Namibia Country Profile

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Business Corruption in Namibia

Namibia FlagThe Namibia country profile provides companies with an analysis of how corruption affects the country’s political environment and business climate. Throughout the profile, readers can find detailed descriptions of the country's efforts in curbing corruption, corruption-related legislation, risk-prone sectors and industries, and more. This profile's General Information chapter provides an overview of anti-corruption activities and corruption risks in relation Namibia's political, business and regulatory environments. Namibia is often highlighted as an example of successful democratisation and corruption control on a continent infamous for its fragile political climate. Namibia is economically stable, and the market economy functions reasonably well. The private sector is generally viewed as the backbone of the economy and a catalyst of growth. This has led the government to pass business-friendly legislation, and several observers assess the business climate in Namibia as attractive compared to some of its neighbours. The following activities are some of examples showing how Namibia fights against corruption in the country.
  • Observers generally agree that Namibia's legal and institutional framework for curbing corruption is adequate and among the most functional in the region.
  • The regulatory environment in Namibia is viewed as business-friendly and uncomplicated, and the Namibian government's commitment to creating a liberal regulatory regime has made the country one of the least bureaucratic places to do business in the region.
  • During 2010, a number of high-ranking figures were arrested and, in some cases, imprisoned on corruption charges.
  • In 2012, the new Public Procurement Bill was presented. The Bill's aim is a more transparent public procurement process in Namibia.

Nevertheless, corruption continues to be a problematic factor in Namibia, including:

  • Some companies operating in Namibia report that interaction with tax officials occasionally entails bribery payments.
  • Companies should note that cumbersome and costly customs procedures are frequently associated with high-levels of corruption in the form of facilitation payments made to expedite procedures.
  • The Namibian extractive industry, especially the diamond sector, is allegedly a hot spot for corruption and money laundering.
  • The Namibian judicial system is particularly deficient, inconsistent in contract enforcement and vulnerable to political interference and pervasive corruption.

January 2014
GAN Integrity Solutions