EPRU slams proposed Investment Bill
The Economic Policy Research Unit (EPRU) has raised serious concerns about Namibia’s proposed Investment Promotion Bill currently out for consultation, warning that it grants excessive and virtually unchecked discretionary powers to the minister of industries, mines and energy, thereby undermining investor certainty.
The EPRU argued that ministerial discretion under the Bill is “structurally virtually unlimited”. The minister may set policy, designate sectors, introduce incentives, impose conditions, require approvals, exempt or restrict investors, and issue binding directives.
In leading foreign direct investment (FDI) jurisdictions, by contrast, investment regulation is anchored in parliamentary negative lists, narrow national security tests, independent regulators and competition law, rather than political discretion. The proposed framework, the EPRU said, effectively replaces administrative law with executive preference, leaving both domestic and foreign capital insecure.
A particularly damaging provision relates to change of control, which the EPRU described as being “effectively nationalised”. Any change of control in a designated sector — including mergers, acquisitions, offshore transactions affecting Namibia or licence transfers — would require prior ministerial approval. Such approval would rest solely on political considerations.
The EPRU warned this would eliminate private exits without state permission, undermine mergers and acquisitions, complicate refinancing and destroy valuation certainty. As a result, private equity, project finance, venture capital and IPO feasibility would be severely constrained.
The proposed “Net Benefit Test to Namibia” is also criticised as ideological rather than economic. Approval criteria focus on redress priorities, youth and gender considerations, SME procurement and geographic redistribution, while omitting objective economic metrics such as productivity, capital efficiency, export competitiveness or financial strength.
The EPRU further cautioned that negotiated performance agreements would turn predictable laws into political bargains, encouraging rent-seeking and unequal treatment. It also flags potential constitutional challenges, citing risks to property rights and the freedom to conduct business.
