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An assessment of the investment climate in Namibia:
Volume I: Main Report

World Bank/RPED

June 2007

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Executive summary

The objective of the Investment Climate Assessment (ICA) for Namibia is to evaluate the investment climate in Namibia in all its operational dimensions. The investment climate is made up of location-specific factors that shape the opportunities and incentives for firms to invest productively, create jobs, and expand. These factors include macroeconomic and regulatory policies; the security of property rights and the rule of law; and the quality of supporting institutions such as physical and financial infrastructure.

The main sources of information for the ICA are two firm-level surveys. The first survey covered small, medium, and large enterprises (SMLEs) with five or more employees in retail trade, manufacturing, and other services. The second covered microenterprise with fewer than 5 employees in the same sectors. Information from the surveys is supplemented with information from other sources, including the Doing Business Report; analytical reports by the World Bank, the International Monetary Fund, other international organizations and the Government of Namibia; and academic papers and reports.

One of the advantages that the World Bank’s Enterprise Surveys have over other firmlevel surveys is that similar surveys have been conducted in a wide range of countries. It is therefore possible to benchmark Namibia against other countries with respect to both firm performance and measures of the investment climate. Throughout the report, firm performance and the investment climate in Namibia is benchmarked against the other SACU economies and four high performing middle income economies: Argentina, Chile, Malaysia, and Mauritius.

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