In southern Africa, the Namibian mining sector is considered the most investor friendly due to its clear policies that have been consistently applied, according to South African mining experts, Webber Wentzel.
The importance of mining to the Namibian economy is reflected by a largely supportive regulatory regime. Namibia has four policies governing mining and mineral prospecting: the Minerals Policy of Namibia, the Minerals Prospecting and Mining Act of 1992, the Minerals Development Fund of Namibia Act of 1996 and the Diamond Act of 1999.
The Mineral Policy Guidance document issued by the Government, which recognizes that the private sector is best positioned to prospect for and extract natural resources.
The purpose of Government’s policy is to “focus on creating an enabling environment for the promotion of private sector investment in the mining sector.”
Government issues various mineral license types including:
- Exclusive Reconnaissance License
- Exclusive prospecting License
- Mining License
- Mineral Deposit Retention License
- Mining Claims
The Namibian Government accrues revenues from the mining sector in the form of profit taxes, dividends and royalty taxes. These are primarily used for Government programmes aimed at employment creation, poverty reduction, infrastructure development, education and health training.
The challenge for the Namibian government is to manage the plentiful mineral resources and ensuring the industry maximises the benefits for local communities while at the same time ensuring regulation does not deter investors and private sector players from playing their role in the sector’s growth.
