Chamwe Kaira
Namibia’s stable political and legal environment offers a strong base for investment, but operational inefficiencies continue to limit business growth and job creation, according to Simonis Storm Securities.
The firm said predictable policies and rules-based governance help reduce risk for investors.
However, businesses still face high costs, slow administrative processes and weak support systems that limit expansion.
Drawing on the 2024 World Bank Enterprise Survey, Simonis Storm said companies face challenges such as limited access to finance and land, crime, high taxes, corruption, informality, skills shortages, unreliable electricity, transport issues and complex licensing procedures.
It said administrative delays add costs and slow down investment, hiring and capital spending.
The firm said Namibia has introduced policies to improve the business environment, but progress has been slowed by weak implementation and poor coordination between institutions.
It said the Namibia Investment Promotion Act provides a framework for investment, but uncertainty around reforms has affected confidence.
Special economic zones (SEZ) were introduced to reduce costs and simplify regulation. Simonis Storm said their success depends on whether they can improve efficiency.
It said public procurement laws aim to improve transparency, but weak enforcement and limited data continue to restrict opportunities for small and medium enterprises.
Infrastructure remains a concern. The firm said risks linked to energy, water, ports and logistics increase costs and discourage investment. It said the public-private partnership Act provides a framework, but delivery depends on execution.
Access to finance was identified as the main constraint for businesses, especially smalland medium enterprises (SMEs), women, youth and rural entrepreneurs.
Simonis Storm said limited credit, restricted trade finance and weak collateral systems continue to hold back growth. Namibia’s unemployment rate stands at 36.9%, with youth unemployment higher.
The firm noted that corporate tax rates have been reduced, including targeted rates for SMEs and SEZ, to support investment and job creation.
Simonis Storm said private sector growth remains constrained by administrative inefficiencies, infrastructure risks, security costs and limited financial access.
It recommended faster administrative processes, lower compliance costs, better logistics, reliable infrastructure, improved skills alignment and stronger financial markets.
