Financial and tax experts have urged Namibia to expand its tax treaty network, introduce broader investment incentives, and establish a dedicated tax court to strengthen revenue collection and economic competitiveness.
Speaking at a Namibia Trade Network Business Breakfast Club event hosted with AJM, Glory Indongo, a Chief Financial Officer and Chartered Accountant in the banking sector, said Namibia lacks treaties with many countries now trading or investing in its emerging sectors.
Indongo noted that Namibia performs better than many African peers on tax-to-GDP ratios due to its formalised economy, but said more could be done by adopting innovative approaches.
“If somebody is in the rural areas and there’s a Shoprite or a cash agent there, they should be able to pay taxes without spending on transport. Non-compliance often starts when paying taxes is too costly or complicated,” he said.
He added that while Namibia offers some equipment incentives in the energy sector, software, expertise and broader business needs remain unsupported. He also raised concerns over whether taxing companies too early deters investment.
“Do you start taxing the person immediately when they enter the country and tax capital, or wait until that baby starts growing and creating value? These are tough questions we have to ask as a country,” Indongo said.
Johan Nel, AJM’s Namibian Tax Director, said the absence of a tax court leaves disputes to be handled through either a slow tax tribunal or the High Court, discouraging taxpayers from challenging unfair practices.
He warned that aggressive assessments by the Namibia Revenue Agency (NamRA) had created fear among businesses.
“Taxpayers are afraid to take the revenue authority on because they fear deeper audits or penalties going back years. That is not a good place to be,” he said.
Nel added that while Namibia offers a stable business environment, policy certainty and incentives remain weak. He argued that concerns over the global minimum tax rate of 15 percent are overstated.
“There are ways of offering incentives that do not negatively impact the effective tax rate. Cost of labour or substance-based exemptions can attract industries without undermining compliance,” he said.
Albertus Marais, a South African partner at AJM, suggested that Namibia should consider lowering corporate tax rates to stimulate investment. He compared the country’s potential to Singapore and Mauritius.
“Fifty years ago Singapore and Mauritius had nothing. Cleverly adopting lower tax rates changed everything. Namibia is uniquely poised to follow a similar path if it adopts a well-designed tax administration act and maintains professional, impartial revenue services,” he said.
The experts agreed that without wider treaties, strategic incentives and improved legal recourse, Namibia risks missing opportunities in emerging industries and weakening its revenue stability.
