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Major Political and Economic Events |
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9200
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The Stock Exchanges Control Act was amended. There are no restrictions on foreign investment (although foreigners need special permission if they wish to take over control of a bank). Foreign exchange regulations are the same as those in South Africa (the Namibia dollar is linked 1-to-1 with the Rand): investors must apply through an "authorized dealer" (most commercial banks) to ensure free remittance of dividends & proceeds of sales.nn |
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960803
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Institutional investors were allowed to invest a portion of their assets abroad. Proposals could be submitted to the Exchange Control Authorities allowing such institutions to obtain foreign investment by way of swap arrangements, which would allow the exchange for foreign assets with foreign investors of part of their existing assets.a3(first entry) |
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961019
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The requirement of an auditor's certificate for specified companies to transfer dividends to emigrants was abolished.a3 |
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961101
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The requirement of an auditor's certificate for specified companies to transfer dividends to nonresidents was abolished.a3 |
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970401
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(Provisions specific to commercial banks and other credit institutions) Nonresident-owned local companies' access to domestic credit was increase, only companies that are 50% or more foreign owned are to be subject to exchange controls.a3 |
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970421
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(Controls on direct investment) The limit on foreign investment by Namibian corporations was increased to N$30 million for countries other than SADC members, and a new facility of N$50 million in respect of investment in SADC member countries was established. (Provisions specific to institutional investors) The foreign currency transfers allowed in 1996 were extended to 1997. Transfers abroad of up to 3% of the net inflow of funds during the preceding year were allowed. The definition of institutional investor was expanded from only the fund itself to include the unit trust management company. a3 |
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980105
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(Controls on personal capital movements) Capital introduced into Namibia by private individual residents in Namibia could be transferred abroad.a3 |
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980401
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(Controls on credit operations) Nonresident-owned companies, access to domestic credit was increased. Only companies that are 75% or more foreign-owned are subject to exchange control. (Controls on direct investment) Foreign direct investment by Namibian corporations abroad was increased to N$50 million, while approved investments into SADC were increased to N$250 million per new investment project.a3 |
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9901
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The NSE (Namibian Stock Exchange) and the Swedish International Development Cooperation Agency (Sida), singed a N$2.9 million (US$480,000) agreement to help upgrade the computers for share trading and administration. |
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9903
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The four major Namibian commercial banks cut their prime rates by 125 basis points to 21%. |
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9906
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A takeover war was initiated by Namibian Minerals Corporation (Namco) for the outstanding shares of Ocean Diamond Mining. |
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990903
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The S&P/IFCG Namibia Index was launched. Calculated monthly, the index has nine constituents and an initial capitalization of about $370 million. |
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9910
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Namco would take over Ocean Diamond Mining Holdings (ODM) after ODM's biggest shareholder accepted its latest proposal offer. |
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9912
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Detailed work began on linking the NSE to South Africa's STRATE central depository as a first step in creating a regional central depository for Southern Africa called SAFIRES. With December trading volumes reaching N$171.1 million, the NSX was able to clear the 2 billion Namibian dollar barrier for the first time in exchange history. |
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200001
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President Sam Nujoma won a third successive term. Namibia allowed Angolan troops to use Namibia as a military base of operations. Namibia implemented the Diamond Act. |
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200004
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The Bank of Namibia allowed Namibian companies to invest up to US$38.5 million in member countries of the Southern African Development Community (SADC) and up to US$7.7 million elsewhere. It decided to continue pegging the Namibian dollar to the volatile South African rand. |
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200006
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Namibia kick-started its Kudu gas field project. |
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200009
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Anglo American announced its plans to invest US$454 million to develop the Skorpion Zinc mine and refinery, expected to contribute 4% to GDP. |
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200012
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The government and the diamond mining conglomerate de Beers reached agreement on a newly established multi-million dollar marine diamond company. In view of the violent land disputes in neighboring Zimbabwe, Namibia opened talks with Germany in order to set up a fund to help authorities buy land to resettle the landless black Namibians. Namibia and Nigeria drew a plan to build a US$200 million oil refinery facility based in Namibia. |
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200000
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The NSX planed to modernize its trading rules and directives in line with the changes to the SECA (Securities Exchange Control Act). |
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200100
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In the first quarter, Namibian Minerals filed for liquidation, with accumulated institutional debt of around US$55 million. |
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200100
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In the second quarter, the government introduced fiscal discipline reforms, making unauthorized expenditure a punishable act. It also withdrew troops from the Democratic Republic of Congo. |
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200108
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The NSX introduced an electronic settlement system for dual-listed securities traded on the exchange. In the third quarter, several sectors contracted. |
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200100
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President Nujoma launched the construction of the NamCot Diamonds processing factory during the fourth quarter. Armed attacks at the boarder with Angola took a heavy toll on the economy. |
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200112
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Accusations mounted against Works, Transport, and Communication Minister Moses Amweelo. Namibia warned against imposing international sanctions on Zimbabwe. |
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200100
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New corporate membership rules and a surveillance system were introduced to regulate the reforms and increase liquidity on the NSX. The NSX successfully listed three new South African companies in the financial, mining, and retail sectors. |
| 020311 | According to the latest population census carried out by the National Planning Commission (NPC), Namibia now has 1,826,854 inhabitants living on its vast 825,418 sq km of land. The census - carried out in August and September 2001 - shows the total to be made up of 936,718 females (51.3%) and 890,136 males (48.7%), with the country's annual population growth rate between 1991 and 2001 put at 2.6%. |
| 020503 | The country's biggest trade union - the National Union of Namibian Workers (NUNW) - has vowed to fight the privatisation of state assets 'tooth and nail'. The NUNW made its pledge during a rally to mark International Workers' Day (May Day) in the capital, Windhoek. In an address to the small crowd attending the rally, the NUNW's Acting Secretary-General Peter Naholo said, 'What is wrong in the minds of our ministers? Why is everybody suddenly so eager to privatise the country's assets? That's not right, it's suicidal,' he said, adding, ' ... What is a country without heritage if we intend to sell everything?' Naholo said the masses are losing jobs because of so-called privatisation efforts by the government. 'I think most of them have lost focus of the ruling party's agenda, and that is to provide jobs for all. These people must resign and retire to their home villages,' he said. The process of privatisation has faced entrenched opposition ever since it was launched in the early 1990s, mainly to fears that such a process would create monopolies, bring about job losses and result in the disempowerment of workers. |
| 030123 | The German government and two firms - Deutsche Bank and shipping company Woermann Line (now known as Safmarine) - are facing a US$4bn lawsuit for alleged atrocities committed during colonial times |
| 030221 | Namibian President Sam Nujoma will step down from office when his current term final five-year term as head of state expires in December 2004, according to his ruling South West Africa People's Organisation (SWAPO) party. There has been growing speculation in recent weeks as to whether the veteran ruler will attempt to stay in office by amending the clause in the country's constitution that limits the president to a maximum of two five-year terms, following calls from some traditional leaders for him to stay on |
| 030417 | Dutch brewing giant Heineken and London (UK)-based brewers and alcohol distributors Diageo announced yesterday (16 April 2003) that they have acquired a 28.98% minority stake in Namibian Breweries Limited (NBL) from Belgian beer giant Interbrew. The two companies paid some US$33.41m to acquire the Interbrew shares in NBL, which is the sole brewer in Namibia with a production volume of 1.2m hectolitres. Interbrew, which originally acquired its stake in NBL in February 2002 as part of its acquisition of Germany's Beck & Co., has also agreed to extend its existing licence agreement with NBL for the production, marketing and distribution of its famous Beck's brand in the Namibian and South African market for another 10 years |
| 030520 | The Bank of Namibia has indicated that the country's foreign-exchange controls are to be eased in a move that will bring its rules into line with other southern African states. |
| 030530 | It emerged yesterday that the Namibian government has decided to pull out of the regional Common Market for Eastern and Southern Africa (COMESA) grouping with effect from May 2004. It is the second country (after Tanzania) in less than four years to leave the group. According to sources in the capital Windhoek, the government has decided to withdraw its membership of COMESA in a bid to focus the country's efforts on two other regional economic blocks it also belongs to, namely the Southern African Customs Union (SACU) and the Southern African Development Community (SADC). The bulk of Namibia's trade is conducted with South Africa - which incidentally is the dominant member of both SACU and SADC but is not a member of COMESA - and other neighbouring Southern African states. |
| 030616 | Reacting to the South African Reserve Bank's (SARB) decision to cut its leading lending rate on 12 June 2003, the Bank of Namibia (BoN) has, as widely expected, reduced its bank rate (the rate at which it lends to commercial banks) by 1.25% . The SARB lowered its repo rate by 1.5% from 13.5% to 12% at its latest quarterly Monetary Policy Committee (MPC), after raising the rate on four occasions last year as it tightened its monetary policy regime in an attempt to control rising inflation |
| 030818 | After the widely-expected cut in the repo rate announced by the South African Reserve Bank (SARB) on 14 August, the Bank of Namibia (BoN) also lowered its bank rate by 0.75%. This is the second time in 2003 that BoN immediately followed South Africa's lead in interest rate cuts. In both cases, however, BoN's reductions were 0.25% lower than SARB's. This differential was deemed necessary to keep short-term investor cash in the country. In South Africa, major banks have already indicated that they would reduce their prime lending rates. Although there have not been any formal announcements by Namibian banks yet, they are expected to react shortly. |
| 030912 | The Bank of Namibia (BoN - the country's central bank) yesterday announced its second cut in the rate of borrowing in three months, reducing its bank rate . The BoN last slashed the key rate in June, reducing the borrowing rate by 1.25% from the previous 12%. Both yesterday's and June's cut in the leading lending rate were carried out in reaction to a similar reduction by the South African Reserve Bank (SARB). SARB also lowered its key repo rate for a second time in three months earlier this week, taking the rate down by 100 basis point to 10% . SARB justified its decision by pointing to the receding threat of inflation and the need to boost growth to keep up with a global economic recovery. |
| 030927 | In its latest quarterly report, the Bank of Namibia has noted that although most Namibian commercial banks were subsidiaries of South African ones, their interest rates and bank charges in the former country remained higher than in the latter. Banks have typically argued that this was due to the fact that they mainly did retail business in Namibia and thus incurred higher costs. The Bank of Namibia now aims to allow foreign banks to set up branches in the country to encourage competition and bring down interest rates. |
| 031017 | The Bank of Namibia (BoN - the country's central bank) yesterday announced its third cut in the rate of borrowing in four months, reducing its bank rate (the rate at which it lends to commercial banks) by 150 basis points, from 9.75% to 8.25% . The latest cut - which saw the bank's borrowing rate fall 3.75% since the 12% rate that was in place in June 2003 - was in reaction to a similar reduction by the South African Reserve Bank (SARB) yesterday. |
| 031216 | The First National Bank of Namibia is to reduce its prime lending rate, as well as its home-loan rate, from 13% to 12.5% in response to the latest rate cut by the Bank of Namibia. The new rates will be effective from 1 January 2004. Standard Bank, Commercial Bank of Namibia and Bank Windhoek are expected to follow this week. |
| 040311 | The Namibian government is to review its exclusive sales agreement with the world's leading diamond company, South African based De Beers, as part of a regular review process. At present, the main producer of diamonds in Namibia is the Namdeb Diamond Corporation, a 50:50 joint venture deal between the Namibian government and Consolidated Diamond Mines (CDM - a subsidiary of the South African company now called De Beers Centenary) that was signed a decade ago. But, with the exclusive arrangement up for renewal every five years (with the current contract due to expire in 2005), the government is now keen to review its existing arrangement with De Beers, with a view to getting a better deal. To this end, the government has appointed a seven-member team to look into the present pact with De Beers, expecting its findings on how the government can maximise its income from diamonds around July 2004. |
| 040427 | The Bank of Namibia (BoN) has followed the decision of the Monetary Policy Committee of the South African Reserve Bank (SARB) to leave interest rates unchanged. Namibia's bank rate thus remains at 7.75%, despite a recent surge in inflation. Inflation had hit a record low of 2.1% in December 2003, but has since increased to 3.3% in February, largely on the back of price increases in the services sector. |
| 040518 | According to the Central Bureau of Statistics, Namibia's Interim Consumer Price Index (ICPI) accelerated to 4.1% year on year in April, up from 3.8% in March, 3.3% in February, and 2.39% in January. Prices for transport and communications, clothing and footwear, household goods and services, housing, fuel, and power all increased. Food, beverages and tobacco, recreation, education, medical care and health services posted a decline in prices. Average annual inflation for the first quarter of 2004 is 3.2%. |
| 040616 | The Bank of Namibia (BoN) has announced that it will leave its bank rate unchanged at 7.75%, citing a favourable inflationary outlook and a recovery in GDP growth. Although inflation in Namibia has increased from 2.4% in January to 4.1% in April, the BoN expects inflationary pressures to decline again, and aims to create a favourable business environment by leaving the bank rate at its current level |
| 040624 | Just over a third (34%) of Namibians within the most economically active group (15 - 60yrs) are currently unemployed, a new study of the country's labour market has revealed. According to the two-year study by the Labour Resource and Research Institute (LaRRI), the unemployment problem affects women more adversely than men, with about 40% of the country's women currently jobless. More worryingly, unemployment is at its highest among young people, with 60% of Namibians under the age of 25 being out of work. The study also established that about 70% of workers interviewed earn less than N$3,000 (US$486) a month, while less than 10% earn N$6,000 or more. |
| 040702 | In its quarterly bulletin for January to March 2004, the Bank of Namibia (BoN) indicated that Namibia's debt increased from 28.4% in December 2003 to 29.1% of GDP in March 2004. This translates into a 2.4% increase in the first quarter of 2004 to a total of N$10.2bn (US$1.66bn), of which N$8.6bn were domestic debt. Although the ratio of total debt to GDP is slightly lower than Finance Minister Saara Kuugongelwa-Amadhila's projections of 30.3% in the budget speech |
| 040721 | Bank of Namibia governor (BoN) Tom Alweendo has announced that BoN is to modify its exchange control policies. A foreign exchange control amnesty - as pursued by South Africa - will, as a result, be discontinued, due to the insufficient evidence that large funds had been taken out of the country, and the high cost of administrational fees incurred. In addition, institutional investors - such as long-term insurers, pension funds, and unit trusts, through unit trust management companies - could now apply for foreign currency transfers to invest 15% of total assets outside the Common Monetary Area (CMA) of southern Africa, comprising South Africa, Namibia, Swaziland and Lesotho. The BoN has also shortened the length of time for the repatriation of foreign currency earnings from exports. |
| 040721 | According to a research brief by Standard Bank, Namibia's consumer inflation slowed to 2.23% year-on-year in June, down from 3.25% in May, largely due to a decline in food prices, which only rose by 1.5%. Food prices represent 29% of the basket used to calculate the Consumer Price Index. Housing, fuel and power prices, carrying the third-largest weight, posted a 3.44% year on year increase, but fell by 0.17% month on month. |
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Regulations on Foreign Investors |
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1998
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Restrictions: None. But investors must apply through an authorized dealer, usually a commercial bank, to ensure the free remittance of dividends and the proceeds of sales. The charges for dealing include a N$15.00 handling charge on every deal, plus a commission (minimum N$2.5) per transaction. Lower rates apply to trading on bonds and debt instruments. Taxation: 10% dividend tax and no capital-gain tax. General sales tax of 11% is added to the handling charge and commission.a6 |
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1999
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No change.a7 |
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2004 |
No change |
Last updated by Jerome Mo, Duke University.