Namibia’s tax environment remains attractive to investors despite plans to introduce a 10% dividend tax from 2026, according to investment managers speaking at a recent panel discussion hosted by the Young Investment Professionals Club (YIP).
Arinze Okafor, Executive Investment Manager at Mopane Asset Management, said that Namibia still offers significant advantages over neighbouring South Africa, particularly in its treatment of government bonds.
“Investors benefit from tax-free government bond interest, an incentive designed to encourage citizens to lend money to the government,” Okafor said.
He added that while a 10% dividend tax is expected to be implemented in 2026, Namibia’s overall tax landscape remains appealing.
“They are introducing a 10% dividend tax in 2026, which they want to implement. So that is when, for example, if a company makes a little extra profit by charging more fees and pays a dividend to shareholders, you’ll get taxed 10%. Currently, we don’t have that, which is why it’s really nice buying local stocks — you don’t pay any tax on dividends. There is either a slight withholding tax or interest that gets charged, but it’s around 10%,” he said.
Also on the panel, Lyndon Sauls, Fixed Income Dealer at Cirrus Securities, advised investors to understand the different investment philosophies used by asset managers or unit trusts. He recommended diversifying across these approaches to improve performance under changing market conditions.
“So when value is doing well, you have exposure to value; when growth is doing well, you have more exposure there. But that’s something I think people don’t initially pick up on, but it’s something to keep in the back of your mind,” Sauls said.
He further emphasised the importance of reviewing long-term performance and being mindful of emotional decision-making, which can undermine investment outcomes.
Chidera Onwudinjo ,Equity Portfolio Manager at IJG Investment Managers also stressed the importance of a balanced approach to portfolio construction. Investors should spread their funds across low-, medium-, and high-risk instruments, while setting aside a portion for more speculative investments.
He noted that consistent, modest returns are generally preferable to high-risk strategies that could result in steep losses.
