Central bank assures oil investors of favourable exchange control policies

The Bank of Namibia says its exchange control policies are favourable for foreign investors in the oil and gas industry.

According to Kazembire Zemburuka, the central banks spokesperson, the country’s exchange control policies are crafted to support the oil and gas sector by creating a conducive environment for foreign direct investments.

“The legislative framework aims to balance investment facilitation with the smooth operation of economic activities in this critical sector,” says Zemburuka.

According to the policies, foreign investors have the flexibility to introduce and externalise their funds through commercial banks.

This means they are allowed to bring their money into and take it out of the country through commercial banks.

“Foreign direct investments can be introduced freely via standard commercial banking channels,” says Zemburuka.

Moreover, investors enjoy exemption from currency conversion requirements.

“Foreign currency introduced into Namibia can be maintained in Foreign Currency-Denominated Accounts within local commercial banks for an indefinite period,” said Zemburuka.

This allows foreign companies in the oil and gas industry the flexibility to pay for foreign liabilities without converting funds to the local currency.

In the event of a disinvestment, investors can repatriate their capital without restrictions.

This means that if a foreign investor decides to sell their investment in the country (disinvestment), they can take their money back to their home country without any restrictions or limitations imposed by the government.

“While exchange control policies are in place, compliance with tax laws remains a critical obligation,” says Zemburuka.

Foreign-owned companies can also secure loans from local banks based on credit ratings and other criteria.

“Our policies are designed to attract and retain foreign investment, contributing to the sustainable growth of Namibia’s economy,” says Zemburuka.