Namibia

Investment & Operational Criteria

Key Indicators

Risk Premia

7.500

%

Outlook

Neutral

Rating

BBB|3S|±

Ranking

38

Reserves (1P)

Total

mm boe

Oil

0

%

Summary

The majority of exploration activity has been focused offshore, which is currently facing a hiatus given the series of dry holes.

Updated

May 31, 2021

Country Basics

Region

Africa - South

Reserves (1P)

Oil

mm bbl

Gas

bcf

Location

NamibiaNamibia

Southern Africa, bordering the South Atlantic Ocean, between Angola and South Africa.

Outline

Tax Regime
Type

Concession

Tax Regime
Notes

Relatively simple Concession-based fiscal regime with new terms introduced for the most recent, third and fourth licensing rounds. Royalty and Petroleum Income Tax rates are fixed and payable. There is an additional profits tax payable on a sliding scale linked to contractors rate of return, which kicks in at anything over a threshold IRR (currently 15%).

Investment & 
Operational
Climate

Namibia welcomes foreign investment and provides a strong foundation of stable, democratic governance and good infrastructure on which to build businesses. The Namibian government prioritises attracting more domestic and foreign investment to stimulate economic growth, combat unemployment, and diversify the economy. The Ministry of Industrialization and Trade is the governmental authority primarily responsible for carrying out the provisions of the Foreign Investment Act of 1990. In August 2016, Namibia promulgated and gazetted the Namibia Investment Promotion Act (NIPA). Despite the FIA's calls for equal treatment of foreign investors and Namibian firms, the government is increasingly calling for foreign investors to partner with Namibian-owned companies and/or have a majority of local employees in order to operate in the country.

Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.

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Related Basins

Africa - South

Countries

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