Export Processing Zone
Development Programme.  Currently around 80 firms have such status (21 operational), covering
activities like agri-processing, food and beverages, electronics, motor vehicles, electronics, and
textiles.
56. A new textile manufacturing plant opened in 2002, funded by Malaysian investment of
N$980 million.  It produces knitted fabrics and garments for export to the United States.  It uses
imported inputs, mainly from West African countries, and Namibian cotton.  AGOA initiatives appearto be benefiting the apparel industry.
119  New investment of N$250 million was planned in 2001.120
The Government believes that the AGOA, especially the textile and apparel provisions, have meant
more than all the development assistance received since independence.121  The first textile exports to
the United States under the AGOA were in August 2002.  AGOA benefits may also increase
following the U.S. decision to "narrowly expand" trade opportunities by changing certain aspects of
the scheme and to extend from 6 August 2002 "lesser developed beneficiary country" status to
Namibia, despite its relatively high GNP, thereby allowing its producers to use third-country fabric in
qualifying clothing (so-called AGOA II).122
57. A joint venture involving a U.S. firm is constructing the country’s first cotton ginning plant
for local and export sales.  Cement production ceased in 1999.  Namibia also exports motor vehiclecomponents for Volkswagon.
                                                     
119 It has been estimated that the AGOA will raise the level of non-oil exports from sub-Saharan Africa
to the United States by between 8% and 11%, depending on how restrictive the rules of origin in the non-apparelsector are in practice.  However, these trade benefits wo uld have increased by up to fivefold if no products had
been excluded from AGOA, and if less stringent rules of origin (namely the multifibre or MFA rules) had beenapplied.  Such gains from AGOA represent losses for other suppliers due to trade diversion.  See Mattoo, Roy
and Subramanian (2002).  The trade diversion in favour of sub-Saharan African countries may be at the expense
of other, including developing, countries.
120 USTR (2002).
121Ministry of Trade and Industry, p. 117, quoted in USTR (2002).
122 U.S. Trade Act of 2002, 6 August.WT/TPR/S/114/NAM Trade Policy Review
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58. Tariffs on manufactured imports average 11.8%;  ad valorem  duties generally range up to
60% (Main Report, Chapter III(3)).  Relatively high average tariffs (above 20%) apply to tobacco
(36%), clothing (35%), carpets (30%), knitted and crocheted fabrics (28%), leather products (26%),
and footwear (21%).
(4) SERVICES
59. Services dominate Namibia’s GDP.  In 2001, they accounted for 65% of GDP (67% in 1996).
The main components are services provided by the public administration (24% of GDP in 2001), real
estate and business services (10%), wholesale and retail trade (including repairs) (10%), transport and
storage (4%), and financial intermediation (3%).
60. Namibia made minimal commitments on services under the WTO General Agreement on
Trade in Services (GATS).  The commitments cover tourism, more specifically hotels and restaurants,as well as travel agencies and tour operators, and scientific and consulting services relating to offshore
oil and gas exploration.  Namibia committed to having no limitations on market access and national
treatment for these services for all four modes of supply.  It did not participate in the extended GATS
negotiations on basic telecommunications (Fourth Protocol) or financial services (Fifth Protocol).
(i) Post and telecommunications
61. Two monopoly suppliers dominate telecommunicat ions.  The state-owned Telecom Namibia
supplies basic services and the Mobile Telecommunications Company (MTC) (a joint venture
between the Government (51%) and two Swedish companies, Telia International and Swedfund
International) has a GSM network to provide cellular services.  Telecom Namibia’s performance
contract with the Government specified 10% annual increasing in telephone penetration, from a
teledensity of about 3% to 9% by 2000.  In 2001, the teledensity was 6.4%, and 117,000 lines were
connected.  Population coverage was some 80%.  New ISDN services were introduced in 1998, and
voicemail and virtual telephony in 1999.  MTC was expected to invest N$70 million in expanding the
mobile network over the five-year licence period until September 1999.  The renewed licence is for 15
years.  The Government is considering issuing a second cellular phone licence.  There were 20,000
mobile subscribers in 1999 (2% of the market).  The Namibian Communications Commission is the
sector’s regulator, and the Ministry of Foreign Affairs, Information and Broadcasting the responsibleministry.
62. After announcing in 1999 that new entrants would be allowed by 2000, the Government
extended the timetable to 2004 at the latest, when the telecommunications market would be fully
opened.  Namibia is a founding member of th e Telecommunication Regulators’ Association of
Southern Africa (TRASA), inaugurated in September 1997 among SADC nations.
123  T h e
Government approved a Telecommunications Poli cy and Regulatory framework in 1999 along the
lines of the SADC Protocol on Transport, Communication and Meteorology, and the Model
Regulatory Framework for Telecommunications.  From 2002 until 2004, the Government may defer
competition in any market segment for socio-economic reasons.  The Government will establish a
Universal Service Fund to finance universal services, such as basic telephone services in rural areas.All telecommunications equipment should comply with the National Operators Network and have
type approval from the Nami bian Communication Commission.
63. The Internet and other value-added services are open.  There are five Internet suppliers.
                                                     
123 Other founding members are Botswana, Mozambique, South Africa, Tanzania, and Zambia.SACU-Namibia WT/TPR/S/114/NAM
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64. The state-owned NamPost has a monopoly over postal, including courier, services.  There are
over 100 post offices in Namibia, and NamPost has about 700 employees.
(ii) Financial services
65. Financial services are relatively well developed.  Service providers include five commercial
banks, the state-owned Agricultural Bank of Namibi a, the Post Office Savings Bank, several merchant
banks, and a range of non-bank financial institutions, such as insurance companies, pension funds,and money market funds.  All commercial banks ar e privately owned, with substantial South African
equity.  One, the Standard Bank of Namibia, is  100% South African owned.  South African, French,
and German interests primarily own the Commercial Bank of Namibia.  Namibian equity is held in
two banks, Bank Windhoek (56.4%), and the City Savings and Investment Bank (46.5%, and recently
merged with the building society SWABOU).  The First National Bank and the Standard Bankaccount for almost two thirds of the banking market .  There are over 80 bank branches throughout the
country.  A capital market also operates around th e Namibian Stock Exchange.  Namibia is a member
of the East and Southern Africa Banking Group and it participates in the Committee of Central Bank
Governors of SADC countries.
66. The Bank of Namibia, the country’s central bank, licenses all banks.  Banking licence
applications must meet the statutory requirements, such as a minimum capital requirement of
N$10 million, be from fit and proper persons, and have permission from their home country
prudential supervisor.  There are no longer different classes of banking licences, and all licensed
banks may participate in the full range of banking services.  There are no restrictions on the number of
banking licences, and foreign branches may operate in Namibia.  The Namibian banking subsector
has high gross margins, and, while the banks still have largely unexploited economies of scale, it is
more profitable than in neighbouring countries.  This suggests that Namibia could accommodate newbanks.
124
67. The Bank of Namibia Banking Supervision Division is responsible for prudential regulation
of the banking system.  These supervisory powers were enhanced in new legislation, the Bank of
Namibia Act (No. 15) of 1997 and the Banking Institutions Act (No. 2) of 1998, effective 1 July.
Namibia’s prudential requirements are consistent with the Basel Core Principles.   Minimum
prudential standards cover liquid asset requirements, capital adequacy, exposure to single customers,
and loan classification and provisioning.  Namibia expects to implement the new BIS Capital Accord
by 2005.  Annual on-site auditing and examination of banking institutions were introduced in 2002.
Anti money-laundering legislation along the lines recommended by the Commonwealth Secretariat
was due to be passed in 2002.  The Bank of Namibia must approve all mergers between financialinstitutions.  It has sweeping powers to take over  control of troubled institutions.  The current
legislation also enables it to change prudential ratios without requiring legislative amendments.
68. Non-bank financial intermediaries, except for building societies, are not supervised by the
central bank.  Their own boards of directors supervise non-commercial banks, including the Post
Office Savings Bank, the Agricultural Bank, and the Namibian Development Bank.  The Registrar ofFinancial Institutions in the Ministry of Finance supervises insurance and finance companies.   While
prudential regulation of banks has kept pace with developments, regulation of non-banking business,
such as insurance, securities business, and broking services, has not, and this has systemic risk
implications.
125  The Government has approved the transfer of the prudential supervisory functions of
the Bank and of the Ministry to a new regulatory and supervisory entity established in 2002, the
Namibian Financial Institutions Supervisory Authority.
                                                     
124 Ikhide (2000).
125 Ipangelwa (1999).WT/TPR/S/114/NAM Trade Policy Review
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69. As Namibia is a member of the Common Monetary Area, most commercial banks and non-
bank financial institutions maintain close links with their South African parent or affiliated
companies.  Local inter-bank overnight lending is limited as local banks frequently use the South
African inter-bank market.  The major money-market instruments are demand and savings deposits,
notice and fixed deposits, negotiable certificates of deposits, and treasury bills.  Bank lending
normally is by way of overdraft, mortgage loans, and leasing.  Commercial banks provide about 90%of total credit to the private sector.  The Bank of Namibia is examining ways to develop the secondary
market for government securities.
70. The Namibian Inter-bank Settlement System was implemented from 10 June 2002.  This
system, called CRISP (Central Real-Time Interbank Settlement Processor) is based on real-time gross
settlement (RTGS) principles, and enables all banks to exchange payments electronically in real time.All banks are connected to CRISP via SWIFT, the international de facto financial message carrier.
Each bank has made a funds settlement agreement with the central bank; the regulatory framework for
the payments system is contained in the Payment System Management Act, 2002.   The system
initially handles all domestic cheque payments and payments above N$5 million, and normal
interbank transactions.  It will be linked to other payments, such as automatic teller machines, creditcards, and electronic funds transfers by end-2003.
71. The Namibian Stock Exchange introduced computer trading in 1998, linked to the
Johannesburg Equity Trading and run by the Johannesburg Stock Exchange.  In 2001, it introduced a
new settlement system, which enabled securities of dual-listed companies to be settled electronically.
During 2001, new listing requirements were adopted in line with South Africa's changes.  These
included enhanced principles for corporate governance.  The Namibian Stock Exchange adopted the
same trading and information systems as the Johannesburg Stock Exchange in 2002.  Overallcapitalization of the Namibian Stock Exchange was N$512 billion at end-2001, up from N$371 billion
at end-January 2001.  This rise largely reflected dual-listed foreign companies.  Most capitalization is
for finance and mining companies.  The Government intends to update the Stock Exchanges Control
Act (No.1), 1985, to better regulate stock broking firms.  The Namibian Stock Exchange also listed
additional debt instruments; in November 2001, the Standard Bank of Namibia issued its firstcorporate bond.  There are no restrictions on foreign portfolio investment.
72. The Namibian insurance market is served by a number of private, mainly South African
owned insurance companies, which offer a broad range of services.   Two insurance companies,
Sanlam and Old Mutual, de-mutualized in 1999.  The state-owned Namibia National Reinsurance
Corporation (NamibRe) was established in 1998 with capitalization of N$20 million.  Insurancecompanies must re-insure with NamibRe.  The mandatory minimum share was reduced from 25% to
20% in July 2001.  This arrangement will be reviewed after five years.
73. Pension and insurance funds must keep a minimum of 35% of their investments within
Namibia.
(iii) Transport
74. The transport subsector is dominated by the state-owned TransNamib Ltd.  It has a monopoly
in rail transport services through its subsidiary, TransNamib Rail, and also operated the national
airline, Air Namibia, until 1 April 1999.  Transnamib is also a major supplier of road transport freight
and passenger services through TransNamib Carriers.  It no longer manages the port of Luderitz.SACU-Namibia WT/TPR/S/114/NAM
Page A3-205
75. The transport subsector is relatively concentrated and dominated by a few operators,
including state operators.  The Department of Transport of the Ministry of Works, Transport and
Communication is responsible for formulating and implementing transport policies.
(a) Road
76. Recent major construction includes the Trans-Caprivi Highway as part of the Walvis Bay-
Ndola-Lubumbashi corridor, and the Katimi-Ngoma section.  The Trans-Caprivi highway will provideNamibia a road network connecting the landlocked countries of Botswana, Zambia, and Zimbabwe.
The Trans-Kalahari highway also provides an impor tant route between Walvis Bay and Botswana.  To
accelerate customs formalities at the Botswana border, authorities have agreed to implement fast-track
customs procedures for registered haulage operators on a trial basis.  Namibia and other SACU
countries are expected to have a common document and appropriate supportive legislation handlingtransit procedures before end-2004.
77. Road transport consists of bus, taxi, and road haulage operators.  There are about 200 road
haulage operators using some 1,700 trucks and a freight capacity of around 31,000 tonnes.
TransNamib Carriers is the largest operator.  All other operators are private; four are relatively large.
Operators must be registered with the Namibian Traffic Information System and have an operator'scard.  Commercial road carriers no longer require permits to carry certain goods.  Permits are needed
for cross-border transport.  Freight rates are set privately.
78. Namibia signed a bilateral Cross-Border Road Transport agreement with Zambia and
Zimbabwe in 1999 to facilitate movement of goods and passengers between the countries.  A joint
Route Management Committee meets bi-annually to  discuss problems impeding movement of
passengers and freight between these countries.  The Road Traffic and Transport Act No. 22 of 1999
does not refer to cabotage.  However, the industry is being consulted during 2003, and if supported,the government would amend the legislation to allow for cabotage (both freight and passengers) with
neighbouring countries on a reciprocal basis.
79. Bus operators service inter-urban and long-dis tance routes, including with South Africa.
There are currently about 15 operators using some 100 buses.  Four operators, including TransNamib
Carriers, run scheduled bus services between Windhoek, Keetmanshoop, and Swakopmund.  Fares aremarket determined, and there are no restrictions on new operators, apart from meeting technical
requirements.  Private operators are not subsidized.  Some bus operators provide tour services,
including the state-owned Transnamib Tours.  Taxis are mainly owner driven.  There are about 5,000
taxis in Namibia; about half operate in Windhoek.  There is no restriction on the number of taxis,
provided they meet safety and other technical requirements.
80. The Roads Authority was formed to manage the road network on a "user-pays full-cost
recovery" basis.   The Authority receives funds from road user charges, such as the fuel levy, licence
and permit fees, and cross-border charges.  It is planned to introduce a "weight-distance" levy.
(b) Rail
81. The rail network is being expanded by the construction of a new line from Tsumeb to
Ondangwa, and the line from Aus to Luderitz is being re-opened to handle the additional freight
passing through that port.  Work also started in 2002 on the northern rail link from Tsumeb to
Ondawanga, with two separate spurs to Oshakati and Oshikango.  The Namibian railway network is
linked only with South Africa.  The Government removed the reserved goods scheme whereby
14 major commodities were reserved for rail trans port.  Rail remains the major mode for transporting
bulk goods.WT/TPR/S/114/NAM Trade Policy Review
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82. The National Transport Corporation Act No. 21 of 1997 regulates railway operations.
Ownership of the rolling stock is vested in the Ministry of Works, Transport and Communication.
The market sets freight rates.
(c) Sea
83. Namibia has two major ports, the main one at Walvis Bay, and another at Luderitz.  Both are
administered by the parastatal Namibian Ports Authority (NamPort).  Both ports have undergone
substantial modernization and upgrading, including dredging to deepen them.  New container
facilities at Walvis Bay, serviced mainly by weekly ships via Cape Town and Durban, provide among
the quickest turnaround times in Africa.  Luderitz is becoming particularly important for fishing and
the offshore diamond industry.  Cargo levels have increased substantially.  Luderitz handles about
200,000 tonnes annually and Walvis bay some 2 million tonnes.
84. Two companies, one fully owned and the other 50% owned by TansNamib, provide liner
services.  There are about five private freight forwarders.  There are no controls on entry into shipping
or cabotage restrictions.  Foreign vessels may operate domestic services between Walvis Bay and
Luderitz without a permit, provided they meet sea worthiness requirements and customs and
immigration regulations.  According to the authorities, Namibia does not subsidize shipping services.
(d) Air
85. Air Namibia provides scheduled domestic services and international flights to Germany and
the United Kingdom.  A number of international airlines provide regular services to Windhoek under
various bilateral agreements.  Cabotage is prohibited.  Most foreign carriers have third and fourth
freedom traffic rights.  COMAV is the only carrier to have negotiated fifth freedom rights.
86. The Air Services Act of 1949 and the Aviation Act of 1962 were both amended in 1998.
There are no restrictions on supply of domestic aviation services provided the prospective carriermeets the legislative requirements.  The Airport Company Act of 1999 commercialized the eight
major airports.   There are three international airports Hosea Kutako and Eros at Windhoek, and
Ondangwa.  The aerodrome network remains the responsibility of the Ministry, including those under
the Namibian Airports Company.  It runs them on a commercial basis.  The provision of airport
services is normally outsourced to private contractors.
87. Air Namibia has incurred substantial financial losses and is a heavy drain on the government
budget;  N$346 million was provided in the 2001/02 supplementary budget to recapitalize the airline
and the 2002/03 budget provided an additional N$250 million.  Air Namibia’s partial privatization
was announced recently, based on government taking over the airline’s N$1.4 billion debt.  The plan
was for the Government to retain a 25% interest, with 40% to be sold to South African Airlink, 15%to a local aviation company, Comav, and 10% each to the National Union of Namibian Workers and
Air Namibian employees.  However, privatisation has slipped and is expected in 2003.
(iv) Tourism
88. Tourism receipts were estimated at N$2.1 billion in 2001. It is the third largest export earner,
after mining and agriculture, and is thought to contribute about 8% to GDP, and employ over 50,000
persons.
89. The Ministry of Environment and Tourism is responsible for tourism policies.  In 1999, the
parastatal Namibia Wildlife Resorts took over from the Ministry the management of the 22 tourist
resorts in protected areas.  Although these are fully owned by the Government, they are managedSACU-Namibia WT/TPR/S/114/NAM
Page A3-207
commercially.  Other tourism facilities are privately owned.  The Namibian Tourist Board was
established in 2000 as a joint venture between the public and private sectors.  As a statutory authority,
the Board will assist in formulating tourism policies.  The Board will regulate the industry by setting
minimum standards, and will also promote the industry at home and overseas.  The subsector is to be
developed in a sustainable and responsible manner in accordance with the 1994 White Paper on
Tourism.  A revised draft policy for 2001-10 has been released.  It proposed the selective use ofinvestment incentives.  The Government does not regulate tourism prices; these are market
determined.
90. Tourist arrivals increased from approximately 400,000 in 1995 to 670,000 in 2001.  Most
(about 80% in 2001) come from Africa, especially South Africa (36%) and Angola (36%); the rest are
mainly from Europe (17%), especially Germany (8%).  In March 2002, there were 709 registeredaccommodation facilities.SACU-Namibia WT/TPR/S/114/NAM
Page A3-209
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