The White Paper on Industrial Development in Namibia was formulated in 1992. This policy framework provides the parameters in which industrial development, including manufacturing activities take place in Namibia.
The objectives of this policy are to increase manufacturing value added, by stimulating productivity and increase exports. The policy further aims to diversify and integrate the economy through the accelerated growth of the industrial sector, to generate productive employment opportunities and increase income opportunities for Namibians.
The policy framework has achieved the establishment of the Export Processing Zones (EPZ) in Walvis Bay and Oshikango although there are EPZ companies operating in other parts of the country.
The policy framework has also enabled the Government of Namibia to put in place incentives for manufacturers and exporters, aimed at encouraging manufacturing and the export of valued added products. In addition, through the policy framework, industrial parks have been established across the country.
A combination of industrial parks, multi-purpose centres and SME modules are established across the country.
The government of Namibia encourages new investments and supports the existing companies in the manufacturing sector as follows;
- Provision of both fiscal and non-fiscal incentives to the sector including Export Processing Zone (EPZ) status which allows zero corporate tax to manufacturing investors meeting the EPZ criteria.
- Direct subsidies to local SMEs to acquire machinery, to tax-related subsidies in the form of exemptions.
- Government also promotes small and medium enterprises in rural and urban areas so as to enhance labour intensive light manufacturing activities in these areas.
- Facilitate in gaining export market for locally produced products through various export development programs to promote the export of manufactured products in the region and to the rest of the world.
- Provide Investor aftercare through technical advisory and policy advocacy activities to continuously improve the business environment.
- Be a signatory to various bilateral and multilateral trade agreements which ensure wider regional and international markets access.